February 15, 2005, Introduced by Rep. Hummel and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11 and 17b (MCL 388.1611 and 388.1617b),
section 11 as amended by 2004 PA 518 and section 17b as amended by
2000 PA 297.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
11. (1) In addition to all other appropriations under
this
act for that fiscal year, for the fiscal year ending September
30,
2004, there is appropriated to the state school aid fund from
the
unreserved balance in the general fund an amount equal to any
deficit
balance that would otherwise exist in the state school aid
fund
at bookclosing for the fiscal year ending September 30, 2004.
For
the fiscal year ending September 30, 2005 2006, there is
appropriated for the public schools of this state and certain other
state
purposes relating to education the sum of $10,909,200,000.00
$______________.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963 and the
sum
of $264,700,000.00 $___________.00
from the general fund. In
addition, available federal funds are appropriated for each of
those fiscal years.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 31d, 51a(2), 51a(12), 51c, 53a, and 56
shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). Subject to subsection (5), if proration is necessary after
2002-2003, state payments under each of the other sections of this
act from all state funding sources shall be prorated in the manner
prescribed in subsection (4) as necessary to reflect the amount
available for expenditure from the state school aid fund for the
affected fiscal year. However, if the department of treasury
determines that proration will be required under this subsection,
or if the department of treasury determines that further proration
is required under this subsection after an initial proration has
already been made for a fiscal year, the department of treasury
shall notify the state budget director, and the state budget
director shall notify the legislature at least 30 calendar days or
6 legislative session days, whichever is more, before the
department reduces any payments under this act because of the
proration. During the 30 calendar day or 6 legislative session day
period after that notification by the state budget director, the
department shall not reduce any payments under this act because of
proration under this subsection. The legislature may prevent
proration from occurring by, within the 30 calendar day or 6
legislative session day period after that notification by the state
budget director, enacting legislation appropriating additional
funds from the general fund, countercyclical budget and economic
stabilization fund, state school aid fund balance, or another
source to fund the amount of the projected shortfall.
(4) Subject to subsection (5), if proration is necessary, the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 31d, 51a(2),
51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 51a(2), 51a(12), 53a, and 56, on an equal percentage basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j and 26a, on an equal percentage basis.
(5) Beginning in 2004-2005, if a district has an emergency
financial manager in place under the local government fiscal
responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291, payments
to that district are not subject to proration under this section.
(6) Except for the allocation under section 26a, any general
fund allocations under this act that are not expended by the end of
the state fiscal year are transferred to the state school aid fund.
If it is determined at the May 2005 revenue estimating conference
conducted under section 367b of the management and budget act, 1984
PA 431, MCL 18.1367b, that there is additional school aid fund
revenue beyond that determined at the May 2004 revenue estimating
conference, then it is the intent of the legislature to enact
legislation to fund, to the extent that revenues are available, the
same programs in the same amount that were funded under section 81
in 2003 PA 236 and the same pupil membership formula as in effect
under 2003 PA 236.
Sec. 17b. (1) Not later than October 20, November 20, December
20, January 20, February 20, March 20, April 20, May 20, June 20,
July 20, and August 20, the department shall prepare a statement of
the amount to be distributed under this act in the installment to
the districts and intermediate districts and deliver the statement
to the state treasurer, and the state treasurer shall pay the
installments on each of those dates or, if the date is not a
business day, on the immediately preceding business day before that
date. Except as otherwise provided in this act, the portion of the
district's or intermediate district's state fiscal year entitlement
to be included in each installment shall be 1/11. A district or
intermediate district shall accrue the payments received in July
and August to the school fiscal year ending the immediately
preceding June 30.
(2) The state treasurer shall make payment under this section
by drawing a warrant in favor of the treasurer of each district or
intermediate district for the amount payable to the district or
intermediate district according to the statement and delivering the
warrant to the treasurer of each district or intermediate district,
or if the state treasurer receives a written request by the
treasurer of the district or intermediate district specifying an
account, by electronic funds transfer to that account of the amount
payable to the district or intermediate district according to the
statement. The department may make adjustments in payments made
under this section through additional payments when changes in law
or errors in computation cause the regularly scheduled payment to
be less than the amount to which the district or intermediate
district is entitled pursuant to this act.
(3)
Except as otherwise specified provided
in this act, grant
payments under this act shall be paid according to subsection (1).
(4) Upon the written request of a district or intermediate
district and the submission of proof satisfactory to the department
of a need of a temporary and nonrecurring nature, the
superintendent, with the written concurrence of the state treasurer
and the state budget director, may authorize an advance release of
funds
due a district or intermediate district under this act. Such
an An
advance authorized under this
subsection shall not cause
funds to be paid to a district or intermediate district more than
30 days earlier than the established payment date for those funds.