SB-0149, As Passed Senate, May 3, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 149

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11r, 11s,

 

15, 18, 18c, 20, 20d, 20f, 20m, 21, 22a, 22b, 22d, 22g, 24, 24a,

 

24c, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 32d, 32p,

 

32q, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 55, 56,

 

61a, 61b, 61c, 62, 64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 99t,

 

102d, 104, 104c, 104d, 107, 147, 147a, 147c, 152a, 152b, and 166b

 

(MCL 388.1603, 388.1604, 388.1606, 388.1608b, 388.1611, 388.1611a,

 

388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1611s, 388.1615,

 

388.1618, 388.1618c, 388.1620, 388.1620d, 388.1620f, 388.1620m,

 

388.1621, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1624,

 

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


388.1626c, 388.1631a, 388.1631b, 388.1631d, 388.1631f, 388.1631j,

 

388.1632d, 388.1632p, 388.1632q, 388.1635, 388.1635a, 388.1639,

 

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

 

388.1654, 388.1654b, 388.1655, 388.1656, 388.1661a, 388.1661b,

 

388.1661c, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674,

 

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

 

388.1699t, 388.1702d, 388.1704, 388.1704c, 388.1704d, 388.1707,

 

388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1752b, and

 

388.1766b), sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18,

 

20d, 20f, 22a, 22b, 22d, 22g, 24, 24a, 24c, 25f, 25g, 26a, 26b,

 

26c, 31a, 31d, 31f, 32d, 32p, 35, 35a, 39, 39a, 41, 51c, 51d, 53a,

 

54, 55, 56, 61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 99s, 102d, 104,

 

104d, 107, 147, 147a, 147c, 152a, and 166b as amended and sections

 

11s, 20m, 21, 31b, 31j, 32q, 54b, and 152b as added by 2016 PA 249,

 

section 8b as amended by 2015 PA 85, section 18c as amended by 2012

 

PA 201, sections 20, 61a, 61c, 98, 99h, 99t, and 104c as amended by

 

2016 PA 313, and section 51a as amended by 2016 PA 534, and by

 

adding sections 21h, 21j, 22m, 99c, 99k, 99u, and 160; and to

 

repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Achievement authority" means the education

 

achievement authority, the public body corporate and special

 

authority initially created under section 5 of article III and

 

section 28 of article VII of the state constitution of 1963 and the

 

urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512, by an interlocal agreement effective August 11, 2011,

 

between the school district of the city of Detroit and the board of

 


regents of Eastern Michigan University, a state public university.

 

     (2) "Achievement school" means a public school within the

 

education achievement system operated, managed, authorized,

 

established, or overseen by the achievement authority.

 

     (1) (3) "Average daily attendance", for the purposes of

 

complying with federal law, means 92% of the pupils counted in

 

membership on the pupil membership count day, as defined in section

 

6(7).

 

     (2) (4) "Board" means the governing body of a district or

 

public school academy.

 

     (3) (5) "Center" means the center for educational performance

 

and information created in section 94a.

 

     (4) (6) "Community district" means a school district organized

 

under part 5b of the revised school code.

 

     (5) (7) "Cooperative education program" means a written

 

voluntary agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 

written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

     (6) (8) "Department", except in section 107, means the

 

department of education.

 

     (7) (9) "District" means a local school district established

 

under the revised school code or, except in sections 6(4), 6(6),

 

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school

 

academy. Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,


105, 105c, and 166b, district also includes the education

 

achievement system. Except in section 20, district also includes a

 

community district.

 

     (8) (10) "District of residence", except as otherwise provided

 

in this subsection, means the district in which a pupil's custodial

 

parent or parents or legal guardian resides. For a pupil described

 

in section 24b, the pupil's district of residence is the district

 

in which the pupil enrolls under that section. For a pupil

 

described in section 6(4)(d), the pupil's district of residence

 

shall be considered to be the district or intermediate district in

 

which the pupil is counted in membership under that section. For a

 

pupil under court jurisdiction who is placed outside the district

 

in which the pupil's custodial parent or parents or legal guardian

 

resides, the pupil's district of residence shall be considered to

 

be the educating district or educating intermediate district.

 

     (9) (11) "District superintendent" means the superintendent of

 

a district , or the chief administrator of a public school academy.

 

, or the chancellor of the achievement authority.

 

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

 

achievement authority and all achievement schools.

 

     (1) (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.


     (2) (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.

 

     (3) (4) "Fiscal year" means the state fiscal year that

 

commences October 1 and continues through September 30.

 

     (4) (5) "High school equivalency certificate" means a

 

certificate granted for the successful completion of a high school

 

equivalency test.

 

     (5) (6) "High school equivalency test" means the G.E.D. test

 

developed by the GED Testing Service, the Test Assessing Secondary

 

Completion (TASC) developed by CTS/McGraw-Hill, the HISET test

 

developed by the Education Testing Service (ETS), or another

 

comparable test approved by the department of talent and economic

 

development.

 

     (6) (7) "High school equivalency test preparation program"

 

means a program that has high school level courses in English

 

language arts, social studies, science, and mathematics and that

 

prepares an individual to successfully complete a high school

 

equivalency test.

 

     (7) (8) "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 times the number of full-time equated pupils

 

in grades K to 12 actually enrolled and in regular daily attendance

 

on the pupil membership count day for the current school year, plus

 

the product of .10 times the final audited count from the

 

supplemental count day for the immediately preceding school year. A

 

district's, public school academy's, or intermediate district's

 

membership shall be adjusted as provided under section 25e for

 

pupils who enroll after the pupil membership count day in a strict

 

discipline academy operating under sections 1311b to 1311m of the

 

revised school code, MCL 380.1311b to 380.1311m. However, for a

 

district that is a community district, in its first year of

 

operation, "membership" means the sum of the product of .90 times

 

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

 

enrolled and in regular daily attendance in the community district

 

on the pupil membership count day for the current school year, plus

 

the product of .10 times the sum of the final audited count from

 

the supplemental count day of pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in a qualifying school

 

district as defined in section 5 of the revised school code, MCL

 

380.5, the community district for the immediately preceding school

 

year plus the final audited count from the supplemental count day

 

of pupils in grades K to 12 actually enrolled and in regular daily

 

attendance in the education achievement system for the immediately


preceding school year. All pupil counts used in this subsection are

 

as determined by the department and calculated by adding the number

 

of pupils registered for attendance plus pupils received by

 

transfer and minus pupils lost as defined by rules promulgated by

 

the superintendent, and as corrected by a subsequent department

 

audit. For the purposes of this section and section 6a, for a

 

school of excellence that is a cyber school, as defined in section

 

551 of the revised school code, MCL 380.551, and is in compliance

 

with section 553a of the revised school code, MCL 380.553a, a

 

pupil's participation in the cyber school's educational program is

 

considered regular daily attendance; for the education achievement

 

system, a pupil's participation in 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 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.

 

     (c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

     (d) A pupil placed by a court or state agency in an on-grounds

 

program of a juvenile detention facility, a child caring

 

institution, or a mental health institution, or a pupil funded

 

under section 53a, shall be counted in membership in the district

 

or intermediate district approved by the department to operate the

 

program.

 

     (e) A pupil enrolled in the Michigan schools Schools for the

 

deaf and blind 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.For the purposes

 

of this section and section 6a, for a cyber school, as defined in

 

section 551 of the revised school code, MCL 380.551, that 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, and for a district

 

or public school academy, a pupil's participation in a virtual

 

course as defined in section 21f is considered regular daily

 

attendance.

 

     (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 For 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 in

 

membership.

 

     (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 pupils with extreme barriers to education, such as being

 

homeless as defined under 42 USC 11302.

 

     (B) Had dropped out of school.

 

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

 

current school year.

 

     (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 achieved a high school diploma shall

 

not be counted in membership. An individual who has achieved a 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. 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 department of talent and economic

 

development, 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 , or a public school academy , or the

 

education achievement system that has pupils enrolled in a grade

 

level that was not offered by the district , the or 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 times the number of full-time equated pupils in

 

grades K to 12 actually enrolled and in regular daily attendance on

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

product of .10 times the final audited count from the most recent

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.


     (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 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 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 or 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 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 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 other public school academy in which a former

 

pupil of the closed 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 other public school

 

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

 

if the pupil were counted in the district or the education

 

achievement system other public school academy on the supplemental

 

count day of the preceding school year.

 

     (gg) If a special education pupil is expelled under section

 

1311 or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and is not in attendance on the pupil membership count

 

day because of the expulsion, and if the pupil remains enrolled in

 

the district and resumes regular daily attendance during that

 

school year, the district's membership shall be adjusted to count

 

the pupil in membership as if he or she had been in attendance on

 

the pupil membership count day.


     (hh) A pupil enrolled in a community district shall be counted

 

in membership in the community district. For a community district

 

in its first fiscal year of operations only, until the department

 

is able to calculate the community district's membership, the

 

department shall consider the community district's membership to be

 

the same as the membership for the immediately preceding fiscal

 

year for a district with the same boundaries as the community

 

district that had membership for that fiscal year.

 

     (ii) A part-time pupil enrolled in a nonpublic school in

 

grades K to 12 in accordance with section 166b shall not be counted

 

as more than 0.75 of a full-time equated membership.

 

      (jj) A district that borders another state or a public school

 

academy that operates at least grades 9 to 12 and is located within

 

20 miles of a border with another state may count in membership a

 

pupil who is enrolled in a course at a college or university that

 

is located in the bordering state and within 20 miles of the border

 

with this state if all of the following are met:

 

     (i) The pupil would meet the definition of an eligible student

 

under the postsecondary enrollment options act, 1996 PA 160, MCL

 

388.511 to 388.524, if the course were an eligible course under

 

that act.

 

     (ii) The course in which the pupil is enrolled would meet the

 

definition of an eligible course under the postsecondary enrollment

 

options act, 1996 PA 160, MCL 388.511 to 388.524, if the course

 

were provided by an eligible postsecondary institution under that

 

act.

 

     (iii) The department determines that the college or university


is an institution that, in the other state, fulfills a function

 

comparable to a state university or community college, as those

 

terms are defined in section 3 of the postsecondary enrollment

 

options act, 1996 PA 160, MCL 388.513, or is an independent

 

nonprofit degree-granting college or university.

 

     (iv) The district or public school academy pays for a portion

 

of the pupil's tuition at the college or university in an amount

 

equal to the eligible charges that the district or public school

 

academy would pay to an eligible postsecondary institution under

 

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

 

to 388.524, as if the course were an eligible course under that

 

act.

 

     (v) The district or public school academy awards high school

 

credit to a pupil who successfully completes a course as described

 

in this subdivision.

 

     (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 an individual 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 K to 12 in

 

accordance with section 166b.

 

     (b) A pupil receiving 1/2 or less of his or her instruction in

 

a district other than the pupil's district of residence.

 

     (c) A pupil enrolled in a public school academy. or the


education achievement system.

 

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

 

district of residence under an intermediate district schools of

 

choice pilot program as described in section 91a or former section

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

     (f) A pupil who has made an official written complaint or

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

the pupil's district of residence that the pupil has been the

 

victim of a criminal sexual assault or other serious assault, if

 

the official complaint either indicates that the assault occurred

 

at school or that the assault was committed by 1 or more other

 

pupils enrolled in the school the pupil would otherwise attend in

 

the district of residence or by an employee of the district of

 

residence. A person who intentionally makes a false report of a

 

crime to law enforcement officials for the purposes of this

 

subdivision is subject to section 411a of the Michigan penal code,

 

1931 PA 328, MCL 750.411a, which provides criminal penalties for

 

that conduct. As used in this subdivision:

 

     (i) "At school" means in a classroom, elsewhere on school

 

premises, on a school bus or other school-related vehicle, or at a

 

school-sponsored activity or event whether or not it is held on

 

school premises.


     (ii) "Serious assault" means an act that constitutes a felony

 

violation of chapter XI of the Michigan penal code, 1931 PA 328,

 

MCL 750.81 to 750.90h, 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, Public

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

for 2015-2016, 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 or public

 

school academy , or the education achievement system before the

 

pupil membership count day or supplemental count day of a

 

particular year but was expelled or suspended on the pupil

 

membership count day or supplemental count day shall only be

 

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

 

attendance in the district, intermediate district, or public school

 

academy , or education achievement system within 45 days after the

 

pupil membership count day or supplemental count day of that

 

particular year. Pupils not counted as 1.0 full-time equated

 

membership due to an absence from a class shall be counted as a

 

prorated membership for the classes the pupil attended. For

 

purposes of this subsection, "class" means a period of time in 1

 

day when pupils and a certificated teacher or legally qualified

 

substitute teacher are together and instruction is taking place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

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

 

district", and "district of the first class" mean, 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 (o), 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. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised

 

school code and is eligible to receive funding under this article

 

within 30 days after a contract is submitted to the department by

 

the authorizing body of a public school academy.

 

     (2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this article to the newly authorized public school

 

academy shall be a number that is equivalent to the sum of the last

 

district code assigned to a public school academy located in the

 

same county as the newly authorized public school academy plus 1.

 

However, if there is not an existing public school academy located

 

in the same county as the newly authorized public school academy,

 

then the district code the department shall use to make payments


under this article to the newly authorized public school academy

 

shall be a 5-digit number that has the county code in which the

 

public school academy is located as its first 2 digits, 9 as its

 

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

 

the number of public school academies in a county grows to exceed

 

100, the third digit in this 5-digit number shall then be 7 for the

 

public school academies in excess of 100.

 

     (3) For each school of excellence that is a cyber school and

 

is authorized under part 6e of the revised school code, MCL 380.551

 

to 380.561, by a school district, intermediate school district,

 

community college other than a federal tribally controlled

 

community college, or other authorizing body that is not empowered

 

to authorize a school of excellence to operate statewide and is

 

eligible to receive funding under this article, the all of the

 

following apply:

 

     (a) The department shall assign a district code that includes

 

as the first 2 digits the county code in which the authorizing body

 

is located.

 

     (b) If the cyber school does not provide instruction at a

 

specific location, the intermediate district that would normally

 

provide programs and services to the school district in which the

 

administrative office of cyber school is located shall provide

 

programs and services to the cyber school. The intermediate school

 

district required to provide programs and services to a cyber

 

school under this subdivision remains the same for as long as that

 

cyber school is in operation.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2016,


Senate Bill No. 149 as amended May 3, 2017

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,905,439,300.00 from the state school aid fund and the sum of

 

$55,100,000.00 from the general fund. For the fiscal year ending

 

September 30, 2017, there is appropriated for the public schools of

 

this state and certain other state purposes relating to education

 

the sum of $12,052,309,300.00 $12,036,869,300.00 from the state

 

school aid fund, the sum of $218,900,000.00 from the general fund,

 

an amount not to exceed $72,000,000.00 from the community district

 

education trust fund created under section 12 of the Michigan trust

 

fund act, 2000 PA 489, MCL 12.262, and an amount not to exceed

 

$100.00 from the water emergency reserve fund. For the fiscal year

 

ending September 30, 2018, there is appropriated for the public

 

schools of this state and certain other state purposes relating to

 

education the sum of <<$12,293,761,900.00>> from the state school aid

 

fund, the sum of $195,000,000.00 from the general fund, an amount

 

not to exceed $72,000,000.00 from the community district education

 

trust fund created under section 12 of the Michigan trust fund act,

 

2000 PA 489, MCL 12.262, and an amount not to exceed $100.00 from

 

the water emergency reserve fund. In addition, all other available

 

federal funds are appropriated each fiscal year for the fiscal

 

years ending September 30, 2016 and September 30, 2017 and

 

September 30, 2018.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

from the general fund shall be expended to fund the purposes of

 

this article before the expenditure of money appropriated under


this section from the state school aid fund.

 

     (3) Any general fund allocations under this article that are

 

not expended by the end of the state fiscal year are transferred to

 

the school aid stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

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

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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


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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

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

 

stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

as required under section 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 2016-2017 and for 2017-2018, 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 $10,500,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $126,500,000.00

 

$125,500,000.00 for 2016-2017 2017-2018 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 2016-2017, 2017-2018, 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 2015-2016 an amount not to exceed $1,000,000.00 and

 

there is allocated for 2016-2017 an amount not to exceed

 

$3,000,000.00 $5,500,000.00 and there is allocated for 2017-2018 an

 

amount not to exceed $6,500,000.00 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. 11r. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be

 

deposited into the distressed districts emergency grant fund

 

created under this section for the purpose of funding grants under

 

this section.

 

     (2) The distressed districts emergency grant fund is created

 

as a separate account within the state school aid fund. The state

 

treasurer may receive money or other assets from any source for

 

deposit into the distressed districts emergency grant fund. The

 

state treasurer shall direct the investment of the distressed

 

districts emergency grant fund and shall credit to the distressed


districts emergency grant fund interest and earnings from the fund.

 

     (3) Subject to subsection (4), a district is eligible to

 

receive a grant from the distressed districts emergency grant fund

 

if either of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

treasurer under section 12 of the revised school code, MCL 380.12,

 

but the dissolution has not yet taken effect under that section.

 

     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls

 

pupils who were previously enrolled in a district that was

 

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

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not

 

eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the

 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section


20g.

 

     (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

the district receiving funds under this section, the amount of the

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the

 

intended use of funds disbursed under this section.

 

     (7) Except as otherwise provided in subsection (8), money in

 

the distressed districts emergency grant fund at the close of a

 

fiscal year shall remain in the distressed districts emergency

 

grant fund and shall not lapse to the state school aid fund or to

 

the general fund.

 

     (8) For 2015-2016 2016-2017 only, an amount not to exceed

 

$2,800,000.00 the remaining balance in the work project that was

 

established under this section for 2014-2015, estimated at

 

$1,000,000.00, shall be lapsed from the distressed districts

 

emergency grant fund to the state school aid fund.

 

     Sec. 11s. (1) From the general fund appropriation in section

 

11, there is allocated $10,142,500.00 for 2016-2017 and there is

 

allocated $8,730,000.00 for 2017-2018 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 for which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year 2 fiscal years under the emergency management act, 1976 PA


390, MCL 30.401 to 30.421. From the funding appropriated in section

 

11, there is allocated for each fiscal year for 2016-2017 and for

 

2017-2018 $100.00 from the water emergency reserve fund for the

 

purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

to a district with the majority of its territory located within the

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding fiscal

 

year 2 fiscal years and that has at least 5,000 4,500 pupils in

 

membership for the current 2016-2017 fiscal year or has at least

 

4,000 pupils in membership for a fiscal year after 2016-2017, an

 

amount not to exceed $1,292,500.00 for 2016-2017 and an amount not

 

to exceed $2,625,000.00 for 2017-2018 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 prescribed 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 after receipt. The report shall

 

provide at least the following information:

 

     (a) How many personnel were hired using the funds allocated

 

under this subsection.

 

     (b) A description of the services provided to pupils by those

 

personnel.

 

     (c) How many pupils received each type of service identified

 

in subdivision (b).

 

     (d) Any other information the department considers necessary


to ensure that 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 $1,195,000.00

 

for 2016-2017 and an amount not to exceed $2,500,000.00 for 2017-

 

2018 to augment staff for the purpose of providing additional early

 

childhood services and for nutritional services to children

 

described in subsection (1), regardless of location of school of

 

attendance. The For 2016-2017, the early childhood services to be

 

provided under this subsection are state early intervention

 

services as described in subsection (4) and early literacy

 

services. Beginning with 2017-2018, the early childhood services to

 

be provided under this subsection are state early intervention

 

services that are similar to the services described in the early on

 

Michigan state plan, including ensuring that all children described

 

in subsection (1) who are less than 4 years of age as of September

 

1, 2016 are assessed and evaluated at least twice annually. In

 

addition, funds allocated under this subsection may also be

 

expended to provide informational resources to parents, educators,

 

and the community, and to 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 after receipt. The report shall provide at least 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.

 

     (c) What types of additional nutritional services were

 

provided.

 

     (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 that the children described in subsection (1) received

 

appropriate levels and types of services.

 

     (4) From For 2016-2017 only, from the allocation in subsection

 

(1), there is allocated an amount not to exceed $6,155,000.00 to

 

intermediate districts described in subsection (3) to provide state

 

early intervention services for children described in subsection

 

(1) who are less than 4 years of age as of September 1, 2016. The

 

intermediate district shall use these funds to provide state early

 

intervention services that are similar to the services described in

 

the early on Michigan state plan, including ensuring that all

 

children described in subsection (1) who are less than 4 years of

 

age as of September 1, 2016 are assessed and evaluated at least

 

twice annually.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $1,500,000.00 for 2016-2017 and an amount


not to exceed $3,000,000.00 for 2017-2018 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) For 2017-2018, from the allocation in subsection (1),

 

there is allocated an amount not to exceed $605,000.00 for

 

nutritional services to children described in subsection (1).

 

     (7) (6) In addition to other funding allocated and

 

appropriated in this section, there is appropriated an amount not

 

to exceed $15,000,000.00 each fiscal year for 2016-2017 and 2017-

 

2018 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.

 

     (8) Notwithstanding section 17b, payments under this section

 

shall be paid on a schedule determined by the department.

 

     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.

 

     (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) The department shall not deduct any funds from a district

 

due to a pupil being counted in membership before the effective

 

date of the amendatory act that added section 6(4)(jj), or

 

otherwise reduce an allocation under this article to a district

 

relative to the counting of a pupil in membership as provided under

 

section 6(4)(jj), if the district substantially complied with the

 

requirements under section 6(4)(jj) in a previous fiscal year as if

 

section 6(4)(jj) had been in effect in the previous fiscal year.    

 

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

 

programs and services, there is appropriated for 2016-2017 2017-

 

2018 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.

 

     (C) Retirement benefit costs.


     (D) All other personnel costs.

 

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

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

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

 

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

 

any other type of benefits that would constitute health care

 

services, offered to any bargaining unit or employee in the

 

district.

 

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

 

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

 

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

 

     (c) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

     (d) The pupil and financial accounting records and reports,

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

     (e) All of the following shall be done not later than November

 

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's 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)

 

are 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 By November 1 , 2016, of each year, if a

 

district or intermediate district offers 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 virtual learning by vendor type. The report shall

 

include at least all of the following information concerning the

 

operation of virtual learning for the immediately preceding school

 

fiscal year: ending June 30, 2016:

 

     (a) The name of the district operating the virtual learning

 

and of each district that enrolled students in the virtual

 

learning.

 

     (b) The total number of students enrolled in the virtual

 

learning and the total number of membership pupils enrolled in the

 

virtual learning.

 

     (c) For each pupil who is enrolled in a district other than

 

the district offering virtual learning, the name of that district.

 

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

 

enrolling in the district offering 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, virtual instruction and instructional support, personnel,

 

hardware and software, payment to each virtual learning provider,

 

and other costs associated with operating virtual learning.

 

     (h) The name of each virtual education provider contracted by

 

the district and the state in which each virtual education provider

 

is headquartered.

 

     (13) Not later than By March 31 , 2017, of each year, 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 virtual courses available under

 

section 21f.

 

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

 

the following:

 

     (a) Virtual courses provided by the Michigan Virtual

 

University.

 

     (b) 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.

 

     (c) Virtual courses provided by third party vendors not


affiliated with a Michigan public school.

 

     (d) 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.

 

     (16) Beginning October 1, 2017, and not less than once every 3

 

months after that date, the department shall submit to the senate

 

and house subcommittees on school aid and to the senate and house

 

standing committees on education an itemized list of allocations

 

under this article to any association or consortium consisting of

 

associations. The report shall detail the recipient or recipients,

 

the amount allocated, and the purpose for which the funds were

 

distributed.

 

     Sec. 18c. Any contract, mortgage, loan, or other instrument of

 

indebtedness entered into by a public school academy , the

 

achievement authority, or an achievement school receiving funds

 

under this act article and a third party does not constitute an

 

obligation, either general, special, or moral, of this state or of

 

an authorizing body. The full faith and credit or the taxing power

 

of this state or any agency of this state, or the full faith and

 

credit of an authorizing body, shall not be pledged for the payment

 

of any contract, mortgage, loan, or other instrument of

 

indebtedness entered into by a public school academy , the

 

achievement authority, or an achievement school.

 

     Sec. 20. (1) For 2016-2017, 2017-2018, both of the following

 

apply:


     (a) The basic target foundation allowance, formerly known as

 

the basic foundation allowance, is $8,229.00.$8,317.00.

 

     (b) The minimum foundation allowance is $7,511.00.$7,687.00.

 

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

 

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

 

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 at least equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year, but less than the basic target 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 target foundation

 

allowance and [(the difference between the basic target foundation

 

allowance for the current state fiscal year and basic target

 

foundation allowance for the immediately preceding state fiscal

 

year minus $20.00) $29.00) 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 target 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 target

 

foundation allowance for the immediately preceding state fiscal

 

year shall not exceed the basic target foundation allowance for the

 

current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount equal to the amount of the basic

 

target foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance for

 

2016-2017 2017-2018 in an amount equal to the basic target

 

foundation allowance for 2016-2017.2017-2018.

 

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

 

immediately preceding state fiscal year that was greater than the

 

basic target 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 target 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 foundation allowance

 

supplemental payment calculated under section 20m and paid under

 

section 22b for 2016-2017, the district's 2016-2017 foundation

 

allowance is considered to have been an amount equal to the sum of

 

the district's actual 2016-2017 foundation allowance as otherwise

 

calculated under this section plus the lesser of the per pupil

 

amount of the district's supplemental payment for 2016-2017 as

 

calculated under section 20m 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.

 

     (4) Except as otherwise provided in this subsection, beginning

 

in 2014-2015, the state portion of a district's foundation

 

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

 

or the basic target foundation allowance for the current state

 

fiscal year, whichever is less, minus the local portion of the

 

district's foundation allowance. For a district described in

 

subsection (3)(c), beginning in 2014-2015, 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. 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. For a community

 

district, if school operating taxes continue to be levied by a

 

qualifying school district under section 12b of the revised school

 

code, MCL 380.12b, with the same geographic area as the community

 

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

 

community district to be used for the purposes of this subsection

 

does not include the taxable value of property within the

 

geographic area of the community 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 20m.

 

     (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 Except as otherwise provided in this

 

subsection, 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.

 

     (7) (8) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

qualifying school district, as described in section 12b of the

 

revised school code, MCL 380.12b, that is located within the same

 

geographic area as the community district.

 

     (8) (9) 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

 

20m.

 

     (9) (10) 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) (11) 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) (12) To assist the legislature in determining the basic

 

minimum foundation allowance for the subsequent state fiscal year,

 

each revenue estimating conference conducted under section 367b of

 

the management and budget act, 1984 PA 431, MCL 18.1367b, shall

 

calculate a pupil membership factor, a revenue adjustment factor,

 

and an index as follows:

 

     (a) The pupil membership factor shall be computed by dividing

 

the estimated membership in the school year ending in the current


state fiscal year, excluding intermediate district membership, by

 

the estimated membership for the school year ending in the

 

subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at

 

the revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (b) The revenue adjustment factor shall be computed by

 

dividing the sum of the estimated total state school aid fund

 

revenue for the subsequent state fiscal year plus the estimated

 

total state school aid fund revenue for the current state fiscal

 

year, adjusted for any change in the rate or base of a tax the

 

proceeds of which are deposited in that fund and excluding money

 

transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act,

 

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

 

total school aid fund revenue for the current state fiscal year

 

plus the estimated total state school aid fund revenue for the

 

immediately preceding state fiscal year, adjusted for any change in

 

the rate or base of a tax the proceeds of which are deposited in

 

that fund. If a consensus revenue factor is not determined at the

 

revenue estimating conference, the principals of the revenue

 

estimating conference shall report their estimates to the house and

 

senate subcommittees responsible for school aid appropriations not

 

later than 7 days after the conclusion of the revenue conference.

 

     (c) The index shall be calculated by multiplying the pupil


membership factor by the revenue adjustment factor. 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) (13) Payments to districts , and 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) (14) 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) (15) As used in this section:

 

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

 

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

 

1993-94.

 

     (b) "Combined state and local revenue" means the aggregate of

 

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

 

the district under this section and the district's local school

 

operating revenue.

 

     (c) "Combined state and local revenue per membership pupil"

 

means the district's combined state and local revenue divided by

 

the district's membership excluding special education pupils.

 

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


for which a particular calculation is made.

 

     (e) "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 target foundation allowance for

 

the current state fiscal year and the basic target foundation

 

allowance for the immediately preceding state fiscal year and [(the

 

amount of the difference between the basic target foundation

 

allowance for the current state fiscal year and the basic target

 

foundation allowance for the immediately preceding state fiscal

 

year minus $20.00) $29.00) 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 target 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 2016-2017, 2017-

 

2018, the maximum public school academy allocation is

 

$7,511.00.$7,687.00.

 

     (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) "Target foundation allowance for the immediately preceding

 

state fiscal year" means, for 2017-2018 only, the basic foundation

 

allowance in effect for the 2016-2017 fiscal year.

 

     (r) (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.

 

     (s) (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.

 

     (15) For the purposes of section 1211 of the revised school

 

code, MCL 380.1211, the basic foundation allowance under this

 

section is considered to be the target foundation allowance under

 

this section.

 

     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 2016-2017, a subsequent fiscal year, 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


Senate Bill No. 149 as amended May 3, 2017

 

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, sections 51 to 56, 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$19,400,000.00>>

 for 2016-2017

 


2017-2018 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

 

former section 22c for 2013-2014.

 

     (c) The quotient of the district's allocation under section

 

147a for 2012-2013 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 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.


Senate Bill No. 149 as amended May 3, 2017           (1 of 2)

 

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

 

funding under former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former 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 former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former 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) THE FUNDING UNDER THIS SUBSECTION IS FROM THE ALLOCATION UNDER SUBSECTION (1). A DISTRICT IS ELIGIBLE FOR FUNDING UNDER THIS SUBSECTION FOR 2017-2018 IF THE SUM OF THE FOLLOWING IS LESS THAN $0.00:

     (A) THE INCREASE IN THE DISTRICT'S FOUNDATION ALLOWANCE OR PER-PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FROM 2016-2017 TO 2017-2018.

     (B) THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2017-2018 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2017-2018 MINUS THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017.

Senate Bill No. 149 as amended May 3, 2017                    (2 of 2)

 

     (C) THE PRODUCT OF THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 147A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017, MULTIPLIED BY NEGATIVE ONE.

     (7) THE AMOUNT ALLOCATED TO EACH ELIGIBLE DISTRICT UNDER SUBSECTION (6) IS AN AMOUNT PER MEMBERSHIP PUPIL EQUAL TO $0.00 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 2016-2017 TO 2017-2018.

     (B) THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2017-2018 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2017-2018 MINUS THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017.

     (C) THE PRODUCT OF THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 147A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017, MULTIPLIED BY NEGATIVE ONE.>>

     <<(8)(6)>> If the allocation under subsection (1) is insufficient

to

fully fund payments under subsections <<(3) and (5)(3), (5), AND

(7)>> as otherwise

 

calculated under this section, the department shall prorate


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

 

     Sec. 20m. (1) Foundation allowance supplemental payments for

 

2016-2017 2017-2018 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 2015-2016 state fiscal

 

year to the current state fiscal year in the basic target

 

foundation allowance minus the dollar amount of the adjustment from

 

the immediately preceding 2015-2016 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 and

 

there is allocated an amount not to exceed $100.00 for 2017-2018 to

 

make supplemental payments to eligible districts that are

 

identified under section 1280c of the revised school code, MCL

 

380.1280c, as being among the lowest achieving 5% of all public

 

schools in this state.

 

     (2) A district is eligible to receive the supplemental

 

payments calculated under this section for 3 consecutive fiscal

 

years if all of the following conditions are met:

 

     (a) The state school reform/redesign officer has appointed a

 

chief executive officer to take control of 1 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 at least 1 high school

 

operated by the district.

 

     (b) As determined by the school reform office, an intervention

 

agreement meeting at least 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. However, the intervention agreement shall not mitigate the

 

authority of the chief executive officer prescribed in applicable

 

statute including financial and employment authority.

 

     (ii) The allocation of supplemental payments under this

 

section.

 

     (iii) The compensation for the chief executive officer.

 

     (iv) The 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) A dispute resolution process.

 

     (viii) The length of the term of the agreement.

 

     (ix) Other provisions as determined by the school reform

 

office for successful implementation of the chief executive officer

 

intervention.

 

     (c) The district has not entered into and is not currently

 

operating under a local government option under the local financial

 

stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or

 

a successor act.

 

     (3) The state school reform/redesign officer, at least

 

annually, shall appear in person before the house and senate

 

appropriations subcommittees responsible for school aid to provide

 

an update on the yearly progress of schools under the control of a

 

chief executive officer. In addition, the state school

 

reform/redesign officer shall provide a quarterly report concerning

 

the chief executive officer's use of funds to increase pupil


achievement.

 

     (4) The supplemental payment provided to a district under this

 

section shall be calculated by multiplying the district's

 

foundation allowance by 20% of the high school's membership for the

 

prior fiscal year. The same dollar amount shall continue to be

 

available to the district for a maximum of 3 years, subject to the

 

conditions specified in subsection (2).

 

     (5) From the allocation in subsection (1), in addition to the

 

supplemental payments calculated under subsection (4), 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.

 

     (6) For the purposes of this section, a high school is a

 

school that operates exclusively all of grades 9 to 12.

 

     (7) The funds allocated under this section for 2016-2017 are a

 

work project appropriation, and any unexpended funds for 2016-2017

 

are carried forward into 2017-2018. The purpose of the work project

 

is to make the second and third year supplemental payments to

 

districts as calculated under subsection (4). The estimated

 

completion date of the work project is September 30, 2019.

 

     Sec. 21h. (1) From the appropriation in section 11, there is

 

allocated $100.00 for 2017-2018 for assisting districts assigned by

 

the superintendent to participate in a partnership to improve

 

student achievement. The purpose of the partnership is to identify

 

district needs, develop intervention plans, and partner with

 

public, private, and nonprofit organizations to coordinate


resources and improve student achievement. Assignment of a district

 

to a partnership is at the sole discretion of the superintendent.

 

     (2) A district assigned to a partnership by the superintendent

 

is eligible for funding under this section if the district includes

 

at least 1 school that has been rated with a grade of "F", or

 

comparable performance rating, in the most recent state

 

accountability system rating, that is not under the supervision of

 

the state school reform/redesign office, and that does all of the

 

following:

 

     (a) Completes a comprehensive needs evaluation in

 

collaboration with an intermediate school district, community

 

members, education organizations, and postsecondary institutions,

 

as applicable and approved by the superintendent, within 90 days of

 

assignment to the partnership described in this section. The

 

comprehensive needs evaluation shall include at least all of the

 

following:

 

     (i) A review of the district's implementation and utilization

 

of a multi-tiered system of supports to ensure that it is used to

 

appropriately inform instruction.

 

     (ii) A review of the district and school building leadership

 

and educator capacity to substantially improve student outcomes.

 

     (iii) A review of classroom, instructional, and operational

 

practices and curriculum to ensure alignment with research-based

 

instructional practices and state curriculum standards.

 

     (b) Develops an intervention plan that has been approved by

 

the superintendent and that addresses the needs identified in the

 

comprehensive needs evaluation completed under subdivision (a). The


intervention plan shall include at least all of the following:

 

     (i) Specific actions that will be taken by the district and

 

each of its partners to improve student achievement.

 

     (ii) Specific measurable benchmarks that will be met within 18

 

months to improve student achievement and identification of

 

expected student achievement outcomes to be attained within 3 years

 

after assignment to the partnership.

 

     (3) Upon approval of the intervention plan developed under

 

subsection (2), the department shall assign a team of individuals

 

with expertise in comprehensive school and district reform to

 

partner with the district, the intermediate district, community

 

organizations, education organizations, and postsecondary

 

institutions identified in the intervention plan to review the

 

district's use of existing financial resources to ensure that those

 

resources are being used as efficiently and effectively as possible

 

to improve student academic achievement.

 

     (4) Funds allocated under this section may be used to pay for

 

district expenditures approved by the superintendent to improve

 

student achievement. Funds may be used for professional development

 

for teachers or district or school leadership, increased

 

instructional time, teacher mentors, or other expenditures that

 

directly impact student achievement and cannot be paid from

 

existing district financial resources. An eligible district shall

 

not receive funds under this section for more than 3 years.

 

Notwithstanding section 17b, payments to eligible districts under

 

this section shall be paid on a schedule determined by the

 

department.


     (5) The department shall annually report to the legislature on

 

the activities funded under this section and how those activities

 

impacted student achievement in eligible districts that received

 

funds under this section.

 

     Sec. 21j. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $8,000,000.00 for 2017-2018 for

 

academic early warning, intervention, and supplemental funding to

 

districts under sections 21 and 21h. Money allocated under this

 

section is only available for transfer to section 21 or 21h under

 

section 393(2) of the management and budget act, 1984 PA 431, MCL

 

18.1393.

 

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

 

allocated an amount not to exceed $5,260,000,000.00 for 2015-2016

 

and an amount not to exceed $5,205,000,000.00 $5,199,000,000.00 for

 

2016-2017 and there is allocated an amount not to exceed

 

$5,176,000,000.00 for 2017-2018 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. For a

 

community district, the allocation as otherwise calculated under

 

this section shall be reduced by an amount equal to the amount of

 

local school operating tax revenue that would otherwise be due to

 

the community district if not for the operation of section 386 of

 

the revised school code, MCL 380.386, and the amount of this

 

reduction shall be offset by the increase in funding under section

 

22b(2).

 

     (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.25g.

 

     (7) As used in this section:

 

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

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

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

 

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

 

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

 

1993-94.

 

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


for which a particular calculation is made.

 

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

 

pupil" means the per pupil revenue generated by multiplying a

 

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

 

year taxable value per membership pupil. For a 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) For discretionary nonmandated payments to

 

districts under this section, there is allocated from the

 

appropriation in section 11 an amount not to exceed

 

$3,692,000,000.00 for 2015-2016, and there is allocated for 2016-

 

2017 an amount not to exceed $3,828,000,000.00 $3,844,000,000.00

 

from the state school aid fund and general fund appropriations in

 

section 11 and an amount not to exceed $72,000,000.00 from the

 

community district education trust fund appropriation in section

 

11, and there is allocated for 2017-2018 an amount not to exceed

 

$4,038,000,000.00 from the state school aid fund and general fund

 

appropriations in section 11 and an amount not to exceed

 

$72,000,000.00 from the community district education trust fund

 

appropriation in section 11. Except for money allocated from the

 

community district trust fund, money allocated under this section


that is not expended in the state fiscal year for which it was

 

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, 20m, 51a(2),

 

51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c. For a community district, the

 

allocation as otherwise calculated under this section shall be

 

increased by an amount equal to the amount of local school

 

operating tax revenue that would otherwise be due to the community

 

district if not for the operation of section 386 of the revised

 

school code, MCL 380.386, and this increase shall be paid from the

 

community district education trust fund allocation in subsection

 

(1) in order to offset the absence of local school operating

 

revenue in a community district in the funding of the state portion

 

of the foundation allowance under section 20(4).

 

     (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.

 

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

 

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

 

specified by the center or the department, as applicable.


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

 

380.1230g.

 

     (e) Comply with 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.

 

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

 

not to exceed $5,000,000.00 is allocated for 2016-2017 2017-2018

 

for supplemental payments to rural districts under this section.


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

 

allocated for 2016-2017 2017-2018 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.

 

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

 

least 1 of the following:

 

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

 

any other public school building.

 

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

 

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

 

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

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

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

 

a spending plan that distributes the available funding under

 

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

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

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


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

 

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

 

subsection (1), there is allocated for 2016-2017 2017-2018 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 2016-2017 only an amount not to exceed $500,000.00

 

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, 2016.

 

Districts may spend funds allocated under this section over 3

 

fiscal years.

 

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

 

from the funds appropriated in section 11, there is allocated for

 

2016-2017 an amount not to exceed $2,500,000.00 for grants to

 

districts or intermediate districts that received a grant under

 

this section as it was in effect for 2015-2016 for reimbursement of

 

remaining transition costs associated with a dissolution,


consolidation, or annexation that was approved during 2015-2016 by

 

the school electors of the applicable district or intermediate

 

district.

 

     (4) Notwithstanding section 17b, grant payments under this

 

section shall be paid on a schedule determined by the department.

 

     Sec. 22m. (1) From the appropriations in section 11, there is

 

allocated for 2017-2018 an amount not to exceed $1,100,000.00 for

 

supporting the integration of local data systems into the Michigan

 

data hub network based on common standards and applications that

 

are in compliance with section 19(7).

 

     (2) An entity that is the fiscal agent for no more than 5

 

consortia of intermediate districts that previously received

 

funding from the technology readiness infrastructure grant under

 

former section 22i for the purpose of establishing regional data

 

hubs that are part of the Michigan data hub network is eligible for

 

funding under this section.

 

     (3) The center shall work with an advisory committee composed

 

of representatives from intermediate districts within each of the

 

data hub regions to coordinate the activities of the Michigan data

 

hub network.

 

     (4) The center, in collaboration with the Michigan data hub

 

network, shall determine the amount of funds distributed under this

 

section to each participating regional data hub within the network,

 

based upon a competitive grant process. Entities receiving funding

 

under this section shall represent geographically diverse areas in

 

this state.

 

     (5) Notwithstanding section 17b, payments under this section


shall be made on a schedule determined by the center.

 

     (6) To receive funding under this section, a regional data hub

 

must have a governance model that ensures local control of data,

 

data security, and student privacy issues. The integration of data

 

within each of the regional data hubs shall provide for the

 

actionable use of data by districts and intermediate districts

 

through common reports and dashboards and for efficiently providing

 

information to meet state and federal reporting purposes.

 

     (7) Participation by a data hub region or an intermediate

 

district in the Michigan data hub network under this section is

 

voluntary and is not required.

 

     (8) Entities receiving funding under this section shall use

 

the funds for all of the following:

 

     (a) Creating an infrastructure that effectively manages the

 

movement of data between data systems used by intermediate

 

districts, districts, and other educational organizations in

 

Michigan based on common data standards to improve student

 

achievement.

 

     (b) Utilizing the infrastructure to put in place commonly

 

needed integrations, reducing cost and effort to do that work while

 

increasing data accuracy and usability.

 

     (c) Promoting the use of a more common set of applications by

 

promoting systems that integrate with the Michigan data hub

 

network.

 

     (d) Promoting 100% district adoption of the Michigan data hub

 

network by September 30, 2018.

 

     (e) Ensuring local control of data, data security, and student


data privacy.

 

     (f) Utilizing the infrastructure to promote the actionable use

 

of data through common reports and dashboards that are consistent

 

statewide.

 

     (g) Creating a governance model to facilitate sustainable

 

operations of the infrastructure in the future, including

 

administration, legal agreements, documentation, staffing, hosting,

 

and funding.

 

     (h) Evaluating future data initiatives at all levels to

 

determine whether the initiatives can be enhanced by using the

 

standardized environment in the Michigan data hub network.

 

     (9) Not later than January 1, 2018, the department shall

 

prepare a summary report of information provided by each entity

 

that received funds under this section that includes measurable

 

outcomes based on the objectives described under this section. The

 

report shall include a summary of compiled data from each entity to

 

provide a means to evaluate the effectiveness of the project. The

 

department shall submit the report to the house and senate

 

appropriations subcommittees on state school aid and on the

 

department budget and to the house and senate fiscal agencies.

 

     (10) The center and the advisory committee established under

 

subsection (3) shall work to achieve 100% district adoption of the

 

Michigan data hub network by September 30, 2018.

 

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

 

allocated for 2016-2017 2017-2018 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 $1,301,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $1,328,100.00 for 2016-

 

2017 $1,339,000.00 for 2017-2018 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 $1,632,400.00 for 2016-2017

 

$1,528,400.00 for 2017-2018 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 $750,000.00 for 2016-2017 2017-2018 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.

 

     (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.

 

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

 

not be funded under this section.

 

     (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.

 

     (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 $750,000.00 for 2016-2017 2017-2018 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 $20,000,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $20,000,000.00

 

$18,000,000.00 each fiscal year for 2016-2017 and for 2017-2018 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 and 2016 as applicable. 2016 and 2017 as

 

applicable. The allocations shall be made not later than 60 days

 

after the department of treasury certifies to the department and to

 

the state budget director that the department of treasury has

 

received all necessary information to properly determine the

 

amounts due to each eligible recipient.

 

     Sec. 26b. (1) From the appropriation in section 11, there is

 

allocated for 2016-2017 2017-2018 an amount not to exceed

 

$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 $278,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $1,000,000.00 for 2016-

 

2017 $1,500,000.00 for 2017-2018 to the promise zone fund created

 

in subsection (3). The funds allocated under this section reflect

 

the amount of revenue from the collection of the state education

 

tax captured under section 17(2) of the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1677.

 

     (2) Funds allocated to the promise zone fund under this

 

section shall be used solely for payments to eligible districts and

 

intermediate districts, in accordance with section 17(3) of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1677,

 

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. Eligible districts and

 

intermediate districts shall use payments made under this section

 

for reimbursement for qualified educational expenses as defined in

 

section 3 of the Michigan promise zone authority act, 2008 PA 549,

 

MCL 390.1663.


     (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.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be paid on a schedule determined by the department.

 

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

 

appropriated in section 11, there is allocated for 2016-2017 2017-

 

2018 an amount not to exceed $389,695,500.00 $490,195,500.00 for

 

payments to eligible districts , and eligible public school

 

academies , and the education achievement system for the purposes

 

of ensuring that pupils are proficient in reading English language

 

arts by the end of grade 3, and that pupils are proficient in

 

mathematics by the end of grade 8, that pupils are attending school


regularly, that high school graduates are career and college ready,

 

and for the purposes under subsections (7) and (8).(11) and (12).

 

     (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), subsection

 

(4), 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, must be less than or equal to the basic target

 

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), (11) or (12), the district or public school

 

academy, or the education achievement system, must implement, for

 

grades K to 3, must comply with the requirements under section

 

1280f of the revised school code, MCL 380.1280f, and use resources

 

to address early literacy, and for at least grades K to 3, 4 to 8

 

or, if the district or public school academy does not operate all

 

of grades 4 to 8, for all of those grades it operates, must

 

implement 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.

 

     (c) Provides a multi-tiered model of instruction and

 

intervention that provides 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) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $432,988,200.00 for 2017-2018 for the

 

purposes of this subsection. 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 who is determined to be economically

 

disadvantaged, as reported to the department center in the form and

 

manner prescribed by the department center 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 20m, 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. an

 

amount determined by dividing the amount received by the district

 

or public school academy in 2016-2017 under this section by the

 

district's or public school academy's 2015-2016 head count of

 

students who met the income eligibility criteria for free

 

breakfast, lunch, or milk in 2015-2016. Those income eligibility

 

criteria are as determined under the Richard B. Russell national

 

school lunch act, 42 USC 1751 to 1769j. However, a public school

 

academy that began operations as a public school academy , an

 

achievement school that began operations as an achievement school,

 

or a community district that first enrolls pupils, after the pupil

 

membership count day of the immediately preceding school year shall

 

receive under this section subsection for each membership pupil in

 

the public school academy, in the education achievement system, or


in the community district who met the income eligibility criteria

 

for free breakfast, lunch, or milk, as determined under the Richard

 

B. Russell national school lunch act and who is determined to be

 

economically disadvantaged, as reported to the department center in

 

the form and manner prescribed by the center 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% 9% of the public

 

school academy's , the education achievement system's, or the

 

community district's per membership pupil amount calculated under

 

section 20 for the current state fiscal year.

 

     (5) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $41,000,000.00 for 2017-2018 for the

 

purposes of this subsection. Except as otherwise provided in this

 

subsection, an eligible district or eligible public school academy

 

shall receive under this subsection for each membership pupil in

 

the district or public school academy who is determined to be

 

economically disadvantaged, as reported to the center in the form

 

and manner prescribed by the center not later than the fifth

 

Wednesday after the pupil membership count day of the immediately

 

preceding fiscal year, an amount per pupil equal to the amount

 

determined by dividing the allocation under this subsection by the

 

total statewide number of pupils determined to be economically

 

disadvantaged.

 

     (6) For a district or public school academy to be eligible to

 

receive funding under this subsection, the district or public

 

school academy must administer to English language learners the


English language proficiency assessment known as the "WIDA ACCESS

 

for English language learners" or the "WIDA Alternate ACCESS". From

 

the allocation in subsection (1), there is allocated an amount not

 

to exceed $5,000,000.00 for 2017-2018 for payments to eligible

 

districts and eligible public school academies for services for

 

English language learners who have been administered the WIDA

 

ACCESS for English language learners. All of the following apply to

 

this funding:

 

     (a) Funding allocated under this subsection shall be

 

distributed to eligible districts and eligible public school

 

academies based on the number of full-time equivalent English

 

language learners as follows:

 

     (i) $620.00 per full-time equivalent English language learner

 

who has been assessed under the WIDA ACCESS for English language

 

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

 

Alternate ACCESS composite score between 1.0 and 1.9, or less, as

 

applicable to each assessment.

 

     (ii) $410.00 per full-time equivalent English language learner

 

who has been assessed under the WIDA ACCESS for English language

 

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

 

Alternate ACCESS composite score between 2.0 and 2.9, or less, as

 

applicable to each assessment.

 

     (b) If funds allocated under this subsection are insufficient

 

to fully fund the payments as prescribed under subdivision (a),

 

payments shall be prorated on an equal percentage basis, with the

 

same percentage proration applied to both funding categories.

 

     (c) Each district or public school academy receiving funds


under this subsection shall submit to the department by July 15 of

 

each fiscal year a report, not to exceed 10 pages, on the usage by

 

the district or public school academy of funds under this section,

 

in a form and manner determined by the department, which shall

 

include a brief description of each program conducted or services

 

performed by the district or public school academy using funds

 

under this section and the amount of funds under this section

 

allocated to each of those programs or services. If a district or

 

public school academy does not comply with this subsection, the

 

department shall withhold an amount equal to the August payment due

 

under this subsection until the district or public school academy

 

complies with this subsection. If the district or public school

 

academy does not comply with this subsection by the end of the

 

state fiscal year, the withheld funds shall be forfeited to the

 

school aid fund.

 

     (d) In order to receive funds under this subsection, a

 

district or public school academy shall allow access for the

 

department or the department's designee to audit all records

 

related to the program for which it receives those funds. The

 

district or public school academy shall reimburse this state for

 

all disallowances found in the audit.

 

     (e) Beginning July 1, 2020, and every 3 years thereafter, the

 

department shall review the per-pupil distribution under

 

subdivision (a) to ensure that funding levels are appropriate and

 

make recommendations for adjustments to the members of the senate

 

and house subcommittees on K-12 school aid appropriations.

 

     (7) A district or public school academy receiving funds under


subsection (4), (5), or (6) shall use those funds for programs and

 

activities designed to achieve all of the following:

 

     (a) The chronic absenteeism rate for economically

 

disadvantaged pupils and English language learners enrolled in the

 

district or public school academy is not more than the chronic

 

absenteeism rate for pupils enrolled in the district or public

 

school academy who are not in either of these categories, as

 

defined and calculated by the center.

 

     (b) The proportion of economically disadvantaged pupils and

 

English language learners who are in the bottom 30% in performance

 

on the grade 3 English language arts state assessment among pupils

 

enrolled in the district or public school academy does not exceed

 

the proportion of pupils who are not in either of these categories

 

who are in the bottom 30% in performance on the grade 3 English

 

language arts state assessment among pupils enrolled in the

 

district or public school academy, as calculated and reported by

 

the department in the top 30-bottom 30 analysis report under

 

subsection (13).

 

     (c) The proportion of economically disadvantaged pupils and

 

English language learners who are in the bottom 30% in performance

 

on the grade 8 mathematics state assessment among pupils enrolled

 

in the district or public school academy does not exceed the

 

proportion of pupils who are not in either of these categories who

 

are in the bottom 30% in performance on the grade 8 English

 

language arts state assessment among pupils enrolled in the

 

district or public school academy, as calculated and reported by

 

the department in the top 30-bottom 30 analysis report under


subsection (13).

 

     (d) At least 65% of pupils in grades 9 to 12 have enrolled in

 

career and technical education programming, advanced placement or

 

international baccalaureate courses, or dual enrollment or

 

concurrent enrollment courses described in section 64b and at least

 

80% of those pupils have successfully completed the courses.

 

     (8) (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

 

in a way that is consistent with subsection (7) and 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).

 

subsections (10), (11), and (12). 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 were

 

determined to be economically disadvantaged 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, and (22), may use not more than 20%

 

of the funds it receives under this section for school security. A

 

district , the or 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.

 

     (9) A district or public school academy that receives funds

 

under this section may use up to 5% of those funds to provide

 

research-based professional development to district and school

 

leadership and teachers that is aligned to professional learning

 

standards; is integrated into district, school building, and

 

classroom practices; is consistent with subsection (7); and is

 

solely related to the following:

 

     (a) Implementing the multi-tiered system of supports required

 

in subsection (3) with fidelity and utilizing the data from that

 

system to inform curriculum and instruction.

 

     (b) Implementing section 1280f of the revised school code, MCL

 

380.1280f, as required under subsection (3), with fidelity.

 

     (c) Improving the district's or public school academy's

 

performance on the metrics described in subsection (7).

 

     (10) (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.

 

     (11) (7) From the funds allocated under subsection (1), there


is allocated for 2016-2017 2017-2018 an amount not to exceed

 

$5,557,300.00 $6,057,300.00 to support child and adolescent health

 

centers. These grants shall be awarded for 5 consecutive years

 

beginning with 2003-2004 primary health care services provided to

 

children and adolescents up to age 21. These funds shall be

 

expended in a form and manner approved determined 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) (16) for that fiscal year.

 

     (12) (8) From the funds allocated under subsection (1), there

 

is allocated for 2016-2017 2017-2018 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. 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.

 

     (13) The department shall calculate and publish a top 30-

 

bottom 30 analysis report annually in order to determine each

 

district's performance in the metrics described in subsection

 

(7)(b) and (c). In addition, the department shall publish each

 

district's performance for each of the metrics described in

 

subsection (7) no later than December 30 of each year or 1 month

 

after fully audited state assessment data is received by the

 

department, whichever is later.

 

     (14) (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 in the form and manner

 

prescribed by the department, that includes 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. In prescribing the form and

 

manner of the report, the department shall ensure that districts

 

are allowed to make any expenditure that is permissible under this

 

section. From these reports, the department shall publish a summary

 

of programs conducted or services performed in districts and public

 

school academies that demonstrate significant improvements on the

 

metrics described in subsection (7), as determined by the

 

department. 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.

 

     (15) (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 instructional or

 

noninstructional services consistent with the school improvement

 

plan.

 

     (16) (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 were determined to be economically disadvantaged in the

 

immediately preceding fiscal year. , as described in subsection

 

(4).

 

     (17) (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 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), are economically

 

disadvantaged and that are 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.

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse.

 

     (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 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

 

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 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 proficient

 

in English language arts 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.

 

     (18) Beginning in 2020-2021, if a district or public school

 

academy has not achieved all of the metrics in subsection (7) or

 

made satisfactory progress as determined by the superintendent, the

 

superintendent shall assign a team of persons with expertise in

 

comprehensive school and district reform to partner with the

 

district or public school academy, the intermediate district in

 

which it is located, community organizations, local employers,

 

education organizations, and postsecondary institutions as

 

determined by the superintendent to conduct an evaluation that

 

includes at least all of the following:

 

     (a) Reviewing the district's or public school academy's

 

implementation and utilization of its multi-tiered system of

 

supports and ensuring that the system is being used to

 

appropriately inform instruction of at-risk pupils and make

 

recommendations for changes.

 

     (b) Conducting an academic performance audit that includes

 

recommendations for changes if necessary for at least all of the

 

following:

 

     (i) District and school building leadership and educator

 

capacity to substantially improve student outcomes.

 

     (ii) Classroom, instructional, and operational practices and

 

curriculum and alignment with research-based instructional

 

practices and state curriculum standards.

 

     (c) Reviewing the district's use of financial resources with


recommendations to more effectively use those resources to improve

 

academic achievement for at-risk pupils.

 

     (d) Assurance that evaluation costs will be paid from the

 

funds received under this section only after an agreement

 

specifying the roles and responsibilities of the partners and

 

establishing 18-month benchmarks has been signed by the partners

 

and approved by the state superintendent.

 

     (19) (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.

 

     (20) (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.proficient in English language arts, based upon state

 

assessments for pupils in those grades.

 

     (21) For the purpose of determining the number of economically

 

disadvantaged pupils enrolled in a community district for 2017-

 

2018, disadvantaged pupils who were enrolled in the education

 

achievement system for 2016-2017 shall be considered to have been

 

enrolled in the community district for 2016-2017.

 

     (22) As used in this section:

 

     (a) "At-risk pupil" means a pupil who is economically

 

disadvantaged or an English language learner for whom the district

 

has documentation that the pupil meets any of the following

 

criteria:


     (i) The pupil did not achieve proficiency on the English

 

language arts state assessment for grade 3 or is at risk of not

 

achieving proficiency, as determined by the district or public

 

school academy using data provided as part of the multi-tiered

 

system of supports described in subsection (3).

 

     (ii) The pupil did not achieve proficiency on the mathematics

 

state assessment for grade 8 or is at risk of not achieving

 

proficiency, as determined by the district or public school academy

 

using data provided as part of the multi-tiered system of supports

 

described in subsection (3).

 

     (iii) The pupil is chronically absent as defined by and

 

reported to the center.

 

     (b) "Economically disadvantaged" means a pupil who has been

 

determined to meet the income eligibility criteria for free or

 

reduced-price breakfast, lunch, or milk, as determined under the

 

Richard B. Russell national school lunch act, 42 USC 1751 to 1769j;

 

who is in a household receiving supplemental nutrition assistance

 

program or temporary assistance for needy families assistance; or

 

who is homeless, migrant, or in foster care, as reported to the

 

center.

 

     (c) "English language learner" means a limited English

 

proficient pupil who speaks a language other than English as his or

 

her primary language and has a difficulty speaking, reading,

 

writing, or understanding English, as reported to the center.

 

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

 

allocated an amount not to exceed $1,500,000.00 for 2016-2017 for

 

2017-2018 for grants to at-risk districts for implementing a year-


round balanced calendar instructional program for at least 1 of its

 

schools.

 

     (2) The department shall select districts for grants under

 

this section from among applicant districts that meet both of the

 

following:

 

     (a) The district meets 1 or both of the following:

 

     (i) Is eligible in 2016-2017 2017-2018 for the community

 

eligibility option for free and reduced price lunch under 42 USC

 

1759a.

 

     (ii) At least 50% of the pupils in membership in the district

 

met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i.1769j.

 

     (b) The board of the district has adopted a resolution stating

 

that the district will implement for the first time a year-round

 

balanced calendar instructional calendar program that will begin in

 

2017-2018 2018-2019 for at least 1 school operated by the district

 

and committing to providing the year-round balanced calendar

 

instructional calendar program in each of those schools for at

 

least 3 school years.

 

     (3) A district seeking a grant under this section shall apply

 

to the department in the form and manner prescribed by the

 

department not later than December 1, 2016. 2017. The department

 

shall select districts for grants and make notification not later

 

than February 1, 2017.2018.

 

     (4) The department shall award grants under this section on a


competitive basis, but shall give priority based solely on

 

consideration of the following criteria:

 

     (a) Giving priority to districts that, as of June 30, 2016, in

 

the immediately preceding fiscal year, had lower general fund

 

balances as a percentage of revenues.

 

     (b) Giving priority to districts that operate at least 1

 

school that has been identified by the department as either a

 

priority school or a focus school.

 

     (c) Ensuring that grant funding includes both rural and urban

 

districts.

 

     (5) The amount of a grant under this section to any 1 district

 

shall not exceed $750,000.00.

 

     (6) A grant payment under this section to a district shall be

 

used for necessary modifications to instructional facilities and

 

other nonrecurring costs of preparing for the operation of a year-

 

round balanced calendar instructional program as approved by the

 

department.

 

     (7) A district receiving a grant under this section is not

 

required to provide more than the minimum number of days and hours

 

of pupil instruction prescribed under section 101, but shall spread

 

at least those minimum amounts of pupil instruction over the entire

 

year in each of its schools in which a year-round balanced calendar

 

instructional calendar is implemented. The district shall commit to

 

providing the year-round balanced calendar instructional calendar

 

in each of those schools for at least 3 school years.

 

     (8) For a district receiving a grant under this section,

 

excessive heat is considered to be a condition not within the


control of school authorities for the purpose of days or hours

 

being counted as days or hours of pupil instruction under section

 

101(4).

 

     (9) Notwithstanding section 17b, grant payments to districts

 

under this section shall be paid on a schedule determined by the

 

department.

 

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

 

allocated an amount not to exceed $22,495,100.00 for 2016-2017

 

2017-2018 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.

 

104458-104492.456 Mich 175 (1997).

 

     (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 2016-2017 2017-2018 all available federal funding,

 

estimated at $510,000,000.00 $520,000,000.00 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 $2,500,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $2,500,000.00 for 2016-

 

2017 $4,500,000.00 each fiscal year for 2016-2017 and for 2017-2018

 

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. 31j. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed $250,000.00

 

for 2016-2017 2017-2018 for a pilot project to support districts in

 

the purchase of locally grown fruits and vegetables as described in

 

this section.

 

     (2) The department shall provide funding to prosperity regions

 

2 and 4 for the pilot project described under this section. From

 

the funding identified in subsection (1), funding retained by the

 

prosperity regions for administration of the project shall not

 

exceed 10%, and funding retained by the department for

 

administration shall not exceed 6%.

 

     (3) The department shall develop and implement a competitive


grant program for districts within the identified prosperity

 

regions to assist in paying for the costs incurred by the district

 

to purchase or increase purchases of whole or minimally processed

 

fruits, vegetables, and legumes grown in this state. The maximum

 

amount that may be drawn down on a grant to a district shall be

 

based on the number of meals served by the school district during

 

the previous school year under the Richard B. Russell national

 

school lunch act, 42 USC 1751 to 1769. 1769j. The department shall

 

collaborate with the Michigan department of agriculture and rural

 

development to provide training to newly participating schools and

 

electronic information on Michigan agriculture.

 

     (4) The goals of the pilot project include improving daily

 

nutrition and eating habits for children through the school

 

settings while investing in Michigan's agricultural and related

 

food business economy.

 

     (5) A district that receives a grant under this section shall

 

use those funds for the costs incurred by the school district to

 

purchase whole or minimally processed fruits, vegetables, and

 

legumes that meet all of the following:

 

     (a) Are purchased on or after the date the district received

 

notification from the department of the amount to be distributed to

 

the district under this subsection, including purchases made to

 

launch meals in September 2016 2017 for the 2016-2017 2017-2018

 

school year.

 

     (b) Are grown in this state and, if minimally processed, are

 

also processed in this state.

 

     (c) Are used for meals that are served as part of the United


States Department of Agriculture's child nutrition programs.

 

     (6) For Michigan-grown fruits, vegetables, and legumes that

 

satisfy the requirements of subsection (5), matching reimbursements

 

shall be made in an amount not to exceed 10 cents for every school

 

meal that is served as part of the United States Department of

 

Agriculture's child nutrition programs and that uses Michigan-grown

 

fruits, vegetables, and legumes.

 

     (7) A district that receives a grant for reimbursement under

 

this section shall use the grant to purchase whole or minimally

 

processed fruits, vegetables, and legumes that are grown in this

 

state and, if minimally processed, are also processed in this

 

state.

 

     (8) In awarding grants under this section, the department

 

shall work in conjunction with prosperity region offices, in

 

consultation with Michigan-based farm to school resource

 

organizations, to develop scoring criteria that assess an

 

applicant's ability to procure Michigan-grown products, prepare and

 

menu Michigan-grown products, promote and market Michigan-grown

 

products, and submit letters of intent from districts on plans for

 

educational activities that promote the goals of the program.

 

     (9) The department shall give preference to districts that

 

propose educational activities that meet 1 or more of the

 

following: promote healthy food activities; have clear educational

 

objectives; involve parents or the community; and connect to a

 

school's farm-to-school procurement activities.

 

     (10) In awarding grants, the department shall also consider

 

all of the following: the percentage of children who qualify for


free or reduced price school meals under the Richard B. Russell

 

national school lunch act, 42 USC 1751 to 1769; 1769j; the variety

 

of school sizes and geographic locations within the identified

 

prosperity regions; and existing or future collaboration

 

opportunities between more than 1 district in a prosperity region.

 

     (11) As a condition of receiving a grant under this section, a

 

district shall provide or direct its vendors to provide to

 

prosperity region offices copies of monthly receipts that show the

 

quantity of different Michigan-grown fruits, vegetables, and

 

legumes purchased, the amount of money spent on each of these

 

products, and the name and Michigan location of the farm that grew

 

the products. The district shall also provide to the prosperity

 

region monthly lunch numbers and lunch participation rates, and

 

calendars or monthly menus noting when and how Michigan-grown

 

products were used in meals. The district and school food service

 

director or directors also shall agree to respond to brief online

 

surveys and to provide a report that shows the percentage

 

relationship of Michigan spending compared to total food spending.

 

Not later than March 1, 2017, 2018, each prosperity region office

 

shall submit a report to the department on expected outcomes and

 

related measurements for economic development and children's

 

nutrition and readiness to learn based on progress so far. The

 

report shall include at least all of the following:

 

     (a) The extent to which farmers and related businesses,

 

including distributors and processors, see an increase in market

 

opportunities and income generation through sales of Michigan or

 

local products to districts. All of the following apply for


purposes of this subdivision:

 

     (i) The data used to determine the amount of this increase

 

shall be the total dollar amount of Michigan or local fruits,

 

vegetables, and legumes purchased by schools, along with the number

 

of different types of products purchased; school food purchasing

 

trends identified along with products that are of new and growing

 

interest among food service directors; the number of businesses

 

impacted; and the percentage of total food budget spent on

 

Michigan-grown fruits, vegetables, and legumes.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project and surveys of school food service

 

directors on the impact and success of the project as the source

 

for the data described in subparagraph (i).

 

     (b) The ability to which pupils can access a variety of

 

healthy Michigan-grown foods through schools and increase their

 

consumption of those foods. All of the following apply for purposes

 

of this subdivision:

 

     (i) The data used to determine whether this subparagraph is

 

met shall be the number of pupils exposed to Michigan-grown fruits,

 

vegetables, and legumes at schools; the variety of products served;

 

new items taste-tested or placed on menus; and the increase in

 

pupil willingness to try new local, healthy foods.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project, meal count and enrollment numbers,

 

school menu calendars, and surveys of school food service directors

 

as the source for the data described in subparagraph (i).

 

     (12) The department shall compile the reports provided by


prosperity region offices under subsection (11) into 1 legislative

 

report. The department shall provide this report not later than

 

April 1, 2017 2018 to the house and senate subcommittees

 

responsible for school aid, the house and senate fiscal agencies,

 

and the state budget director.

 

     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 2016-2017. 2017-2018. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/head start

 

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 September 1 of the school year in which

 

the program is offered and shall meet those eligibility and

 

prioritization guidelines.

 

     (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 2016-2017 2017-

 

2018 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 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.

 

     (c) Nutritional services for all program participants

 

supported by federal, 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 shall be prioritized for enrollment

 

within the lowest quintile.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as 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 or higher degree in child

 

development or early 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 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 described in section 39 for

 

purposes of determining the amount of the grant award.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start GSRP/Head Start blended program, the grant recipient shall

 

ensure that all head start 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

 

subsections (4) and (5).

 

     (9) An intermediate district or consortium of intermediate

 

districts may retain for administrative services provided by the

 

intermediate district or consortium of intermediate districts an


amount not to exceed 4% of the grant amount. Expenses incurred by

 

subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program

 

shall be considered program costs or a contracted program fee for

 

service.

 

     (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 shall be prioritized for enrollment

 

within the lowest quintile.

 

     (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 enter into a written agreement

 

regarding payment, 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. For the purposes of this 30% allocation, an

 

intermediate district or consortium of intermediate districts may

 

count children served by a head start Head Start grantee or

 

delegate in a blended head start Head Start and great start

 

readiness school-day program. Children served in a program funded

 

only through head start Head Start shall not be counted toward this

 

30% 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 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 allocation 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 regarding the

 

center's eligibility to participate, 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.

 

     (c) The intermediate district or consortium provided to the

 

public and to 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

 

allocation 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.

 

     (c) Ensure that all intermediate district, district, community

 

college or university, head start 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 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 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 "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.

 

     (c) "School-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (18) An intermediate district or consortium of intermediate

 

districts receiving funds under this section shall establish and

 

charge tuition according to 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,

 

2016, 2017, 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 $300.00 multiplied by the number of slots

 

children 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 child

 

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 2016-2017 2017-2018

 

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.

 

     (c) Children developmentally ready to succeed in school at the

 

time of school 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.

 

     (c) Family supports and basic needs.

 

     (d) Parent education.

 

     (e) Early education, including the child's vocabulary

 

development of skills linked to success in foundational literacy,

 

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

 

using evidence-based methods, including vocabulary development, a

 

focus on developmentally appropriate outcomes for early literacy,

 

to reduce the number of pupils retained in grade level, and to

 

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. The coordination

 

among departments and agencies is intended to avoid duplication of

 

state services and spending, and should emphasize efficient service

 

delivery of home visiting programs.

 

     (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. 32q. From the state school aid fund allocation under

 

section 11, there is allocated to an eligible intermediate district

 

an amount equal to $175,000.00 in 2016-2017 2017-2018 for the

 

purpose of this section. An intermediate district receiving a grant

 

under this section shall partner with an early childhood

 

collaborative to conduct a pilot program as provided under this

 

section. It is the intent of the legislature that this is the first

 

second of 3 years of funding, and that funding shall continue in

 

2017-2018 and 2018-2019. Funding allocated to an intermediate

 

district shall be used in partnership with a collaborative to

 

conduct a pilot program to evaluate the relative impact on

 

vulnerable children of 1 versus 2 years of preschool education. All

 

of the following apply to the pilot program funded under this

 

section:

 

     (a) An eligible intermediate district is an intermediate

 

district that is located in a county with a population as of the

 

most recent federal decennial census that was greater than 500,000

 

but fewer than 800,000 and that has an early learning collaborative

 

located within its boundaries.

 

     (b) The funds shall be used for research, family coaching

 

support, administration, information systems, and evaluation.

 

     (c) In order to be eligible to receive the allocated funds,

 

the early learning collaborative, in partnership with the

 

intermediate district, shall provide the funding for all eligible

 

children included in the pilot program.

 

     (d) The early learning collaborative, in partnership with the

 

intermediate district, shall develop a 3-year pilot program under


the supervision of the office of great start in the department.

 

     (e) For a child to be eligible for participation in the pilot

 

program under this section, the child shall be 3 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.

 

     (f) A child participating in the pilot program shall meet the

 

participant eligibility and prioritization guidelines as defined by

 

the department.

 

     (g) Notwithstanding section 17b, the department shall

 

distribute funds under this section not later than November 15 of

 

the fiscal year.

 

     (h) The early learning collaborative, in partnership with the

 

intermediate district, shall provide annual progress evaluations to

 

the office of great start.

 

     (i) By December 1, 2019, the early learning collaborative, in

 

partnership with the intermediate district, shall provide a pilot

 

program report and evaluation to the office of great start. The

 

office of great start shall review the pilot program report and

 

evaluation and, by February 15, 2020, provide a report to the

 

senate and house appropriations subcommittees on state school aid

 

and to the senate and house fiscal agencies of its evaluation of

 

the pilot program.

 

     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 2016-2017 2017-2018 for implementation costs

 

associated with programs funded under section 35a.

 

     Sec. 35a. (1) From the appropriations in section 11, there is

 

allocated for 2015-2016 for the purposes of this section an amount

 

not to exceed $19,000,000.00 from the state school aid fund

 

appropriation and an amount not to exceed $1,500,000.00 from the

 

general fund appropriation. From the appropriations in section 11,

 

there is allocated for 2016-2017 2017-2018 for the purposes of this

 

section an amount not to exceed $22,900,000.00 $25,900,000.00 from

 

the state school aid fund and an amount not to exceed $1,000,000.00

 

$2,500,000.00 from the general fund.

 

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

 

allocated an amount not to exceed $950,000.00 each fiscal year for

 

2015-2016 and for 2016-2017 for 2017-2018 for professional

 

development purposes under this subsection. The 2016-2017

 

allocation represents the 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.

 

     (c) The funds allocated under this subsection for 2015-2016

 

are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. 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.

 

     (d) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 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, 2018.

 

     (3) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $1,450,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 for 2017-2018 for grants under this

 

subsection. The 2016-2017 allocation represents the 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) A department-approved screening and diagnostic tool

 

administered by a district using funding under this section must

 

include all of the following components: phonemic awareness,

 

phonics, fluency, and comprehension. Further, all of the following

 

sub-skills must be assessed within each of these components:

 

     (i) Phonemic awareness - segmentation, blending, and sound

 

manipulation (deletion and substitution).

 

     (ii) Phonics - decoding (reading) and encoding (spelling).

 

     (iii) Fluency - reading rate, accuracy, and expression.

 

     (iv) Comprehension - making meaning of text.

 

     (c) In addition to other methods of professional development

 

delivery, the department Michigan Virtual University shall

 

collaborate with the Michigan Virtual University department to

 

provide this training online to all educators of pupils in grades K

 

to 3.


     (d) The funds allocated under this subsection for 2015-2016

 

are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. 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.

 

     (e) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 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, 2018.

 

     (4) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $3,000,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 $6,000,000.00 for 2017-2018 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.$75,000.00.

 

     (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 $75,000.00 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.

 

     (c) The funds allocated under this subsection for 2015-2016

 

are a work project appropriation, and any unexpended funds for

 

2015-2016 are carried forward into 2016-2017. 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.

 

     (d) The funds allocated under this subsection for 2016-2017

 

are a work project appropriation, and any unexpended funds for

 

2016-2017 are carried forward into 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, 2018.

 

     (5) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $13,600,000.00 for 2015-2016 and

 

an amount not to exceed $17,500,000.00 for 2016-2017 2017-2018 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.

 

     (C) Provides a multi-tiered model of instruction and

 

intervention that provides the following: a core curriculum and

 

classroom interventions available to all pupils that meet the needs

 

of most pupils; targeted group interventions; and 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.

 

     (c) If the funds allocated under this subsection are

 

insufficient to fully fund the payments under this subsection,

 

payments under this subsection shall be prorated on an equal per-

 

pupil basis based on grade 1 pupils.

 

     (6) From the general fund money allocated in subsection (1),

 

the department shall allocate the amount of $1,000,000.00 each

 

fiscal year for 2015-2016 and for 2016-2017 $2,500,000.00 for 2017-

 

2018 to the Michigan Education Corps. All of the following apply to

 

funding under this subsection:

 

     (a) By August 1 of the applicable current fiscal year, 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.

 

      (c) The department may not reserve any portion of the

 

allocation provided under this subsection for an evaluation of the

 

Michigan Education Corps, the Michigan Education Corps' funding, or

 

the Michigan Education Corps' programming. The department shall

 

award the entire $2,500,000.00 allocated under this subsection to

 

the Michigan Education Corps and shall not condition the awarding

 

of this funding on the implementation of an independent evaluation. 

 

(7) 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 For 2017-2018 calculations, the estimated total number


of children in the community who meet the criteria of section 32d,

 

and how that calculation was made.as provided to the applicant by

 

the department utilizing the most recent population data available

 

from the American community survey conducted by the United States

 

Census Bureau. Beginning in 2018-2019, the department shall ensure

 

that it provides updated American community survey population data

 

at least once every 3 years.

 

     (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.exclusively by Head Start programs

 

operating in the community.

 

     (c) The number of slots children whom the applicant will be

 

able to fill with children has the capacity 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 that 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. Each child construed to be in

 

need constitutes 1 slot.

 

     (3) (4) The initial allocation for each fiscal year to each

 

eligible applicant under section 32d shall be determined by

 

multiplying the number of slots determined by the formula under

 

subsection (3) or the number of slots the applicant indicates it

 

will be able to 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 slots an applicant

 

indicates it will be able to fill under subsection (1)(c) includes

 

children able to be served in a school-day program, then the number

 

of slots for a school-day program shall be doubled for the purposes

 

of making this calculation. 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.the lesser of the following:

 

     (a) The sum of the number of children served in a school-day

 

program in the preceding school year multiplied by $7,250.00 and

 

the number of children served in a GSRP/Head Start blended program

 

or a part-day program in the preceding school year multiplied by

 

$3,625.00.

 

     (b) The sum of the number of children the applicant has the

 

capacity to serve in 2017-2018 in a school-day program multiplied

 

by $7,250.00 and the number of children served in a GSRP/Head Start

 

blended program or a part-day program the applicant has the

 

capacity to serve in 2017-2018 multiplied by $3,625.00.

 

     (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 slots in each district within the

 

applicant's service area filled in the immediately preceding fiscal

 

year or the number of slots the applicant indicates it will be able

 

to fill under subsection (1)(c), whichever is less, minus the

 

number of slots for which the applicant received funding in

 

subsection (4) by $3,625.00.

 

     (4) (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 slots the applicant indicates it will be able

 

to fill under subsection (1)(c) exceeds the number of 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 slots the applicant indicates it will be able to fill

 

under subsection (1)(c) less the number of 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.subsection (3), the department shall distribute the

 

remaining funds to each intermediate district or consortium of

 

intermediate districts that serves less than the state percentage

 

benchmark determined under subsection (5). These remaining funds

 

shall be distributed to each eligible applicant based upon each

 

applicant's proportionate share of the remaining unserved children

 

necessary to meet the statewide percentage benchmark in

 

intermediate districts or consortia of intermediate districts

 

serving less than the state percentage benchmark. When all

 

applicants have been given the opportunity to reach the statewide

 

percentage benchmark, the statewide percentage benchmark may be

 

reset, as determined by the department, until greater equity of

 

opportunity to serve eligible children across all intermediate

 

school districts has been achieved.

 

     (5) For the purposes of subsection (4), for the 2017-2018


program year, the department shall calculate a percentage of

 

children served by each intermediate district or consortium of

 

intermediate districts by dividing the number of children served in

 

the immediately preceding year by that intermediate district or

 

consortium by the total number of children within the intermediate

 

district or consortium of intermediate districts who meet the

 

criteria of section 32d as determined by the department utilizing

 

the most recent population data available from the American

 

community survey conducted by the United States Census Bureau. The

 

department shall compare the resulting percentage of eligible

 

children served to a statewide percentage benchmark to determine if

 

the intermediate district or consortium is eligible for additional

 

funds under subsection (4). For 2017-2018, the statewide percentage

 

benchmark is 60%.

 

     (6) (7) 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.

 

     (7) The department shall review the program components under

 

section 32d and under this section at least biennially. The

 

department also shall convene a committee of internal and external

 

stakeholders at least once every 5 years to ensure that the funding

 

structure under this section reflects current system needs under

 

section 32d.


     (8) As used in this section, "school-day program", "GSRP/Head

 

Start blended program", and "part-day program" mean those terms as

 

defined in section 32d.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated each fiscal year for 2016-2017 and for 2017-

 

2018 to districts, intermediate districts, and other eligible

 

entities all available federal funding, estimated at

 

$821,939,900.00 $744,039,900.00 for 2016-2017 and $731,600,000.00

 

for 2017-2018 for the federal programs under the no child left

 

behind act of 2001, Public Law 107-110, or the every student

 

succeeds act, Public Law 114-95. These funds are allocated as

 

follows:

 

     (a) An amount estimated at $2,000,000.00 $1,200,000.00 each

 

fiscal year 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 2016-2017 and

 

$100,000,000.00 for 2017-2018 for the purpose of preparing,

 

training, and recruiting high-quality teachers and class size

 

reduction, funded from DED-OESE, improving teacher quality funds.

 

     (c) An amount estimated at $12,200,000.00 for 2016-2017 and

 

$11,000,000.00 for 2017-2018 for programs to teach English to

 

limited English proficient (LEP) children, funded from DED-OESE,

 

language acquisition state grant funds.

 

     (d) An amount estimated at $250,000.00 for 2016-2017 only for

 

the Michigan charter school subgrant program, funded from DED-OESE,

 

charter school funds.


     (e) An amount estimated at $3,000,000.00 for 2016-2017 and

 

$2,800,000.00 for 2017-2018 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 $535,000,000.00

 

each fiscal year 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 2016-2017 and

 

$9,200,000.00 for 2017-2018 for the purpose of identifying and

 

serving migrant children, funded from DED-OESE, title I, migrant

 

education funds.

 

     (h) An amount estimated at $39,000,000.00 each fiscal year for

 

the purpose of providing high-quality extended learning

 

opportunities, after school and during the summer, for children in

 

low-performing schools, funded from DED-OESE, twenty-first century

 

community learning center funds.

 

     (i) An amount estimated at $24,600,000.00 $18,000,000.00 each

 

fiscal year to help support local school improvement efforts,

 

funded from DED-OESE, title I, local school improvement grants.

 

     (j) An amount estimated at $55,900,000.00 $15,400,000.00 each

 

fiscal year to improve the academic achievement of students, funded

 

from DED-OESE, title IV, student support and academic enrichment

 

grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2016-2017 and for 2017-2018 to districts,

 

intermediate districts, and other eligible entities all available


federal funding, estimated at $30,800,000.00 for 2016-2017 and

 

$30,000,000.00 for 2017-2018 for the following programs that are

 

funded by federal grants:

 

     (a) An amount estimated at $200,000.00 for 2016-2017 and

 

$100,000.00 for 2017-2018 for acquired immunodeficiency syndrome

 

education grants, funded from HHS – Centers for Disease Control and

 

Prevention, AIDS funding.

 

     (b) An amount estimated at $2,600,000.00 for 2016-2017 and

 

$1,900,000.00 for 2017-2018 to provide services to homeless

 

children and youth, funded from DED-OVAE, homeless children and

 

youth funds.

 

     (c) An amount estimated at $4,000,000.00 each fiscal year to

 

provide mental health, substance abuse, or violence prevention

 

services to students, funded from HHS-SAMHSA.

 

     (d) An amount estimated at $24,000,000.00 each fiscal year for

 

providing career and technical education services to pupils, funded

 

from DED-OVAE, basic grants to states.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (4) For the purposes of applying for federal grants

 

appropriated under this article, the department shall allow an


intermediate district to submit a consortium application on behalf

 

of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

     (5) For the purposes of funding federal title I grants under

 

this article, in addition to any other federal grants for which a

 

strict discipline academy is eligible, the department shall

 

allocate to strict discipline academies out of title I, part A

 

funds equal to what a strict discipline academy would have received

 

if included and calculated under title I, part D, or what it would

 

receive under the formula allocation under title I, part A,

 

whichever is greater.

 

     (6) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (c) "DED-OVAE" means the DED Office of Vocational and Adult

 

Education.

 

     (d) "HHS" means the United States Department of Health and

 

Human Services.

 

     (e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

 

Health Services Administration.

 

     Sec. 41. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,200,000.00 for 2016-2017 2017-

 

2018 to applicant districts and intermediate districts offering

 

programs of instruction for pupils of limited English-speaking

 

ability under section 1153 of the revised school code, MCL

 

380.1153. Reimbursement shall be on a per-pupil basis and shall be


based on the number of pupils of limited English-speaking ability

 

in membership on the pupil membership count day. Funds allocated

 

under this section shall be used solely for instruction in

 

speaking, reading, writing, or comprehension of English. A pupil

 

shall not be counted under this section or instructed in a program

 

under this section for more than 3 years.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $945,246,100.00 for 2015-2016 and

 

an amount not to exceed $973,046,100.00 $945,046,100.00 for 2016-

 

2017 and there is allocated an amount not to exceed $963,146,100.00

 

for 2017-2018 from state sources and all available federal funding

 

under sections 611 to 619 of part B of the individuals with

 

disabilities education act, 20 USC 1411 to 1419, estimated at

 

$370,000,000.00 each fiscal year for 2015-2016 and for 2016-2017

 

and for 2017-2018, plus any carryover federal funds from previous

 

year appropriations. In addition, from the general fund

 

appropriation in section 11, there is allocated to the department

 

an amount not to exceed $500,000.00 for 2017-2018 for the purpose

 

of subsection (16). The allocations under this subsection are for

 

the purpose of reimbursing districts and intermediate districts for

 

special education programs, services, and special education

 

personnel as prescribed in article 3 of the revised school code,

 

MCL 380.1701 to 380.1766; net tuition payments made by intermediate

 

districts to the Michigan schools for the deaf and blind; and

 

special education programs and services for pupils who are eligible

 

for special education programs and services according to statute or

 

rule. For meeting the costs of special education programs and


services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special

 

education funds, not otherwise restricted, or contributions from

 

districts to intermediate districts, tuition payments, gifts and

 

contributions from individuals or other entities, or federal funds

 

that may be available for this purpose, as determined by the

 

intermediate district plan prepared pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. Notwithstanding

 

section 17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be

 

paid on a schedule determined by the department.

 

     (2) From the funds allocated under subsection (1), there is

 

allocated the amount necessary, estimated at $263,500,000.00 for

 

2015-2016 and estimated at $271,600,000.00 $261,400,000.00 for

 

2016-2017 and estimated at $266,000,000.00 for 2017-2018, for

 

payments toward reimbursing districts and intermediate districts

 

for 28.6138% of total approved costs of special education,

 

excluding costs reimbursed under section 53a, and 70.4165% of total

 

approved costs of special education transportation. Allocations

 

under this subsection shall be made as follows:

 

     (a) The initial amount allocated to a district under this

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

membership, excluding pupils described in subsection (11), times

 

the foundation allowance under section 20 of the pupil's district

 

of residence plus the amount of the district's per-pupil allocation

 

under section 20m, not to exceed the basic foundation allowance


under section 20 for the current 2016-2017 fiscal year and

 

beginning with 2017-2018 not to exceed the target foundation

 

allowance for the current fiscal year, or, for a special education

 

pupil in membership in a district that is a public school academy,

 

times an amount equal to the amount per membership pupil calculated

 

under section 20(6) or, until the end of the 2016-2017 fiscal year,

 

for a pupil described in this subsection who is counted in

 

membership in the education achievement system, times an amount

 

equal to the amount per membership pupil under section 20(7). For

 

an intermediate district, the amount allocated under this

 

subdivision toward fulfilling the specified percentages shall be an

 

amount per special education membership pupil, excluding pupils

 

described in subsection (11), and shall be calculated in the same

 

manner as for a district, using the foundation allowance under

 

section 20 of the pupil's district of residence, not to exceed the

 

basic foundation allowance under section 20 for the current 2016-

 

2017 fiscal year and beginning with 2017-2018 not to exceed the

 

target foundation allowance for the current fiscal year, and that

 

district's per-pupil allocation under section 20m.

 

     (b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

     (3) From the funds allocated under subsection (1), there is

 

allocated for 2015-2016 an amount not to exceed $1,000,000.00 and

 

there is allocated each fiscal year for 2016-2017 and for 2017-2018


an amount not to exceed $1,100,000.00 $1,000,000.00 to make

 

payments to districts and intermediate districts under this

 

subsection. If the amount allocated to a district or intermediate

 

district for a fiscal year under subsection (2)(b) is less than the

 

sum of the amounts allocated to the district or intermediate

 

district for 1996-97 under sections 52 and 58, there is allocated

 

to the district or intermediate district for the fiscal year an

 

amount equal to that difference, adjusted by applying the same

 

proration factor that was used in the distribution of funds under

 

section 52 in 1996-97 as adjusted to the district's or intermediate

 

district's necessary costs of special education used in

 

calculations for the fiscal year. This adjustment is to reflect

 

reductions in special education program operations or services

 

between 1996-97 and subsequent fiscal years. Adjustments for

 

reductions in special education program operations or services

 

shall be made in a manner determined by the department and shall

 

include adjustments for program or service shifts.

 

     (4) If the department determines that the sum of the amounts

 

allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) is not sufficient to fulfill the

 

specified percentages in subsection (2), then the shortfall shall

 

be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. If

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

subsection (2)(a) and (b) exceeds the sum of the amount necessary


to fulfill the specified percentages in subsection (2), then the

 

department shall deduct the amount of the excess from the

 

district's or intermediate district's payments under this article

 

for the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

(2)(a) in itself exceeds the amount necessary to fulfill the

 

specified percentages in subsection (2), there shall be no

 

deduction under this subsection.

 

     (5) State funds shall be allocated on a total approved cost

 

basis. Federal funds shall be allocated under applicable federal

 

requirements, except that an amount not to exceed $3,500,000.00 may

 

be allocated by the department each fiscal year for 2015-2016 and

 

for 2016-2017 and for 2017-2018 to districts, intermediate

 

districts, or other eligible entities on a competitive grant basis

 

for programs, equipment, and services that the department

 

determines to be designed to benefit or improve special education

 

on a statewide scale.

 

     (6) From the amount allocated in subsection (1), there is

 

allocated an amount not to exceed $2,200,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 and for 2017-2018 to reimburse 100%

 

of the net increase in necessary costs incurred by a district or

 

intermediate district in implementing the revisions in the

 

administrative rules for special education that became effective on

 

July 1, 1987. As used in this subsection, "net increase in

 

necessary costs" means the necessary additional costs incurred

 

solely because of new or revised requirements in the administrative


rules minus cost savings permitted in implementing the revised

 

rules. Net increase in necessary costs shall be determined in a

 

manner specified by the department.

 

     (7) For purposes of sections 51a to 58, all of the following

 

apply:

 

     (a) "Total approved costs of special education" shall be

 

determined in a manner specified by the department and may include

 

indirect costs, but shall not exceed 115% of approved direct costs

 

for section 52 and section 53a programs. The total approved costs

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and Medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 

special education personnel as defined in section 6 of the revised

 

school code, MCL 380.6. Costs reimbursed by federal funds, other

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not

 

utilized full time in the evaluation of students or in the delivery

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and

 

services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 

an on-grounds education program.

 

     (b) Beginning with the 2004-2005 fiscal year, a district or


intermediate district that employed special education support

 

services staff to provide special education support services in

 

2003-2004 or in a subsequent fiscal year and that in a fiscal year

 

after 2003-2004 receives the same type of support services from

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

     (c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

 

will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

 

district or intermediate district whose reimbursement for that

 

fiscal year would otherwise be affected by subdivision (b),

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and

 

reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully

 

fund the calculation of reimbursement to those districts and


intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis. Beginning in 2015-

 

2016, the amount of reimbursement under this subdivision for a

 

fiscal year shall not exceed $2,000,000.00 for any district or

 

intermediate district.

 

     (d) Reimbursement for ancillary and other related services, as

 

defined by R 340.1701c of the Michigan Administrative Code, shall

 

not be provided when those services are covered by and available

 

through private group health insurance carriers or federal

 

reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is

 

approved by the state budget director. Expenses, other than the

 

incidental expense of filing, shall not be borne by the parent. In

 

addition, the filing of claims shall not delay the education of a

 

pupil. A district or intermediate district shall be responsible for

 

payment of a deductible amount and for an advance payment required

 

until the time a claim is paid.

 

     (e) Beginning with calculations for 2004-2005, if an

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from

 

the constituent district is at a lower cost, adjusted for changes

 

in fuel costs; and if the cost shift from the intermediate district

 

to the constituent does not result in any net change in the revenue

 

the constituent district receives from payments under sections 22b

 

and 51c, then upon application by the intermediate district, the


department shall direct the intermediate district to continue to

 

report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

     (8) A pupil who is enrolled in a full-time special education

 

program conducted or administered by an intermediate district or a

 

pupil who is enrolled in the Michigan schools for the deaf and

 

blind shall not be included in the membership count of a district,

 

but shall be counted in membership in the intermediate district of

 

residence.

 

     (9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

the rights, benefits, and tenure to which the person would

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

     (10) If a district or intermediate district uses money

 

received under this section for a purpose other than the purpose or

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

of money received. Money that is refunded shall be deposited in the

 

state treasury to the credit of the state school aid fund.

 

     (11) From the funds allocated in subsection (1), there is

 

allocated the amount necessary, estimated at $3,800,000.00 for

 

2015-2016 and estimated at $3,700,000.00 for 2016-2017,

 

$3,600,000.00 each fiscal year for 2016-2017 and for 2017-2018, to

 

pay the foundation allowances for pupils described in this


subsection. The allocation to a district under this subsection

 

shall be calculated by multiplying the number of pupils described

 

in this subsection who are counted in membership in the district

 

times the sum of the foundation allowance under section 20 of the

 

pupil's district of residence plus the amount of the district's

 

per-pupil allocation under section 20m, not to exceed the basic

 

foundation allowance under section 20 for the current 2016-2017

 

fiscal year and beginning with 2017-2018 not to exceed the target

 

foundation allowance for the current fiscal year, or, for a pupil

 

described in this subsection who is counted in membership in a

 

district that is a public school academy, times an amount equal to

 

the amount per membership pupil under section 20(6) or, until the

 

end of the 2016-2017 fiscal year, for a pupil described in this

 

subsection who is counted in membership in the education

 

achievement system, times an amount equal to the amount per

 

membership pupil under section 20(7). The allocation to an

 

intermediate district under this subsection shall be calculated in

 

the same manner as for a district, using the foundation allowance

 

under section 20 of the pupil's district of residence, not to

 

exceed the basic foundation allowance under section 20 for the

 

current 2016-2017 fiscal year and beginning with 2017-2018 not to

 

exceed the target foundation allowance for the current fiscal year,

 

and that district's per-pupil allocation under section 20m. This

 

subsection applies to all of the following pupils:

 

     (a) Pupils described in section 53a.

 

     (b) Pupils counted in membership in an intermediate district

 

who are not special education pupils and are served by the


intermediate district in a juvenile detention or child caring

 

facility.

 

     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of health and human services.

 

     (12) If it is determined that funds allocated under subsection

 

(2) or (11) or under section 51c will not be expended, funds up to

 

the amount necessary and available may be used to supplement the

 

allocations under subsection (2) or (11) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (11) and section 51c, the remaining

 

expenditures from the allocation in subsection (1) shall be made in

 

the following order:

 

     (a) 100% of the reimbursement required under section 53a.

 

     (b) 100% of the reimbursement required under subsection (6).

 

     (c) 100% of the payment required under section 54.

 

     (d) 100% of the payment required under subsection (3).

 

     (e) 100% of the payments under section 56.

 

     (13) The allocations under subsections (2), (3), and (11)

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.

 

     (14) If a public school academy enrolls pursuant to under this

 

section a pupil who resides outside of the intermediate district in

 

which the public school academy is located and who is eligible for

 

special education programs and services according to statute or

 

rule, or who is a child with disabilities, as defined under the


individuals with disabilities education act, Public Law 108-446,

 

the provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and

 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has public school

 

academy shall enter into a written agreement with the district or

 

intermediate district in which the pupil resides or the public

 

school academy for the purpose of providing the pupil with a free

 

appropriate public education, and the written agreement includes

 

shall include at least an agreement on the responsibility for the

 

payment of the added costs of special education programs and

 

services for the pupil. If the public school academy that enrolls

 

the pupil does not enter into an agreement under this subsection,

 

the public school academy shall not charge the pupil's resident

 

district or resident intermediate district or the intermediate

 

district in which the public school academy is located the added

 

costs of special education programs and services for the pupil, and

 

the public school academy is not eligible for any payouts based on

 

the funding formula outlined in the resident or nonresident

 

intermediate district's plan. If a pupil is not enrolled in a

 

public school academy under this subsection, the provision of

 

special education programs and services and the payment of the

 

added costs of special education programs and services for a pupil

 

described in this subsection are the responsibility of the district

 

and intermediate district in which the pupil resides.

 

     (15) Beginning in 2016-2017, a district, public school


academy, or intermediate district that fails to comply with

 

subsection (14) or with the requirements of federal regulations

 

regarding the treatment of public school academies and public

 

school academy pupils for the purposes of special education, 34 CFR

 

300.209, forfeits from its total state aid an amount equal to 10%

 

of its total state aid.

 

     (15) For the purpose of receiving its federal allocation under

 

part B of the individuals with disabilities education act, Public

 

Law 108-446, the department shall pay to a public school academy

 

that enrolls a pupil under subsection (14) an amount equal to the

 

federal allocation under part B of the individuals with

 

disabilities education act, Public Law 108-446, for that pupil.

 

     (16) For a public school academy that enrolls a pupil under

 

subsection (14), the intermediate district in which the public

 

school academy is located shall ensure that the public school

 

academy complies with sections 1701a, 1703, 1704, 1751, 1752, 1756,

 

and 1757 of the revised school code, MCL 380.1701a, 380.1703,

 

380.1704, 380.1751, 380.1752, 380.1756, and 380.1757; applicable

 

rules; and the individuals with disabilities education act, Public

 

Law 108-446. From the general fund appropriation under subsection

 

(1), the department shall provide appropriate administrative

 

funding to the intermediate district in which the public school

 

academy is located for the purpose of ensuring that compliance.

 

     (17) (16) For the purposes of this section, the department or

 

the center shall only require a district or intermediate district

 

to report information that is not already available from the

 

financial information database maintained by the center.


     Sec. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, 456 Mich 175 (1997), from the allocation under

 

section 51a(1), there is allocated each fiscal year for 2015-2016

 

and for 2016-2017 and for 2017-2018 the amount necessary, estimated

 

at $624,800,000.00 for 2015-2016 and estimated at $644,500,000.00

 

$626,900,000.00 for 2016-2017 and $640,400,000.00 for 2017-2018,

 

for payments to reimburse districts for 28.6138% of total approved

 

costs of special education excluding costs reimbursed under section

 

53a, and 70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

     Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated each fiscal year for 2016-2017 and for 2017-

 

2018, all available federal funding, estimated at $71,000,000.00,

 

$61,000,000.00 each fiscal year, for special education programs and

 

services that are funded by federal grants. All federal funds

 

allocated under this section shall be distributed in accordance

 

with federal law. Notwithstanding section 17b, payments of federal

 

funds to districts, intermediate districts, and other eligible

 

entities under this section shall be paid on a schedule determined

 

by the department.

 

     (2) From the federal funds allocated under subsection (1), the

 

following amounts are allocated each fiscal year for 2016-2017 and


for 2017-2018:

 

     (a) An amount estimated at $14,000,000.00 each fiscal year for

 

handicapped infants and toddlers, funded from DED-OSERS,

 

handicapped infants and toddlers funds.

 

     (b) An amount estimated at $12,000,000.00 each fiscal year for

 

preschool grants (Public Law 94-142), funded from DED-OSERS,

 

handicapped preschool incentive funds.

 

     (c) An amount estimated at $45,000,000.00 $35,000,000.00 each

 

fiscal year for special education programs funded by DED-OSERS,

 

handicapped program, individuals with disabilities act funds.

 

     (3) As used in this section, "DED-OSERS" means the United

 

States Department of Education Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 53a. (1) For districts, reimbursement for pupils

 

described in subsection (2) shall be 100% of the total approved

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766, minus the district's foundation allowance

 

calculated under section 20 and minus the district's per-pupil

 

allocation under section 20m. For intermediate districts,

 

reimbursement for pupils described in subsection (2) shall be

 

calculated in the same manner as for a district, using the

 

foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic target foundation allowance

 

under section 20 for the current fiscal year, and that district's

 

per-pupil allocation under section 20m.


     (2) Reimbursement under subsection (1) is for the following

 

special education pupils:

 

     (a) Pupils assigned to a district or intermediate district

 

through the community placement program of the courts or a state

 

agency, if the pupil was a resident of another intermediate

 

district at the time the pupil came under the jurisdiction of the

 

court or a state agency.

 

     (b) Pupils who are residents of institutions operated by the

 

department of health and human services.

 

     (c) Pupils who are former residents of department of community

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

     (d) Pupils enrolled in a department-approved on-grounds

 

educational program longer than 180 days, but not longer than 233

 

days, at a residential child care institution, if the child care

 

institution offered in 1991-92 an on-grounds educational program

 

longer than 180 days but not longer than 233 days.

 

     (e) Pupils placed in a district by a parent for the purpose of

 

seeking a suitable home, if the parent does not reside in the same

 

intermediate district as the district in which the pupil is placed.

 

     (3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in

 

subsection (2), and that would not have been incurred if the pupils

 

were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 

     (4) The costs of transportation shall be funded under this

 

section and shall not be reimbursed under section 58.


     (5) Not more than $10,500,000.00 of the allocation for 2016-

 

2017 2017-2018 in section 51a(1) shall be allocated under this

 

section.

 

     Sec. 54. Each intermediate district shall receive an amount

 

per-pupil for each pupil in attendance at the Michigan schools for

 

the deaf and blind. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2016-2017 2017-2018 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 54b. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $1,125,000.00 for

 

2016-2017 to begin $1,600,000.00 for 2017-2018 to continue the

 

implementation of the recommendations of the special education

 

reform task force published in January 2016.

 

     (2) From the allocation in subsection (1), there is allocated

 

for 2016-2017 an amount not to exceed $625,000.00 Except as

 

provided in subsection (3), the department shall use funds

 

allocated under this section for the purpose of piloting statewide

 

implementation of the Michigan Integrated Behavior and Learning

 

Support Initiative (MiBLSI), a nationally recognized program that

 

includes positive behavioral intervention and supports and provides

 

a statewide structure to support local initiatives for an

 

integrated behavior and reading program. With the assistance of the

 

intermediate districts involved in MiBLSI, the department shall

 

identify at least 3 a number of intermediate districts to

 

participate in the pilot that is sufficient to ensure that MiBLSI

 

can be implemented statewide with fidelity and sustainability. In


addition, the department shall identify an intermediate district to

 

act as a fiscal agent for these funds.

 

     (3) From the allocation in subsection (1), there is allocated

 

for 2016-2017 an amount not to exceed $500,000.00 In addition to

 

the purpose under subsection (2), the department shall use funds

 

allocated under this section for the purpose of providing training

 

to intermediate districts and districts related to the safe

 

implementation of emergency restraints and seclusion. The

 

department shall develop and implement a training program that is

 

based on the state board's adopted standards and on any other

 

legislation enacted by the legislature regarding the emergency use

 

of seclusion and restraint.

 

     Sec. 55. (1) From the money appropriated in section 11, there

 

is allocated an amount not to exceed $150,000.00 for 2016-2017

 

2017-2018 to Michigan State University, Department of Epidemiology,

 

for a study of the Conductive Learning Center located at Aquinas

 

College. This funding shall be used to develop and implement an

 

evaluation of the effectiveness of conductive education for

 

children with cerebral palsy. The evaluation shall be

 

multidimensional and shall include a control group of children with

 

cerebral palsy not enrolled in conductive education. It should

 

include an assessment of the motor system itself as well as the

 

impact of conductive education on each of the following:

 

     (a) The acquisition of skills permitting complex motor

 

functions.

 

     (b) The performance of tasks essential to daily living.

 

     (c) The attitudes and feelings of both children and parents.


     (d) The long-term need for special education for children with

 

cerebral palsy.

 

     (2) This funding is for the second of 2 third of 3 years of

 

funding for this purpose.

 

     Sec. 56. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

     (b) "Millage levied" means the millage levied for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743, including a levy for debt service

 

obligations.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district, except that if a

 

district has elected not to come under part 30 of the revised

 

school code, MCL 380.1711 to 380.1743, membership and taxable value

 

of the district shall not be included in the membership and taxable

 

value of the intermediate district.

 

     (2) From the allocation under section 51a(1), there is

 

allocated an amount not to exceed $37,758,100.00 each fiscal year

 

for 2015-2016 and for 2016-2017 and for 2017-2018 to reimburse

 

intermediate districts levying millages for special education

 

pursuant to part 30 of the revised school code, MCL 380.1711 to

 

380.1743. The purpose, use, and expenditure of the reimbursement

 

shall be limited as if the funds were generated by these millages

 

and governed by the intermediate district plan adopted pursuant to


article 3 of the revised school code, MCL 380.1701 to 380.1766. As

 

a condition of receiving funds under this section, an intermediate

 

district distributing any portion of special education millage

 

funds to its constituent districts shall submit for departmental

 

approval and implement a distribution plan.

 

     (3) Reimbursement for those millages levied in 2014-2015 shall

 

be made in 2015-2016 at an amount per 2014-2015 membership pupil

 

computed by subtracting from $175,300.00 the 2014-2015 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2014-2015 millage levied.

 

     (3) (4) Reimbursement for those millages levied in 2015-2016

 

shall be made in 2016-2017 at an amount per 2015-2016 membership

 

pupil computed by subtracting from $179,600.00 $180,900.00 the

 

2015-2016 taxable value behind each membership pupil and

 

multiplying the resulting difference by the 2015-2016 millage

 

levied.

 

     (4) Reimbursement for those millages levied in 2016-2017 shall

 

be made in 2017-2018 at an amount per 2016-2017 membership pupil

 

computed by subtracting from $182,600.00 the 2016-2017 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2016-2017 millage levied, and then subtracting

 

from that amount the 2016-2017 local community stabilization share

 

revenue for special education purposes behind each membership pupil

 

for reimbursement of personal property exemption loss under the

 

local community stabilization authority act, 2014 PA 86, MCL

 

123.1341 to 123.1362.

 

     (5) The amount paid to a single intermediate district under


this section shall not exceed 62.9% of the total amount allocated

 

under subsection (2).

 

     (6) The amount paid to a single intermediate district under

 

this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

     Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $36,611,300.00 for 2016-2017

 

2017-2018 to reimburse on an added cost basis districts, except for

 

a district that served as the fiscal agent for a vocational

 

education consortium in the 1993-94 school year and that has a

 

foundation allowance as calculated under section 20 greater than

 

the minimum foundation allowance under that section, and secondary

 

area vocational-technical education centers for secondary-level

 

career and technical education programs according to rules approved

 

by the superintendent. Applications for participation in the

 

programs shall be submitted in the form prescribed by the

 

department. The department shall determine the added cost for each

 

career and technical education program area. The allocation of

 

added cost funds shall be prioritized based on the capital and

 

program expenditures needed to operate the career and technical

 

education programs provided; the number of pupils enrolled; the

 

advancement of pupils through the instructional program; the

 

existence of an articulation agreement with at least 1

 

postsecondary institution that provides pupils with opportunities

 

to earn postsecondary credit during the pupil's participation in

 

the career and technical education program and transfers those


credits to the postsecondary institution upon completion of the

 

career and technical education program; and the program rank in

 

student placement, job openings, and wages, and shall not exceed

 

75% of the added cost of any program. Notwithstanding any rule or

 

department determination to the contrary, when determining a

 

district's allocation or the formula for making allocations under

 

this section, the department shall include the participation of

 

pupils in grade 9 in all of those determinations and in all

 

portions of the formula. With the approval of the department, the

 

board of a district maintaining a secondary career and technical

 

education program may offer the program for the period from the

 

close of the school year until September 1. The program shall use

 

existing facilities and shall be operated as prescribed by rules

 

promulgated by the superintendent.

 

     (2) Except for a district that served as the fiscal agent for

 

a vocational education consortium in the 1993-94 school year,

 

districts and intermediate districts shall be reimbursed for local

 

career and technical education administration, shared time career

 

and technical education administration, and career education

 

planning district career and technical education administration.

 

The definition of what constitutes administration and reimbursement

 

shall be pursuant to guidelines adopted by the superintendent. Not

 

more than $800,000.00 of the allocation in subsection (1) shall be

 

distributed under this subsection.

 

     (3) A career and technical education program funded under this

 

section may provide an opportunity for participants who are

 

eligible to be funded under section 107 to enroll in the career and


technical education program funded under this section if the

 

participation does not occur during regular school hours.

 

     (4) In addition to the money allocated under subsection (1),

 

from the general fund money appropriated in section 11, there is

 

allocated for 2016-2017 2017-2018 an amount not to exceed

 

$79,000.00 to an eligible Michigan-approved 501(c)(3) organization

 

for the purposes of teaching or training restaurant management and

 

culinary arts for career and professional development. The

 

department shall oversee funds distributed to an eligible grantee

 

under this section. As used in this subsection, "eligible Michigan-

 

approved 501(c)(3) organization" means an organization that is

 

exempt from taxation under section 501(c)(3) of the internal

 

revenue code of 1986, 26 USC 501, that provides the ProStart

 

curriculum and training to state-approved career and technical

 

education programs with classification of instructional programs

 

(CIP) codes in the 12.05xx category, and that administers national

 

certification for the purpose of restaurant management and culinary

 

arts for career and professional development.

 

     Sec. 61b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,000,000.00 for 2015-2016 and

 

there is allocated an amount not to exceed $9,000,000.00 for 2016-

 

2017 2017-2018 for CTE early/middle college and CTE dual enrollment

 

programs authorized under this section and for planning grants for

 

the development or expansion of CTE early/middle college programs.

 

The purpose of these programs is to increase the number of Michigan

 

residents with high-quality degrees or credentials, and to increase

 

the number of students who are college and career ready upon high


school graduation.

 

     (2) From the funds allocated under subsection (1), an amount

 

as determined under this subsection shall be allocated to each

 

intermediate district serving as a fiscal agent for state-approved

 

CTE early/middle college and CTE dual enrollment programs in each

 

of the prosperity regions and subregions identified by the

 

department. An intermediate district shall not use more than 5% of

 

the funds allocated under this subsection for administrative costs

 

for serving as the fiscal agent.

 

     (3) To be an eligible fiscal agent, an intermediate district

 

must agree to do all of the following in a form and manner

 

determined by the department:

 

     (a) Distribute funds to eligible CTE early/middle college and

 

CTE dual enrollment programs in a prosperity region or subregion as

 

described in this section.

 

     (b) Collaborate with the talent district career council that

 

is located in the prosperity region or subregion to develop a

 

regional strategic plan under subsection (4) that aligns CTE

 

programs and services into an efficient and effective delivery

 

system for high school students.

 

     (c) Implement a regional process to rank career clusters in

 

the prosperity region or subregion as described under subsection

 

(4). Regional processes shall be approved by the department before

 

the ranking of career clusters.

 

     (d) Report CTE early/middle college and CTE dual enrollment

 

program and student data and information as prescribed by the

 

department.


     (4) A regional strategic plan must be approved by the talent

 

district career council before submission to the department. A

 

regional strategic plan shall include, but not be limited to, the

 

following:

 

     (a) An identification of regional employer need based on a

 

ranking of all career clusters in the prosperity region or

 

subregion ranked by 10-year job openings projections and median

 

wage for each standard occupational code in each career cluster as

 

obtained from the United States Bureau of Labor Statistics.

 

Standard occupational codes within high-ranking clusters also may

 

be further ranked by median wage. The rankings shall be reviewed by

 

the talent district career council located in the prosperity region

 

or subregion and modified if necessary to accurately reflect

 

employer demand for talent in the prosperity region or subregion. A

 

talent district career council shall document that it has conducted

 

this review and certify that it is accurate. These career cluster

 

rankings shall be determined and updated once every 4 years.

 

     (b) An identification of educational entities in the

 

prosperity region or subregion that will provide eligible CTE

 

early/middle college and CTE dual enrollment programs including

 

districts, intermediate districts, postsecondary institutions, and

 

noncredit occupational training programs leading to an industry-

 

recognized credential.

 

     (c) A strategy to inform parents and students of CTE

 

early/middle college and CTE dual enrollment programs in the

 

prosperity region or subregion.

 

     (d) Any other requirements as defined by the department.


     (5) An eligible CTE program is a program that meets all of the

 

following:

 

     (a) Has been identified in the highest 5 career cluster

 

rankings in any of the 10 regional strategic plans jointly approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development and the department.

 

     (b) Has a coherent sequence of courses that will allow a

 

student to earn a high school diploma and achieve at least 1 of the

 

following in a specific career cluster:

 

     (i) An associate degree.

 

     (ii) An industry-recognized technical certification approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development.

 

     (iii) Up to 60 transferable college credits.

 

     (iv) Participation in a registered apprenticeship.

 

     (c) Is aligned with the Michigan merit curriculum.

 

     (d) Has an articulation agreement with at least 1

 

postsecondary institution that provides students with opportunities

 

to receive postsecondary credits during the student's participation

 

in the CTE early/middle college or CTE dual enrollment program and

 

transfers those credits to the postsecondary institution upon

 

completion of the CTE early/middle college or CTE dual enrollment

 

program.

 

     (e) Provides instruction that is supervised, directed, or

 

coordinated by an appropriately certificated CTE teacher or, for

 

concurrent enrollment courses, a postsecondary faculty member.

 

     (f) Provides for highly integrated student support services


that include at least the following:

 

     (i) Teachers as academic advisors.

 

     (ii) Supervised course selection.

 

     (iii) Monitoring of student progress and completion.

 

     (iv) Career planning services provided by a local one-stop

 

service center as described in the Michigan works one-stop service

 

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

 

high school counselor or advisor.

 

     (g) Has courses that are taught on a college campus, are

 

college courses offered at the high school and taught by college

 

faculty, or are courses taught in combination with online

 

instruction.

 

     (6) Funds to eligible CTE early/middle college and CTE dual

 

enrollment programs shall be distributed as follows:

 

     (a) The department shall calculate determine statewide average

 

CTE costs per pupil for each CIP code program by dividing total

 

prior year calculating statewide average costs for each CIP code

 

program by prior year pupils for each CIP code program.for the 3

 

most recent fiscal years.

 

     (b) Distribution to each eligible CTE early/middle college or

 

CTE dual enrollment program shall be the product of 50% of CTE

 

costs per pupil times the current year pupil enrollment of each

 

eligible CTE early/middle college or CTE dual enrollment program.

 

     (7) In order to receive funds under this section, a CTE

 

early/middle college or CTE dual enrollment program shall furnish

 

to the intermediate district that is the fiscal agent identified in

 

subsection (1), in a form and manner determined by the department,


all information needed to administer this program and meet federal

 

reporting requirements; shall allow the department or the

 

department's designee to review all records related to the program

 

for which it receives funds; and shall reimburse the state for all

 

disallowances found in the review, as determined by the department.

 

     (8) There is allocated from the funds under subsection (1) an

 

amount not to exceed $500,000.00 each fiscal year for 2015-2016 and

 

for 2016-2017 for 2017-2018 for grants to intermediate districts or

 

consortia of intermediate districts for the purpose of planning for

 

new or expanded early middle college programs. Applications for

 

grants shall be submitted in a form and manner determined by the

 

department. The amount of a grant under this subsection shall not

 

exceed $50,000.00. To be eligible for a grant under this

 

subsection, an intermediate district or consortia of intermediate

 

districts must provide matching funds equal to the grant received

 

under this subsection. Notwithstanding section 17b, payments under

 

this subsection may be made as determined by the department.

 

     (9) Funds distributed under this section may be used to fund

 

program expenditures that would otherwise be paid from foundation

 

allowances. A program receiving funding under section 61a may

 

receive funding under this section for allowable costs that exceed

 

the reimbursement the program received under section 61a. The

 

combined payments received by a program under section 61a and this

 

section shall not exceed the total allowable costs of the program.

 

A program provider shall not use more than 5% of the funds

 

allocated under this section to the program for administrative

 

costs.


     (10) If the allocation under subsection (1) is insufficient to

 

fully fund payments as otherwise calculated under this section, the

 

department shall prorate payments under this section on an equal

 

percentage basis.

 

     (11) If pupils enrolled in a career cluster in an eligible CTE

 

early/middle college or CTE dual enrollment program qualify to be

 

reimbursed under this section, those pupils continue to qualify for

 

reimbursement until graduation, even if the career cluster is no

 

longer identified as being in the highest 5 career cluster

 

rankings.

 

     (12) It is the intent of the legislature to provide funds in

 

2017-2018 2018-2019 to reimburse districts with early/middle

 

college programs for the added costs of providing both a high

 

school diploma and an associate's degree, industry-recognized

 

certification, up to 60 transferable college credits, or

 

participation in a registered apprenticeship in less than 5 years.

 

     (13) As used in this section:

 

     (a) "Allowable costs" means those costs directly attributable

 

to the program as jointly determined by the Michigan talent

 

investment agency and the department.

 

     (b) "CIP" means classification of instructional programs.

 

     (c) "CTE" means career and technical education programs.

 

     (d) "CTE dual enrollment program" means a 4-year high school

 

program of postsecondary courses offered by eligible postsecondary

 

educational institutions that leads to an industry-recognized

 

certification or degree.

 

     (e) "Early/middle college program" means a 5-year high school


program.

 

     (f) "Eligible postsecondary educational institution" means

 

that term as defined in section 3 of the career and technical

 

preparation act, 2000 PA 258, MCL 388.1903.

 

     (g) "Talent district career council" means an advisory council

 

to the local workforce development boards located in a prosperity

 

region consisting of educational, employer, labor, and parent

 

representatives.

 

     Sec. 61c. (1) From the general fund appropriation in section

 

11, there is allocated for 2016-2017 2017-2018 an amount not to

 

exceed $3,000,000.00 $7,500,000.00 to career education planning

 

districts for the CTE skilled trades initiative under this section.

 

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

 

CEPD shall apply in a form and manner determined by the department.

 

Funding to each CEPD shall be equal to the quotient of the

 

allocation under subsection (1) and the sum of the number of career

 

education planning districts applying for funding under this

 

section.

 

     (3) The funding allocated to each CEPD shall be used to update

 

equipment in current CTE programs that are supporting and driving

 

economic development in their individual communities, or have been

 

identified in the highest 5 career cluster rankings in any of the

 

10 regional strategic plans jointly approved by the Michigan talent

 

investment agency in the department of talent and economic

 

development and the department, for training on new equipment, for

 

professional development relating to computer science or coding, or

 

for new and emerging certified CTE programs to allow CEPD


administrators to provide programming in communities that will

 

enhance economic development. The funding for equipment should be

 

used to support and enhance community areas that have sustained job

 

growth, and act as a commitment to build a more qualified and

 

skilled workforce.

 

     (4) The allocation of funds at the local level shall be

 

determined by CEPD administrators using data from the state,

 

region, and local sources to make well-informed decisions on

 

program equipment improvements. Grants awarded by CEPD

 

administrators for capital infrastructure shall be used to ensure

 

that CTE programs can deliver educational programs in high-wage,

 

high-skill, and high-demand occupations. Each CEPD shall continue

 

to ensure that program advisory boards make recommendations on

 

needed improvements for equipment that support job growth and job

 

skill development and retention for both the present and the

 

future.

 

     (5) Not later than September 15 of each fiscal year, each CEPD

 

receiving funding under this section shall annually report to the

 

department, the senate and house appropriations subcommittees on

 

state school aid, and the senate and house fiscal agencies and

 

legislature on equipment purchased under this section. In addition,

 

the report shall identify growth data on program involvement,

 

retention, and development of student skills.

 

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

 

from the funds appropriated under section 11, there is allocated

 

for 2016-2017 an amount not to exceed $200,000.00 to a district

 

with fewer than 1,200 pupils in membership to support a


mechatronics program that operated in 2015-2016 for updating

 

mechatronics program equipment. To be eligible to receive a grant

 

under this subsection, a program shall be a flexible learning

 

program that offered in 2015-2016 both classroom and hands-on

 

training in mechatronics in at least 2 sites.

 

     (6) (7) As used in this section, "CEPD" means a career

 

education planning district described in this section.

 

     Sec. 62. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

     (b) "Millage levied" means the millage levied for area

 

vocational-technical education pursuant to sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, including a levy

 

for debt service obligations incurred as the result of borrowing

 

for capital outlay projects and in meeting capital projects fund

 

requirements of area vocational-technical education.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district or area

 

vocational-technical education program, except that if a district

 

has elected not to come under sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690, the membership and taxable

 

value of that district shall not be included in the membership and

 

taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under


sections 681 to 690 of the revised school code, MCL 380.681 to

 

380.690, shall be included in the membership and taxable value of

 

the intermediate district if the district meets both of the

 

following:

 

     (i) The district operates the area vocational-technical

 

education program pursuant to a contract with the intermediate

 

district.

 

     (ii) The district contributes an annual amount to the

 

operation of the program that is commensurate with the revenue that

 

would have been raised for operation of the program if millage were

 

levied in the district for the program under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690.

 

     (2) From the appropriation in section 11, there is allocated

 

an amount not to exceed $9,190,000.00 each fiscal year for 2015-

 

2016 and for 2016-2017 and for 2017-2018 to reimburse intermediate

 

districts and area vocational-technical education programs

 

established under section 690(3) of the revised school code, MCL

 

380.690, levying millages for area vocational-technical education

 

pursuant to sections 681 to 690 of the revised school code, MCL

 

380.681 to 380.690. The purpose, use, and expenditure of the

 

reimbursement shall be limited as if the funds were generated by

 

those millages.

 

     (3) Reimbursement for the millages levied in 2014-2015 shall

 

be made in 2015-2016 at an amount per 2014-2015 membership pupil

 

computed by subtracting from $192,200.00 the 2014-2015 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2014-2015 millage levied.


     (3) (4) Reimbursement for the millages levied in 2015-2016

 

shall be made in 2016-2017 at an amount per 2015-2016 membership

 

pupil computed by subtracting from $196,300.00 $198,400.00 the

 

2015-2016 taxable value behind each membership pupil and

 

multiplying the resulting difference by the 2015-2016 millage

 

levied.

 

     (4) Reimbursement for those millages levied in 2016-2017 shall

 

be made in 2017-2018 at an amount per 2016-2017 membership pupil

 

computed by subtracting from $198,400.00 the 2016-2017 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2016-2017 millage levied, and then subtracting

 

from that amount the 2016-2017 local community stabilization share

 

revenue for area vocational technical education behind each

 

membership pupil for reimbursement of personal property exemption

 

loss under the local community stabilization authority act, 2014 PA

 

86, MCL 123.1341 to 123.1362.

 

     (5) The amount paid to a single intermediate district under

 

this section shall not exceed 38.4% of the total amount allocated

 

under subsection (2).

 

     (6) The amount paid to a single intermediate district under

 

this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

     Sec. 64b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,750,000.00 each fiscal year

 

for 2015-2016 and for 2016-2017 for 2017-2018 for supplemental

 

payments to districts that support the attendance of district


pupils in grades 9 to 12 under the postsecondary enrollment options

 

act, 1996 PA 160, MCL 388.511 to 388.524, or under the career and

 

technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913,

 

consistent with section 21b, or that support the attendance of

 

district pupils in a concurrent enrollment program if the district

 

meets the requirements under subsection (3). Programs funded under

 

this section are intended to increase the number of pupils who are

 

college- and career-ready upon high school graduation.

 

     (2) To be eligible for payments under this section for

 

supporting the attendance of district pupils under the

 

postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to

 

388.524, or under the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, a district shall do all of the

 

following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution before the enrollment of district pupils.

 

     (c) Agree to pay all eligible charges pursuant to section 21b.

 

     (d) Award high school credit for the postsecondary course if

 

the pupil successfully completes the course.

 

     (3) To be eligible for payments under this section for pupils

 

enrolled in a concurrent enrollment program, a district shall do


all of the following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution establishing the concurrent enrollment program before

 

the enrollment of district pupils in a postsecondary course through

 

the postsecondary institution.

 

     (c) Ensure that the course is taught by either a high school

 

teacher or postsecondary faculty pursuant to standards established

 

by the postsecondary institution with which the district has

 

entered into a written agreement to operate the concurrent

 

enrollment program.

 

     (d) Ensure that the written agreement provides that the

 

postsecondary institution agrees not to charge the pupil for any

 

cost of the program.

 

     (e) Ensure that the course is taught in the local district or

 

intermediate district.

 

     (f) Ensure that the pupil is awarded both high school and

 

college credit at a community college or state public university in

 

this state upon successful completion of the course as outlined in

 

the agreement with the postsecondary institution.

 

     (4) Funds shall be awarded to eligible districts under this

 

section in the following manner:


     (a) A payment of $10.00 per credit, for up to 3 credits, for a

 

credit-bearing course in which a pupil enrolls during the 2015-2016

 

or 2016-2017 current school year, as applicable, as described under

 

either subsection (2) or (3).

 

     (b) An additional payment of $30.00 per-pupil per course

 

identified in subdivision (a), if the pupil successfully completes,

 

and is awarded both high school and postsecondary credit for, the

 

course during the 2015-2016 or 2016-2017 current school year. , as

 

applicable.

 

     (5) A district requesting payment under this section shall

 

submit an application to the department in the form and manner

 

prescribed by the department. Notwithstanding section 17b, payments

 

under this section shall be made on a schedule determined by the

 

department.

 

     Sec. 65. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed $340,000.00

 

for 2016-2017 2017-2018 for a pre-college engineering K-12

 

educational program that is focused on the development of a diverse

 

future Michigan workforce, that serves multiple communities within

 

southeast Michigan, that enrolls pupils from multiple districts,

 

and that received funds appropriated for this purpose in the

 

appropriations act that provided the Michigan strategic fund budget

 

for 2014-2015.

 

     (2) To be eligible for funding under this section, a program

 

must have the ability to expose pupils to, and motivate and prepare

 

pupils for, science, technology, engineering, and mathematics

 

careers and postsecondary education with special attention given to


groups of pupils who are at-risk and underrepresented in technical

 

professions and careers.

 

     Sec. 67. (1) From the general fund amount appropriated in

 

section 11, there is allocated an amount not to exceed

 

$3,050,000.00 for 2016-2017 $3,000,000.00 for 2017-2018 for college

 

and career preparation activities. access programs. The programs

 

funded under this section are intended to inform students of

 

college and career options and to provide a wide array of tools and

 

resources intended to increase the number of pupils who are

 

adequately prepared with the information needed to make informed

 

decisions on college and career. The funds appropriated under this

 

section are intended to be used to increase the number of Michigan

 

residents with high-quality degrees or credentials. Funds

 

appropriated under this section shall not be used to supplant

 

funding for counselors already funded by districts.

 

     (2) From the amount allocated in subsection (1), an amount not

 

to exceed $3,000,000.00 shall be used for the college access

 

program. The talent investment agency of the department of talent

 

and economic development shall administer these funds allocated

 

under this section in collaboration with the Michigan college

 

access network. These funds may be used for any of the following

 

purposes:

 

     (a) Michigan college access network operations, programming,

 

and services to local college access networks.

 

     (b) Local college access networks, which are community-based

 

college access/success partnerships committed to increasing the

 

college participation and completion rates within geographically


defined communities through a coordinated strategy.

 

     (c) The Michigan college advising program, a program intended

 

to place trained, recently graduated college advisors in high

 

schools that serve significant numbers of low-income and first-

 

generation college-going pupils. State funds used for this purpose

 

may not exceed 33% of the total funds available under this

 

subsection.

 

     (d) Subgrants of up to $5,000.00 to districts with

 

comprehensive high schools that establish a college access team and

 

implement specific strategies to create a college-going culture in

 

a high school in a form and manner approved by the Michigan college

 

access network and the Michigan talent investment agency.

 

     (e) The Michigan college access portal, an online one-stop

 

portal to help pupils and families plan and apply for college.

 

     (f) Public awareness and outreach campaigns to encourage low-

 

income and first-generation college-going pupils to take necessary

 

steps toward college and to assist pupils and families in

 

completing a timely and accurate free application for federal

 

student aid.

 

     (g) Subgrants to postsecondary institutions to recruit, hire,

 

and train college student mentors and college advisors to assist

 

high school pupils in navigating the postsecondary planning and

 

enrollment process.

 

     (3) From the amount allocated in subsection (1), an amount not

 

to exceed $50,000.00 shall be used for an outreach program to

 

provide information to pupils, parents, and educators on dual

 

enrollment and other opportunities available to high school pupils


to earn postsecondary credits, industry-recognized technical

 

certifications, and participation in registered apprenticeships at

 

no cost.

 

     (3) (4) For the purposes of this section, "college" means any

 

postsecondary educational opportunity that leads to a career,

 

including, but not limited to, a postsecondary degree, industry-

 

recognized technical certification, or registered apprenticeship.

 

     Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,320,600.00 for 2016-2017

 

$3,730,300.00 for 2017-2018 for the purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for each fiscal year the amount necessary for payments to state

 

supported colleges or universities and intermediate districts

 

providing school bus driver safety instruction pursuant to section

 

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

 

payments shall be in an amount determined by the department not to

 

exceed the actual cost of instruction and driver compensation for

 

each public or nonpublic school bus driver attending a course of

 

instruction. For the purpose of computing compensation, the hourly

 

rate allowed each school bus driver shall not exceed the hourly

 

rate received for driving a school bus. Reimbursement compensating

 

the driver during the course of instruction shall be made by the

 

department to the college or university or intermediate district

 

providing the course of instruction.

 

     (3) From the allocation in subsection (1), there is allocated

 

for 2016-2017 2017-2018 the amount necessary to pay the reasonable

 

costs of nonspecial education auxiliary services transportation


provided pursuant to section 1323 of the revised school code, MCL

 

380.1323. Districts funded under this subsection shall not receive

 

funding under any other section of this article for nonspecial

 

education auxiliary services transportation.

 

     (4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,695,600.00 for 2016-2017

 

$1,705,300.00 for 2017-2018 for reimbursement to districts and

 

intermediate districts for costs associated with the inspection of

 

school buses and pupil transportation vehicles by the department of

 

state police as required under section 715a of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

 

transportation act, 1990 PA 187, MCL 257.1839. The department of

 

state police shall prepare a statement of costs attributable to

 

each district for which bus inspections are provided and submit it

 

to the department and to an intermediate district serving as

 

fiduciary in a time and manner determined jointly by the department

 

and the department of state police. Upon review and approval of the

 

statement of cost, the department shall forward to the designated

 

intermediate district serving as fiduciary the amount of the

 

reimbursement on behalf of each district and intermediate district

 

for costs detailed on the statement within 45 days after receipt of

 

the statement. The designated intermediate district shall make

 

payment in the amount specified on the statement to the department

 

of state police within 45 days after receipt of the statement. The

 

total reimbursement of costs under this subsection shall not exceed

 

the amount allocated under this subsection. Notwithstanding section

 

17b, payments to eligible entities under this subsection shall be


paid on a schedule prescribed by the department.

 

     Sec. 81. (1) From the appropriation in section 11, there is

 

allocated for 2016-2017 2017-2018 to the intermediate districts the

 

sum necessary, but not to exceed $67,108,000.00 $68,108,000.00 to

 

provide state aid to intermediate districts under this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for 2016-2017 an amount not to exceed $67,108,000.00 for

 

allocations The amount allocated under this section to each

 

intermediate district in is an amount equal to 100% 101.5% of the

 

amount allocated to the intermediate district under this subsection

 

for 2015-2016. section for 2016-2017. Funding provided under this

 

section shall be used to comply with requirements of this article

 

and the revised school code that are applicable to intermediate

 

districts, and for which funding is not provided elsewhere in this

 

article, and to provide technical assistance to districts as

 

authorized by the intermediate school board.

 

     (3) Intermediate districts receiving funds under subsection

 

(2) this section, shall collaborate with the department to develop

 

expanded professional development opportunities for teachers to

 

update and expand their knowledge and skills needed to support the

 

Michigan merit curriculum.

 

     (4) From the allocation in subsection (1), there is allocated

 

to an intermediate district, formed by the consolidation or

 

annexation of 2 or more intermediate districts or the attachment of

 

a total intermediate district to another intermediate school

 

district or the annexation of all of the constituent K-12 districts

 

of a previously existing intermediate school district which has


disorganized, an additional allotment of $3,500.00 each fiscal year

 

for each intermediate district included in the new intermediate

 

district for 3 years following consolidation, annexation, or

 

attachment.

 

     (5) In order to receive funding under subsection (2), this

 

section, an intermediate district shall do all of the following:

 

     (a) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

pupil accounting and auditing procedures, rules, and regulations.

 

     (b) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

rules, regulations, and district reporting procedures for the

 

individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout

 

rates.

 

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

 

code, MCL 380.1278a and 380.1278b.

 

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

 

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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (f) Comply with section 761 of the revised school code, MCL

 

380.761.

 

     Sec. 94. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2016-2017 2017-2018 an

 

amount not to exceed $250,000.00 $1,000,000.00 for efforts to


increase the number of pupils who participate and succeed in

 

advanced placement and international baccalaureate programs.

 

     (2) From the funds allocated under this section, the

 

department shall award funds to cover all or part of the costs of

 

advanced placement test fees or international baccalaureate test

 

fees and international baccalaureate registration fees for low-

 

income pupils who take an advanced placement or an international

 

baccalaureate test. Payments shall not exceed $20.00 per test

 

completed or $150.00 per international baccalaureate registration

 

fees per pupil registered.

 

     (3) The department shall only award funds under this section

 

if the department determines that all of the following criteria are

 

met:

 

     (a) Each pupil for whom payment is made meets eligibility

 

requirements of the federal advanced placement test fee program

 

under section 1701 of the no child left behind act of 2001, Public

 

Law 107-110, or under a corresponding provision of the every

 

student succeeds act, Public Law 114-95.

 

     (b) The tests are administered by the college board, the

 

international baccalaureate organization, or another test provider

 

approved by the department.

 

     (c) The pupil for whom payment is made pays at least $5.00

 

toward the cost of each test for which payment is made.

 

     (4) The department shall establish procedures for awarding

 

funds under this section.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the department.


     Sec. 94a. (1) There is created within the state budget office

 

in the department of technology, management, and budget the center

 

for educational performance and information. The center shall do

 

all of the following:

 

     (a) Coordinate the collection of all data required by state

 

and federal law from districts, intermediate districts, and

 

postsecondary institutions.

 

     (b) Create, maintain, and enhance this state's P-20

 

longitudinal data system and ensure that it meets the requirements

 

of subsection (4).

 

     (c) Collect data in the most efficient manner possible in

 

order to reduce the administrative burden on reporting entities,

 

including, but not limited to, electronic transcript services.

 

     (d) Create, maintain, and enhance this state's web-based

 

educational portal to provide information to school leaders,

 

teachers, researchers, and the public in compliance with all

 

federal and state privacy laws. Data shall include, but are not

 

limited to, all of the following:

 

     (i) Data sets that link teachers to student information,

 

allowing districts to assess individual teacher impact on student

 

performance and consider student growth factors in teacher and

 

principal evaluation systems.

 

     (ii) Data access or, if practical, data sets, provided for

 

regional data warehouses hubs that, in combination with local data,

 

can improve teaching and learning in the classroom.

 

     (iii) Research-ready data sets for researchers to perform

 

research that advances this state's educational performance.


     (e) Provide data in a useful manner to allow state and local

 

policymakers to make informed policy decisions.

 

     (f) Provide public reports to the citizens of this state to

 

allow them to assess allocation of resources and the return on

 

their investment in the education system of this state.

 

     (g) Other functions as assigned by the state budget director.

 

     (2) Each state department, officer, or agency that collects

 

information from districts, intermediate districts, or

 

postsecondary institutions as required under state or federal law

 

shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection

 

(1). This subsection does not apply to information collected by the

 

department of treasury under the uniform budgeting and accounting

 

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

 

388.1939; or section 1351a of the revised school code, MCL

 

380.1351a.

 

     (3) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (4) The center shall ensure that the P-20 longitudinal data

 

system required under subsection (1)(b) meets all of the following:

 

     (a) Includes data at the individual student level from

 

preschool through postsecondary education and into the workforce.

 

     (b) Supports interoperability by using standard data

 

structures, data formats, and data definitions to ensure linkage

 

and connectivity in a manner that facilitates the exchange of data


among agencies and institutions within the state and between

 

states.

 

     (c) Enables the matching of individual teacher and student

 

records so that an individual student may be matched with those

 

teachers providing instruction to that student.

 

     (d) Enables the matching of individual teachers with

 

information about their certification and the institutions that

 

prepared and recommended those teachers for state certification.

 

     (e) Enables data to be easily generated for continuous

 

improvement and decision-making, including timely reporting to

 

parents, teachers, and school leaders on student achievement.

 

     (f) Ensures the reasonable quality, validity, and reliability

 

of data contained in the system.

 

     (g) Provides this state with the ability to meet federal and

 

state reporting requirements.

 

     (h) For data elements related to preschool through grade 12

 

and postsecondary, meets all of the following:

 

     (i) Contains a unique statewide student identifier that does

 

not permit a student to be individually identified by users of the

 

system, except as allowed by federal and state law.

 

     (ii) Contains student-level enrollment, demographic, and

 

program participation information.

 

     (iii) Contains student-level information about the points at

 

which students exit, transfer in, transfer out, drop out, or

 

complete education programs.

 

     (iv) Has the capacity to communicate with higher education

 

data systems.


     (i) For data elements related to preschool through grade 12

 

only, meets all of the following:

 

     (i) Contains yearly test records of individual students for

 

assessments approved by DED-OESE for accountability purposes under

 

section 1111(b) of the elementary and secondary education act of

 

1965, 20 USC 6311, including information on individual students not

 

tested, by grade and subject.

 

     (ii) Contains student-level transcript information, including

 

information on courses completed and grades earned.

 

     (iii) Contains student-level college readiness test scores.

 

     (j) For data elements related to postsecondary education only:

 

     (i) Contains data that provide information regarding the

 

extent to which individual students transition successfully from

 

secondary school to postsecondary education, including, but not

 

limited to, all of the following:

 

     (A) Enrollment in remedial coursework.

 

     (B) Completion of 1 year's worth of college credit applicable

 

to a degree within 2 years of enrollment.

 

     (ii) Contains data that provide other information determined

 

necessary to address alignment and adequate preparation for success

 

in postsecondary education.

 

     (5) From the general fund appropriation in section 11, there

 

is allocated an amount not to exceed $12,173,200.00 for 2016-2017

 

$13,216,000.00 for 2017-2018 to the department of technology,

 

management, and budget to support the operations of the center. In

 

addition, from the federal funds appropriated in section 11 there

 

is allocated for 2016-2017 2017-2018 the amount necessary,


estimated at $193,500.00, to support the operations of the center

 

and to establish a P-20 longitudinal data system necessary for

 

state and federal reporting purposes. The center shall cooperate

 

with the department to ensure that this state is in compliance with

 

federal law and is maximizing opportunities for increased federal

 

funding to improve education in this state.

 

     (6) From the funds allocated in subsection (5), the center may

 

use an amount determined by the center for competitive grants for

 

2016-2017 2017-2018 to support collaborative efforts on the P-20

 

longitudinal data system. All of the following apply to grants

 

awarded under this subsection:

 

     (a) The center shall award competitive grants to eligible

 

intermediate districts or a consortium of intermediate districts

 

based on criteria established by the center.

 

     (b) Activities funded under the grant shall support the P-20

 

longitudinal data system portal and may include portal hosting,

 

hardware and software acquisition, maintenance, enhancements, user

 

support and related materials, and professional learning tools and

 

activities aimed at improving the utility of the P-20 longitudinal

 

data system.

 

     (c) An applicant that received a grant under this subsection

 

for the immediately preceding fiscal year shall receive priority

 

for funding under this section. However, after 3 fiscal years of

 

continuous funding, an applicant is required to compete openly with

 

new applicants.

 

     (7) Funds allocated under this section that are not expended

 

in the fiscal year in which they were allocated may be carried


forward to a subsequent fiscal year and are appropriated for the

 

purposes for which the funds were originally allocated.

 

     (8) The center may bill departments as necessary in order to

 

fulfill reporting requirements of state and federal law. The center

 

may also enter into agreements to supply custom data, analysis, and

 

reporting to other principal executive departments, state agencies,

 

local units of government, and other individuals and organizations.

 

The center may receive and expend funds in addition to those

 

authorized in subsection (5) to cover the costs associated with

 

salaries, benefits, supplies, materials, and equipment necessary to

 

provide such data, analysis, and reporting services.

 

     (9) As used in this section:

 

     (a) "DED-OESE" means the United States Department of Education

 

Office of Elementary and Secondary Education.

 

     (b) "State education agency" means the department.

 

     Sec. 98. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed

 

$7,387,500.00 $6,500,000.00 for 2016-2017 2017-2018 for the

 

purposes described in this section. The Michigan Virtual University

 

shall provide a report to the legislature not later than November

 

1, 2016 2017 that includes its mission, its plans, and proposed

 

benchmarks it must meet, which shall include a plan to achieve a

 

50% increase in documented improvement in each requirement of the

 

Michigan Virtual Learning Research Institute and Michigan Virtual

 

School, and all other organizational priorities identified in this

 

section, in order to receive full funding for 2017-2018. 2018-2019.

 

Not later than March 1, 2017, 2018, the Michigan Virtual University


shall provide an update to the house and senate appropriations

 

subcommittees on school aid to show the progress being made to meet

 

the benchmarks identified.

 

     (2) The Michigan Virtual University shall operate the Michigan

 

Virtual Learning Research Institute. The Michigan Virtual Learning

 

Research Institute shall do all of the following:

 

     (a) Support and accelerate innovation in education through the

 

following activities:

 

     (i) Test, evaluate, and recommend as appropriate new

 

technology-based instructional tools and resources.

 

     (ii) Research, design, and recommend virtual education

 

delivery models for use by pupils and teachers that include age-

 

appropriate multimedia instructional content.

 

     (iii) Research, develop, and recommend annually to the

 

department criteria by which cyber schools and virtual course

 

providers should be monitored and evaluated to ensure a quality

 

education for their pupils.

 

     (iv) Based on pupil completion and performance data reported

 

to the department or the center for educational performance and

 

information from cyber schools and other virtual course providers

 

operating in this state, analyze the effectiveness of virtual

 

learning delivery models in preparing pupils to be college- and

 

career-ready and publish a report that highlights enrollment

 

totals, completion rates, and the overall impact on pupils. The

 

report shall be submitted to the house and senate appropriations

 

subcommittees on state school aid, the state budget director, the

 

house and senate fiscal agencies, the department, districts, and


intermediate districts not later than March 31, 2017.2018.

 

     (v) Before August 31, 2017, provide Provide an extensive

 

professional development program to at least 30,000 educational

 

personnel, including teachers, school administrators, and school

 

board members, that focuses on the effective integration of virtual

 

learning into curricula and instruction. The Michigan Virtual

 

Learning Research Institute is encouraged to work with the MiSTEM

 

advisory council created under section 99s to coordinate

 

professional development of teachers in applicable fields. In

 

addition, the Michigan Virtual Learning Research Institute and

 

external stakeholders are encouraged to coordinate with the

 

department for professional development in this state and shall

 

work with the department to provide the professional development

 

described under section 35a(3). Not later than December 1, 2017,

 

2018, the Michigan Virtual Learning Research Institute shall submit

 

a report to the house and senate appropriations subcommittees on

 

state school aid, the state budget director, the house and senate

 

fiscal agencies, and the department on the number and percentage of

 

teachers, school administrators, and school board members who have

 

received professional development services from the Michigan

 

Virtual University. The report shall also identify barriers and

 

other opportunities to encourage the adoption of virtual learning

 

in the public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating virtual and blended education delivery

 

models with intermediate districts, districts, and public school

 

academies to accelerate the adoption of innovative education


delivery models statewide.

 

     (b) Provide leadership for this state's system of virtual

 

learning education by doing the following activities:

 

     (i) Develop and report policy recommendations to the governor

 

and the legislature that accelerate the expansion of effective

 

virtual learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to virtual

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for virtual teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective virtual learning instruction.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich virtual

 

learning models.

 

     (vi) Create a statewide network of school-based mentors

 

serving as liaisons between pupils, virtual instructors, parents,

 

and school staff, as provided by the department or the center, and

 

provide mentors with research-based training and technical

 

assistance designed to help more pupils be successful virtual

 

learners.

 

     (vii) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify

 

barriers and opportunities related to virtual learning.

 

     (viii) Produce an annual consumer awareness report for schools


and parents about effective virtual education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (ix) Research and establish an internet-based platform that

 

educators can use to create student-centric learning tools and

 

resources and facilitate a user network that assists educators in

 

using the platform. As part of this initiative, the Michigan

 

Virtual University shall work collaboratively with districts and

 

intermediate districts to establish a plan to make available

 

virtual resources that align to Michigan's K-12 curriculum

 

standards for use by students, educators, and parents.

 

     (x) Create and maintain a public statewide catalog of virtual

 

learning courses being offered by all public schools and community

 

colleges in this state. The Michigan Virtual Learning Research

 

Institute shall identify and develop a list of nationally

 

recognized best practices for virtual learning and use this list to

 

support reviews of virtual course vendors, courses, and

 

instructional practices. The Michigan Virtual Learning Research

 

Institute shall also provide a mechanism for intermediate districts

 

to use the identified best practices to review content offered by

 

constituent districts. The Michigan Virtual Learning Research

 

Institute shall review the virtual course offerings of the Michigan

 

Virtual University, and make the results from these reviews

 

available to the public as part of the statewide catalog. The

 

Michigan Virtual Learning Research Institute shall ensure that the

 

statewide catalog is made available to the public on the Michigan

 

Virtual University website and shall allow the ability to link it


to each district's website as provided for in section 21f. The

 

statewide catalog shall also contain all of the following:

 

     (A) The number of enrollments in each virtual course in the

 

immediately preceding school year.

 

     (B) The number of enrollments that earned 60% or more of the

 

total course points for each virtual course in the immediately

 

preceding school year.

 

     (C) The completion rate for each virtual course.

 

     (xi) Develop prototype and pilot registration, payment

 

services, and transcript functionality to the statewide catalog and

 

train key stakeholders on how to use new features.

 

     (xii) Collaborate with key stakeholders to examine district

 

level accountability and teacher effectiveness issues related to

 

virtual learning under section 21f and make findings and

 

recommendations publicly available.

 

     (xiii) Provide a report on the activities of the Michigan

 

Virtual Learning Research Institute.

 

     (3) To further enhance its expertise and leadership in virtual

 

learning, the Michigan Virtual University shall continue to operate

 

the Michigan Virtual School as a statewide laboratory and quality

 

model of instruction by implementing virtual and blended learning

 

solutions for Michigan schools in accordance with the following

 

parameters:

 

     (a) The Michigan Virtual School must maintain its

 

accreditation status from recognized national and international

 

accrediting entities.

 

     (b) The Michigan Virtual University shall use no more than


$1,000,000.00 of the amount allocated under this section to

 

subsidize the cost paid by districts for virtual courses.

 

     (c) In providing educators responsible for the teaching of

 

virtual courses as provided for in this section, the Michigan

 

Virtual School shall follow the requirements to request and assess,

 

and the department of state police shall provide, a criminal

 

history check and criminal records check under sections 1230 and

 

1230a of the revised school code, MCL 380.1230 and 380.1230a, in

 

the same manner as if the Michigan Virtual School were a school

 

district under those sections.

 

     (4) From the funds allocated under subsection (1), the

 

Michigan Virtual University shall allocate up to $500,000.00 to

 

support the expansion of new online and blended educator

 

professional development programs.

 

     (5) (4) If the course offerings are included in the statewide

 

catalog of virtual courses under subsection (2)(b)(ix), the

 

Michigan Virtual School operated by the Michigan Virtual University

 

may offer virtual course offerings, including, but not limited to,

 

all of the following:

 

     (a) Information technology courses.

 

     (b) College level equivalent courses, as defined in section

 

1471 of the revised school code, MCL 380.1471.

 

     (c) Courses and dual enrollment opportunities.

 

     (d) Programs and services for at-risk pupils.

 

     (e) High school equivalency test preparation courses for

 

adjudicated youth.

 

     (f) Special interest courses.


     (g) Professional development programs for teachers, school

 

administrators, other school employees, and school board members.

 

     (6) (5) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan Virtual School, the student may use the services provided

 

by the Michigan Virtual School to the district without charge to

 

the student beyond what is charged to a district pupil using the

 

same services.

 

     (7) (6) Not later than December 1 of each fiscal year, the

 

Michigan Virtual University shall provide a report to the house and

 

senate appropriations subcommittees on state school aid, the state

 

budget director, the house and senate fiscal agencies, and the

 

department that includes at least all of the following information

 

related to the Michigan Virtual School for the preceding state

 

fiscal year:

 

     (a) A list of the districts served by the Michigan Virtual

 

School.

 

     (b) A list of virtual course titles available to districts.

 

     (c) The total number of virtual course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (8) (7) In addition to the information listed in subsection

 

(6), (7), the report under subsection (6) (7) shall also include a

 

plan to serve at least 600 schools with courses from the Michigan

 

Virtual School or with content available through the internet-based

 

platform identified in subsection (2)(b)(ix).

 

     (9) (8) The governor may appoint an advisory group for the


Michigan Virtual Learning Research Institute established under

 

subsection (2). The members of the advisory group shall serve at

 

the pleasure of the governor and shall serve without compensation.

 

The purpose of the advisory group is to make recommendations to the

 

governor, the legislature, and the president and board of the

 

Michigan Virtual University that will accelerate innovation in this

 

state's education system in a manner that will prepare elementary

 

and secondary students to be career and college ready and that will

 

promote the goal of increasing the percentage of citizens of this

 

state with high-quality degrees and credentials to at least 60% by

 

2025.

 

     (10) (9) Not later than November 1, 2016, 2017, the Michigan

 

Virtual University 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 detailed

 

budget for the 2016-2017 2017-2018 fiscal year that includes a

 

breakdown on its projected costs to deliver virtual educational

 

services to districts and a summary of the anticipated fees to be

 

paid by districts for those services. Not later than March 1 each

 

year, the Michigan Virtual University 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

 

breakdown on its actual costs to deliver virtual educational

 

services to districts and a summary of the actual fees paid by

 

districts for those services based on audited financial statements

 

for the immediately preceding fiscal year.

 

     (11) (10) As used in this section:


     (a) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided content, instruction, and

 

assessment, in part at a supervised educational facility away from

 

home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through

 

internet-connected learning environments with some degree of pupil

 

control over time, location, and pace of instruction.

 

     (b) "Cyber school" means a full-time instructional program of

 

virtual courses for pupils that may or may not require attendance

 

at a physical school location.

 

     (c) "Virtual course" means a course of study that is capable

 

of generating a credit or a grade and that is provided in an

 

interactive learning environment in which the majority of the

 

curriculum is delivered using the internet and in which pupils are

 

separated from their instructor or teacher of record by time or

 

location, or both.

 

     Sec. 99c. From the appropriation in section 11, there is

 

allocated from the general fund an amount not to exceed $60,000.00

 

each fiscal year for 2016-2017 and for 2017-2018 for the purpose of

 

civic education as described in this section. The department shall

 

establish a competitive grant process that awards funding to not

 

more than 1 provider for the delivery of programs that exemplify

 

best practices in civic education. The programs shall teach upper

 

elementary, middle, and high school pupils how to participate

 

responsibly in local and state government, and shall provide upper

 

elementary, middle, and high school pupils with an innovative

 

course of instruction on the history and principles of united


states constitutional democracy. The grantee also shall provide

 

support to all schools in this state beyond those targeted for

 

intensive programming funded under this section through its

 

website, conduct presentations at statewide conferences, and

 

conduct presentations at districts and intermediate districts.

 

     Sec. 99h. (1) From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$2,500,000.00 for 2016-2017 2017-2018 for competitive grants to

 

districts, and from the general fund appropriation in section 11,

 

there is allocated an amount not to exceed $250,000.00 for 2017-

 

2018 for competitive grants to nonpublic schools, that provide

 

pupils in grades K to 12 with expanded opportunities to improve

 

mathematics, science, and technology skills by participating in

 

events hosted by a science and technology development program known

 

as FIRST (for inspiration and recognition of science and

 

technology) Robotics, including JR FIRST Lego League, FIRST Lego

 

League, FIRST tech challenge, and FIRST Robotics competition.

 

Programs funded under this section are intended to increase the

 

number of pupils demonstrating proficiency in science and

 

mathematics on the state assessments and to increase the number of

 

pupils who are college- and career-ready upon high school

 

graduation. Notwithstanding section 17b, grant payments to

 

districts and nonpublic schools under this section shall be paid on

 

a schedule determined by the department. The department shall set

 

maximum grant awards for each different level of competition in a

 

manner that both maximizes the number of teams that will be able to

 

receive funds and expands the geographical distribution of teams.


     (2) A district or nonpublic school applying for a grant under

 

this section shall submit an application in a form and manner

 

determined by the department. To be eligible for a grant, a

 

district or nonpublic school shall demonstrate in its application

 

that the district or nonpublic school has established a partnership

 

for the purposes of the FIRST Robotics program with at least 1

 

sponsor, business entity, higher education institution, or

 

technical school, shall submit a spending plan, and shall pay at

 

least 25% of the cost of the FIRST Robotics program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:

 

     (a) Grants to districts or nonpublic schools to pay for

 

stipends not to exceed $1,500.00 for 1 coach per team.

 

     (b) Grants to districts or nonpublic schools for event

 

registrations, materials, travel costs, and other expenses

 

associated with the preparation for and attendance at FIRST

 

Robotics events and competitions. Each grant recipient shall

 

provide a local match from other private or local funds for the

 

funds received under this subdivision equal to at least 50% of the

 

costs of participating in an event.

 

     (c) Grants to districts or nonpublic schools for awards to

 

teams that advance to the state and world championship

 

competitions. The department shall determine an equal amount per

 

team for those teams that advance to the state championship and a

 

second equal award amount to those teams that advance to the world

 

championship.

 

     (4) The funds allocated under this section are a work project


appropriation, and any unexpended funds for 2016-2017 are carried

 

forward into 2017-2018. The purpose of the work project is to

 

continue to implement the projects described under subsection (1).

 

The estimated completion date of the work project is September 30,

 

2019.

 

     Sec. 99k. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $500,000.00 for 2017-2018 for

 

competitive grants to districts that provide pupils in grades 6 to

 

12 with expanded opportunities to improve computer science skills

 

by participating in cybersecurity competitive events hosted by

 

Merit Network, Incorporated, known as Michigan High School Cyber

 

Challenge, or hosted by the Air Force Association, known as

 

Cyberpatriot. Programs funded under this section are intended to

 

increase the number of pupils demonstrating proficiency in science

 

and mathematics on state assessments and to increase the number of

 

pupils who are college- and career-ready upon high school

 

graduation. Notwithstanding section 17b, grant payments to

 

districts under this section shall be paid on a schedule determined

 

by the department. The department shall set maximum grant awards

 

for each competition in a manner that both maximizes the number of

 

teams that will be able to receive funds and the geographical

 

distribution of teams.

 

     (2) A district applying for a grant under this section shall

 

submit an application in a form and manner determined by the

 

department. To be eligible for a grant, a district shall

 

demonstrate in its application that the district has established a

 

partnership with at least 1 sponsor, business entity, higher


education institution, or technical school, shall submit a spending

 

plan, and shall pay at least 25% of the cost of the selected

 

cybersecurity program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:

 

     (a) Grants to districts to pay for stipends not to exceed

 

$1,500.00 for 1 coach or mentor per team.

 

     (b) Grants to districts for event registrations, materials,

 

travel costs, and other expenses associated with the preparation

 

for and attendance at events and competitions. Each grant recipient

 

shall provide a local match from other private or local funds for

 

the funds received under this subdivision equal to at least 50% of

 

the costs of participating in an event.

 

     (c) Grants to districts for awards to teams that advance to

 

state and world championship competitions. The department shall

 

determine an equal amount per team for those teams that advance to

 

the state championship and a second equal award amount to those

 

teams that advance to the world championship for the selected

 

cybersecurity program.

 

     (4) The funds allocated under this section are a work project

 

appropriation, and any unexpended funds for 2017-2018 are carried

 

forward into 2018-2019. The purpose of the work project is to

 

continue to implement the projects described under subsection (1).

 

The estimated completion date of the work project is September 30,

 

2020.

 

     Sec. 99s. (1) From the funds appropriated under section 11,

 

there is allocated for 2016-2017 2017-2018 an amount not to exceed


$3,000,000.00 $3,549,300.00 from the state school aid fund

 

appropriation and an amount not to exceed $1,300,000.00

 

$2,250,700.00 from the general fund appropriation for Michigan

 

science, technology, engineering, and mathematics (MiSTEM)

 

programs. In addition, from the federal funds appropriated in

 

section 11, there is allocated for 2016-2017 2017-2018 an amount

 

estimated at $5,249,300.00 $4,700,000.00 from DED-OESE, title II,

 

mathematics and science partnership grants. Programs funded under

 

this section are intended to increase the number of pupils

 

demonstrating proficiency in science and mathematics on the state

 

assessments and to increase the number of pupils who are college-

 

and career-ready upon high school graduation. Notwithstanding

 

section 17b, payments under this section shall be paid on a

 

schedule determined by the department.

 

     (2) From the general fund allocation in subsection (1), there

 

is allocated an amount not to exceed $50,000.00 to the department

 

for administrative, training, and travel costs related to the

 

MiSTEM advisory council. All of the following apply to the MiSTEM

 

advisory council funded under this subsection:

 

     (a) The MiSTEM advisory council is created. The MiSTEM

 

advisory council shall provide to the governor, legislature,

 

department of talent and economic development, and department

 

recommendations designed to improve and promote innovation in STEM

 

education and to prepare students for careers in science,

 

technology, engineering, and mathematics.

 

     (b) The MiSTEM advisory council created under subdivision (a)

 

shall consist of the following members:


     (i) The governor shall appoint 11 voting members who are

 

representative of business sectors that are important to Michigan's

 

economy and rely on a STEM-educated workforce, nonprofit

 

organizations and associations that promote STEM education, K-12

 

and postsecondary education entities involved in STEM-related

 

career education, or other sectors as considered appropriate by the

 

governor. Each of these members shall serve at the pleasure of the

 

governor and for a term determined by the governor.

 

     (ii) The senate majority leader shall appoint 2 members of the

 

senate to serve as nonvoting, ex-officio ex officio members of the

 

MiSTEM advisory council, including 1 majority party member and 1

 

minority party member.

 

     (iii) The speaker of the house of representatives shall

 

appoint 2 members of the house of representatives to serve as

 

nonvoting, ex-officio ex officio members of the MiSTEM advisory

 

council, including 1 majority party member and 1 minority party

 

member.

 

     (c) Each member of the MiSTEM advisory council shall serve

 

without compensation.

 

     (d) The MiSTEM advisory council shall recommend to the

 

governor, the legislature, and the department a statewide strategy

 

for delivering STEM education-related opportunities to pupils and

 

objective criteria for determining preferred STEM programs. The

 

MiSTEM advisory council shall use funds received under this

 

subsection to purchase training for its members or their designees

 

from the Change the Equation STEMworks rating system program for

 

the purpose of rating STEM programs.


     (e) Not later than October 15 of each fiscal year, the MiSTEM

 

advisory council shall provide STEM quality ratings for programs

 

recommended for funding under subsection (3). The MiSTEM advisory

 

council shall make specific funding recommendations for the funds

 

allocated under subsection (3) by December 15 of each fiscal year.

 

The amount of each grant recommended shall not exceed $250,000.00.

 

     (f) If the MiSTEM advisory council is unable to make specific

 

funding recommendations by December 15 of a fiscal year, the

 

department shall distribute the funds allocated under subsection

 

(3) on a competitive grant basis that at least follows the quality

 

guidelines and priority areas recommended by the MiSTEM advisory

 

council. Each grant shall not exceed $250,000.00 and must provide

 

STEM education-related opportunities for pupils.

 

     (g) The MiSTEM advisory council shall work with directors of

 

mathematics and science centers funded under subsection (4) to

 

connect educators with businesses, workforce developers, economic

 

developers, community colleges, and universities.

 

     (3) From the general fund money allocated under subsection

 

(1), there is allocated for 2016-2017 2017-2018 an amount not to

 

exceed $1,000,000.00 $1,950,700.00 for the purpose of funding

 

programs under this section for 2016-2017, 2017-2018, as

 

recommended by the MiSTEM advisory council.

 

     (4) From the state school aid fund allocation under subsection

 

(1), there is allocated for 2016-2017 2017-2018 an amount not to

 

exceed $2,750,000.00 $3,299,300.00 to support the activities and

 

programs of mathematics and science centers. In addition, from the

 

federal funds allocated under subsection (1), there is allocated


for 2016-2017 2017-2018 an amount estimated at $5,249,300.00

 

$4,700,000.00 from DED-OESE, title II, mathematics and science

 

partnership grants, for the purposes of this subsection. All of the

 

following apply to the programs and funding under this subsection:

 

     (a) Within a service area designated locally, approved by the

 

department, and consistent with the comprehensive master plan for

 

mathematics and science centers developed by the department and

 

approved by the state board, an established mathematics and science

 

center shall provide 2 or more of the following 6 basic services,

 

as described in the master plan, to constituent districts and

 

communities: leadership, pupil services, curriculum support,

 

community involvement, professional development, and resource

 

clearinghouse services.

 

     (b) The department shall not award a state grant under this

 

subsection to more than 1 mathematics and science center located in

 

a designated region as prescribed in the 2007 master plan unless

 

each of the grants serves a distinct target population or provides

 

a service that does not duplicate another program in the designated

 

region.

 

     (c) As part of the technical assistance process, the

 

department shall provide minimum standard guidelines that may be

 

used by the mathematics and science center for providing fair

 

access for qualified pupils and professional staff as prescribed in

 

this subsection.

 

     (d) Allocations under this subsection to support the

 

activities and programs of mathematics and science centers shall be

 

continuing support grants to all 33 established mathematics and


science centers. For 2016-2017, 2017-2018, each established

 

mathematics and science center shall receive state funding in an

 

amount equal to 100% 120% of the amount it was allocated under

 

former section 99 for 2014-2015. If a center declines state funding

 

or a center closes, the remaining money available under this

 

subsection shall be distributed to the remaining centers, as

 

determined by the department.

 

     (e) From the funds allocated under this subsection, the

 

department shall distribute for 2016-2017 2017-2018 an amount not

 

to exceed $750,000.00 in a form and manner determined by the

 

department to those centers able to provide curriculum and

 

professional development support to assist districts in

 

implementing the Michigan merit curriculum components for

 

mathematics and science. Funding under this subdivision is in

 

addition to funding allocated under subdivision (d).

 

     (f) In order to receive state or federal funds under this

 

subsection, a grant recipient shall allow access for the department

 

or the department's designee to audit all records related to the

 

program for which it receives those funds. The grant recipient

 

shall reimburse the state for all disallowances found in the audit.

 

     (g) Not later than September 30, 2017, the department shall

 

work with the MiSTEM advisory council to revise the comprehensive

 

master plan described in subdivision (a) to ensure that the

 

comprehensive master plan is in compliance with the statewide

 

strategy developed by the council under subsection (2)(d). The

 

comprehensive master plan shall include a review of the feasibility

 

of consolidating and reducing the number of mathematics and science


centers.

 

     (h) The department shall give preference in awarding the

 

federal grants allocated under this subsection to eligible existing

 

mathematics and science centers.

 

     (i) In order to receive state funds under this subsection, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

subsection.

 

     (j) Not later than July 1 of each year, a mathematics and

 

science center that receives funds under this subsection shall

 

report to the department in a form and manner prescribed by the

 

department on the following performance measures:

 

     (i) Statistical change in pre- and post-assessment scores for

 

students who enrolled in mathematics and science activities

 

provided to districts by the mathematics and science center.

 

     (ii) Statistical change in pre- and post-assessment scores for

 

teachers who enrolled in professional development activities

 

provided by the mathematics and science center.

 

     (k) As used in this subsection:

 

     (i) "DED" means the United States Department of Education.

 

     (ii) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (5) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $250,000.00 for 2016-2017 2017-

 

2018 for competitive grants to districts that provide pupils in

 

grades K to 12 with expanded opportunities in science education and

 

skills by participating in events and competitions hosted by


Science Olympiad. All of the following apply to the grant funding

 

under this subsection:

 

     (a) A district applying for a grant under this subsection

 

shall submit an application in the form and manner determined by

 

the department not later than November 15, 2016. 2017. The

 

department shall select districts for grants and make notification

 

not later than December 15, 2016. 2017. To be eligible for a grant,

 

a district shall pay at least 25% of the cost of participating in

 

the Science Olympiad program.

 

     (b) The department shall distribute the grant funding

 

allocated under this subsection for the following purposes:

 

     (i) Grants to districts of up to $800.00 per new elementary

 

team.

 

     (ii) Grants to districts of up to $400.00 per established

 

elementary team.

 

     (iii) Grants to districts of up to $1,600.00 per new secondary

 

team.

 

     (iv) Grants to districts of up to $800.00 per established

 

secondary team.

 

     (6) From the general fund allocation under subsection (1),

 

there is allocated an amount not to exceed $250,000.00 for 2016-

 

2017 2017-2018 for a grant to the Van Andel Education Institute for

 

the purposes of advancing and promoting science education and

 

increasing the number of students who choose to pursue careers in

 

science or science-related fields. Funds allocated under this

 

subsection shall be used to provide professional development for

 

science teachers in using student-driven, inquiry-based


instruction.

 

     Sec. 99t. (1) From the general fund appropriation under

 

section 11, there is allocated an amount not to exceed

 

$1,500,000.00 for 2016-2017 $1,200,000.00 for 2017-2018 to purchase

 

statewide access to an online algebra tool that meets all of the

 

following:

 

     (a) Provides students statewide with complete access to videos

 

aligned with state standards including study guides and workbooks

 

that are aligned with the videos.

 

     (b) Provides students statewide with access to a personalized

 

online algebra learning tool including adaptive diagnostics.

 

     (c) Provides students statewide with dynamic algebra practice

 

assessments that emulate the state assessment with immediate

 

feedback and help solving problems.

 

     (d) Provides students statewide with online access to algebra

 

help 24 hours a day and 7 days a week from study experts, teachers,

 

and peers on a moderated social networking platform.

 

     (e) Provides an online algebra professional development

 

network for teachers.

 

     (f) Is already provided under a statewide contract in at least

 

1 other state that has a population of at least 18,000,000 but not

 

more than 19,000,000 according to the most recent decennial census

 

and is offered in that state in partnership with a public

 

university.

 

     (2) The department shall choose the online algebra tool by

 

October 1, 2016.

 

     Sec. 99u. (1) From the general fund appropriation under


section 11, there is allocated an amount not to exceed

 

$2,300,000.00 for 2017-2018 for a competitive grant to provide

 

information technology education opportunities to students

 

attending schools operating grades K-12, career and technical

 

centers and career academies, and community colleges and

 

universities. It is the intent of the legislature that 2017-2018 is

 

the first of 3 years of funding for the competitive grant program.

 

Funds allocated under this section shall be used for instruction in

 

information technology skills and competencies that are essential

 

for the workplace and requested by employers and shall allow

 

participating students and faculties to secure broad-based

 

information technology certifications and, if applicable, college

 

credit.

 

     (2) The department shall select a provider using a competitive

 

request for proposals process. Proposals submitted under this

 

subsection shall include at least the following components:

 

     (a) Research- and skill-development-based and information

 

technology curriculum.

 

     (b) Online access to the curriculum.

 

     (c) Instructional software for classroom and student use.

 

     (d) A program that includes coding curriculum and material

 

that are aligned to the CS AP exam and grants a certificate upon

 

completion of the program.

 

     (e) Components for all grade levels on computational thinking

 

skills development using the latest gaming software.

 

     (f) A process for students to obtain certifications of skills

 

and competencies in a broad base of information technology-related


skill areas.

 

     (g) Professional development for faculty.

 

     (h) Implementation and program support, including, but not

 

limited to, integration with current curriculum standards.

 

     (i) Methods for students to earn college credit.

 

     (3) The department shall give priority to proposals by

 

providers that have previously demonstrated success in this state

 

in providing high-quality information technology education

 

opportunities to students.

 

     (4) The funds allocated under this section for 2017-2018 are a

 

work project appropriation, and any unexpended funds for 2017-2018

 

are to be carried forward into 2018-2019. The purpose of the work

 

project is to continue to provide information technology education

 

opportunities described in this section. The estimated completion

 

date of the work project is September 30, 2020.

 

     Sec. 102d. (1) From the funds appropriated in section 11,

 

there is allocated an amount not to exceed $1,500,000.00

 

$1,750,000.00 for 2016-2017 2017-2018 for reimbursements to

 

districts and intermediate districts for the licensing of school

 

data analytical tools as described under this section. The

 

reimbursement is for districts and intermediate districts that

 

choose to use a school data analytical tool to assist the district

 

or intermediate district and that enter into a licensing agreement

 

for a school data analytical tool with 1 of the vendors approved by

 

the department of technology, management, and budget under

 

subsection (2). Funds allocated under this section are intended to

 

provide districts and intermediate districts with financial


forecasting and transparency reporting tools to help improve the

 

financial health of districts and to improve communication with the

 

public, resulting in increased fund balances for districts and

 

intermediate districts.

 

     (2) Not later than October 15, 2016, 2017, the department of

 

technology, management, and budget shall review vendors for school

 

data analytical tools and provide districts and intermediate

 

districts with a list of up to 2 approved vendors that districts

 

and intermediate districts may use to be eligible for a

 

reimbursement paid under this section. In addition, a vendor

 

approved under this section for 2015-2016 2016-2017 is considered

 

to be approved for use by a district or intermediate district and

 

for reimbursement for 2016-2017. 2017-2018. An approved school data

 

analytical tool supplied by the vendor must meet at least all of

 

the following:

 

     (a) Analyzes financial data.

 

     (b) Analyzes academic data.

 

     (c) Provides early warning indicators of financial stress.

 

     (d) Has the capability to provide peer district comparisons of

 

both financial and academic data.

 

     (e) Has the capability to provide financial projections for at

 

least 3 subsequent fiscal years.

 

     (3) Funds allocated under this section shall be paid to

 

districts and intermediate districts as a reimbursement for already

 

having a licensing agreement or for entering into a licensing

 

agreement not later than December 1, 2016 2017 with a vendor

 

approved under subsection (2) to implement a school data analytical


tool. Reimbursement will be prorated for the portion of the state

 

fiscal year not covered by the licensing agreement. However, a

 

licensing agreement that takes effect after October 1, 2016 2017

 

and before December 1, 2016 2017 will not be prorated if the term

 

of the agreement is at least 1 year. Reimbursement under this

 

section shall be made as follows:

 

     (a) All districts and intermediate districts seeking

 

reimbursement shall submit requests not later than December 1, 2016

 

2017 indicating the cost paid for the financial data analytical

 

tool.

 

     (b) The department shall determine the sum of the funding

 

requests under subdivision (a) and, if there are sufficient funds,

 

shall pay 1/2 of the costs submitted under subdivision (a). If

 

there are insufficient funds to pay 1/2 of the costs submitted

 

under (a), then reimbursement shall be made on an equal percentage

 

basis.

 

     (c) Funds remaining after the calculation and payment under

 

subdivision (b) shall be distributed on an equal per-pupil basis,

 

with an intermediate district's pupils considered to be the sum of

 

the pupil memberships of the constituent districts for which the

 

intermediate district is purchasing the financial data analytical

 

tool.

 

     (d) The reimbursement to a district or intermediate district

 

shall not be greater than the amount paid for a data analytics

 

application.

 

     (e) A district or intermediate district shall not be

 

reimbursed for the purchase of more than 1 software application.


     (4) If an intermediate district purchases both a school data

 

analytical tool specifically for intermediate district finances and

 

a school data analytical tool for its constituent districts, the

 

intermediate district shall be reimbursed for both purchases under

 

this section.

 

     (5) If an intermediate district makes available to 1 or more

 

of its constituent districts a school data analytical tool funded

 

under this section, that constituent district shall not be

 

reimbursed under this section for the purchase of a school data

 

analytical tool.

 

     (6) (4) Notwithstanding section 17b, payments under this

 

section shall be made on a schedule determined by the department.

 

     Sec. 104. (1) In order to receive state aid under this

 

article, a district shall comply with sections 1249, 1278a, 1278b,

 

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

 

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

 

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

 

the state school aid fund money appropriated in section 11, there

 

is allocated for 2016-2017 2017-2018 an amount not to exceed

 

$33,894,400.00 $34,709,400.00 for payments on behalf of districts

 

for costs associated with complying with those provisions of law.

 

In addition, from the federal funds appropriated in section 11,

 

there is allocated for 2016-2017 2017-2018 an amount estimated at

 

$6,250,000.00, funded from DED-OESE, title VI, state assessment

 

funds, and from DED-OSERS, section 504 of part B of the individuals

 

with disabilities education act, Public Law 94-142, plus any

 

carryover federal funds from previous year appropriations, for the


purposes of complying with the federal no child left behind act of

 

2001, Public Law 107-110, or the every student succeeds act, Public

 

Law 114-95.

 

     (2) The results of each test administered as part of the

 

Michigan student test of educational progress (M-STEP), including

 

tests administered to high school students, shall include an item

 

analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible

 

response. The department shall work with the center to identify the

 

number of students enrolled at the time assessments are given by

 

each district. In calculating the percentage of pupils assessed for

 

a district's scorecard, the department shall use only the number of

 

pupils enrolled in the district at the time the district

 

administers the assessments and shall exclude pupils who enroll in

 

the district after the district administers the assessments.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

     (4) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $185,000.00 for the implementation of a

 

kindergarten readiness assessment pilot project in 2016-2017. The

 

funding would be allocated to an intermediate district located in a

 

prosperity region with 2 or more subregions to participate in the

 

Maryland-Ohio pilot and cover the cost of a contract with a

 

university for implementation of version 1.75 of the kindergarten

 

readiness assessment tool. The kindergarten readiness assessment


pilot shall assess an estimated 4,000 children, and the designated

 

intermediate district shall work with other intermediate districts

 

to implement the pilot project, engage with the office of great

 

start and the department, and provide a report to the legislature

 

on the efficacy and usefulness of a kindergarten readiness

 

assessment. Allowable costs under this pilot program include those

 

incurred in August and September 2016.

 

     (4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,000,000.00 for 2017-2018 to an

 

intermediate district described in this subsection to implement a

 

Michigan kindergarten entry observation tool in 2017–2018. The

 

funding under this subsection is allocated to an intermediate

 

district in prosperity region 9 with at least 3,000 kindergarten

 

pupils enrolled in its constituent districts to continue

 

participation in the Maryland-Ohio pilot and cover the costs of

 

implementing the pilot observation tool, including a contract with

 

a university for implementation of the pilot observation tool. The

 

Michigan kindergarten entry observation shall be conducted in all

 

kindergarten classrooms in districts located in prosperity regions

 

4, 5, and 9 in the 2017-2018 school year. A constituent district of

 

an intermediate district located within prosperity region 4, 5, or

 

9 shall administer the Maryland-Ohio tool within each kindergarten

 

classroom in the 2017-2018 school year to either the full census of

 

kindergarten pupils or a representative sample of not less than 35%

 

of the enrolled kindergarten pupils in each classroom. The

 

intermediate district receiving the funding allocated under this

 

subsection shall work with other intermediate districts to


implement the Michigan kindergarten entry observation, engage with

 

the office of great start and the department, and provide a report

 

to the legislature on the demonstrated readiness of kindergarten

 

pupils within the participating intermediate districts. That

 

intermediate district may share this funding with the other

 

affected intermediate districts and districts. Allowable costs

 

under this subsection include those incurred in July, August, and

 

September 2017 as well as those incurred in 2017-2018. As used in

 

this subsection, "kindergarten" may include a classroom for young

 

5-year-olds, commonly referred to as "young 5s" or "developmental

 

kindergarten".

 

     (5) The department shall continue to make the kindergarten

 

entry assessment developed by the department and field tested in

 

2015-2016 available to districts in 2016-2017.2017-2018.

 

     (6) The department may recommend, but may not require,

 

districts to allow pupils to use an external keyboard with tablet

 

devices for online M-STEP testing, including, but not limited to,

 

open-ended test items such as constructed response or equation

 

builder items.

 

     (7) Notwithstanding section 17b, payments on behalf of

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (8) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $3,200,000.00 for the development or

 

selection of an online reporting tool to provide student-level

 

assessment data in a secure environment to educators, parents, and


pupils immediately after assessments are scored. The department and

 

the center shall ensure that any data collected by the online

 

reporting tool do not provide individually identifiable student

 

data to the federal government.

 

     (9) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $5,600,000.00 for the purpose of

 

implementing a summative assessment system pursuant to section

 

104c.

 

     (9) (10) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (c) "DED-OSERS" means the DED Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 104c. (1) In order to receive state aid under this

 

article, a district shall administer the state assessments

 

described in this section.

 

     (2) For the purposes of this section, the department shall

 

develop for use in the spring of 2015-2016 the Michigan student

 

test of educational progress (M-STEP) assessments in English

 

language arts and mathematics. These assessments shall be aligned

 

to state standards.

 

     (3) For the purposes of this section, the department shall

 

implement a summative assessment system that is proven to be valid

 

and reliable for administration to pupils as provided under this

 

subsection. The summative assessment system shall meet all of the

 

following requirements:


     (a) The summative assessment system shall measure student

 

proficiency on the current state standards, shall measure student

 

growth for consecutive grade levels in which students are assessed

 

in the same subject area in both grade levels, and shall be capable

 

of measuring individual student performance.

 

     (b) The summative assessments for English language arts and

 

mathematics shall be administered to all public school pupils in

 

grades 3 to 11, including those pupils as required by the federal

 

individuals with disabilities education act, Public Law 108-446,

 

and by title I of the federal elementary and secondary education

 

act.every student succeeds act (ESSA), Public Law 114-95.

 

     (c) The summative assessments for science shall be

 

administered to all public school pupils in at least grades 4 and

 

7, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.every student

 

succeeds act (ESSA), Public Law 114-95.

 

     (d) The summative assessments for social studies shall be

 

administered to all public school pupils in at least grades 5 and

 

8, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.every student

 

succeeds act (ESSA), Public Law 114-95.

 

     (e) The content of the summative assessments shall be aligned

 

to state standards.

 

     (f) The pool of questions for the summative assessments shall

 

be subject to a transparent review process for quality, bias, and


sensitive issues involving educator review and comment. The

 

department shall post samples from tests or retired tests featuring

 

questions from this pool for review by the public.

 

     (g) The summative assessment system shall ensure that

 

students, parents, and teachers are provided with reports that

 

convey individual student proficiency and growth on the assessment

 

and that convey individual student domain-level performance in each

 

subject area, including representative questions, and individual

 

student performance in meeting state standards.

 

     (h) The summative assessment system shall be capable of

 

providing, and the department shall ensure that students, parents,

 

teachers, administrators, and community members are provided with,

 

reports that convey aggregate student proficiency and growth data

 

by teacher, grade, school, and district.

 

     (i) The summative assessment system shall ensure the

 

capability of reporting the available data to support educator

 

evaluations.

 

     (j) The summative assessment system shall ensure that the

 

reports provided to districts containing individual student data

 

are available within 60 days after completion of the assessments.

 

     (k) The summative assessment system shall ensure that access

 

to individually identifiable student data meets all of the

 

following:

 

     (i) Is in compliance with 20 USC 1232g, commonly referred to

 

as the family educational rights and privacy act of 1974.

 

     (ii) Except as may be provided for in an agreement with a

 

vendor to provide assessment services, as necessary to support


educator evaluations pursuant to subdivision (i), or for research

 

or program evaluation purposes, is available only to the student;

 

to the student's parent or legal guardian; and to a school

 

administrator or teacher, to the extent that he or she has a

 

legitimate educational interest.

 

     (l) The summative assessment system shall ensure that the

 

assessments are pilot tested before statewide implementation.

 

     (m) The summative assessment system shall ensure that

 

assessments are designed so that the maximum total combined length

 

of time that schools are required to set aside for a pupil to

 

answer all test questions on all assessments that are part of the

 

system for the pupil's grade level does not exceed that maximum

 

total combined length of time for the previous statewide assessment

 

system or 9 hours, whichever is less. This subdivision does not

 

limit the amount of time a district may allow a pupil to complete a

 

test.

 

     (n) The total cost of executing the summative assessment

 

system statewide each year, including, but not limited to, the cost

 

of contracts for administration, scoring, and reporting, shall not

 

exceed an amount equal to 2 times the cost of executing the

 

previous statewide assessment after adjustment for inflation.

 

     (4) Beginning in the 2015-2016 school year, the department

 

shall field test assessments in the fall and spring of each school

 

year to measure English language arts and mathematics in each of

 

grades K to 2 for full implementation when the assessments have

 

been successfully field tested. This full implementation shall

 

occur not later than the 2018-2019 school year. These assessments


are necessary to determine a pupil's proficiency level before grade

 

3.

 

     (5) In an effort to add and administer statewide benchmark

 

assessments in English language arts and mathematics to the current

 

assessment system, the department shall begin to develop and

 

implement pilot programs or field testing of test content for the

 

statewide use of benchmark assessments for grades 3 to 8 up to 3

 

times per year beginning in the 2018-2019 school year. These

 

benchmark assessments shall be fully aligned to this state's state

 

content standards for English language arts and mathematics and may

 

be computer-adaptive in nature.

 

     (6) (5) This section does not prohibit districts from adopting

 

interim assessments.

 

     (7) (6) As used in this section, "English language arts" means

 

that term as defined in section 104b.

 

     Sec. 104d. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2016-2017 2017-

 

2018 an amount not to exceed $4,000,000.00 $5,000,000.00 for

 

providing reimbursement to districts that purchase a computer-

 

adaptive test, or that purchase 1 or more diagnostic tools,

 

screening tools, or benchmark assessments for pupils in grades K to

 

3 that are intended to increase reading proficiency by grade 4.

 

     (2) In order to receive reimbursement under this section for

 

the purchase of a computer-adaptive test, the computer-adaptive

 

test must provide for at least all of the following:

 

     (a) Internet-delivered, standards-based assessment using a

 

computer-adaptive model to target the instructional level of each


pupil.

 

     (b) Unlimited testing opportunities throughout the 2016-2017

 

2017-2018 school year.

 

     (c) Valid and reliable diagnostic assessment data.

 

     (d) Adjustment of testing difficulty based on previous answers

 

to test questions.

 

     (e) Immediate feedback to pupils and teachers.

 

     (3) In order to receive reimbursement under this section for

 

the purchase of 1 or more diagnostic tools or screening tools for

 

pupils in grades K to 3, each of the tools must meet all of the

 

following:

 

     (a) Be reliable.

 

     (b) Be valid.

 

     (c) Be useful. As used in this subdivision, "useful" means

 

that a tool is easy to administer and requires a short time to

 

complete and that results are linked to intervention.

 

     (4) In order to receive funding under this section for the

 

purchase of 1 or more benchmark assessments for pupils in grades K

 

to 3, each of the benchmark assessments must meet all of the

 

following:

 

     (a) Be aligned to the state standards of this state.

 

     (b) Complement this state's summative assessment system.

 

     (c) Be administered at least once a year before the

 

administration of any summative assessment to monitor pupil

 

progress.

 

     (d) Provide information on pupil achievement with regard to

 

learning the content required in a given year or grade span.


     (5) Reimbursement under this section shall be made to eligible

 

districts that purchase a computer-adaptive test or 1 or more

 

diagnostic tools, screening tools, or benchmark assessments

 

described in this section by October 15, 2016 2017 and shall be

 

made on an equal per-pupil basis according to the available

 

funding, based on the number of pupils for whom assessments were

 

purchased.

 

     (6) In order to receive reimbursement under this section, a

 

district shall demonstrate to the satisfaction of the department

 

that each qualifying computer-adaptive test, diagnostic tool,

 

screening tool, or benchmark assessment was purchased by the

 

district by December 1, 2016.2017.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $25,000,000.00 $27,500,000.00 for

 

2016-2017 2017-2018 for adult education programs authorized under

 

this section. Except as otherwise provided under subsections (14)

 

and (15), (14), (15), and (19), funds allocated under this section

 

are restricted for adult education programs as authorized under

 

this section only. A recipient of funds under this section shall

 

not use those funds for any other purpose.

 

     (2) To be eligible for funding under this section, an eligible

 

adult education provider shall employ certificated teachers and

 

qualified administrative staff and shall offer continuing education

 

opportunities for teachers to allow them to maintain certification.

 

     (3) To be eligible to be a participant funded under this

 

section, an individual shall be enrolled in an adult basic

 

education program, an adult secondary education program, an adult


English as a second language program, a high school equivalency

 

test preparation program, or a high school completion program, that

 

meets the requirements of this section, and for which instruction

 

is provided, and shall meet either of the following:

 

     (a) Has attained 20 years of age.

 

     (b) Has attained 18 years of age and the individual's

 

graduating class has graduated.

 

     (4) By April 1 of each fiscal year, the intermediate districts

 

within a prosperity region or subregion shall determine which

 

intermediate district will serve as the prosperity region's or

 

subregion's fiscal agent for the next fiscal year and shall notify

 

the department in a form and manner determined by the department.

 

The department shall approve or disapprove of the prosperity

 

region's or subregion's selected fiscal agent. From the funds

 

allocated under subsection (1), an amount as determined under this

 

subsection shall be allocated to each intermediate district serving

 

as a fiscal agent for adult education programs in each of the

 

prosperity regions or subregions identified by the department. An

 

intermediate district shall not use more than 5% of the funds

 

allocated under this subsection for administration costs for

 

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

 

allocation provided to each intermediate district serving as a

 

fiscal agent shall be based on the proportion of total funding

 

formerly received by the adult education providers in that

 

prosperity region or subregion in 2013-2014, and 33% shall be

 

allocated based on the factors in subdivisions (a), (b), and (c).

 

For 2017-2018, 2018-2019, 33% of the allocation provided to each


intermediate district serving as a fiscal agent shall be based upon

 

the proportion of total funding formerly received by the adult

 

education providers in that prosperity region in 2013-2014 and 67%

 

of the allocation shall be based upon the factors in subdivisions

 

(a), (b), and (c). Beginning in 2018-2019, 2019-2020, 100% of the

 

allocation provided to each intermediate district serving as a

 

fiscal agent shall be based on the factors in subdivisions (a),

 

(b), and (c). The funding factors for this section are as follows:

 

     (a) Sixty percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals between the ages of 18 and 24 that are not high school

 

graduates that resides in each of the prosperity regions or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey (ACS) from the United States Census

 

Bureau.

 

     (b) Thirty-five percent of this portion of the funding shall

 

be distributed based upon the proportion of the state population of

 

individuals age 25 or older who are not high school graduates that

 

resides in each of the prosperity regions or subregions, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States Census Bureau.

 

     (c) Five percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals age 18 or older who lack basic English language

 

proficiency that resides in each of the prosperity regions or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey (ACS) from the United States Census


Bureau.

 

     (5) To be an eligible fiscal agent, an intermediate district

 

must agree to do the following in a form and manner determined by

 

the department:

 

     (a) Distribute funds to adult education programs in a

 

prosperity region or subregion as described in this section.

 

     (b) Collaborate with the talent district career council, which

 

is an advisory council of the workforce development boards located

 

in the prosperity region or subregion, or its successor, to develop

 

a regional strategy that aligns adult education programs and

 

services into an efficient and effective delivery system for adult

 

education learners, with special consideration for providing

 

contextualized learning and career pathways and addressing barriers

 

to education and employment.

 

     (c) Collaborate with the talent district career council, which

 

is an advisory council of the workforce development boards located

 

in the prosperity region or subregion, or its successor, to create

 

a local process and criteria that will identify eligible adult

 

education providers to receive funds allocated under this section

 

based on location, demand for services, past performance, quality

 

indicators as identified by the department, and cost to provide

 

instructional services. The fiscal agent shall determine all local

 

processes, criteria, and provider determinations. However, the

 

local processes, criteria, and provider services must be approved

 

by the department before funds may be distributed to the fiscal

 

agent.

 

     (d) Provide oversight to its adult education providers


throughout the program year to ensure compliance with the

 

requirements of this section.

 

     (e) Report adult education program and participant data and

 

information as prescribed by the department.

 

     (6) An adult basic education program, an adult secondary

 

education program, or an adult English as a second language program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults who are determined by a

 

department-approved assessment, in a form and manner prescribed by

 

the department, to be below twelfth grade level in reading or

 

mathematics, or both, or to lack basic English proficiency.

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and upon completion of the

 

program in compliance with the state-approved assessment policy.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed at or above the ninth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (d) A participant in an adult secondary education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed above the twelfth grade level.

 

     (ii) The participant fails to show progress on 2 successive


assessments after having at least 450 hours of instruction.

 

     (e) A funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (9) until the participant meets 1 of the following:

 

     (i) The participant is assessed as having attained basic

 

English proficiency as determined by a department-approved

 

assessment.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments after having completed at least 450

 

hours of instruction. The department shall provide information to a

 

funding recipient regarding appropriate assessment instruments for

 

this program.

 

     (7) A high school equivalency test preparation program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma or a high school equivalency certificate.

 

     (b) The program shall administer a pre-test approved by the

 

department before enrolling an individual to determine the

 

individual's literacy levels, shall administer a high school

 

equivalency practice test to determine the individual's potential

 

for success on the high school equivalency test, and shall

 

administer a post-test upon completion of the program in compliance

 

with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (9) for a participant, and a participant may be enrolled

 

in the program until 1 of the following occurs:


     (i) The participant achieves a high school equivalency

 

certificate.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

a high school equivalency test after having completed at least 450

 

hours of instruction.

 

     (8) A high school completion program operated on a year-round

 

or school year basis may be funded under this section, subject to

 

all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (9) for a participant in a course offered under this

 

subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (9) A funding recipient shall receive payments under this

 

section in accordance with all of the following:

 

     (a) Statewide allocation criteria, including 3-year average

 

enrollments, census data, and local needs.

 

     (b) Participant completion of the adult basic education


objectives by achieving an educational gain as determined by the

 

national reporting system levels; for achieving basic English

 

proficiency, as determined by the department; for achieving a high

 

school equivalency certificate or passage of 1 or more individual

 

high school equivalency tests; for attainment of a high school

 

diploma or passage of a course required for a participant to attain

 

a high school diploma; for enrollment in a postsecondary

 

institution, or for entry into or retention of employment, as

 

applicable.

 

     (c) Participant completion of core indicators as identified in

 

the innovation and opportunity act.

 

     (d) Allowable expenditures.

 

     (10) A person who is not eligible to be a participant funded

 

under this section may receive adult education services upon the

 

payment of tuition. In addition, a person who is not eligible to be

 

served in a program under this section due to the program

 

limitations specified in subsection (6), (7), or (8) may continue

 

to receive adult education services in that program upon the

 

payment of tuition. The tuition level shall be determined by the

 

local or intermediate district conducting the program.

 

     (11) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (12) A funding recipient shall not commingle money received

 

under this section or from another source for adult education

 

purposes with any other funds and shall establish a separate ledger

 

account for funds received under this section. This subsection does

 

not prohibit a district from using general funds of the district to


support an adult education or community education program.

 

     (13) A funding recipient receiving funds under this section

 

may establish a sliding scale of tuition rates based upon a

 

participant's family income. A funding recipient may charge a

 

participant tuition to receive adult education services under this

 

section from that sliding scale of tuition rates on a uniform

 

basis. The amount of tuition charged per participant shall not

 

exceed the actual operating cost per participant minus any funds

 

received under this section per participant. A funding recipient

 

may not charge a participant tuition under this section if the

 

participant's income is at or below 200% of the federal poverty

 

guidelines published by the United States Department of Health and

 

Human Services.

 

     (14) In order to receive funds under this section, a funding

 

recipient shall furnish to the department, in a form and manner

 

determined by the department, all information needed to administer

 

this program and meet federal reporting requirements; shall allow

 

the department or the department's designee to review all records

 

related to the program for which it receives funds; and shall

 

reimburse the state for all disallowances found in the review, as

 

determined by the department. In addition, a funding recipient

 

shall agree to pay to a career and technical education program

 

under section 61a the amount of funding received under this section

 

in the proportion of career and technical education coursework used

 

to satisfy adult basic education programming, as billed to the

 

funding recipient by programs operating under section 61a.

 

     (15) From the amount appropriated in subsection (1), an amount


not to exceed $500,000.00 shall be allocated for 2016-2017 2017-

 

2018 to not more than 1 pilot program that is located in a

 

prosperity region with 2 or more subregions and that connects adult

 

education participants directly with employers by linking adult

 

education, career and technical skills, and workforce development.

 

To be eligible for funding under this subsection, a pilot program

 

shall provide a collaboration linking adult education programs

 

within the county, the area career/technical center, and local

 

employers, and shall meet the additional criteria in subsections

 

(16) and (17). Funding under this subsection for 2016-2017 2017-

 

2018 is for the second third of 3 years of funding.

 

     (16) A pilot program funded under subsection (15) shall

 

require adult education staff to work with Michigan works! agency

 

to identify a cohort of participants who are most prepared to

 

successfully enter the workforce. Participants identified under

 

this subsection shall be dually enrolled in adult education

 

programming and at least 1 technical course at the area

 

career/technical center.

 

     (17) A pilot program funded under subsection (15) shall have

 

on staff an adult education navigator who will serve as a

 

caseworker for each participant identified under subsection (16).

 

The navigator shall work with adult education staff and potential

 

employers to design an educational program best suited to the

 

personal and employment needs of the participant, and shall work

 

with human service agencies or other entities to address any

 

barrier in the way of participant access.

 

     (18) Not later than December 1, 2017, 2018, the pilot program


funded under subsection (15) shall provide to the senate and house

 

appropriations subcommittees on school aid, and to the senate and

 

house fiscal agencies, and to the state budget director a report

 

detailing number of participants, graduation rates, and a measure

 

of transitioning to employment.

 

     (19) The department shall develop an application process for a

 

pilot program to be funded under subsection (15) and shall award

 

funding not later than October 1, 2016. Funding allocated under

 

subsection (15) may be paid on a schedule other than that specified

 

under section 17b.

 

     (19) From the amount appropriated in subsection (1), an amount

 

not to exceed $2,500,000.00 shall be allocated for 2017-2018 for

 

grants to not more than 5 pilot programs that are additional to the

 

pilot program funded under subsection (15) to connect adult

 

education participants with employers as provided under this

 

subsection. The grant to each eligible pilot program shall be

 

$500,000.00. To receive funding under this subsection, an eligible

 

pilot program shall satisfy all of the following:

 

     (a) Meets 1 of the following:

 

     (i) Is located in prosperity region 1c.

 

     (ii) Is located in prosperity region 2 and borders prosperity

 

region 4.

 

     (iii) Is located in prosperity region 4a and borders

 

prosperity region 5.

 

     (iv) Is located in prosperity region 5 and borders Lake Huron.

 

     (v) Is located in prosperity region 9 and borders a

 

neighboring state.


     (b) Begins operations at the start of the 2017-2018 school

 

year.

 

     (c) Replicates the pilot program funded under subsection (15).

 

     (d) Meets the requirements under subsections (15), (16), and

 

(17) for a pilot program funded under subsection (15).

 

     (20) Not later than December 1, 2018, a pilot program funded

 

under subsection (19) shall provide a report to the senate and

 

house appropriations subcommittees on school aid, to the senate and

 

house fiscal agencies, and to the state budget director identifying

 

the number of participants, graduation rates, and a measure of

 

transition to employment.

 

     (21) (20) The department shall approve at least 3 high school

 

equivalency tests and determine whether a high school equivalency

 

certificate meets the requisite standards for high school

 

equivalency in this state.

 

     (22) (21) As used in this section:

 

     (a) "Career pathway" means a combination of rigorous and high-

 

quality education, training, and other services that comply with

 

all of the following:

 

     (i) Aligns with the skill needs of industries in the economy

 

of this state or in the regional economy involved.

 

     (ii) Prepares an individual to be successful in any of a full

 

range of secondary or postsecondary education options, including

 

apprenticeships registered under the act of August 16, 1937

 

(commonly known as the "national apprenticeship act"), 29 USC 50 et

 

seq.

 

     (iii) Includes counseling to support an individual in


achieving the individual's education and career goals.

 

     (iv) Includes, as appropriate, education offered concurrently

 

with and in the same context as workforce preparation activities

 

and training for a specific occupation or occupational cluster.

 

     (v) Organizes education, training, and other services to meet

 

the particular needs of an individual in a manner that accelerates

 

the educational and career advancement of the individual to the

 

extent practicable.

 

     (vi) Enables an individual to attain a secondary school

 

diploma or its recognized equivalent, and at least 1 recognized

 

postsecondary credential.

 

     (vii) Helps an individual enter or advance within a specific

 

occupation or occupational cluster.

 

     (b) "Department" means the department of talent and economic

 

development.

 

     (c) "Eligible adult education provider" means a district,

 

intermediate district, a consortium of districts, a consortium of

 

intermediate districts, or a consortium of districts and

 

intermediate districts that is identified as part of the local

 

process described in subsection (5)(c) and approved by the

 

department.

 

     Sec. 147. (1) The allocation for 2016-2017 2017-2018 for the

 

public school employees' retirement system pursuant to the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1408, shall be made using the individual projected benefit

 

entry age normal cost method of valuation and risk assumptions

 

adopted by the public school employees retirement board and the


department of technology, management, and budget.

 

     (2) The annual level percentage of payroll contribution rates

 

for the 2016-2017 2017-2018 fiscal year, as determined by the

 

retirement system, are estimated as follows:

 

     (a) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who are enrolled in

 

the health premium subsidy, the annual level percentage of payroll

 

contribution rate is estimated at 36.64%, 36.88%, with 24.94%

 

25.56% paid directly by the employer.

 

     (b) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who are enrolled

 

in the health premium subsidy, the annual level percentage of

 

payroll contribution rate is estimated at 36.01%, 35.60%, with

 

24.31% 24.28% paid directly by the employer.

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 35.79%, 35.35%, with

 

24.09% 24.03% paid directly by the employer.

 

     (d) For public school employees who first worked for a public

 

school reporting unit on or after September 4, 2012, who elect

 

defined contribution, and who participate in the personal

 

healthcare fund, the annual level percentage of payroll

 

contribution rate is estimated at 32.66%, 32.28%, with 20.96% paid

 

directly by the employer.

 

     (e) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined


contribution, and who are enrolled in the health premium subsidy,

 

the annual level percentage of payroll contribution rate is

 

estimated at 32.88%, 32.53%, with 21.18% 21.21% paid directly by

 

the employer.

 

     (f) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who participate in the personal healthcare fund,

 

the annual level percentage of payroll contribution rate is

 

estimated at 32.66%, 32.28%, with 20.96% paid directly by the

 

employer.

 

     (g) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who participate in

 

the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 36.42%, 36.63%, with

 

24.72% 25.31% paid directly by the employer.

 

     (3) In addition to the employer payments described in

 

subsection (2), the employer shall pay the applicable contributions

 

to the Tier 2 plan, as determined by the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.

 

     (4) The contribution rates in subsection (2) reflect an

 

amortization period of 22 21 years for 2016-2017. 2017-2018. The

 

public school employees' retirement system board shall notify each

 

district and intermediate district by February 28 of each fiscal

 

year of the estimated contribution rate for the next fiscal year.

 

     Sec. 147a. From the appropriation in section 11, there is

 

allocated for 2016-2017 an amount not to exceed $100,000,000.00 for

 

payments to participating districts. A district that receives money


under this section shall use that money solely for the purpose of

 

offsetting a portion of the retirement contributions owed by the

 

district for the fiscal year in which it is received. The amount

 

allocated to each participating district under this section shall

 

be based on each participating district's percentage of the total

 

statewide payroll for all participating districts for the

 

immediately preceding fiscal year. As used in this section,

 

"participating district" means a district that is a reporting unit

 

of the Michigan public school employees' retirement system under

 

the public school employees retirement act of 1979, 1980 PA 300,

 

MCL 38.1301 to 38.1408, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.From the state school aid fund money appropriated under

 

section 11, there is allocated an amount not to exceed

 

$48,940,000.00 for 2017-2018 for payments to participating entities

 

and from the general fund money appropriated under section 11,

 

there is allocated an amount not to exceed $29,000.00 for 2017-2018

 

for payments to participating district libraries. The amount

 

allocated to each participating entity under this section shall be

 

based on each participating entity's percentage of the total

 

statewide payroll for that type of participating entity for the

 

immediately preceding fiscal year. A participating entity that

 

receives money under this section shall use that money solely for

 

the purpose of offsetting a portion of the normal cost contribution

 

rate. As used in this section:

 

     (a) "District library" means a district library established

 

under the district library establishment act, 1989 PA 24, MCL


397.171 to 397.196.

 

     (b) "Participating entity" means a district, intermediate

 

district, or district library that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1408, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     Sec. 147c. (1) From the appropriation in section 11, there is

 

allocated for 2016-2017 2017-2018 an amount not to exceed

 

$982,200,000.00 $960,130,000.00 from the state school aid fund for

 

payments to districts and intermediate districts that are

 

participating entities of the Michigan public school employees'

 

retirement system. In addition, from the general fund money

 

appropriated in section 11, there is allocated for 2016-2017 2017-

 

2018 an amount not to exceed $600,000.00 $654,000.00 for payments

 

to district libraries that are participating entities of the

 

Michigan public school employees' retirement system.

 

     (2) For 2016-2017, 2017-2018, the amounts allocated under

 

subsection (1) are estimated to provide an average MPSERS rate cap

 

per pupil amount of $660.00 $640.00 and are estimated to provide a

 

rate cap per pupil for districts ranging between $5.00 and

 

$3,100.00.$4.00 and $3,020.00.

 

     (3) Payments made under this section shall be equal to the

 

difference between the unfunded actuarial accrued liability

 

contribution rate as calculated pursuant to section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL


38.1341, as calculated without taking into account the maximum

 

employer rate of 20.96% included in section 41 of the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

 

maximum employer rate of 20.96% included in section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.

 

     (4) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this section shall

 

use the funds solely for the purpose of retirement contributions as

 

specified in subsection (5).

 

     (5) Each participating entity receiving funds under this

 

section shall forward an amount equal to the amount allocated under

 

subsection (4) to the retirement system in a form, manner, and time

 

frame determined by the retirement system.

 

     (6) Funds allocated under this section should be considered

 

when comparing a district's growth in total state aid funding from

 

1 fiscal year to the next.

 

     (7) Not later than December 20, 2016, 2017, the department

 

shall publish and post on its website an estimated MPSERS rate cap

 

per pupil for each district.

 

     (8) As used in this section:

 

     (a) "District library" means a district library established

 

under the district library establishment act, 1989 PA 24, MCL

 

397.171 to 397.196.


     (b) (a) "MPSERS rate cap per pupil" means an amount equal to

 

the quotient of the district's payment under this section divided

 

by the district's pupils in membership.

 

     (c) (b) "Participating entity" means a district, intermediate

 

district, or district library that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     (d) (c) "Retirement board" means the board that administers

 

the retirement system under the public school employees retirement

 

act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (e) (d) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 152a. (1) As required by the court in the consolidated

 

cases known as Adair v State of Michigan, Michigan supreme court

 

docket nos. 137424 and 137453, 486 Mich 468 (2010), from the state

 

school aid fund money appropriated in section 11 there is allocated

 

for 2016-2017 2017-2018 an amount not to exceed $38,000,500.00 to

 

be used solely for the purpose of paying necessary costs related to

 

the state-mandated collection, maintenance, and reporting of data

 

to this state.

 

     (2) From the allocation in subsection (1), the department

 

shall make payments to districts and intermediate districts in an

 

equal amount per-pupil based on the total number of pupils in


membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after

 

the final installment payment under section 17b is made.

 

     Sec. 152b. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed

 

$2,500,000.00 for 2016-2017 2017-2018 to reimburse costs incurred

 

by nonpublic schools as identified in the nonpublic school mandate

 

report published by the department on November 25, 2014 and under

 

subsection (2).in complying with a health, safety, or welfare

 

requirement mandated by state law.

 

     (2) By January 1, 2017, 2018, the department shall publish a

 

form containing the requirements identified in the report under

 

subsection (1). each health, safety, or welfare requirement with

 

which a nonpublic school must comply and a reference to the

 

relevant section of the Michigan Compiled Laws or the Michigan

 

Administrative Code, or both, for each mandated requirement. The

 

department shall include other health, safety, or welfare

 

requirements on the form that were enacted into law after

 

publication of the report. applicable to nonpublic schools and

 

mandated by state law that are enacted into law after October 1,

 

2017. The form shall be posted on the department's website in

 

electronic form.

 

     (3) By June 15, 2017, June 30, 2018, a nonpublic school

 

seeking reimbursement under subsection (1) of costs incurred in

 

complying with a health, safety, or welfare requirement mandated by

 

state law during the 2016-2017 2017-2018 school year shall submit

 

the form described in subsection (2) to the department. This


section does not require or otherwise mandate a nonpublic school to

 

submit a form described in subsection (2). A nonpublic school is

 

not eligible for reimbursement under this section unless the

 

nonpublic school submits the form described in subsection (2) in a

 

timely manner.

 

     (4) By August 15, 2017, 2018, the department shall distribute

 

funds to nonpublic schools that submit a completed form described

 

under subsection (2) in a timely manner. The superintendent shall

 

determine the amount of funds to be paid to each nonpublic school

 

in an amount that does not exceed the nonpublic school's actual

 

cost to comply with requirements described under subsections (1)

 

and (2). to (3). The superintendent shall calculate a nonpublic

 

school's actual cost in accordance with this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund payments as otherwise calculated under this section,

 

the department shall distribute funds under this section on a

 

prorated or other equitable basis as determined by the

 

superintendent.

 

     (6) The department has the authority to review the records of

 

a nonpublic school submitting a form described in subsection (2)

 

only for the limited purpose of verifying the nonpublic school's

 

compliance with this section. If a nonpublic school does not allow

 

the department to review records under this subsection for this

 

limited purpose, the nonpublic school is not eligible for

 

reimbursement under this section.

 

     (7) The funds appropriated under this section are for purposes

 

related to education, are considered to be incidental to the


operation of a nonpublic school, are noninstructional in character,

 

and are intended for the public purpose of ensuring the health,

 

safety, and welfare of the children in nonpublic schools and to

 

reimburse nonpublic schools for costs described in this section.

 

     (8) Funds allocated under this section are not intended to aid

 

or maintain any nonpublic school, support the attendance of any

 

student at a nonpublic school, employ any person at a nonpublic

 

school, support the attendance of any student at any location where

 

instruction is offered to a nonpublic school student, or support

 

the employment of any person at any location where instruction is

 

offered to a nonpublic school student.

 

     (9) For purposes of this section, "actual cost" means the

 

hourly wage for the employee or employees performing the reported a

 

task or tasks required to comply with a section of the Michigan

 

Compiled Laws or the Michigan Administrative Code identified by the

 

department under subsection (2) and is to be calculated in

 

accordance with the form published by the department under

 

subsection (2), which shall include a detailed itemization of cost.

 

The nonpublic school shall not charge more than the hourly wage of

 

its lowest-paid employee capable of performing the reported a

 

specific task regardless of whether that individual is available

 

and regardless of who actually performs the reported a specific

 

task. Labor costs under this subsection shall be estimated and

 

charged in increments of 15 minutes or more, with all partial time

 

increments rounded down. When calculating costs under subsection

 

(4), fee components shall be itemized in a manner that expresses

 

both the hourly wage and the number of hours charged. The nonpublic


school may not charge any applicable labor charge amount to cover

 

or partially cover the cost of health or fringe benefits. A

 

nonpublic school shall not charge any overtime wages in the

 

calculation of labor costs.

 

     (10) For the purposes of this section, the cost incurred by a

 

nonpublic school for taking daily student attendance is considered

 

a cost incurred by the nonpublic school in complying with a health,

 

safety, or welfare requirement mandated by state law.

 

     Sec. 160. If a district or intermediate district requests the

 

superintendent to grant a waiver for the district or intermediate

 

district from the requirements of section 1284b of the revised

 

school code, MCL 380.1284b, that district or intermediate district

 

shall use a portion of its funding under this article to conduct a

 

joint public hearing with the department to be held before the

 

waiver is granted at a location within the district or intermediate

 

district.

 

     Sec. 166b. (1) This act does not prohibit a parent or legal

 

guardian of a minor who is enrolled in any of grades kindergarten

 

to 12 in a nonpublic school or who is being home-schooled from also

 

enrolling the minor in a district, public school academy, or

 

intermediate district in any curricular offering that is provided

 

by the district, public school academy, or intermediate district at

 

a public school site and is available to pupils in the minor's

 

grade level or age group, subject to compliance with the same

 

requirements that apply to a full-time pupil's participation in the

 

offering. However, state school aid shall be provided under this

 

act for a minor enrolled as described in this subsection only for


curricular offerings that are offered to full-time pupils in the

 

minor's grade level or age group during regularly scheduled school

 

hours.

 

     (2) This act does not prohibit a parent or legal guardian of a

 

minor who is enrolled in any of grades kindergarten to 12 in a

 

nonpublic school or who resides within the district and is being

 

home-schooled from also enrolling the minor in the district in a

 

curricular offering being provided by the district at the nonpublic

 

school site. However, state school aid shall be provided under this

 

act for a minor enrolled as described in this subsection only if

 

all of the following apply:

 

     (a) Either of the following:

 

     (i) The nonpublic school site is located, or the nonpublic

 

students are educated, within the geographic boundaries of the

 

district.

 

     (ii) If the nonpublic school has submitted a written request

 

to the district in which the nonpublic school is located for the

 

district to provide certain instruction under this subsection for a

 

school year and the district does not agree to provide some or all

 

of that instruction by May 1 immediately preceding that school year

 

or, if the request is submitted after March 1 immediately preceding

 

that school year, within 60 days after the nonpublic school submits

 

the request, the instruction is instead provided by an eligible

 

other district. This subparagraph does not require a nonpublic

 

school to submit more than 1 request to the district in which the

 

nonpublic school is located for that district to provide

 

instruction under this subsection, and does not require a nonpublic


school to submit an additional request to the district in which the

 

nonpublic school is located for that district to provide additional

 

instruction under this subsection beyond the instruction requested

 

in the original request, before having the instruction provided by

 

an eligible other district. A public school academy that is located

 

in the district in which the nonpublic school is located or in an

 

eligible other district also may provide instruction under this

 

subparagraph under the same conditions as an eligible other

 

district. As used in this subparagraph, "eligible other district"

 

means a district that is located in the same intermediate district

 

as the district in which the nonpublic school is located or is

 

located in an intermediate district that is contiguous to that

 

intermediate district.

 

     (b) The nonpublic school is registered with the department as

 

a nonpublic school and meets all state reporting requirements for

 

nonpublic schools.

 

     (c) The instruction is scheduled to occur during the regular

 

school day.

 

     (d) The instruction is provided directly by a certified

 

teacher at the district or public school academy or at an

 

intermediate district.

 

     (e) The curricular offering is also available to full-time

 

pupils in the minor's grade level or age group in the district or

 

public school academy during the regular school day at a public

 

school site.

 

     (f) The curricular offering is restricted to nonessential

 

elective courses for pupils in grades kindergarten to 12.


     (3) A Subject to section 6(4)(ii), a minor enrolled as

 

described in this section is a part-time pupil for purposes of

 

state school aid under this act.

 

     (4) A district that receives a written request to provide

 

instruction under subsection (2) shall reply to the request in

 

writing by May 1 immediately preceding the applicable school year

 

or, if the request is made after March 1 immediately preceding that

 

school year, within 60 days after the nonpublic school submits the

 

request. The written reply shall specify whether the district

 

agrees to provide or does not agree to provide the instruction for

 

each portion of instruction included in the request.

 

     (5) The department shall establish a workgroup consisting of

 

staff from the department, staff from the center, pupil accounting

 

staff from districts and intermediate districts, other applicable

 

staff from districts and intermediate districts, representatives

 

from nonpublic schools, and representatives from home schools to

 

examine the issue of providing a uniform definition of nonessential

 

elective courses, and also to provide a uniform definition of a

 

part-time pupil for the purposes of this section.

 

     Enacting section 1. In accordance with section 30 of article

 

IX of the state constitution of 1963, total state spending from

 

state sources on state school aid under article I of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

 

amended by 2016 PA 249 and this amendatory act, for fiscal year

 

2016-2017 is estimated at $12,327,769,400.00, and state

 

appropriations for school aid to be paid to local units of

 

government for fiscal year 2016-2017 are estimated at


Senate Bill No. 149 as amended May 3, 2017

 

$12,164,569,600.00. In accordance with section 30 of article IX of

 

the state constitution of 1963, total state spending from state

 

sources on school aid under article I of the state school aid act

 

of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by this

 

amendatory act, for fiscal year 2017-2018 is estimated at

 

<<$12,560,762,000.00>>, and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2017-2018 are

 

estimated at <<$12,414,642,500.00>>.

 

     Enacting section 2. Sections 11o, 11r, 20g, 21g, 31c, 31h, and

 

63 of the state school aid act of 1979, 1979 PA 94, MCL 388.1611o,

 

388.1611r, 388.1620g, 388.1621g, 388.1631c, 388.1631h, and

 

388.1663, are repealed effective October 1, 2017.

 

     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2017.

 

     (2) Sections 11, 11m, 11r, 11s, 21, 22a, 22b, 22g, 26a, 31f,

 

39a, 51a, 51c, 51d, 56, and 62 of the state school aid act of 1979,

 

1979 PA 94, MCL 388.1611, 388.1611m, 388.1611r, 388.1611s,

 

388.1621, 388.1622a, 388.1622b, 388.1622g, 388.1626a, 388.1631f,

 

388.1639a, 388.1651a, 388.1651c, 388.1651d, 388.1656, and 388.1662,

 

as amended by this amendatory act, and section 99c of the state

 

school aid act of 1979, MCL 388.1699c, as added by this amendatory

 

act, take effect upon enactment of this amendatory act.