SENATE BILL No. 286

March 7, 2001, Introduced by Senator GAST and referred to the Committee on Appropriations.

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending section 11 (MCL 388.1611), as amended by 2000 PA

297.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2 2000, there is appropriated for the public schools of this state

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

4 $9,623,215,800.00 from the state school aid fund established by

5 section 11 of article IX of the state constitution of 1963 and

6 the sum of $420,613,500.00 from the general fund. For the fiscal

7 year ending September 30, 2001, there is appropriated for the

8 public schools of this state and certain other state purposes

9 relating to education the sum of $10,402,821,500.00

10 $ __________ from the state school aid fund established by

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1 section 11 of article IX of the state constitution of 1963 and

2 the sum of $385,613,500.00 from the general fund. For the fiscal

3 year ending September 30, 2002, there is appropriated for the

4 public schools of this state and certain other state purposes

5 relating to education the sum of $11,192,489,800.00 $__________

6 from the state school aid fund established by section 11 of arti-

7 cle IX of the state constitution of 1963 and the sum of

8 $205,613,500.00 from the general fund. For the fiscal year

9 ending September 30, 2003, there is appropriated for the public

10 schools of this state and certain other state purposes relating

11 to education the sum of $11,339,360,300.00 $__________ from the

12 state school aid fund established by section 11 of article IX of

13 the state constitution of 1963 and the sum of $420,613,500.00

14 from the general fund. In addition, available federal funds are

15 appropriated for each of those fiscal years.

16 (2) The appropriations under this section shall be allocated

17 as provided in this act. Money appropriated under this section

18 from the general fund and from available federal funds shall be

19 expended to fund the purposes of this act before the expenditure

20 of money appropriated under this section from the state school

21 aid fund. If the maximum amount appropriated under this section

22 from the state school aid fund for a fiscal year exceeds the

23 amount necessary to fully fund allocations under this act from

24 the state school aid fund, that excess amount shall not be

25 expended in that state fiscal year and shall not lapse to the

26 general fund, but instead shall remain in the state school aid

27 fund.

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1 (3) If the maximum amount appropriated under this section

2 and section 11f from the state school aid fund for a fiscal year

3 exceeds the amount available for expenditure from the state

4 school aid fund for that fiscal year, payments under sections

5 11f, 11g, 22a, 31d, 51a(2), and 51c shall be made in full and

6 payments under each of the other sections of this act shall be

7 prorated on an equal percentage basis as necessary to reflect the

8 amount available for expenditure from the state school aid fund

9 for that fiscal year. However, if the department of treasury

10 determines that proration will be required under this subsection,

11 the department of treasury shall notify the state budget direc-

12 tor, and the state budget director shall notify the legislature

13 at least 30 calendar days or 6 legislative session days, which-

14 ever is more, before the department reduces any payments under

15 this act because of the proration. During the 30 calendar day or

16 6 legislative session day period after that notification by the

17 state budget director, the department shall not reduce any pay-

18 ments under this act because of proration under this subsection.

19 The legislature may prevent proration from occurring by, within

20 the 30 calendar day or 6 legislative session day period after

21 that notification by the state budget director, enacting legisla-

22 tion appropriating additional funds from the general fund,

23 countercyclical budget and economic stabilization fund, state

24 school aid fund balance, or another source to fund the amount of

25 the projected shortfall.

26 (4) Except for the allocation under section 26a, any general

27 fund allocations under this act that are not expended by the end

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1 of the state fiscal year are transferred to the state school aid

2 fund.

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