SB-0221, As Passed Senate, March 22, 2007
SUBSTITUTE FOR
SENATE BILL NO. 221
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 11, 11g, 11j, 22a, 22b, 26b, 31a, 51a, 51c,
65, 81, and 147 (MCL 388.1603, 388.1611, 388.1611g, 388.1611j,
388.1622a, 388.1622b, 388.1626b, 388.1631a, 388.1651a, 388.1651c,
388.1665, 388.1681, and 388.1747), sections 3, 11, 11g, 11j, 22a,
22b, 26b, 31a, 51a, 51c, 81, and 147 as amended and section 65 as
added by 2006 PA 342; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) "Average daily attendance", for the purposes of
complying with federal law and except as used in section 6(4)(bb),
means 92% of the membership as defined in section 6(4).
(2) "Board" means the governing body of a district or public
school academy.
(3) "Center" means the center for educational performance and
information created in section 94a.
(4) "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.
(5) "Department", except in section 107, means the department
of education.
(6) "District" means a local school district established under
the revised school code, a local act school district, or, except in
sections 6(4), 6(6), 13, 20, 22a, 23, 29, 31a, 105, and 105c, a
public school academy. Except in sections 6(4), 6(6), 13, 20, 22a,
29, 105, and 105c, district also includes a university school.
(7) "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.
(8) "District superintendent" means the superintendent of a
district, the chief administrator of a public school academy, or
the chief administrator of a university school.
Sec.
11. (1) For the fiscal year ending September 30, 2006,
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$11,200,813,200.00
from the state school aid fund established by
section
11 of article IX of the state constitution of 1963, the sum
of
$44,500,000.00 from the proceeds of capitalization of the school
bond
loan fund revolving fund, and the sum of $62,714,000.00 from
the
general fund. For the fiscal year
ending September 30, 2007,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,647,508,200.00
$11,240,036,300.00 from the state school aid
fund established by section 11 of article IX of the state
constitution of 1963 and the sum of $35,000,000.00 from the general
fund. In addition, available federal funds are appropriated for
each
the fiscal year.
(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, 26b, 31d, 31f, 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). If proration is necessary, 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) 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, 26b, 31d, 31f,
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, 26b, 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, 26a, and 26b, on an equal percentage basis.
(5) The maximum amount that was appropriated under subsection
(1) from the state school aid fund and the school aid stabilization
fund for 2006-2007 under 2006 PA 342 exceeds the estimated amount
available for expenditure from those sources for 2006-2007. To
eliminate this estimated deficit, the amendatory act that added
this subsection makes changes in section 147, repeals certain
sections of this act, and makes other adjustments to this act. The
department shall calculate the remaining reductions in payments to
districts, intermediate districts, and entities other than
districts or intermediate districts that are required to eliminate
this estimated deficit as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for 2006-2007 for each of
the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) After determining the percentages in subsection (1), the
department shall apply those percentages to the estimated deficit,
after taking into account the changes in section 147, repeals of
sections, and other changes made in the amendatory act that added
this subsection other than the reduction made in section 22b(2).
The resulting amounts represent the reductions in payments to
districts, intermediate districts, and entities other than
districts or intermediate districts necessary to eliminate the
estimated deficit, after taking into account the changes in section
147, repeals of sections, and other changes made in the amendatory
act that added this subsection other than the reduction made in
section 22b(2).
(c) The department shall consider the reduction made in the
amendatory act that added this subsection to payments to districts
under section 22b(2) to be the reduction required in payments to
districts as calculated under subdivision (b) for districts. The
department shall then recover the remaining amount of the estimated
deficit from payments to intermediate districts and entities other
than districts or intermediate districts as provided in
subdivisions (d) and (e).
(d) The department shall recover from payments to intermediate
districts the amount calculated under subdivision (b) for
intermediate districts. This reduction shall be made by reducing
the payments to each intermediate district, other than payments
under sections 11f, 11g, 26a, 26b, 51a(2), 51a(12), 53a, and 56, on
an equal percentage basis.
(e) The department shall recover from payments to entities
other than districts and intermediate districts the amount
calculated under subdivision (b) for these entities. This reduction
shall be made by reducing the payments to each of these entities,
other than payments under sections 11j, 26a, and 26b, on an equal
percentage basis.
(6) (5)
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 school aid
stabilization fund created under section 11a.
(7) In addition to the appropriations in subsection (1), for
the fiscal year ending September 30, 2007, there is appropriated
from the reserve for undistributed investment income in the
Michigan public school employees' retirement system an amount not
to exceed $262,000,000.00 solely for the purpose of issuing credits
pursuant to section 147.
Sec. 11g. (1) From the appropriation in section 11, there is
allocated
for this section an amount not to exceed $34,961,000.00
$0.00 each fiscal year for the fiscal year ending September 30,
2007 and for the fiscal year ending September 30, 2008. There is
allocated
for this section an amount not to exceed $35,000,000.00
$38,000,000.00 for each succeeding fiscal year through the fiscal
year
ending September 30, 2013 2015. Payments under this section
will
cease after September 30, 2013 2015. These allocations are for
paying the amounts described in subsection (3) to districts and
intermediate districts, other than those receiving a lump-sum
payment under section 11f(2), that were not plaintiffs in the
consolidated cases known as Durant v State of Michigan, Michigan
supreme court docket no. 104458-104492 and that, on or before March
2, 1998, submitted to the state treasurer a waiver resolution
described in section 11f. The amounts paid under this section
represent offers of settlement and compromise of any claim or
claims that were or could have been asserted by these districts and
intermediate districts, as described in this section.
(2) This section does not create any obligation or liability
of this state to any district or intermediate district that does
not submit a waiver resolution described in section 11f. This
section, any other provision of this act, and section 353e of the
management and budget act, 1984 PA 431, MCL 18.1353e, are not
intended to admit liability or waive any defense that is or would
be available to this state or its agencies, employees, or agents in
any litigation or future litigation with a district or intermediate
district regarding these claims or potential claims.
(3) The amount paid each fiscal year to each district or
intermediate district under this section shall be the sum of the
following:
(a) 1/30 of the total amount listed in section 11h for the
district or intermediate district.
(b) If the district or intermediate district borrows money and
issues bonds under section 11i, an additional amount in each fiscal
year calculated by the department of treasury that, when added to
the amount described in subdivision (a), will cause the net present
value as of November 15, 1998 of the total of the 15 annual
payments made to the district or intermediate district under this
section, discounted at a rate as determined by the state treasurer,
to equal the amount of the bonds issued by that district or
intermediate district under section 11i and that will result in the
total payments made to all districts and intermediate districts in
each fiscal year under this section being no more than the amount
appropriated under this section in each fiscal year.
(4) The entire amount of each payment under this section each
fiscal year shall be paid on May 15 of the applicable fiscal year
or on the next business day following that date. If a district or
intermediate district borrows money and issues bonds under section
11i, the district or intermediate district shall use funds received
under this section to pay debt service on bonds issued under
section 11i. If a district or intermediate district does not borrow
money and issue bonds under section 11i, the district or
intermediate district shall use funds received under this section
only for the following purposes, in the following order of
priority:
(a) First, to pay debt service on voter-approved bonds issued
by the district or intermediate district before the effective date
of this section.
(b) Second, to pay debt service on other limited tax
obligations.
(c) Third, for deposit into a sinking fund established by the
district or intermediate district under the revised school code.
(5) To the extent payments under this section are used by a
district or intermediate district to pay debt service on debt
payable from millage revenues, and to the extent permitted by law,
the district or intermediate district may make a corresponding
reduction in the number of mills levied for debt service.
(6) A district or intermediate district may pledge or assign
payments under this section as security for bonds issued under
section 11i, but shall not otherwise pledge or assign payments
under this section.
Sec. 11j. From the appropriation in section 11, there is
allocated
an amount not to exceed $48,000,000.00 $42,500,000.00 for
2006-2007 for payments to the school loan bond redemption fund in
the department of treasury on behalf of districts and intermediate
districts. Notwithstanding section 11 or any other provision of
this act, funds allocated under this section are not subject to
proration and shall be paid in full.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $6,407,000,000.00 for 2005-2006
and
an amount not to exceed $6,207,000,000.00 $6,204,700,000.00 for
2006-2007 for payments to districts, qualifying university schools,
and qualifying public school academies to guarantee each district,
qualifying university school, 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 product of the
taxable value per membership pupil of all property in the district
that is not a homestead or qualified agricultural property times
the lesser of 18 mills or the number of mills of school operating
taxes levied by the district in 1993-94 and the quotient of the ad
valorem property tax revenue of the district captured under 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, or the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672, 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.
(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 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, or the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the
district's membership.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy or qualifying university school,
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, or to the board
of the public university operating the qualifying university
school, an amount equal to the 1994-95 per pupil payment to the
qualifying public school academy or qualifying university school
under section 20.
(4) A district, qualifying university school, or qualifying
public school academy may use funds allocated under this section in
conjunction with any federal funds for which the district,
qualifying university school, or qualifying public school academy
otherwise would be eligible.
(5) For a district that is formed or reconfigured after June
1, 2000 by consolidation of 2 or more districts or by annexation,
the resulting district's 1994-95 foundation allowance under this
section beginning after the effective date of the consolidation or
annexation shall be the average of the 1994-95 foundation
allowances of each of the original or affected districts,
calculated as provided in this section, weighted as to the
percentage of pupils in total membership in the resulting district
in the state fiscal year in which the consolidation takes place who
reside in the geographic area of each of the original districts. If
an affected district's 1994-95 foundation allowance is less than
the 1994-95 basic foundation allowance, the amount of that
district's 1994-95 foundation allowance shall be considered for the
purpose of calculations under this subsection to be equal to the
amount of the 1994-95 basic foundation allowance.
(6) 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) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(c) "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.
(d) "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 and qualified agricultural property could be reduced as
provided in section 1211(1) 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.
(e) "Homestead" means that term as defined in section 1211 of
the revised school code, MCL 380.1211.
(f) "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.
(g) "Qualified agricultural property" means that term as
defined in section 1211 of the revised school code, MCL 380.1211.
(h) "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.
(i) "Qualifying university school" means a university school
that was in operation in the 1994-95 school year and is in
operation in the current fiscal year.
(j) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(k) "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 and qualified
agricultural property may be reduced as provided in section 1211(1)
of the revised school code, MCL 380.1211, the taxable value of
homestead and qualified agricultural property for the calendar year
ending in the current state fiscal year.
(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.
Sec. 22b. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $3,217,000,000.00 for 2005-2006
and
an amount not to exceed $3,584,950,000.00 $3,508,700,000.00 for
2006-2007 for discretionary nonmandated payments to districts under
this section. Funds allocated under this section that are not
expended in the state fiscal year for which they were allocated, as
determined by the department, may be used to supplement the
allocations under sections 22a and 51c in order to fully fund those
calculated allocations for the same fiscal year.
(2) Subject to subsection (3) and section 11, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 20j, 51a(2),
51a(3), and 51a(12), minus the sum of the allocations to the
district under sections 22a and 51c and, for 2006-2007 only, minus
an additional amount equal to $34.00 times the district's 2006-2007
membership.
(3) In order to receive an allocation under this section, each
district shall do all of the following:
(a) Administer in each grade level that it operates in grades
1 to 5 a standardized assessment approved by the department of
grade-appropriate basic educational skills. A district may use the
Michigan literacy progress profile to satisfy this requirement for
grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(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.
(4) 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.
(5) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, and 51c. If a claim is made by an
entity receiving funds under this act 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.
(6) 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 (5) 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).
(7) 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.
(8) 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.
(9) 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.
26b. (1) From the general fund appropriation money
appropriated in section 11, there is allocated for 2006-2007 an
amount
not to exceed $2,400,000.00 $3,400,000.00
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. 31a. (1) From the state school aid fund money
appropriated in section 11, there is allocated for 2006-2007 an
amount
not to exceed $319,450,000.00 $319,350,000.00
for payments
to eligible districts and eligible public school academies under
this
section. Subject to subsection (15) (14), the amount of the
additional allowance under this section, other than funding under
subsection
(6), or (7), or (8), shall be based on the number of
actual pupils in membership in the district or public school
academy who 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, and reported to the department by October 31
of the immediately preceding fiscal year and adjusted not later
than December 31 of the immediately preceding fiscal year. However,
for a public school academy that began operations as a public
school academy after the pupil membership count day of the
immediately preceding school year, the basis for the additional
allowance under this section shall be the number of actual pupils
in membership in the public school academy who met the income
eligibility criteria for free breakfast, lunch, or milk in the
current state fiscal year, as determined under the Richard B.
Russell national school lunch act.
(2) To be eligible to receive funding under this section,
other
than funding under subsection (6)
, or (7), or (8), a
district or public school academy that has not been previously
determined to be eligible shall apply to the department, in a form
and manner prescribed by the department, and a district or public
school academy must meet all of the following:
(a) The sum of the district's or public school academy's
combined state and local revenue per membership pupil in the
current state fiscal year, as calculated under section 20, plus the
amount of the district's per pupil allocation under section 20j(2),
is less than or equal to $6,500.00 adjusted by the dollar amount of
the difference between the basic foundation allowance under section
20 for the current state fiscal year and $5,000.00, minus $200.00.
(b) The district or public school academy agrees to use the
funding only for purposes allowed under this section and to comply
with the program and accountability requirements under this
section.
(3) Except as otherwise provided in this subsection, an
eligible district or eligible public school academy shall receive
under this section for each membership pupil in the district or
public school academy who met the income eligibility criteria for
free breakfast, lunch, or milk, as determined under the Richard B.
Russell national school lunch act and as reported to the department
by October 31 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 public school academy's per
pupil amount calculated under section 20, plus the amount of the
district's per pupil allocation under section 20j(2), not to exceed
$6,500.00 adjusted by the dollar amount of the difference between
the basic foundation allowance under section 20 for the current
state fiscal year and $5,000.00, minus $200.00, or of the public
school academy's per membership pupil amount calculated under
section 20 for the current state fiscal year. A public school
academy that began operations as a public school academy after the
pupil membership count day of the immediately preceding school year
shall receive under this section for each membership pupil in the
public school academy who met the income eligibility criteria for
free breakfast, lunch, or milk, as determined under the Richard B.
Russell national school lunch act and as reported to the department
by October 31 of the current fiscal year and adjusted not later
than December 31 of the current fiscal year, an amount per pupil
equal to 11.5% of the public school academy's per membership pupil
amount calculated under section 20 for the current state fiscal
year.
(4) Except as otherwise provided in this section, a district
or public school academy receiving funding under this section shall
use that money only to provide instructional programs and direct
noninstructional services, including, but not limited to, medical
or counseling services, for at-risk pupils; for school health
clinics;
and for the purposes of subsection (5), (6), or (7). ,
or
(8).
In addition, a district that is
organized as a school district
of the first class under the revised school code or a district or
public school academy in which at least 50% of the pupils in
membership met the income eligibility criteria for free breakfast,
lunch, or milk in the immediately preceding state fiscal year, as
determined and reported as described in subsection (1), may use not
more than 15% of the funds it receives under this section for
school security. A district or public school academy shall not use
any of that money for administrative costs or to supplant another
program or other funds, except for funds allocated to the district
or public school academy under this section in the immediately
preceding year and already being used by the district or public
school academy for at-risk pupils. 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 and may include, but are not limited
to, tutorial services, early childhood programs to serve children
age 0 to 5, and reading programs as described in former section 32f
as in effect for 2001-2002. A tutorial method may be conducted with
paraprofessionals working under the supervision of a certificated
teacher. The ratio of pupils to paraprofessionals shall be between
10:1 and 15:1. Only 1 certificated teacher is required to supervise
instruction using a tutorial method. As used in this subsection,
"to supplant another program" means to take the place of a
previously existing instructional program or direct
noninstructional services funded from a funding source other than
funding under this section.
(5)
Except as otherwise provided in subsection (13) (12),
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, 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 receives
funds under this section, necessary to operate the school breakfast
program.
(6) From the funds allocated under subsection (1), there is
allocated for 2006-2007 an amount not to exceed $3,743,000.00 to
support child and adolescent health centers. These grants shall be
awarded for 5 consecutive years beginning with 2003-2004 in a form
and manner approved jointly by the department and the department of
community health. 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.
Beginning in 2004-2005, 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
(15) (14) for that fiscal year.
(7) From the funds allocated under subsection (1), there is
allocated for 2006-2007 an amount not to exceed $5,150,000.00 for
the state portion of the hearing and vision screenings as described
in section 9301 of the public health code, 1978 PA 368, MCL
333.9301. A local public health department shall pay at least 50%
of the total cost of the screenings. The frequency of the
screenings shall be as required under R 325.13091 to R 325.13096
and R 325.3271 to R 325.3276 of the Michigan administrative code.
Funds shall be awarded in a form and manner approved jointly by the
department and the department of community health.
(8)
From the funds allocated under subsection (1), there is
allocated
for 2006-2007 an amount not to exceed $100,000.00 for
payment
to a district that is a school district of the first class
under
the revised school code to support after-school tutoring for
at-risk
girls in grades 1 to 8. Funds awarded under this subsection
may
be used to contract with a nondistrict agency for a program or
services
described in this subsection.
(8) (9)
Each district or public school
academy receiving funds
under this section 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,
which report shall include at least a brief description of each
program conducted by the district or public school academy using
funds under this section, the amount of funds under this section
allocated to each of those programs, the number of at-risk pupils
eligible for free or reduced price school lunch who were served by
each of those programs, and the total number of at-risk pupils
served by each of those programs. 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
section 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.
(9) (10)
In order to receive funds under
this section, 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 the state for all
disallowances found in the audit.
(10) (11)
Subject to subsections (5), (6),
(7), (8), (12), and
(13), and
(14), any district may use up to
100% of the funds it
receives under this section to reduce the ratio of pupils to
teachers in grades K-6, or any combination of those grades, in
school buildings in which the percentage of pupils described in
subsection (1) exceeds the district's aggregate percentage of those
pupils.
Subject to subsections (5), (6), (7), (8), (12), and (13),
and
(14) , if a district obtains a
waiver from the department, the
district may use up to 100% of the funds it receives under this
section to reduce the ratio of pupils to teachers in grades K-6, or
any combination of those grades, in school buildings in which the
percentage of pupils described in subsection (1) is at least 60% of
the district's aggregate percentage of those pupils and at least
30% of the total number of pupils enrolled in the school building.
To obtain a waiver, a district must apply to the department and
demonstrate to the satisfaction of the department that the class
size reductions would be in the best interests of the district's
at-risk pupils.
(11) (12)
A district or public school academy
may use funds
received under this section for adult high school completion,
general educational development (G.E.D.) test preparation, adult
English as a second language, or adult basic education programs
described in section 107.
(12) (13)
For an individual school or schools
operated by a
district or public school academy receiving funds under this
section that have been determined by the department to meet the
adequate yearly progress standards of the federal no child left
behind act of 2001, Public Law 107-110, in both mathematics and
English language arts at all applicable grade levels for all
applicable subgroups, the district or public school academy may
submit to the department an application for flexibility in using
the funds received under this section that are attributable to the
pupils in the school or schools. The application shall identify the
affected school or schools and the affected funds and shall contain
a plan for using the funds for specific purposes identified by the
district that are designed to benefit at-risk pupils in the school,
but that may be different from the purposes otherwise allowable
under this section. The department shall approve the application if
the department determines that the purposes identified in the plan
are reasonably designed to benefit at-risk pupils in the school. If
the department does not act to approve or disapprove an application
within 30 days after it is submitted to the department, the
application is considered to be approved. If an application for
flexibility in using the funds is approved, the district may use
the funds identified in the application for any purpose identified
in the plan.
(13) (14)
A district or public school academy
that receives
funds under this section may use funds it receives under this
section to implement and operate an early intervening program for
pupils in grades K to 3 that meets either or both of the following:
(a) Monitors individual pupil learning and provides specific
support or learning strategies to pupils as early as possible in
order to reduce the need for special education placement. The
program shall include literacy and numeracy supports, sensory motor
skill development, behavior supports, instructional consultation
for teachers, and the development of a parent/school learning plan.
Specific support or learning strategies may include support in or
out of the general classroom in areas including reading, writing,
math, visual memory, motor skill development, behavior, or language
development. These would be provided based on an understanding of
the individual child's learning needs.
(b) Provides early intervening strategies using school-wide
systems of academic and behavioral supports and is scientifically
research-based. The strategies to be provided shall include at
least pupil performance indicators based upon response to
intervention, instructional consultation for teachers, and ongoing
progress monitoring. A school-wide system of academic and
behavioral support should be based on a support team available to
the classroom teachers. The members of this team could include the
principal, special education staff, reading teachers, and other
appropriate personnel who would be available to systematically
study the needs of the individual child and work with the teacher
to match instruction to the needs of the individual child.
(14) (15)
If necessary, and before any
proration required
under section 11, the department shall prorate payments under this
section by reducing the amount of the per pupil payment under this
section by a dollar amount calculated by determining the amount by
which the amount necessary to fully fund the requirements of this
section exceeds the maximum amount allocated under this section and
then dividing that amount by the total statewide number of pupils
who met the income eligibility criteria for free breakfast, lunch,
or milk in the immediately preceding fiscal year, as described in
subsection (1).
(15) (16)
If a district is formed by
consolidation after June
1, 1995, and if 1 or more of the original districts was 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.
(16) (17)
A district or public school academy
that does not
meet the eligibility requirement under subsection (2)(a) is
eligible for funding under this section if at least 1/4 of the
pupils in membership in the district or public school academy met
the income eligibility criteria for free breakfast, lunch, or milk
in the immediately preceding state fiscal year, as determined and
reported as described in subsection (1), and at least 4,500 of the
pupils in membership in the district or public school academy met
the income eligibility criteria for free breakfast, lunch, or milk
in the immediately preceding state fiscal year, as determined and
reported as described in subsection (1). A district or public
school academy that is eligible for funding under this section
because the district meets the requirements of this subsection
shall receive under this section for each membership pupil in the
district or public school academy who met the income eligibility
criteria for free breakfast, lunch, or milk in the immediately
preceding fiscal year, as determined and reported as described in
subsection (1), an amount per pupil equal to 11.5% of the sum of
the district's foundation allowance or public school academy's per
pupil allocation under section 20, plus the amount of the
district's per pupil allocation under section 20j(2), not to exceed
$6,500.00 adjusted by the dollar amount of the difference between
the basic foundation allowance under section 20 for the current
state fiscal year and $5,000.00, minus $200.00.
(17) (18)
As used in this section,
"at-risk pupil" means a
pupil for whom the district has documentation that the pupil meets
at least 2 of the following criteria: is a victim of child abuse or
neglect; is below grade level in English language and communication
skills or mathematics; is a pregnant teenager or teenage parent; is
eligible for a federal free or reduced-price lunch subsidy; has
atypical behavior or attendance patterns; or has a family history
of school failure, incarceration, or substance abuse. For pupils
for whom the results of at least the applicable Michigan education
assessment program (MEAP) test have been received, at-risk pupil
also includes a pupil who does not meet the other criteria under
this subsection but who did not achieve at least a score of level 2
on the most recent MEAP English language arts, mathematics, or
science test for which results for the pupil have been received.
For pupils for whom the results of the Michigan merit examination
have been received, at-risk pupil also includes a pupil who does
not meet the other criteria under this subsection but who did not
achieve proficiency on the reading component of the most recent
Michigan merit examination for which results for the pupil have
been received, did not achieve proficiency on the mathematics
component of the most recent Michigan merit examination for which
results for the pupil have been received, or did not achieve basic
competency on the science component of the most recent Michigan
merit examination for which results for the pupil have been
received. For pupils in grades K-3, at-risk pupil also includes a
pupil who is at risk of not meeting the district's core academic
curricular objectives in English language arts or mathematics.
Sec.
51a. (1) From the appropriation in section 11, there is
allocated
for 2005-2006 an amount not to exceed $932,083,000.00
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 $345,850,000.00, plus any
carryover
federal funds from previous year appropriations. From the
appropriation in section 11, there is allocated for 2006-2007 an
amount
not to exceed $991,983,000.00 $971,983,000.00
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 $350,700,000.00, plus any carryover
federal funds from previous year appropriations. 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 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. All federal funds
allocated under this section in excess of those allocated under
this section for 2002-2003 may be distributed in accordance with
the flexible funding provisions of the individuals with
disabilities education act, Public Law 108-446, including, but not
limited to, 34 CFR 300.234 and 300.235. 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
each fiscal year for 2005-2006 and for 2006-2007 the
amount
necessary, estimated at $191,800,000.00 for 2005-2006 and
$205,600,000.00
$207,900,000.00 for 2006-2007, 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 (12), 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 20j(2), not to exceed $6,500.00 adjusted
by the dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, or, for a special education pupil in
membership in a district that is a public school academy or
university school, times an amount equal to the amount per
membership pupil calculated under section 20(6). 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 (12), 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 $6,500.00 adjusted by
the dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, and that district's per pupil allocation
under section 20j(2).
(b) After the allocations under subdivision (a), districts and
intermediate districts for which the payments 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
each fiscal year for 2005-2006 and for 2006-2007 the
amount
necessary, estimated at $2,200,000.00 for 2005-2006 and
$1,600,000.00
$2,000,000.00 for 2006-2007, 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 act 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 2005-2006 and
for 2006-2007 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
2005-2006 and for 2006-2007 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 this article, 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) Except as otherwise provided in subdivisions (c) and (d),
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 act. 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 2004-
2005 that the amounts allocated under this section for 2004-2005
will exceed expenditures under this section for 2004-2005, then for
2004-2005 only, for a district or intermediate district whose
reimbursement for 2004-2005 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 this section 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.
(d) If the department determines before bookclosing for 2005-
2006 that the amounts allocated for 2005-2006 under subsections
(2), (3), (6), (8), and (12) and sections 53a, 54, and 56 will
exceed expenditures for 2005-2006 under subsections (2), (3), (6),
(8), and (12) and sections 53a, 54, and 56, then for 2005-2006
only, for a district or intermediate district whose reimbursement
for 2005-2006 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),
(8), and (12) 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.
(e) 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.
(f) 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) From the allocation in subsection (1), there is allocated
each
fiscal year for 2005-2006 and for
2006-2007 an amount not to
exceed $15,313,900.00 to intermediate districts. The payment under
this subsection to each intermediate district shall be equal to the
amount of the 1996-97 allocation to the intermediate district under
subsection (6) of this section as in effect for 1996-97.
(9) 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.
(10) 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.
(11) 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.
(12) From the funds allocated in subsection (1), there is
allocated
each fiscal year for 2005-2006 and for 2006-2007 the
amount
necessary, estimated at $6,900,000.00 for 2005-2006 and
$7,700,000.00
$6,500,000.00 for 2006-2007, 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 20j(2), not to exceed $6,500.00 adjusted by the
dollar amount of the difference between the basic foundation
allowance under section 20 for the current fiscal year and
$5,000.00 minus $200.00, or, for a pupil described in this
subsection who is counted in membership in a district that is a
public school academy or university school, times an amount equal
to the amount per membership pupil under section 20(6). 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 $6,500.00 adjusted by the dollar amount of
the difference between the basic foundation allowance under section
20 for the current fiscal year and $5,000.00 minus $200.00, and
that district's per pupil allocation under section 20j(2). 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) Emotionally impaired pupils counted in membership by an
intermediate district and provided educational services by the
department of community health.
(13) After payments under subsections (2) and (12) 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 payment required under subsection (8).
(f) 100% of the payments under section 56.
(14) The allocations under subsection (2), subsection (3), and
subsection (12) 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.
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, from the allocation under section 51a(1), there
is
allocated each fiscal year for 2005-2006 and for 2006-2007 the
amount
necessary, estimated at $662,300,000.00 for 2005-2006 and
$708,200,000.00
$686,700,000.00 for 2006-2007, 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. 65. (1) From the amount appropriated in section 11, there
is
allocated an amount not to exceed $780,100.00 $680,100.00 for
2006-2007 for grants to districts or intermediate districts, as
determined by the department of labor and economic growth, for
eligible precollege programs in engineering and the sciences.
(2) From the funds allocated under subsection (1), the
department of labor and economic growth shall award $680,100.00 for
2006-2007 to the 2 eligible existing programs that received funds
appropriated for these purposes in the appropriations act
containing the department of labor and economic growth budget for
2005-2006.
(3)
From the funds allocated under subsection (1), the
department
of labor and economic growth shall award $100,000.00 for
2006-2007
to the Kalamazoo regional education service agency to
support
an area program substantially similar to the 2 eligible
existing
programs receiving funds under subsection (1).
(3) (4)
The department of labor and
economic growth shall
submit a report to the appropriations subcommittees responsible for
this act and to the house and senate fiscal agencies by February 1,
2007 regarding dropout rates, grade point averages, enrollment in
science, engineering, and math-based curricula, and employment in
science, engineering, and mathematics-based fields for pupils who
were enrolled in the programs awarded funds under this section or
under preceding legislation. The report shall continue to evaluate
the effectiveness of the precollege programs in engineering and
sciences funded under this section.
(4) (5)
Notwithstanding section 17b,
payments under this
section may be made pursuant to an agreement with the department.
Sec. 81. (1) Except as otherwise provided in this section,
from the appropriation in section 11, there is allocated for 2006-
2007 to the intermediate districts the sum necessary, but not to
exceed $80,110,900.00, to provide state aid to intermediate
districts under this section. Except as otherwise provided in this
section, there shall be allocated to each intermediate district for
2006-2007 an amount equal to 103.1% of the amount appropriated
under this subsection for 2005-2006. Funding provided under this
section shall be used to comply with requirements of this act and
the revised school code that are applicable to intermediate
districts, and for which funding is not provided elsewhere in this
act, and to provide technical assistance to districts as authorized
by the intermediate school board.
(2) It is the intent of the legislature that intermediate
districts receiving funds under 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.
(3) 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.
(4) During a fiscal year, the department shall not increase an
intermediate district's allocation under subsection (1) because of
an adjustment made by the department during the fiscal year in the
intermediate district's taxable value for a prior year. Instead,
the department shall report the adjustment and the estimated amount
of the increase to the house and senate fiscal agencies and the
state budget director not later than June 1 of the fiscal year, and
the legislature shall appropriate money for the adjustment in the
next succeeding fiscal year.
(5) In order to receive funding under this section, an
intermediate
district shall demonstrate 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 counting 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 pupil 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.
Sec. 147. (1) The allocation for 2006-2007 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 entry age normal cost actuarial
method and risk assumptions adopted by the public school employees
retirement board and the department of management and budget. The
annual level percentage of payroll contribution rate is estimated
at 17.74% for the 2006-2007 state fiscal year. The portion of the
contribution rate assigned to districts and intermediate districts
for each fiscal year is all of the total percentage points. This
contribution rate reflects an amortization period of 30 years for
2006-2007. 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.
(2) Upon enactment of legislation reassigning the assets held
by the public school employees' retirement system to their fair
market value as of September 30, 2006, and upon payment only of
interest costs on unfunded actuarial accrued liability, the
director of the department of management and budget shall direct
the public school employees' retirement system to issue credits for
the fiscal year ending September 30, 2007 not to exceed an
aggregate of $262,000,000.00 to reflect the change to the fair
market value and payment only of interest costs. A credit issued on
behalf of a district shall be considered to be a payment on behalf
of the district for the purposes of calculating payments made under
section 22b for 2006-2007, and a credit issued on behalf of an
intermediate district shall be considered to be a payment on behalf
of the intermediate district for the purpose of calculating
payments made under section 81 for 2006-2007. The credits issued
under this section shall be used to partially meet the required
pension obligations of each district and intermediate district and
shall reduce the amount of the pension contributions otherwise due
from that district or intermediate district based on the original
contribution rate. The credit provided under this subsection for a
particular district or intermediate district shall be determined
based on that district's or intermediate district's percentage of
the total statewide payroll for all districts and intermediate
districts for the state fiscal year ending September 30, 2006.
Enacting section 1. In accordance with section 30 of article I
of the state constitution of 1963, total state spending in this
amendatory act and in 2006 PA 342 from state sources for fiscal
year 2006-2007 is estimated at $11,537,036,300.00 and state
appropriations to be paid to local units of government for fiscal
year 2006-2007 are estimated at $11,399,474,600.00.
Enacting section 2. Sections 31c, 32m, 34, 57a, 98c, 99d, 99f,
and 99g of the state school aid act of 1979, 1979 PA 94, MCL
388.1631c, 388.1632m, 388.1634, 388.1657a, 388.1698c, 388.1699d,
388.1699f, and 388.1699g, are repealed.