HB-4447, As Passed House, April 2, 2009
SUBSTITUTE FOR
HOUSE BILL NO. 4447
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 11n,
15, 18, 20, 20d, 20j, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b,
29, 31a, 31d, 31f, 32b, 32c, 32d, 32j, 32l, 32n, 39, 39a, 41, 51a,
51c, 51d, 53a, 54, 54a, 54c, 56, 57, 61a, 62, 64, 65, 74, 81, 94a,
98, 99, 99a, 99n, 99p, 101, 104, 107, 147, and 164c (MCL 388.1603,
388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g, 388.1611j,
388.1611k, 388.1611m, 388.1611n, 388.1615, 388.1618, 388.1620,
388.1620d, 388.1620j, 388.1622a, 388.1622b, 388.1622d, 388.1622e,
388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1629,
388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632c, 388.1632d,
388.1632j, 388.1632l, 388.1632n, 388.1639, 388.1639a, 388.1641,
388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1654a,
388.1654c, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1664,
388.1665, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699,
388.1699a, 388.1699n, 388.1699p, 388.1701, 388.1704, 388.1707,
388.1747, and 388.1764c), sections 3, 6, 11, 11a, 11g, 11j, 11k,
11m, 15, 18, 20d, 22a, 22b, 22d, 24, 24a, 24c, 26a, 26b, 29, 31a,
31d, 31f, 32c, 32d, 32j, 32l, 39, 39a, 41, 51a, 51c, 51d, 53a, 54,
54a, 54c, 56, 57, 61a, 62, 64, 65, 74, 81, 94a, 98, 99, 99p, 104,
107, 147, and 164c as amended and sections 11n, 22e, and 99a as
added by 2008 PA 268, section 8b as amended by 2007 PA 92, sections
20, 20j, and 32b as amended by 2008 PA 561, section 32n as added by
2007 PA 137, section 99n as added by 2008 PA 112, and section 101
as amended by 2006 PA 342, and by adding sections 22f, 32a, and
98a; 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, means 92% of the pupils counted in
membership on the pupil membership count day, as defined in section
6(7).
(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 or, except in sections 6(4), 6(6), 11n, 13,
20,
22a, 23, 29, 31a, 99j, 99k, 51a(15), 105, and 105c, a public
school
academy. Except in sections 6(4), 6(6), 11n, 13, 20, 22a,
29,
99j, 99k, 51a(15), 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. 6. (1) "Center program" means a program operated by a
district or intermediate district for special education pupils from
several districts in programs for pupils with autism spectrum
disorder, pupils with severe cognitive impairment, pupils with
moderate cognitive impairment, pupils with severe multiple
impairments, pupils with hearing impairment, pupils with visual
impairment, and pupils with physical impairment or other health
impairment. Programs for pupils with emotional impairment housed in
buildings that do not serve regular education pupils also qualify.
Unless otherwise approved by the department, a center program
either shall serve all constituent districts within an intermediate
district or shall serve several districts with less than 50% of the
pupils residing in the operating district. In addition, special
education center program pupils placed part-time in noncenter
programs to comply with the least restrictive environment
provisions of section 612 of part B of the individuals with
disabilities education act, 20 USC 1412, may be considered center
program pupils for pupil accounting purposes for the time scheduled
in either a center program or a noncenter program.
(2) "District and high school graduation rate" means the
annual completion and pupil dropout rate that is calculated by the
center pursuant to nationally recognized standards.
(3) "District and high school graduation report" means a
report of the number of pupils, excluding adult participants, in
the district for the immediately preceding school year, adjusted
for those pupils who have transferred into or out of the district
or high school, who leave high school with a diploma or other
credential of equal status.
(4) "Membership", except as otherwise provided in this act,
means for a district, public school academy, university school, or
intermediate district the sum of the product of .75 times the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the pupil membership
count day for the current school year, plus the product of .25
times the final audited count from the supplemental count day for
the immediately preceding school year. All pupil counts used in
this subsection are as determined by the department and calculated
by adding the number of pupils registered for attendance plus
pupils received by transfer and minus pupils lost as defined by
rules promulgated by the superintendent, and as corrected by a
subsequent department audit. The amount of the foundation allowance
for a pupil in membership is determined under section 20. In making
the calculation of membership, all of the following, as applicable,
apply to determining the membership of a district, public school
academy, university school, or intermediate district:
(a) Except as otherwise provided in this subsection, and
pursuant to subsection (6), a pupil shall be counted in membership
in the pupil's educating district or districts. An individual pupil
shall not be counted for more than a total of 1.0 full-time equated
membership.
(b) If a pupil is educated in a district other than the
pupil's district of residence, if the pupil is not being educated
as part of a cooperative education program, if the pupil's district
of residence does not give the educating district its approval to
count the pupil in membership in the educating district, and if the
pupil is not covered by an exception specified in subsection (6) to
the requirement that the educating district must have the approval
of the pupil's district of residence to count the pupil in
membership, the pupil shall not be counted in membership in any
district.
(c) A special education pupil educated by the intermediate
district shall be counted in membership in the intermediate
district.
(d) A pupil placed by a court or state agency in an on-grounds
program of a juvenile detention facility, a child caring
institution, or a mental health institution, or a pupil funded
under section 53a, shall be counted in membership in the district
or intermediate district approved by the department to operate the
program.
(e) A pupil enrolled in the Michigan schools for the deaf and
blind shall be counted in membership in the pupil's intermediate
district of residence.
(f) A pupil enrolled in a vocational education program
supported by a millage levied over an area larger than a single
district or in an area vocational-technical education program
established pursuant to section 690 of the revised school code, MCL
380.690, shall be counted only in the pupil's district of
residence.
(g) A pupil enrolled in a university school shall be counted
in membership in the university school.
(h) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(i) For a new district, university school, or public school
academy beginning its operation after December 31, 1994, membership
for the first 2 full or partial fiscal years of operation shall be
determined as follows:
(i) If operations begin before the pupil membership count day
for the fiscal year, membership is the average number of full-time
equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current
school year and on the supplemental count day for the current
school year, as determined by the department and calculated by
adding the number of pupils registered for attendance on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day
for the fiscal year and not later than the supplemental count day
for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the supplemental count
day for the current school year.
(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted
in membership on the pupil membership count day in the public
school academy, the determination of the district's membership
shall exclude from the district's pupil count for the immediately
preceding supplemental count day any pupils who are counted in the
public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding
supplemental count day.
(k) In a district, public school academy, university school,
or intermediate district operating an extended school year program
approved by the superintendent, a pupil enrolled, but not scheduled
to be in regular daily attendance on a pupil membership count day,
shall be counted.
(l) Pupils to be counted in membership shall be not less than 5
years of age on December 1 and less than 20 years of age on
September 1 of the school year except a special education pupil who
is enrolled and receiving instruction in a special education
program or service approved by the department and not having a high
school diploma who is less than 26 years of age as of September 1
of the current school year shall be counted in membership.
(m) An individual who has obtained a high school diploma shall
not be counted in membership. An individual who has obtained a
general educational development (G.E.D.) certificate shall not be
counted in membership. An individual participating in a job
training program funded under former section 107a or a jobs program
funded under former section 107b, administered by the Michigan
strategic fund or the department of energy, labor, and economic
growth, or participating in any successor of either of those 2
programs, shall not be counted in membership.
(n) If a pupil counted in membership in a public school
academy is also educated by a district or intermediate district as
part of a cooperative education program, the pupil shall be counted
in membership only in the public school academy unless a written
agreement signed by all parties designates the party or parties in
which the pupil shall be counted in membership, and the
instructional time scheduled for the pupil in the district or
intermediate district shall be included in the full-time equated
membership determination under subdivision (q). However, for pupils
receiving instruction in both a public school academy and in a
district or intermediate district but not as a part of a
cooperative education program, the following apply:
(i) If the public school academy provides instruction for at
least 1/2 of the class hours specified in subdivision (q), the
public school academy shall receive as its prorated share of the
full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the public
school academy provides divided by the number of hours specified in
subdivision (q) for full-time equivalency, and the remainder of the
full-time membership for each of those pupils shall be allocated to
the district or intermediate district providing the remainder of
the hours of instruction.
(ii) If the public school academy provides instruction for less
than 1/2 of the class hours specified in subdivision (q), the
district or intermediate district providing the remainder of the
hours of instruction shall receive as its prorated share of the
full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the
district or intermediate district provides divided by the number of
hours specified in subdivision (q) for full-time equivalency, and
the remainder of the full-time membership for each of those pupils
shall be allocated to the public school academy.
(o) An individual less than 16 years of age as of September 1
of the current school year who is being educated in an alternative
education program shall not be counted in membership if there are
also adult education participants being educated in the same
program or classroom.
(p) The department shall give a uniform interpretation of
full-time and part-time memberships.
(q) The number of class hours used to calculate full-time
equated memberships shall be consistent with section 101(3). In
determining full-time equated memberships for pupils who are
enrolled in a postsecondary institution, a pupil shall not be
considered to be less than a full-time equated pupil solely because
of the effect of his or her postsecondary enrollment, including
necessary travel time, on the number of class hours provided by the
district to the pupil.
(r) Except as otherwise provided in this subdivision, full-
time equated memberships for pupils in kindergarten shall be
determined by dividing the number of class hours scheduled and
provided per year per kindergarten pupil by a number equal to 1/2
the number used for determining full-time equated memberships for
pupils
in grades 1 to 12. Beginning in 2009-2010 2011-2012, full-
time equated memberships for pupils enrolled in developmental
kindergarten ,
prekindergarten, or a similar class
intended to be
the first of 2 school years before a pupil enters grade 1 shall be
determined by dividing the number of class hours scheduled and
provided per year per developmental kindergarten pupil by the
number used for determining full-time equated memberships for
pupils
in grades 1 to 12. For 2010-2011 2012-2013, full-time
equated memberships for pupils enrolled in kindergarten shall be
determined by dividing the number of class hours scheduled and
provided per year per kindergarten pupil by a number equal to 60%
of the number used for determining full-time equated memberships
for
pupils in grades 1 to 12. Beginning in 2011-2012 2013-2014,
full-time equated memberships for pupils enrolled in kindergarten
shall be determined by dividing the number of class hours scheduled
and provided per year per kindergarten pupil by a number equal to
70% of the number used for determining full-time equated
memberships for pupils in grades 1 to 12. In order to improve
student achievement, it is the intent of the legislature that, in
addition to moving toward full-day programs for developmental
kindergarten and kindergarten, districts should increase the amount
of time spent on parent-school contact, which may include, but is
not limited to, increasing parent-teacher conference time, holding
parent-school workshops in the community, and providing home
visits.
(s) For a district, university school, or public school
academy that has pupils enrolled in a grade level that was not
offered by the district, university school, or public school
academy in the immediately preceding school year, the number of
pupils enrolled in that grade level to be counted in membership is
the average of the number of those pupils enrolled and in regular
daily attendance on the pupil membership count day and the
supplemental count day of the current school year, as determined by
the department. Membership shall be calculated by adding the number
of pupils registered for attendance in that grade level on the
pupil membership count day plus pupils received by transfer and
minus pupils lost as defined by rules promulgated by the
superintendent, and as corrected by subsequent department audit,
plus the final audited count from the supplemental count day for
the current school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be
counted in membership in the pupil's district of residence with the
written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district
determines through the district's alternative or disciplinary
education program that the best instructional placement for a pupil
is in the pupil's home or otherwise apart from the general school
population, if that placement is authorized in writing by the
district superintendent and district alternative or disciplinary
education supervisor, and if the district provides appropriate
instruction as described in this subdivision to the pupil at the
pupil's home or otherwise apart from the general school population,
the district may count the pupil in membership on a pro rata basis,
with the proration based on the number of hours of instruction the
district actually provides to the pupil divided by the number of
hours specified in subdivision (q) for full-time equivalency. For
the purposes of this subdivision, a district shall be considered to
be providing appropriate instruction if all of the following are
met:
(i) The district provides at least 2 nonconsecutive hours of
instruction per week to the pupil at the pupil's home or otherwise
apart from the general school population under the supervision of a
certificated teacher.
(ii) The district provides instructional materials, resources,
and supplies, except computers, that are comparable to those
otherwise provided in the district's alternative education program.
(iii) Course content is comparable to that in the district's
alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the
pupil's transcript.
(v)
For 2007-2008 only, a A pupil enrolled in an alternative
or disciplinary education program described in section 25 shall be
counted in membership in the district or public school academy that
expelled
is educating the pupil.
(w) If a pupil was enrolled in a public school academy on the
pupil membership count day, if the public school academy's contract
with its authorizing body is revoked or the public school academy
otherwise ceases to operate, and if the pupil enrolls in a district
within 45 days after the pupil membership count day, the department
shall adjust the district's pupil count for the pupil membership
count day to include the pupil in the count.
(x) For a public school academy that has been in operation for
at least 2 years and that suspended operations for at least 1
semester and is resuming operations, membership is the sum of the
product of .75 times the number of full-time equated pupils in
grades K to 12 actually enrolled and in regular daily attendance on
the first pupil membership count day or supplemental count day,
whichever is first, occurring after operations resume, plus the
product of .25 times the final audited count from the most recent
pupil membership count day or supplemental count day that occurred
before suspending operations, as determined by the superintendent.
(y) If a district's membership for a particular fiscal year,
as otherwise calculated under this subsection, would be less than
1,550 pupils and the district has 4.5 or fewer pupils per square
mile, as determined by the department, and, beginning in 2007-2008,
if the district does not receive funding under section 22d(2), the
district's membership shall be considered to be the membership
figure calculated under this subdivision. If a district educates
and counts in its membership pupils in grades 9 to 12 who reside in
a contiguous district that does not operate grades 9 to 12 and if 1
or both of the affected districts request the department to use the
determination allowed under this sentence, the department shall
include the square mileage of both districts in determining the
number of pupils per square mile for each of the districts for the
purposes of this subdivision. The membership figure calculated
under this subdivision is the greater of the following:
(i) The average of the district's membership for the 3-fiscal-
year period ending with that fiscal year, calculated by adding the
district's actual membership for each of those 3 fiscal years, as
otherwise calculated under this subsection, and dividing the sum of
those 3 membership figures by 3.
(ii) The district's actual membership for that fiscal year as
otherwise calculated under this subsection.
(z) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and
does not reopen for the next school year, the department shall
adjust the membership count of the district in which a former pupil
of the public school academy enrolls and is in regular daily
attendance for the next school year to ensure that the district
receives the same amount of membership aid for the pupil as if the
pupil were counted in the district on the supplemental count day of
the preceding school year.
(aa) Full-time equated memberships for preprimary-aged special
education pupils who are not enrolled in kindergarten but are
enrolled in a classroom program under R 340.1754 of the Michigan
administrative code shall be determined by dividing the number of
class hours scheduled and provided per year by 450. Full-time
equated memberships for preprimary-aged special education pupils
who are not enrolled in kindergarten but are receiving nonclassroom
services under R 340.1755 of the Michigan administrative code shall
be determined by dividing the number of hours of service scheduled
and provided per year per pupil by 180.
(bb) A pupil of a district that begins its school year after
Labor day who is enrolled in an intermediate district program that
begins before Labor day shall not be considered to be less than a
full-time pupil solely due to instructional time scheduled but not
attended by the pupil before Labor day.
(cc) For the first year in which a pupil is counted in
membership on the pupil membership count day in a middle college
program described in section 64, the membership is the average of
the full-time equated membership on the pupil membership count day
and on the supplemental count day for the current school year, as
determined by the department. If a pupil was counted by the
operating district on the immediately preceding supplemental count
day, the pupil shall be excluded from the district's immediately
preceding supplemental count for purposes of determining the
district's membership.
(dd) A district that educates a pupil who attends a United
States Olympic education center may count the pupil in membership
regardless of whether or not the pupil is a resident of this state.
(5) "Public school academy" means a public school academy,
urban high school academy, or strict discipline academy operating
under the revised school code.
(6) "Pupil" means a person in membership in a public school. A
district must have the approval of the pupil's district of
residence to count the pupil in membership, except approval by the
pupil's district of residence is not required for any of the
following:
(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.
(c) A pupil enrolled in a public school academy or university
school.
(d) A pupil enrolled in a district other than the pupil's
district of residence under an intermediate district schools of
choice pilot program as described in section 91a or former section
91 if the intermediate district and its constituent districts have
been exempted from section 105.
(e) A pupil enrolled in a district other than the pupil's
district of residence if the pupil is enrolled in accordance with
section 105 or 105c.
(f) A pupil who has made an official written complaint or
whose parent or legal guardian has made an official written
complaint to law enforcement officials and to school officials of
the pupil's district of residence that the pupil has been the
victim of a criminal sexual assault or other serious assault, if
the official complaint either indicates that the assault occurred
at school or that the assault was committed by 1 or more other
pupils enrolled in the school the pupil would otherwise attend in
the district of residence or by an employee of the district of
residence. A person who intentionally makes a false report of a
crime to law enforcement officials for the purposes of this
subdivision is subject to section 411a of the Michigan penal code,
1931 PA 328, MCL 750.411a, which provides criminal penalties for
that conduct. As used in this subdivision:
(i) "At school" means in a classroom, elsewhere on school
premises, on a school bus or other school-related vehicle, or at a
school-sponsored activity or event whether or not it is held on
school premises.
(ii) "Serious assault" means an act that constitutes a felony
violation of chapter XI of the Michigan penal code, 1931 PA 328,
MCL 750.81 to 750.90g, or that constitutes an assault and
infliction of serious or aggravated injury under section 81a of the
Michigan penal code, 1931 PA 328, MCL 750.81a.
(g) A pupil whose district of residence changed after the
pupil membership count day and before the supplemental count day
and who continues to be enrolled on the supplemental count day as a
nonresident in the district in which he or she was enrolled as a
resident on the pupil membership count day of the same school year.
(h) A pupil enrolled in an alternative education program
operated by a district other than his or her district of residence
who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from his or her
district of residence for any reason, including, but not limited
to, a suspension or expulsion under section 1310, 1311, or 1311a of
the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(v) The pupil is enrolled in an alternative or disciplinary
education program described in section 25.
(i) A pupil enrolled in the Michigan virtual high school, for
the pupil's enrollment in the Michigan virtual high school.
(j) A pupil who is the child of a person who is employed by
the district. As used in this subdivision, "child" includes an
adopted child, stepchild, or legal ward.
(k) An expelled pupil who has been denied reinstatement by the
expelling district and is reinstated by another school board under
section 1311 or 1311a of the revised school code, MCL 380.1311 and
380.1311a.
(l) A pupil enrolled in a district other than the pupil's
district of residence in a program described in section 64 if the
pupil's district of residence and the enrolling district are both
constituent districts of the same intermediate district.
(m) A pupil enrolled in a district other than the pupil's
district of residence who attends a United States Olympic education
center.
However,
if a district that is not a first class district
educates
pupils who reside in a first class another district and if
the primary instructional site for those pupils is established by
the educating district after 2008-2009 and is located within the
boundaries
of the first class that
other district, the educating
district
must have the approval of the first class that other
district
to count those pupils in membership. As used in this
subsection,
"first class district" means a district organized as a
school
district of the first class under the revised school code.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the fourth
Wednesday after Labor day each school year or, for a district or
building in which school is not in session on that Wednesday due to
conditions not within the control of school authorities, with the
approval of the superintendent, the immediately following day on
which school is in session in the district or building.
(b) For a district or intermediate district maintaining school
during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) Fourth Wednesday after Labor day.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
(8) "Pupils in grades K to 12 actually enrolled and in regular
daily attendance" means pupils in grades K to 12 in attendance and
receiving instruction in all classes for which they are enrolled on
the pupil membership count day or the supplemental count day, as
applicable. Except as otherwise provided in this subsection, a
pupil who is absent from any of the classes in which the pupil is
enrolled on the pupil membership count day or supplemental count
day and who does not attend each of those classes during the 10
consecutive school days immediately following the pupil membership
count day or supplemental count day, except for a pupil who has
been excused by the district, shall not be counted as 1.0 full-time
equated membership. A pupil who is excused from attendance on the
pupil membership count day or supplemental count day and who fails
to attend each of the classes in which the pupil is enrolled within
30 calendar days after the pupil membership count day or
supplemental count day shall not be counted as 1.0 full-time
equated membership. In addition, a pupil who was enrolled and in
attendance in a district, intermediate district, or public school
academy before the pupil membership count day or supplemental count
day of a particular year but was expelled or suspended on the pupil
membership count day or supplemental count day shall only be
counted as 1.0 full-time equated membership if the pupil resumed
attendance in the district, intermediate district, or public school
academy within 45 days after the pupil membership count day or
supplemental count day of that particular year. Pupils not counted
as 1.0 full-time equated membership due to an absence from a class
shall be counted as a prorated membership for the classes the pupil
attended. For purposes of this subsection, "class" means a period
of time in 1 day when pupils and a certificated teacher or legally
qualified substitute teacher are together and instruction is taking
place.
(9) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(10) "The revised school code" means 1976 PA 451, MCL 380.1 to
380.1852.
(11) "School district of the first class", "first class school
district", and "district of the first class", except in subsection
(6), mean a district that had at least 60,000 pupils in membership
for the immediately preceding fiscal year.
(12) "School fiscal year" means a fiscal year that commences
July 1 and continues through June 30.
(13) "State board" means the state board of education.
(14) "Superintendent", unless the context clearly refers to a
district or intermediate district superintendent, means the
superintendent of public instruction described in section 3 of
article VIII of the state constitution of 1963.
(15) "Supplemental count day" means the day on which the
supplemental pupil count is conducted under section 6a.
(16) "Tuition pupil" means a pupil of school age attending
school in a district other than the pupil's district of residence
for whom tuition may be charged. Tuition pupil does not include a
pupil who is a special education pupil or a pupil described in
subsection (6)(c) to (m). A pupil's district of residence shall not
require a high school tuition pupil, as provided under section 111,
to attend another school district after the pupil has been assigned
to a school district.
(17) "State school aid fund" means the state school aid fund
established in section 11 of article IX of the state constitution
of 1963.
(18) "Taxable value" means the taxable value of property as
determined under section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.
(19) "Textbook" means a book that is selected and approved by
the governing board of a district and that contains a presentation
of principles of a subject, or that is a literary work relevant to
the study of a subject required for the use of classroom pupils, or
another type of course material that forms the basis of classroom
instruction.
(20) "Total state aid" or "total state school aid" means the
total combined amount of all funds due to a district, intermediate
district, or other entity under all of the provisions of this act.
(21) "University school" means an instructional program
operated by a public university under section 23 that meets the
requirements of section 23.
Sec. 8b. (1) The department shall assign a district code to
each public school academy that is authorized under the revised
school code and is eligible to receive funding under this act
within 30 days after a complete contract is submitted to the
department by the authorizing body of a public school academy.
(2) If the department does not assign a district code to a
public school academy within the 30-day period described in
subsection (1), the district code the department shall use to make
payments under this act to the newly authorized public school
academy shall be a number that is equivalent to the sum of the last
district code assigned to a public school academy located in the
same county as the newly authorized public school academy plus 1.
However, if there is not an existing public school academy located
in the same county as the newly authorized public school academy,
then the district code the department shall use to make payments
under this act to the newly authorized public school academy shall
be a 5-digit number that has the county code in which the public
school academy is located as its first 2 digits, 9 as its third
digit, 0 as its fourth digit, and 1 as its fifth digit. If the
number of public school academies in a county grows to exceed 100,
the third digit in this 5-digit number shall then be 8 for the
public school academies in excess of 100.
Sec.
11. (1) For the fiscal year ending September 30, 2008,
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$11,386,866,600.00
from the state school aid fund established by
section
11 of article IX of the state constitution of 1963 and the
sum
of $34,909,600.00 from the general fund. For the fiscal year
ending September 30, 2009, there is appropriated for the public
schools of this state and certain other state purposes relating to
House Bill No. 4447 (H-1) as amended April 2, 2009
education
the sum of $11,776,098,200.00 $11,617,298,200.00
from the
state school aid fund established by section 11 of article IX of
the
state constitution of 1963, and the sum of $40,800,000.00
$85,000,000.00 from the general fund, and the sum of $24,533,000.00
from the federal funding awarded to this state under title VIII of
the American recovery and reinvestment act of 2009, Public Law 111-
5. For the fiscal year ending September 30, 2010, there is
appropriated for the public schools of this state and certain other
state purposes relating to education the sum of $11,310,800,100.00
from the state school aid fund established by section 11 of article
IX of the state constitution of 1963, the sum of [$39,625,000.00]
from the general fund, and the sum of $220,074,275.00 from the
federal funding awarded to this state under title XIV of the
American recovery and reinvestment act of 2009, Public Law 111-5.
In addition, other available federal funds are appropriated for the
fiscal
year ending September 30, 2008 2009
and for the fiscal year
ending
September 30, 2009 2010.
(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 under subsection (3), 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) 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.
Sec. 11a. (1) The school aid stabilization fund is created as
a separate account within the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school aid stabilization fund. The
state treasurer shall deposit into the school aid stabilization
fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of
the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid
stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school
aid stabilization fund. Money in the school aid stabilization fund
shall be expended only for purposes for which state school aid fund
money may be expended.
(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to
the school aid stabilization fund interest and earnings from fund
investments.
(5) Money in the school aid stabilization fund at the close of
a fiscal year shall remain in the school aid stabilization fund and
shall not lapse to the unreserved school aid fund balance or the
general fund.
(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount
available for expenditure from the state school aid fund for that
fiscal year, there is appropriated from the school aid
stabilization fund to the state school aid fund an amount equal to
the projected shortfall as determined by the department of
treasury, but not to exceed available money in the school aid
stabilization fund. If the money in the school aid stabilization
fund is insufficient to fully fund an amount equal to the projected
shortfall, the state budget director shall notify the legislature
as required under section 11(3) and state payments in an amount
equal to the remainder of the projected shortfall shall be prorated
in the manner provided under section 11(4).
(7) For 2008-2009 and for 2009-2010, there is appropriated
from the school aid stabilization fund to the state school aid fund
the amount necessary to fully fund the allocations under this act.
Sec. 11g. (1) From the appropriation in section 11, there is
allocated for this section an amount not to exceed $42,000,000.00
for
the fiscal year ending September 30, 2009 2010 and for each
succeeding fiscal year through the fiscal year ending September 30,
2015, after which these payments will cease. 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 and any other provision of this act 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 1 of the
following:
(a) If the district or intermediate district does not borrow
money and issue bonds under section 11i, 1/30 of the total amount
listed in section 11h for the district or intermediate district
through the fiscal year ending September 30, 2013.
(b) If the district or intermediate district borrows money and
issues bonds under section 11i, an amount in each fiscal year
calculated by the department of treasury that is equal to the debt
service amount in that fiscal year on 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 $3,900,000.00 for 2007-2008 and
an
amount not to exceed $39,000,000.00 $40,000,000.00 each fiscal
year for 2008-2009 and for 2009-2010 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.
11k. For 2008-2009 2009-2010, there is appropriated from
the general fund to the school loan revolving fund an amount equal
to the amount of school bond loans assigned to the Michigan
municipal bond authority, not to exceed the total amount of school
bond loans held in reserve as long-term assets. As used in this
section, "school loan revolving fund" means that fund created in
section 16c of the shared credit rating act, 1985 PA 227, MCL
141.1066c.
Sec. 11m. From the appropriations in section 11, there is
allocated
for 2008-2009 2009-2010 an amount not to exceed
$45,000,000.00 for fiscal year cash-flow borrowing costs solely
related to the state school aid fund established by section 11 of
article IX of the state constitution of 1963.
Sec. 11n. (1) From the appropriation in section 11, there is
allocated
$15,000,000.00 for 2008-2009 2009-2010
for the purposes
of this section. Money allocated under this section shall be
deposited in the 21st century schools fund on November 15 of the
fiscal year for which it is allocated or on the next business day
following that date.
(2) The 21st century schools fund is created as a separate
account within the state school aid fund. The state treasurer may
receive money or other assets from any source for deposit into the
21st century schools fund. The state treasurer shall direct the
investment of the 21st century schools fund. The state treasurer
shall credit to the 21st century schools fund interest and earnings
from 21st century schools fund investments. Money in the 21st
century schools fund at the close of the fiscal year shall remain
in the 21st century schools fund and shall not lapse to the state
school aid fund or to the general fund. The department of treasury
shall be the administrator of the 21st century schools fund for
auditing purposes. Money from the 21st century schools fund shall
be expended, upon appropriation, only for purposes of this section.
(3)
For 2008-2009 2009-2010, an amount not to exceed
$15,000,000.00 is allocated from the 21st century schools fund for
21st century schools grants under this section of up to
$3,000,000.00 for each school project to eligible districts that
meet the requirements of this section. The funds may be used for
planning and start-up costs of newly constructed or newly
configured schools or learning communities and renovations of
existing facilities as well as other expenditures outlined in the
applicants' proposals relating to planning and start-up costs and
approved by the department. Notwithstanding section 17b, the total
grant
amount for 2008-2009 2009-2010
to each eligible district or
public school academy shall be distributed over a 4-year period on
a schedule to be determined by the department.
(4) To apply for a 21st century schools grant, an eligible
district shall submit an application to the department, in a form
and manner prescribed by the department, that meets the application
criteria under this section. An application shall demonstrate to
the satisfaction of the department that the school or learning
community of an eligible district to be funded meets all of the
following:
(a) Will be designed to achieve the following outcomes not
later than the school year in which the third high school
graduating class graduates from the school or learning community:
(i) An 80% graduation rate, as determined by the department.
(ii) At least 80% of the high school graduates from the school
or learning community are enrolled in postsecondary studies within
6 months after high school graduation. For purposes of this
subparagraph, "postsecondary studies" includes 4-year colleges and
universities, community colleges, technical schools,
apprenticeships, and military enlistment.
(b) Will provide an open enrollment such that if there are
more applications to enroll than there are spaces available, pupils
shall be selected to attend using a random selection process.
However, a school or learning community may give enrollment
priority to a sibling of a pupil enrolled in the school or learning
community, and a school or learning community shall allow any pupil
who was enrolled in the school or learning community in the
immediately preceding school year to enroll in the school or
learning community in the next appropriate grade until the pupil
graduates from the school or learning community.
(c) Will have a maximum of 110 pupils in each high school
grade level and an average of at least 75 pupils in each high
school grade level.
(d) Will incorporate a relationship-building goal between the
teaching staff, administration, pupils, and parents.
(e) Has a commitment of private matching funds at least equal
to the amount of the grant under this section.
(5) If the department determines that a grant recipient has
failed to achieve the outcomes described in subsection (4)(a), the
grant recipient shall return to the state 50% of the total grant
awarded. To accomplish the return of these funds, the department
shall deduct an amount equal to 50% of the total grant awarded from
the grant recipient's state school aid installment payments, on a
schedule determined by the department. Funds returned under this
subsection shall be deposited in the 21st century schools fund.
(6) In awarding grants under this section, the department
shall give preference to grant applications for starting a new
school or learning community that will implement strategies to
prepare middle school students likely to attend the school or
learning community or that will include grades 6 to 12 rather than
proposals for stand-alone schools including only grades 9 to 12 and
not implementing strategies to prepare middle school students.
(7) The department shall not award more than 1/3 of the grants
under this section to public school academies.
(8) The department shall establish and publicize the
application process and a schedule for the application process.
(9) As used in this section, "eligible district" means all of
the following:
(a) A district with a districtwide cohort graduation rate for
high school pupils below 70%, as determined by the center for
educational performance and information, for its most recent
graduating class for which data are available.
(b) A public school academy if a majority of the pupils
enrolled in the public school academy reside in a district that
meets the criteria under subdivision (a).
Sec. 15. (1) If a district or intermediate district fails to
receive its proper apportionment, the department, upon satisfactory
proof that the district or intermediate district was entitled
justly, shall apportion the deficiency in the next apportionment.
Subject to subsections (2) and (3), if a district or intermediate
district has received more than its proper apportionment, the
department, upon satisfactory proof, shall deduct the excess in the
next apportionment. Notwithstanding any other provision in this
act, state aid overpayments to a district, other than overpayments
in payments for special education or special education
transportation, may be recovered from any payment made under this
act other than a special education or special education
transportation payment. State aid overpayments made in special
education or special education transportation payments may be
recovered from subsequent special education or special education
transportation payments.
(2) If the result of an audit conducted by or for the
department affects the current fiscal year membership, affected
payments shall be adjusted in the current fiscal year. A deduction
due to an adjustment made as a result of an audit conducted by or
for the department, or as a result of information obtained by the
department from the district, an intermediate district, the
department of treasury, or the office of auditor general, shall be
deducted from the district's apportionments when the adjustment is
finalized. At the request of the district and upon the district
presenting evidence satisfactory to the department of the hardship,
the department may grant up to an additional 4 years for the
adjustment if the district would otherwise experience a significant
hardship.
(3) If, because of the receipt of new or updated data, the
department determines during a fiscal year that the amount paid to
a district or intermediate district under this act for a prior
fiscal year was incorrect under the law in effect for that year,
the department may make the appropriate deduction or payment in the
district's or intermediate district's allocation for the fiscal
year in which the determination is made. The deduction or payment
shall be calculated according to the law in effect in the fiscal
year in which the improper amount was paid.
(4) Expenditures made by the department under this act that
are caused by the write-off of prior year accruals may be funded by
revenue from the write-off of prior year accruals.
(5) In addition to funds appropriated in section 11 for all
programs
and services, there is appropriated for 2008-2009 2009-
2010 for obligations in excess of applicable appropriations an
amount equal to the collection of overpayments, but not to exceed
amounts available from overpayments.
Sec. 18. (1) Except as provided in another section of this
act, each district or other entity shall apply the money received
by the district or entity under this act to salaries and other
compensation of teachers and other employees, tuition,
transportation, lighting, heating, ventilation, water service, the
purchase of textbooks which are designated by the board to be used
in the schools under the board's charge, other supplies, and any
other school operating expenditures defined in section 7. However,
not more than 20% of the total amount received by a district under
article 2 or intermediate district under article 8 may be
transferred by the board to either the capital projects fund or to
the debt retirement fund for debt service. The money shall not be
applied or taken for a purpose other than as provided in this
section. The department shall determine the reasonableness of
expenditures and may withhold from a recipient of funds under this
act the apportionment otherwise due upon a violation by the
recipient.
(2) Within 30 days after a board or intermediate board adopts
its annual operating budget for the following school fiscal year,
or after a board or intermediate board adopts a subsequent revision
to that budget, the district or intermediate district shall make
the budget and subsequent budget revisions available on its
website, or a district may make the information available on its
intermediate district's website, in a form and manner prescribed by
the department.
(3) For the purpose of determining the reasonableness of
expenditures and whether a violation of this act has occurred, the
department shall require that each district and intermediate
district have an audit of the district's or intermediate district's
financial and pupil accounting records conducted at least annually
at the expense of the district or intermediate district, as
applicable, by a certified public accountant or by the intermediate
district superintendent, as may be required by the department, or
in the case of a district of the first class by a certified public
accountant, the intermediate superintendent, or the auditor general
of the city. An intermediate district's annual financial audit
shall be accompanied by the intermediate district's pupil
accounting procedures report. A district's or intermediate
district's annual financial audit shall include an analysis of the
financial and pupil accounting data used as the basis for
distribution of state school aid. The pupil accounting records and
reports, audits, and management letters are subject to requirements
established in the auditing and accounting manuals approved and
published by the department. Except as otherwise provided in this
subsection, a district shall file the annual financial audit
reports with the intermediate district not later than 120 days
after the end of each school fiscal year and the intermediate
district shall forward the annual financial audit reports for its
constituent districts and for the intermediate district, and the
pupil accounting procedures report for the pupil membership count
day and supplemental count day, to the department not later than
November 15 of each year. The annual financial audit reports and
pupil accounting procedures reports shall be available to the
public in compliance with the freedom of information act, 1976 PA
442, MCL 15.231 to 15.246. Not later than December 31 of each year,
the department shall notify the state budget director and the
legislative appropriations subcommittees responsible for review of
the school aid budget of districts and intermediate districts that
have not filed an annual financial audit and pupil accounting
procedures report required under this section for the school year
ending in the immediately preceding fiscal year.
(4) By November 15 of each year, each district and
intermediate district shall submit to the center, in a manner
prescribed by the center, annual comprehensive financial data
consistent with accounting manuals and charts of accounts approved
and published by the department. For an intermediate district, the
report shall also contain the website address where the department
can access the report required under section 620 of the revised
school code, MCL 380.620. The department shall ensure that the
prescribed Michigan public school accounting manual chart of
accounts includes standard conventions to distinguish expenditures
by allowable fund function and object. The functions shall include
at minimum categories for instruction, pupil support, instructional
staff support, general administration, school administration,
business administration, transportation, facilities operation and
maintenance, facilities acquisition, and debt service; and shall
include object classifications of salary, benefits, including
categories for active employee health expenditures, purchased
services, supplies, capital outlay, and other. Districts shall
report the required level of detail consistent with the manual as
part of the comprehensive annual financial report. The department
shall make this information available online to districts and
intermediate districts, and shall include per-pupil amounts spent
on instruction and instructional support service functions, and
indicate how much of those costs were attributable to salaries.
Districts and intermediate districts shall include a link on their
websites to the website where the department posts this
information.
(5) By September 30 of each year, each district and
intermediate district shall file with the department the special
education actual cost report, known as "SE-4096", on a form and in
the manner prescribed by the department.
(6) By October 7 of each year, each district and intermediate
district shall file with the center the transportation expenditure
report, known as "SE-4094", on a form and in the manner prescribed
by the center.
(7) The department shall review its pupil accounting and pupil
auditing manuals at least annually and shall periodically update
those
manuals to reflect changes in this act. As part of its annual
review
process for 2007, not later than December 31, 2007, the
department
shall revise the pupil auditing manual to establish
standardized
procedures and processes for auditing pupil exit
statuses
and other pupil data used in calculating annual graduation
and
pupil dropout rates.
(8) If a district that is a public school academy purchases
property using money received under this act, the public school
academy shall retain ownership of the property unless the public
school academy sells the property at fair market value.
(9) If a district or intermediate district does not comply
with subsection (3), (4), (5), or (6), the department shall
withhold all state school aid due to the district or intermediate
district under this act, beginning with the next payment due to the
district or intermediate district, until the district or
intermediate district complies with subsections (3), (4), (5), and
(6). If the district or intermediate district does not comply with
subsections (3), (4), (5), and (6) by the end of the fiscal year,
the district or intermediate district forfeits the amount withheld.
Sec.
20. (1) For 2007-2008, the basic foundation allowance is
$8,433.00.
For 2008-2009 and for 2009-2010, the basic foundation
allowance is $8,489.00.
(2) The amount of each district's foundation allowance shall
be calculated as provided in this section, using a basic foundation
allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount
of a district's foundation allowance shall be calculated as
follows, using in all calculations the total amount of the
district's foundation allowance as calculated before any proration:
(a) For 2007-2008, for a district that had a foundation
allowance for 2006-2007, including any adjustment under subdivision
(f), that was at least equal to $7,108.00 but less than $8,385.00,
the district shall receive a foundation allowance in an amount
equal to the sum of the district's foundation allowance for 2006-
2007 plus the difference between $96.00 and [($48.00 minus $20.00)
times (the difference between the district's foundation allowance
for 2006-2007, including any adjustment under subdivision (f), and
$7,108.00)
divided by $1,325.00]. Beginning in For 2008-2009, for a
district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts, but less than the
basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance in
an amount equal to the sum of the district's foundation allowance
for the immediately preceding state fiscal year plus the difference
between twice the dollar amount of the adjustment from the
immediately preceding state fiscal year to the current state fiscal
year made in the basic foundation allowance and [(the dollar amount
of the adjustment from the immediately preceding state fiscal year
to the current state fiscal year made in the basic foundation
allowance minus $20.00) times (the difference between the
district's foundation allowance for the immediately preceding state
fiscal year and the sum of $7,108.00 plus the total dollar amount
of all adjustments made from 2006-2007 to the immediately preceding
state fiscal year in the lowest foundation allowance among all
districts) divided by the difference between the basic foundation
allowance for the current state fiscal year and the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts]. For 2009-2010,
for a district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the sum of
$7,108.00 plus the total dollar amount of all adjustments made from
2006-2007 to the immediately preceding state fiscal year in the
lowest foundation allowance among all districts, but less than the
basic foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance in
an amount equal to the district's foundation allowance for the
immediately preceding state fiscal year. However, the foundation
allowance for a district that had less than the basic foundation
allowance for the immediately preceding state fiscal year shall not
exceed the basic foundation allowance for the current state fiscal
year.
(b) Except as otherwise provided in this subsection, beginning
in 2008-2009, for a district that in the immediately preceding
state fiscal year had a foundation allowance in an amount at least
equal to the amount of the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the dollar amount of the adjustment from the
immediately preceding state fiscal year to the current state fiscal
year in the basic foundation allowance.
(c) For a district that in the 1994-95 state fiscal year had a
foundation allowance greater than $6,500.00, the district's
foundation allowance is an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the lesser of the increase in the basic foundation
allowance for the current state fiscal year, as compared to the
immediately preceding state fiscal year, or the product of the
district's foundation allowance for the immediately preceding state
fiscal year times the percentage increase in the United States
consumer price index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating
conference conducted under section 367b of the management and
budget act, 1984 PA 431, MCL 18.1367b.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(e) For a district that received a payment under section 22c
as that section was in effect for 2001-2002, the district's 2001-
2002 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2001-2002
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2001-2002 under section 22c as that section was in effect for 2001-
2002.
(f) For a district that received a payment under section 22c
as that section was in effect for 2006-2007, the district's 2006-
2007 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2006-2007
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2006-2007 under section 22c as that section was in effect for 2006-
2007.
(4) Except as otherwise provided in this subsection, the state
portion of a district's foundation allowance is an amount equal to
the district's foundation allowance or the basic foundation
allowance for the current state fiscal year, whichever is less,
minus the difference between the sum of the product of the taxable
value per membership pupil of all property in the district that is
nonexempt property times the district's certified mills and, for a
district with certified mills exceeding 12, the product of the
taxable value per membership pupil of property in the district that
is commercial personal property times the certified mills minus 12
mills and the quotient of the ad valorem property tax revenue of
the district captured under tax increment financing acts divided by
the district's membership excluding special education pupils. For a
district described in subsection (3)(c), the state portion of the
district's foundation allowance is an amount equal to $6,962.00
plus the difference between the district's foundation allowance for
the current state fiscal year and the district's foundation
allowance for 1998-99, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership
excluding special education pupils. For a district that has a
millage reduction required under section 31 of article IX of the
state constitution of 1963, the state portion of the district's
foundation allowance shall be calculated as if that reduction did
not occur.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. However, for a pupil enrolled in a district other
than the pupil's district of residence, if the foundation allowance
of the pupil's district of residence has been adjusted pursuant to
subsection (19), the allocation calculated under this section shall
not include the adjustment described in subsection (19). For a
pupil enrolled pursuant to section 105 or 105c in a district other
than the pupil's district of residence, the allocation calculated
under this section shall be based on the lesser of the foundation
allowance of the pupil's district of residence or the foundation
allowance of the educating district. For a pupil in membership in a
K-5, K-6, or K-8 district who is enrolled in another district in a
grade not offered by the pupil's district of residence, the
allocation calculated under this section shall be based on the
foundation allowance of the educating district if the educating
district's foundation allowance is greater than the foundation
allowance of the pupil's district of residence. The calculation
under this subsection shall take into account a district's per
pupil allocation under section 20j(2).
(6) For 2007-2008, subject to subsection (7) and section
22b(3) and except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a
public school academy or a university school, the allocation
calculated under this section is an amount per membership pupil
other than special education pupils in the public school academy or
university school equal to the sum of the local school operating
revenue per membership pupil other than special education pupils
for the district in which the public school academy or university
school is located and the state portion of that district's
foundation allowance, or $7,475.00, whichever is less. Beginning in
2008-2009, subject to subsection (7) and section 22b(3) and except
as otherwise provided in this subsection, for pupils in membership,
other than special education pupils, in a public school academy or
a university school, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy or university school equal to
the sum of the local school operating revenue per membership pupil
other than special education pupils for the district in which the
public school academy or university school is located and the state
portion of that district's foundation allowance, or the state
maximum public school academy allocation, whichever is less.
Notwithstanding section 101, for a public school academy that
begins operations after the pupil membership count day, the amount
per membership pupil calculated under this subsection shall be
adjusted by multiplying that amount per membership pupil by the
number of hours of pupil instruction provided by the public school
academy after it begins operations, as determined by the
department, divided by the minimum number of hours of pupil
instruction required under section 101(3). The result of this
calculation shall not exceed the amount per membership pupil
otherwise calculated under this subsection.
(7) If more than 25% of the pupils residing within a district
are in membership in 1 or more public school academies located in
the district, then the amount per membership pupil calculated under
this section for a public school academy located in the district
shall be reduced by an amount equal to the difference between the
sum of the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership
excluding special education pupils, in the school fiscal year
ending in the current state fiscal year, calculated as if the
resident pupils in membership in 1 or more public school academies
located in the district were in membership in the district. In
order to receive state school aid under this act, a district
described in this subsection shall pay to the authorizing body that
is the fiscal agent for a public school academy located in the
district for forwarding to the public school academy an amount
equal to that local school operating revenue per membership pupil
for each resident pupil in membership other than special education
pupils in the public school academy, as determined by the
department.
(8) If a district does not receive an amount calculated under
subsection (9); if the number of mills the district may levy on a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, and commercial
personal property under section 1211 of the revised school code,
MCL 380.1211, is 0.5 mills or less; and if the district elects not
to levy those mills, the district instead shall receive a separate
supplemental amount calculated under this subsection in an amount
equal to the amount the district would have received had it levied
those mills, as determined by the department of treasury. A
district shall not receive a separate supplemental amount
calculated under this subsection for a fiscal year unless in the
calendar year ending in the fiscal year the district levies the
district's certified mills on property that is nonexempt property.
(9) For a district that had combined state and local revenue
per membership pupil in the 1993-94 state fiscal year of more than
$6,500.00 and that had fewer than 350 pupils in membership, if the
district elects not to reduce the number of mills from which a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, and commercial
personal property are exempt and not to levy school operating taxes
on a principal residence, qualified agricultural property,
qualified forest property, industrial personal property, and
commercial personal property as provided in section 1211 of the
revised school code, MCL 380.1211, and not to levy school operating
taxes on all property as provided in section 1211(2) of the revised
school code, MCL 380.1211, there is calculated under this
subsection for 1994-95 and each succeeding fiscal year a separate
supplemental amount in an amount equal to the amount the district
would have received per membership pupil had it levied school
operating taxes on a principal residence, qualified agricultural
property, qualified forest property, industrial personal property,
and commercial personal property at the rate authorized for the
district under section 1211 of the revised school code, MCL
380.1211, and levied school operating taxes on all property at the
rate authorized for the district under section 1211(2) of the
revised school code, MCL 380.1211, as determined by the department
of treasury. If in the calendar year ending in the fiscal year a
district does not levy the district's certified mills on property
that is nonexempt property, the amount calculated under this
subsection will be reduced by the same percentage as the millage
actually levied compares to the district's certified mills.
(10) Subject to subsection (4), for a district that is formed
or reconfigured after June 1, 2002 by consolidation of 2 or more
districts or by annexation, the resulting district's foundation
allowance under this section beginning after the effective date of
the consolidation or annexation shall be the average of the
foundation allowances of each of the original or affected
districts, calculated as provided in this section, weighted as to
the percentage of pupils in total membership in the resulting
district who reside in the geographic area of each of the original
or affected districts. The calculation under this subsection shall
take into account a district's per pupil allocation under section
20j(2).
(11) Each fraction used in making calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(12) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(13) To assist the legislature in determining the basic
foundation allowance for the subsequent state fiscal year, each
revenue estimating conference conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by
dividing the sum of the estimated total state school aid fund
revenue for the subsequent state fiscal year plus the estimated
total state school aid fund revenue for the current state fiscal
year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money
transferred into that fund from the countercyclical budget and
economic stabilization fund under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated
total school aid fund revenue for the current state fiscal year
plus the estimated total state school aid fund revenue for the
immediately preceding state fiscal year, adjusted for any change in
the rate or base of a tax the proceeds of which are deposited in
that fund. If a consensus revenue factor is not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. However, for
2008-2009, the index shall be 1.00. If a consensus index is not
determined at the revenue estimating conference, the principals of
the revenue estimating conference shall report their estimates to
the house and senate subcommittees responsible for school aid
appropriations not later than 7 days after the conclusion of the
revenue conference.
(14) If the principals at the revenue estimating conference
reach a consensus on the index described in subsection (13)(c), the
lowest foundation allowance among all districts for the subsequent
state fiscal year shall be at least the amount of that consensus
index multiplied by the lowest foundation allowance among all
districts for the immediately preceding state fiscal year.
(15) If at the January revenue estimating conference it is
estimated that pupil membership, excluding intermediate district
membership, for the subsequent state fiscal year will be greater
than 101% of the pupil membership, excluding intermediate district
membership, for the current state fiscal year, then it is the
intent of the legislature that the executive budget proposal for
the school aid budget for the subsequent state fiscal year include
a general fund/general purpose allocation sufficient to support the
membership in excess of 101% of the current year pupil membership.
(16) For a district that had combined state and local revenue
per membership pupil in the 1993-94 state fiscal year of more than
$6,500.00, that had fewer than 7 pupils in membership in the 1993-
94 state fiscal year, that has at least 1 child educated in the
district in the current state fiscal year, and that levies the
number of mills of school operating taxes authorized for the
district under section 1211 of the revised school code, MCL
380.1211, a minimum amount of combined state and local revenue
shall be calculated for the district as provided under this
subsection. The minimum amount of combined state and local revenue
for 1999-2000 shall be $67,000.00 plus the district's additional
expenses to educate pupils in grades 9 to 12 educated in other
districts as determined and allowed by the department. The minimum
amount of combined state and local revenue under this subsection,
before adding the additional expenses, shall increase each fiscal
year by the same percentage increase as the percentage increase in
the basic foundation allowance from the immediately preceding
fiscal year to the current fiscal year. The state portion of the
minimum amount of combined state and local revenue under this
subsection shall be calculated by subtracting from the minimum
amount of combined state and local revenue under this subsection
the sum of the district's local school operating revenue and an
amount equal to the product of the sum of the state portion of the
district's foundation allowance plus the amount calculated under
section 20j times the district's membership. As used in this
subsection, "additional expenses" means the district's expenses for
tuition or fees, not to exceed the basic foundation allowance for
the current state fiscal year, plus a room and board stipend not to
exceed $10.00 per school day for each pupil in grades 9 to 12
educated in another district, as approved by the department.
(17) For a district in which 7.75 mills levied in 1992 for
school operating purposes in the 1992-93 school year were not
renewed in 1993 for school operating purposes in the 1993-94 school
year, the district's combined state and local revenue per
membership pupil shall be recalculated as if that millage reduction
did not occur and the district's foundation allowance shall be
calculated as if its 1994-95 foundation allowance had been
calculated using that recalculated 1993-94 combined state and local
revenue per membership pupil as a base. A district is not entitled
to any retroactive payments for fiscal years before 2000-2001 due
to this subsection.
(18) For a district in which an industrial facilities
exemption certificate that abated taxes on property with a state
equalized valuation greater than the total state equalized
valuation of the district at the time the certificate was issued or
$700,000,000.00, whichever is greater, was issued under 1974 PA
198, MCL 207.551 to 207.572, before the calculation of the
district's 1994-95 foundation allowance, the district's foundation
allowance for 2002-2003 is an amount equal to the sum of the
district's foundation allowance for 2002-2003, as otherwise
calculated under this section, plus $250.00.
(19) For a district that received a grant under former section
32e for 2001-2002, the district's foundation allowance for 2002-
2003 and each succeeding fiscal year shall be adjusted to be an
amount equal to the sum of the district's foundation allowance, as
otherwise calculated under this section, plus the quotient of 100%
of the amount of the grant award to the district for 2001-2002
under former section 32e divided by the number of pupils in the
district's membership for 2001-2002 who were residents of and
enrolled in the district. Except as otherwise provided in this
subsection, a district qualifying for a foundation allowance
adjustment under this subsection shall use the funds resulting from
this adjustment for at least 1 of grades K to 3 for purposes
allowable under former section 32e as in effect for 2001-2002, and
may also use these funds for an early intervening program described
in subsection (20). For an individual school or schools operated by
a district qualifying for a foundation allowance under this
subsection 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 may submit to the department an
application for flexibility in using the funds resulting from this
adjustment 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 reduce class size, but that may be different from the
purposes otherwise allowable under this subsection. The department
shall approve the application if the department determines that the
purposes identified in the plan are reasonably designed to reduce
class size. 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.
(20) An early intervening program that uses funds resulting
from the adjustment under subsection (19) shall meet either or both
of the following:
(a) Shall monitor individual pupil learning for pupils in
grades K to 3 and provide specific support or learning strategies
to pupils in grades K to 3 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) Shall provide early intervening strategies for pupils in
grades K to 3 using schoolwide systems of academic and behavioral
supports and shall be 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 schoolwide 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.
(21) For a district that levied 1.9 mills in 1993 to finance
an operating deficit, the district's foundation allowance shall be
calculated as if those mills were included as operating mills in
the calculation of the district's 1994-1995 foundation allowance. A
district is not entitled to any retroactive payments for fiscal
years before 2006-2007 due to this subsection. A district receiving
an adjustment under this subsection shall not receive more than
$800,000.00 for a fiscal year as a result of this adjustment.
(22) For a district that levied 2.23 mills in 1993 to finance
an operating deficit, the district's foundation allowance shall be
calculated as if those mills were included as operating mills in
the calculation of the district's 1994-1995 foundation allowance. A
district is not entitled to any retroactive payments for fiscal
years before 2006-2007 due to this subsection. A district receiving
an adjustment under this subsection shall not receive more than
$500,000.00 for a fiscal year as a result of this adjustment.
(23) For a district that levied 4.87 mills in 1993 to finance
an operating deficit, the district's foundation allowance shall be
calculated as if those mills were included as operating mills in
the calculation of the district's 1994-1995 foundation allowance. A
district is not entitled to any retroactive payments for fiscal
years before 2009-2010 due to this subsection. A district receiving
an adjustment under this subsection shall not receive more than
$250,000.00 for a fiscal year as a result of this adjustment.
(24) For a district that levied 4.91 mills in 1992 for school
operating purposes in the 1992-1993 school year that were not
renewed in 1993 for school operating purposes in the 1993-1994
school year, the district's foundation allowance shall be
calculated as if those mills were included as operating mills in
the calculation of the district's 1994-1995 foundation allowance. A
district is not entitled to any retroactive payments for fiscal
years before 2009-2010 due to this subsection. A district receiving
an adjustment under this subsection shall not receive more than
$150,000.00 for a fiscal year as a result of this adjustment.
(25) For a district that received a grant under former section
99k(4) for 2008-2009, the district's foundation allowance for 2009-
2010 and each succeeding fiscal year shall be adjusted to be an
amount equal to the sum of the district's foundation allowance, as
otherwise calculated under this section, plus the quotient of 100%
of the amount of the grant award to the district for 2008-2009
under former section 99k(4) divided by the number of pupils in the
district's membership for 2008-2009 who were residents of and
enrolled in the district.
(26) For a district that levied 1.8 mills in 1993 to finance
an operating deficit, the district's foundation allowance shall be
calculated as if those mills were included as operating mills in
the calculation of the district's 1994-1995 foundation allowance. A
district is not entitled to any retroactive payments for fiscal
years before 2009-2010 due to this subsection. A district receiving
an adjustment under this subsection shall not receive more than
$300,000.00 for a fiscal year as a result of this adjustment.
(27) (23)
Payments to districts, university
schools, or public
school academies shall not be made under this section. Rather, the
calculations under this section shall be used to determine the
amount of state payments under section 22b.
(28) (24)
If an amendment to section 2 of
article VIII of the
state constitution of 1963 allowing state aid to some or all
nonpublic schools is approved by the voters of this state, each
foundation allowance or per pupil payment calculation under this
section may be reduced.
(29) (25)
As used in this section:
(a) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(b) "Combined state and local revenue" means the aggregate of
the district's state school aid received by or paid on behalf of
the district under this section and the district's local school
operating revenue.
(c) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(e) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(f) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211.
(g) "Local school operating revenue per membership pupil"
means a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(h) "Maximum public school academy allocation", except as
otherwise provided in this subdivision, means the maximum per-pupil
allocation as calculated by adding the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year plus the difference between twice the dollar
amount of the adjustment from the immediately preceding state
fiscal year to the current state fiscal year made in the basic
foundation allowance and [(the dollar amount of the adjustment from
the immediately preceding state fiscal year to the current state
fiscal year made in the basic foundation allowance minus $20.00)
times (the difference between the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year and the sum of $7,108.00 plus the total dollar
amount of all adjustments made from 2006-2007 to the immediately
preceding state fiscal year in the lowest per-pupil allocation
among all public school academies) divided by the difference
between the basic foundation allowance for the current state fiscal
year and the sum of $7,108.00 plus the total dollar amount of all
adjustments made from 2006-2007 to the immediately preceding state
fiscal year in the lowest per-pupil allocation among all public
school academies]. For 2009-2010, maximum public school academy
allocation means $7,580.00.
(i) "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.
(j) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, or commercial
personal property.
(k) "Principal residence", "qualified agricultural property",
"qualified forest property", "industrial personal property", and
"commercial personal property" mean those terms as defined in
section 7dd of the general property tax act, 1893 PA 206, MCL
211.7dd, and section 1211 of the revised school code, MCL 380.1211.
(l) "School operating purposes" means the purposes included in
the operation costs of the district as prescribed in sections 7 and
18.
(m) "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.
(n) "Tax increment financing acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(o) "Taxable value per membership pupil" means taxable value,
as certified by the department of treasury, for the calendar year
ending in the current state fiscal year divided by the district's
membership excluding special education pupils for the school year
ending in the current state fiscal year.
Sec. 20d. In making the final determination required under
former section 20a of a district's combined state and local revenue
per membership pupil in 1993-94 and in making calculations under
section
20 for 2008-2009 2009-2010, the department and the
department of treasury shall comply with all of the following:
(a) For a district that had combined state and local revenue
per membership pupil in the 1994-95 state fiscal year of $6,500.00
or more and served as a fiscal agent for a state board designated
area vocational education center in the 1993-94 school year, total
state school aid received by or paid on behalf of the district
pursuant to this act in 1993-94 shall exclude payments made under
former section 146 and under section 147 on behalf of the
district's employees who provided direct services to the area
vocational education center. Not later than June 30, 1996, the
department shall make an adjustment under this subdivision to the
district's combined state and local revenue per membership pupil in
the 1994-95 state fiscal year and the department of treasury shall
make a final certification of the number of mills that may be
levied by the district under section 1211 of the revised school
code, MCL 380.1211, as a result of the adjustment under this
subdivision.
(b) If a district had an adjustment made to its 1993-94 total
state school aid that excluded payments made under former section
146 and under section 147 on behalf of the district's employees who
provided direct services for intermediate district center programs
operated by the district under article 5, if nonresident pupils
attending the center programs were included in the district's
membership for purposes of calculating the combined state and local
revenue per membership pupil for 1993-94, and if there is a signed
agreement by all constituent districts of the intermediate district
that an adjustment under this subdivision shall be made, the
foundation allowances for 1995-96 and 1996-97 of all districts that
had pupils attending the intermediate district center program
operated by the district that had the adjustment shall be
calculated as if their combined state and local revenue per
membership pupil for 1993-94 included resident pupils attending the
center program and excluded nonresident pupils attending the center
program.
Sec. 20j. (1) Foundation allowance supplemental payments for
2008-2009
2009-2010 to districts that in the 1994-95 state fiscal
year had a foundation allowance greater than $6,500.00 shall be
calculated under this section.
(2) The per pupil allocation to each district under this
section shall be the difference between the basic foundation
allowance for the 1998-99 state fiscal year and $7,204.00 less
$271.00 minus the dollar amount of the adjustment from the 1998-99
state fiscal year to 2007-2008 in the district's foundation
allowance.
(3) If a district's local revenue per pupil does not exceed
the sum of its foundation allowance under section 20 plus the per
pupil allocation under subsection (2), the total payment to the
district calculated under this section shall be the product of the
per pupil allocation under subsection (2) multiplied by the
district's membership excluding special education pupils. If a
district's local revenue per pupil exceeds the foundation allowance
under section 20 but does not exceed the sum of the foundation
allowance under section 20 plus the per pupil allocation under
subsection (2), the total payment to the district calculated under
this section shall be the product of the difference between the sum
of the foundation allowance under section 20 plus the per pupil
allocation under subsection (2) minus the local revenue per pupil
multiplied by the district's membership excluding special education
pupils. If a district's local revenue per pupil exceeds the sum of
the foundation allowance under section 20 plus the per pupil
allocation under subsection (2), there is no payment calculated
under this section for the district.
(4) Payments to districts shall not be made under this
section. Rather, the calculations under this section shall be made
and used to determine the amount of state payments under section
22b.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,951,000,000.00 for 2007-2008
and
an amount not to exceed $6,092,000,000.00
$5,998,400,000.00 for
2008-2009 and an amount not to exceed $5,854,500,000.00 for 2009-
2010 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 sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership. For
a district that has a millage reduction required under section 31
of article IX of the state constitution of 1963, the state portion
of the district's foundation allowance shall be calculated as if
that reduction did not occur.
(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection
shall be the sum of the amount calculated under subdivision (a)
plus the amount calculated under this subdivision. The amount
calculated under this subdivision shall be equal to the difference
between the district's 1994-95 foundation allowance minus $6,500.00
and the current year hold harmless school operating taxes per
pupil. If the result of the calculation under subdivision (a) is
negative, the negative amount shall be an offset against any state
payment calculated under this subdivision. If the result of a
calculation under this subdivision is negative, there shall not be
a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this
subdivision are as adjusted by ad valorem property tax revenue
captured under tax increment financing acts divided by the
district's membership.
(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) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(c) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(d) "Current year hold harmless school operating taxes per
pupil" means the per pupil revenue generated by multiplying a
district's 1994-95 hold harmless millage by the district's current
year taxable value per membership pupil.
(e) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead, qualified agricultural property, qualified forest
property, industrial personal property, and commercial personal
property could be reduced as provided in section 1211 of the
revised school code, MCL 380.1211, and the number of mills of
school operating taxes that could be levied on all property as
provided in section 1211(2) of the revised school code, MCL
380.1211, as certified by the department of treasury for the 1994
tax year.
(f) "Homestead" means that term as defined in section 1211 of
the revised school code, MCL 380.1211.
(g) "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.
(h) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, industrial personal property, or commercial
personal property.
(i) "Qualified agricultural property" means that term as
defined in section 1211 of the revised school code, MCL 380.1211.
(j) "Qualifying public school academy" means a public school
academy that was in operation in the 1994-95 school year and is in
operation in the current state fiscal year.
(k) "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.
(l) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(m) "Tax increment financing acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(n) "Taxable value per membership pupil" means each of the
following divided by the district's membership:
(i) For the number of mills by which the exemption from the
levy of school operating taxes on a homestead, qualified
agricultural property, qualified forest property, industrial
personal property, and commercial personal property may be reduced
as provided in section 1211 of the revised school code, MCL
380.1211, the taxable value of homestead, qualified agricultural
property, qualified forest property, industrial personal property,
and commercial personal 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 $3,683,275,000.00 for 2007-2008
and
an amount not to exceed $3,796,750,000.00
$3,802,000,000.00 for
2008-2009 and an amount not to exceed $3,766,650,000.00 for 2009-
2010 for discretionary nonmandated payments to districts under this
section. Of the money allocated for 2009-2010 under this section,
an amount not to exceed $3,546,575,725.00 is allocated from the
state school aid fund and the amount of $220,074,275.00 is
allocated from the federal funding awarded to this state under
title XIV of the American recovery and reinvestment act of 2009,
Public Law 111-5. 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.
(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) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources,
and other business function software that is compatible with that
of the intermediate district in which the district is located and
with other districts located within that intermediate district.
(5) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state 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.
(6) 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.
(7) 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 (6) 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).
(8) 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.
(9) 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.
(10) If a lawsuit challenging payments made to districts
related to costs reimbursed by federal title XIX medicaid funds is
filed against this state, then, for the purpose of addressing
potential liability under such a lawsuit, the state budget director
may place funds allocated under this section in escrow or allocate
money from the funds otherwise allocated under this section, up to
a maximum of 50% of the amount allocated in subsection (1). If
funds are placed in escrow under this subsection, those funds are a
work project appropriation and the funds are carried forward into
the following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of the litigation. The work project shall be completed upon
resolution of the litigation. In addition, this state reserves the
right to terminate future federal title XIX medicaid reimbursement
payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection,
"title XIX" means title XIX of the social security act, 42 USC 1396
to 1396v.
Sec. 22d. (1) From the appropriation in section 11, an amount
not
to exceed $2,025,000.00 is allocated for 2008-2009 2009-2010
for additional payments to small, geographically isolated districts
under this section.
(2) From the allocation under subsection (1), there is
allocated
for 2008-2009 2009-2010 an amount not to exceed
$750,000.00 for payments under this subsection to districts that
meet all of the following:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at
least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from
any other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible
district under subsection (2) shall be determined under a spending
plan developed as provided in this subsection and approved by the
superintendent of public instruction. The spending plan shall be
developed cooperatively by the intermediate superintendents of each
intermediate district in which an eligible district is located. The
intermediate superintendents shall review the financial situation
of each eligible district, determine the minimum essential
financial needs of each eligible district, and develop and agree on
a spending plan that distributes the available funding under
subsection (2) to the eligible districts based on those financial
needs. The intermediate superintendents shall submit the spending
plan to the superintendent of public instruction for approval. Upon
approval by the superintendent of public instruction, the amounts
specified for each eligible district under the spending plan are
allocated under subsection (2) and shall be paid to the eligible
districts in the same manner as payments under section 22b.
(4) Subject to subsection (6), from the allocation in
subsection
(1), there is allocated for 2008-2009 2009-2010 an
amount not to exceed $1,275,000.00 for payments under this
subsection to districts that meet all of the following:
(a) The district has 5.0 or fewer pupils per square mile as
determined by the department.
(b) The district has a total square mileage greater than 200.0
or is 1 of 2 districts that have consolidated transportation
services and have a combined total square mileage greater than
200.0.
(5) The funds allocated under subsection (4) shall be
allocated on an equal per pupil basis.
(6) A district receiving funds allocated under subsection (2)
is not eligible for funding allocated under subsection (4).
Sec. 22e. (1) Beginning in 2008-2009, an amount will be
allocated each fiscal year from the appropriation in section 11 for
additional payments under this section to districts that meet the
eligibility
requirements under subsection (2). For 2008-2009 2009-
2010, there is allocated for this purpose from the appropriation in
section 11 an amount not to exceed $1,300,000.00.
(2) To be eligible for a payment under this section, a
district must be determined by the department and the department of
treasury to meet all of the following:
(a) The district levies 1 of the following operating millage
amounts:
(i) All of the operating millage it is authorized to levy under
section 1211 of the revised school code, MCL 380.1211.
(ii) The amount of operating millage it is authorized to levy
after a voluntary reduction of its operating millage rate adopted
by the board of the district.
(iii) The amount of operating millage it is authorized to levy
after a millage reduction required under the limitation of section
31 of article IX of the state constitution of 1963, if a ballot
question asking for approval to levy millage in excess of the
limitation has been rejected in the district.
(b) The district receives a reduced amount of local school
operating revenue under section 1211 of the revised school code,
MCL 380.1211, as a result of the exemptions of industrial personal
property and commercial personal property that were enacted in 2007
PA 37.
(c) The district does not receive any state portion of its
foundation allowance, as calculated under section 20(4).
(3) The amount of the additional funding to each eligible
district under this section is the sum of the following and shall
be paid to the eligible districts in the same manner as payments
under section 22b:
(a) The product of the taxable value of the district's
industrial personal property for the calendar year ending in the
fiscal year multiplied by the total number of mills the district
levies on nonexempt property under section 1211 of the revised
school code, MCL 380.1211, for that calendar year.
(b) The product of the taxable value of the district's
commercial personal property for the calendar year ending in the
fiscal year multiplied by the lesser of 12 mills or the total
number of mills the district levies on nonexempt property under
section 1211 of the revised school code, MCL 380.1211, for that
calendar year.
Sec. 22f. From the appropriation in section 11, an amount not
to exceed $3,000,000.00 is allocated for 2009-2010 for payments to
eligible districts in an amount equal to $50.00 per pupil for
transition costs associated with district consolidation. To be
eligible for payment under this section, a district shall have been
formed after April 1, 2009 and before July 1, 2010 by consolidation
of 2 or more districts. If the funds allocated under this section
are insufficient, the department shall award grants giving priority
to districts that were formed from at least 1 district with an
operating deficit at the end of the immediately preceding fiscal
year.
Sec. 24. (1) From the appropriation in section 11, there is
allocated
for 2008-2009 2009-2010 an amount not to exceed
$8,000,000.00 for payments to the educating district or
intermediate district for educating pupils assigned by a court or
the department of human services to reside in or to attend a
juvenile detention facility or child caring institution licensed by
the department of human services and approved by the department to
provide an on-grounds education program. The amount of the payment
under this section to a district or intermediate district shall be
calculated as prescribed under subsection (2).
(2) The total amount allocated under this section shall be
allocated by paying to the educating district or intermediate
district an amount equal to the lesser of the district's or
intermediate district's added cost or the department's approved per
pupil allocation for the district or intermediate district. For the
purposes of this subsection:
(a) "Added cost" means 100% of the added cost each fiscal year
for educating all pupils assigned by a court or the department of
human services to reside in or to attend a juvenile detention
facility or child caring institution licensed by the department of
human services or the department of energy, labor, and economic
growth and approved by the department to provide an on-grounds
education program. Added cost shall be computed by deducting all
other revenue received under this act for pupils described in this
section from total costs, as approved by the department, in whole
or in part, for educating those pupils in the on-grounds education
program or in a program approved by the department that is located
on property adjacent to a juvenile detention facility or child
caring institution. Costs reimbursed by federal funds are not
included.
(b) "Department's approved per pupil allocation" for a
district or intermediate district shall be determined by dividing
the total amount allocated under this section for a fiscal year by
the full-time equated membership total for all pupils approved by
the department to be funded under this section for that fiscal year
for the district or intermediate district.
(3) A district or intermediate district educating pupils
described in this section at a residential child caring institution
may operate, and receive funding under this section for, a
department-approved on-grounds educational program for those pupils
that is longer than 181 days, but not longer than 233 days, if the
child caring institution was licensed as a child caring institution
and offered in 1991-92 an on-grounds educational program that was
longer than 181 days but not longer than 233 days and that was
operated by a district or intermediate district.
(4) Special education pupils funded under section 53a shall
not be funded under this section.
Sec. 24a. From the appropriation in section 11, there is
allocated
an amount not to exceed $2,828,500.00 for 2008-2009
$2,523,200.00 for 2009-2010 for payments to intermediate districts
for pupils who are placed in juvenile justice service facilities
operated by the department of human services. Each intermediate
district shall receive an amount equal to the state share of those
costs that are clearly and directly attributable to the educational
programs for pupils placed in facilities described in this section
that are located within the intermediate district's boundaries. The
intermediate districts receiving payments under this section shall
cooperate with the department of human services to ensure that all
funding allocated under this section is utilized by the
intermediate district and department of human services for
educational programs for pupils described in this section. Pupils
described in this section are not eligible to be funded under
section 24. However, a program responsibility or other fiscal
responsibility associated with these pupils shall not be
transferred from the department of human services to a district or
intermediate district unless the district or intermediate district
consents to the transfer.
Sec. 24c. From the appropriation in section 11, there is
allocated
an amount not to exceed $1,284,600.00 for 2008-2009
$1,295,100.00 for 2009-2010 for payments to districts for pupils
who are enrolled in a nationally administered community-based
education and youth mentoring program, known as the youth challenge
program, that is located within the district and is administered by
the department of military and veterans affairs. A district
receiving payments under this section shall contract with the
department of military and veterans affairs to ensure that all
funding allocated under this section is utilized by the district
and the department of military and veterans affairs for the youth
challenge program.
Sec. 26a. From the state school aid fund appropriation in
section 11, there is allocated an amount not to exceed
$41,400,000.00
$26,300,000.00 for 2008-2009, and from the general
fund appropriation in section 11, there is allocated an amount not
to
exceed $16,100,000.00 $9,200,000.00
for 2008-2009 to reimburse
districts, intermediate districts, and the state school aid fund
pursuant to section 12 of the Michigan renaissance zone act, 1996
PA 376, MCL 125.2692, for taxes levied in 2008. From the state
school aid fund appropriation in section 11, there is allocated an
amount not to exceed $29,400,000.00 for 2009-2010, and from the
general fund appropriation in section 11, there is allocated an
amount not to exceed $10,100,000.00 for 2009-2010 to reimburse
districts, intermediate districts, and the state school aid fund
pursuant to section 12 of the Michigan renaissance zone act, 1996
PA 376, MCL 125.2692, for taxes levied in 2009. The allocations
shall be made not later than 60 days after the department of
treasury certifies to the department and to the state budget
director that the department of treasury has received all necessary
information to properly determine the amounts due to each eligible
recipient.
Sec. 26b. (1) From the appropriation in section 11, there is
allocated
for 2008-2009 2009-2010 an amount not to exceed
$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. 29. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $20,000,000.00 each fiscal year
for
2007-2008 and for 2008-2009 for
2009-2010 for additional
payments to eligible districts for declining enrollment assistance.
(2) A district is eligible for a payment under this section if
all of the following apply:
(a) The district's pupil membership for the current fiscal
year is less than the district's pupil membership for the
immediately preceding fiscal year and the district's pupil
membership for the immediately preceding fiscal year is less than
the district's pupil membership for the previously preceding fiscal
year as calculated under section 6 for that fiscal year.
(b) The district's average pupil membership is greater than
the district's pupil membership for the current fiscal year as
calculated under section 6.
(c) The district is not eligible to receive funding under
section 6(4)(y) or 22d(2).
(3) Payments to each eligible district shall be equal to the
difference between the district's average pupil membership and the
district's pupil membership as calculated under section 6 for the
current fiscal year multiplied by the district's foundation
allowance as calculated under section 20. If the total amount of
the payments calculated under this subsection exceeds the
allocation for this section, the payment to each district shall be
prorated on an equal percentage basis.
(4) For the purposes of this section, "average pupil
membership" means the average of the district's membership for the
3-fiscal-year period ending with the current fiscal year,
calculated by adding the district's actual membership for each of
those 3 fiscal years, as otherwise calculated under section 6, and
dividing the sum of those 3 membership figures by 3.
Sec. 31a. (1) From the state school aid fund money
appropriated
in section 11, there is allocated for 2008-2009 2009-
2010
an amount not to exceed $320,350,000.00
$318,881,250.00 for
payments to eligible districts and eligible public school academies
under this section. Subject to subsection (14), the amount of the
additional allowance under this section, other than funding under
subsection (6) or (7), 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), 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 the basic foundation allowance under
section 20 for the current state fiscal year.
(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
the basic foundation allowance under section 20 for the current
state fiscal year, 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). In
addition, a district that is a school district of the first class
or a district or public school academy in which at least 50% of the
pupils in membership met the income eligibility criteria for free
breakfast, lunch, or milk in the immediately preceding state fiscal
year, as determined and reported as described in subsection (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 (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 pay for costs associated
with the operation of the school breakfast program.
(6) From the funds allocated under subsection (1), there is
allocated
for 2008-2009 2009-2010 an amount not to exceed
$4,743,000.00 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 (14) for that fiscal year.
(7) From the funds allocated under subsection (1), there is
allocated
for 2008-2009 2009-2010 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. Notwithstanding section 17b, payments to eligible entities
under this subsection shall be paid on a schedule determined by the
department.
(8) 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) 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) Subject to subsections (5), (6), (7), (12), and (13), 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), (12), and (13), 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) 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) 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) 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) 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) 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) 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% 8.63%
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 the basic
foundation allowance under section 20 for the current state fiscal
year.
(17) A district that does not meet the eligibility requirement
under subsection (2)(a) is eligible for funding under this section
if at least 75% of the pupils in membership in the district met the
income eligibility criteria for free breakfast, lunch, or milk in
the immediately preceding state fiscal year, as determined and
reported as described in subsection (1), the district receives an
adjustment under section 20(19), and the district does not receive
House Bill No. 4447 (H-1) as amended April 2, 2009
any state portion of its foundation allowance as calculated under
section 20. A district 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 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 under section 20, not to exceed the basic
foundation allowance under section 20 for the current state fiscal
year.
(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. 31d. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $22,495,100.00 for 2008-2009
2009-2010 for the purpose of making payments to districts and other
eligible entities under this section.
(2) The amounts allocated from state sources under this
section shall be used to pay the amount necessary to reimburse
districts for 6.0127% of the necessary costs of the state mandated
portion of the school lunch programs provided by those districts.
The amount due to each district under this section shall be
computed by the department using the methods of calculation adopted
by the Michigan supreme court in the consolidated cases known as
Durant v State of Michigan, Michigan supreme court docket no.
104458-104492.
(3) The payments made under this section include all state
payments made to districts so that each district receives at least
6.0127% of the necessary costs of operating the state mandated
portion of the school lunch program in a fiscal year.
(4) The payments made under this section to districts and
other eligible entities that are not required under section 1272a
of the revised school code, MCL 380.1272a, to provide a school
lunch program shall be in an amount not to exceed $10.00 per
eligible pupil plus 5 cents for each free lunch and 2 cents for
each reduced price lunch provided, as determined by the department.
(5) From the federal funds appropriated in section 11, there
is
allocated for 2008-2009 2009-2010
all available federal funding,
estimated at $330,000,000.00, for the national school lunch program
and all available federal funding, estimated at $2,506,000.00, for
the emergency food assistance program.
(6) Notwithstanding section 17b, payments to eligible entities
other than districts under this section shall be paid on a schedule
determined by the department.
Sec. 31f. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $9,625,000.00 for 2008-2009 2009-
2010 for the purpose of making payments to districts to reimburse
for the cost of providing breakfast.
(2) The funds allocated under this section for school
breakfast programs shall be made available to all eligible
applicant districts that meet all of the following criteria:
(a) The district participates in the federal school breakfast
program and meets all standards as prescribed by 7 CFR parts 220
and 245.
(b) Each breakfast eligible for payment meets the federal
standards described in subdivision (a).
(3) The payment for a district under this section is at a per
meal rate equal to the lesser of the district's actual cost or 100%
of the statewide average cost of a breakfast served, as determined
and approved by the department, less federal reimbursement,
participant payments, and other state reimbursement. The statewide
average cost shall be determined by the department using costs as
reported in a manner approved by the department for the preceding
school year.
(4) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
Sec. 32a. (1) It is the intent of the legislature that the
department and the early childhood investment corporation study the
feasibility of consolidating statewide early childhood funding into
a single great start strategic fund and distributing the funding
through a centralized process. The purpose of the great start
strategic fund and the centralized process would be to avoid
duplication of services and to allow a streamlined grant request
process to be established by the department in conjunction with the
early childhood investment corporation.
(2) The great start strategic fund is created as a restricted
fund within the state treasury. From the money appropriated in
section 11, there is allocated for 2009-2010 to the great start
strategic fund an amount not to exceed $100.00.
Sec. 32b. (1) From the funds appropriated under section 11,
there
is allocated an amount not to exceed $6,750,000.00 for 2008-
2009
2009-2010 for competitive grants to intermediate districts for
the creation and continuance of great start communities or other
community purposes as identified by the early childhood investment
corporation. These dollars may not be expended until both of the
following conditions have been met:
(a) The early childhood investment corporation has identified
matching dollars of at least an amount equal to the amount of the
matching dollars for 2006-2007.
(b) The executive committee of the corporation includes, in
addition to the members of the executive committee provided for by
the interlocal agreement creating the corporation under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to
124.512, 4 members appointed by the governor as provided in this
subdivision. Not later than 30 days after the convening of a
regular legislative session in an odd-numbered year, the speaker of
the house of representatives, the house minority leader, the senate
majority leader, and the senate minority leader shall each submit
to the governor a list of 3 or more individuals as nominees for
appointment as members of the executive committee of the
corporation. The corporation shall notify each of the legislative
leaders of this requirement to submit a list of nominees not later
than 30 days before the date that the list is due. Within 60 days
of the submission to the governor of nominees by each of the 4
legislative leaders, the governor shall appoint 1 member of the
executive committee from each list of nominees submitted by each of
the 4 legislative leaders. A member appointed under this
subdivision shall serve a term as a member of the executive
committee through the next regular legislative session unless he or
she resigns or is otherwise unable to serve. When a vacancy occurs
other than by expiration of a term, the corporation shall notify
the legislative leader who originally nominated the member of the
vacancy and that legislative leader shall submit to the governor a
list of 3 or more individuals as nominees for appointment to fill
the vacancy within 30 days after being notified by the corporation
of the vacancy. The governor shall make an appointment to fill that
vacancy in the same manner as the original appointment not later
than 60 days after the date the vacancy occurs.
(2) The early childhood investment corporation shall award
grants to eligible intermediate districts in an amount to be
determined by the corporation.
(3) In order to receive funding, each intermediate district
applicant
shall agree to convene a local great start collaboratives
collaborative to address the availability of the 6 components of a
great start system in its communities: physical health, social-
emotional health, family supports, basic needs, economic stability
and safety, and parenting education and early education and care,
to ensure that every child in the community is ready for
kindergarten. Specifically, each grant will fund the following:
(a) The completion of a community needs assessment and
strategic plan for the creation of a comprehensive system of early
childhood services and supports, accessible to all children from
birth to kindergarten and their families.
(b) Identification of local resources and services for
children with disabilities, developmental delays, or special needs
and their families.
(c) Coordination and expansion of infrastructure to support
high-quality early childhood and childcare programs.
(d) Evaluation of local programs.
(4) Not later than December 1 of each fiscal year, for the
grants awarded under this section for the immediately preceding
fiscal year, the department shall provide to the house and senate
appropriations subcommittees on state school aid, the state budget
director, and the house and senate fiscal agencies a report
detailing the amount of each grant awarded under this section, the
grant recipients, the activities funded by each grant under this
section, and an analysis of each grant recipient's success in
addressing the development of a comprehensive system of early
childhood services and supports.
(5) An intermediate district receiving funds under this
section may carry over any unexpended funds received under this
section into the next fiscal year and may expend those unused funds
in the next fiscal year. A recipient of a grant shall return any
unexpended grant funds to the department in the manner prescribed
by the department not later than September 30 of the next fiscal
year after the fiscal year in which the funds are received.
(6) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
Sec. 32c. (1) From the general fund appropriation in section
11, there is allocated an amount not to exceed $2,125,000.00 for
2008-2009
2009-2010 to the department for grants for community-
based collaborative prevention services designed to foster positive
parenting skills; improve parent/child interaction, especially for
children 0-3 years of age; promote access to needed community
services; increase local capacity to serve families at risk;
improve school readiness; and support healthy family environments
that discourage alcohol, tobacco, and other drug use. The
allocation under this section is to fund secondary prevention
programs as defined by the children's trust fund for the prevention
of child abuse and neglect.
(2) The funds allocated under subsection (1) shall be
distributed through a joint request for proposals process
established by the department in conjunction with the children's
trust fund and the interagency director's workgroup. Projects
funded with grants awarded under this section shall meet all of the
following:
(a) Be secondary prevention initiatives and voluntary to
consumers. This appropriation is not intended to serve the needs of
children for whom and families in which neglect or abuse has been
substantiated.
(b) Demonstrate that the planned services are part of a
community's integrated comprehensive family support strategy
endorsed by the community collaborative and, where there is a great
start collaborative, demonstrate that the planned services are part
of the community's great start strategic plan.
(c) Provide a 25% local match, of which not more than 10% may
be in-kind services, unless this requirement is waived by the
interagency director's workgroup.
(3) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
(4) Not later than January 30 of the next fiscal year, the
department shall prepare and submit to the governor and the
legislature an annual report of outcomes achieved by the providers
of the community-based collaborative prevention services funded
under this section for a fiscal year.
Sec.
32d. (1) From For
2009-2010, from the state school aid
fund
money appropriated under appropriation
in section 11, there is
allocated
an amount not to exceed $88,100,000.00 for 2008-2009 to
eligible districts for great start readiness programs and from the
general fund appropriation in section 11, there is allocated an
amount not to exceed $15,150,000.00 for competitive great start
readiness
or preschool and parenting program grants. to enable
eligible
districts, as determined under section 37, to develop or
expand,
in conjunction with whatever federal funds may be available
to
the district and its community, including, but not limited to,
federal
funds under title I of the elementary and secondary
education
act of 1965, 20 USC 6301 to 6578, chapter 1 of title I of
the
Hawkins-Stafford elementary and secondary school improvement
amendments
of 1988, Public Law 100-297, and the head start act, 42
USC
9831 to 9852, Funds allocated
under this section shall be used
to provide part-day or full-day comprehensive free compensatory
programs designed to do 1 or both of the following:
(a) Improve the readiness and subsequent achievement of
educationally disadvantaged children as defined by the department
who will be at least 4, but less than 5 years of age, as of
December 1 of the school year in which the programs are offered,
and
who show evidence of 2 or more risk factors as defined in by
the
state board. report entitled "children at risk"
that was
adopted
by the state board on April 5, 1988. To the extent
allowable
under federal law, a district shall not use funds
received
under this section to supplant any federal funds received
by
the district or its community. For the purposes of this section,
"supplant"
means to serve children eligible for a federally funded
existing
preschool program that has capacity to serve those
children.
(b) Provide preschool and parenting education programs similar
to those under former section 32b as in effect for 2001-2002.
Beginning in 2007-2008, funds spent by a district for programs
described in this subdivision shall not exceed the lesser of the
amount spent by the district under this subdivision for 2006-2007
or the amount spent under this subdivision in any subsequent fiscal
year.
(2)
A comprehensive free compensatory program funded under
this
section shall include an age-appropriate educational
curriculum,
as described in the early childhood standards of
quality
for prekindergarten children adopted by the state board,
that
prepares children for success in school, including language,
early
literacy, and early mathematics. In addition, the
comprehensive
program shall include nutritional services, health
and
developmental screening as described in the early childhood
standards
of quality for prekindergarten for participating
children,
a plan for parent and legal guardian involvement, and
provision
of referral services for families eligible for community
social
services.
(2) To be eligible to receive payments under this section, a
district shall comply with this section and section 39. To receive
competitive grant payments under this section, an eligible grant
recipient shall comply with this section and section 32l.
(3) In addition to the allocation under subsection (1), from
the general fund money appropriated under section 11, there is
allocated
an amount not to exceed $279,100.00 $300,000.00 for 2008-
2009
2009-2010 for a competitive grant to continue a longitudinal
evaluation
of children who have participated in the great start
readiness program
programs.
(4) To be eligible for funding under this section, a program
shall prepare children for success in school through comprehensive
part-day or full-day programs that contain all of the following
program components, as determined by the department:
(a) Participation in a collaborative recruitment and
enrollment process. At a minimum, the process shall include all
other funded preschool programs that may serve children in the same
geographic area, to assure that each child is enrolled in the
program most appropriate to his or her needs and to maximize the
use of federal, state, and local funds.
(b) An age-appropriate educational curriculum that is in
compliance with the early childhood standards of quality for
prekindergarten children adopted by the state board.
(c) Nutritional services for all program participants.
(d) Health screening services for all program participants.
(e) Referral services for families of program participants to
community social service agencies, as appropriate.
(f) Active and continuous involvement of the parents or
guardians of the program participants.
(g) A plan to conduct and report annual great start readiness
program evaluations and continuous improvement plans using criteria
approved by the department.
(h) Participation in a multidistrict, multiagency, school
readiness advisory committee that provides for the involvement of
classroom teachers, parents or guardians of program participants,
and community, volunteer, and social service agencies and
organizations, as appropriate. The advisory committee shall review
the program components listed in this subsection and make
recommendations for changes to the great start readiness program
for which it is an advisory committee.
(i) For great start readiness programs operated by a district
or consortium of districts, provide for the ongoing articulation of
the early childhood, kindergarten, and first grade programs offered
by the district or districts.
(5) An application for funding under this section shall
provide for the following, in a form and manner determined by the
department:
(a) Ensure compliance with all program components described in
subsection (4).
(b) Ensure that more than 50% of the children participating in
an eligible great start readiness program are children who live
with families with a household income that is equal to or less than
300% of the federal poverty level.
(c) Ensure that the applicant only employs qualified personnel
for this program, as follows:
(i) Teachers possessing proper training. For programs the
district manages itself, a valid teaching certificate and an early
childhood (ZA) endorsement are required. This provision does not
apply to a district that subcontracts with an eligible child
development program. In that situation, a teacher must have a valid
Michigan teaching certificate with an early childhood (ZA)
endorsement, a valid Michigan teaching certificate with a child
development associate credential, or a bachelor's degree in child
development with specialization in preschool teaching. However,
both of the following apply to this subparagraph:
(A) If a district demonstrates to the department that it is
unable to fully comply with this subparagraph after making
reasonable efforts to comply, teachers who have significant but
incomplete training in early childhood education or child
development may be employed by the district if the district
provides to the department, and the department approves, a plan for
each teacher to come into compliance with the standards in this
subparagraph. A teacher's compliance plan must be completed within
4 years of the date of employment. Progress toward completion of
the compliance plan shall consist of at least 2 courses per
calendar year.
(B) For a subcontracted program, the department shall consider
a teacher with 90 credit hours and at least 4 years' teaching
experience in a qualified preschool program to meet the
requirements under this subparagraph.
(ii) Paraprofessionals possessing proper training in early
childhood development, including an associate's degree in early
childhood education or child development or the equivalent, or a
child development associate (CDA) credential, or the equivalent as
approved by the state board. However, if a district demonstrates to
the department that it is unable to fully comply with this
subparagraph after making reasonable efforts to comply, the
district may employ paraprofessionals who have completed at least 1
course in early childhood education or child development if the
district provides to the department, and the department approves, a
plan for each paraprofessional to come into compliance with the
standards in this subparagraph. A paraprofessional's compliance
plan must be completed within 2 years of the date of employment.
Progress toward completion of the compliance plan shall consist of
at least 2 courses or 60 clock hours of training per calendar year.
(d) Include a program budget that contains only those costs
that are not reimbursed or reimbursable by federal funding, that
are clearly and directly attributable to the great start readiness
program, and that would not be incurred if the program were not
being offered. The program budget shall indicate the extent to
which these funds will supplement other federal, state, local, or
private funds. Funds received under this section shall not be used
to supplant any federal funds by the applicant to serve children
eligible for a federally funded existing preschool program that has
the capacity to serve those children.
(6) For a grant recipient that enrolls pupils in a full-day
program funded under this section, each child enrolled in the full-
day program shall be counted as 2 children served by the program
for purposes of determining the number of children to be served and
for determining the amount of the grant award. A grant award shall
not be increased solely on the basis of providing a full-day
program. As used in this subsection, "full-day program" means a
program that operates for at least the same length of day as a
district's first grade program for a minimum of 4 days per week, 30
weeks per year. A classroom that offers a full-day program must
enroll all children for the full day to be considered a full-day
program.
(7) (4)
A district or consortium of districts receiving a
grant under this section may contract with for-profit or nonprofit
preschool
center providers that meet all provisions of the early
childhood
standards of quality for prekindergarten children adopted
by
the state board for the provision of the comprehensive
compensatory
program requirements of
subsection (4) and retain for
administrative services an amount equal to not more than 5% of the
grant amount. A district or consortium of districts may expend not
more than 10% of the total grant amount for administration of the
program.
(8) Any public or private for-profit or nonprofit legal entity
or agency may apply for a competitive grant under this section.
However, a district or intermediate district may not apply for a
competitive grant under this section unless the district,
intermediate district, or consortium of districts or intermediate
districts is acting as a local grantee for the federal head start
program operating under the head start act, 42 USC 9831 to 9852.
(9) (5)
A district receiving A
recipient of funds under this
section shall report to the department on the midyear report the
number of children participating in the program who meet the income
or
other eligibility criteria specified under section 37(3)(g)
prescribed by the department and the total number of children
participating in the program. For children participating in the
program who meet the income or other eligibility criteria specified
under
section 37(3)(g), districts subsection
(5)(b), a recipient
shall also report whether or not a parent is available to provide
care based on employment status. For the purposes of this
subsection, "employment status" shall be defined by the department
of human services in a manner consistent with maximizing the amount
of spending that may be claimed for temporary assistance for needy
families maintenance of effort purposes.
Sec. 32j. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $5,000,000.00 for 2008-2009 2009-
2010 for great parents, great start grants to intermediate
districts to provide programs for parents with young children. The
purpose of these programs is to encourage early mathematics and
reading literacy, improve school readiness, reduce the need for
special education services, and foster the maintenance of stable
families by encouraging positive parenting skills.
(2) To qualify for funding under this section, a program shall
provide services to all families with children age 5 or younger
residing within the intermediate district who choose to
participate, including at least all of the following services:
(a) Providing parents with information on child development
from birth to age 5.
(b) Providing parents with methods to enhance parent-child
interaction that promote social and emotional development and age-
appropriate language, mathematics, and early reading skills for
young children; including, but not limited to, encouraging parents
to read to their preschool children at least 1/2 hour per day.
(c) Providing parents with examples of learning opportunities
to promote intellectual, physical, and social growth of young
children, including the acquisition of age-appropriate language,
mathematics, and early reading skills.
(d) Promoting access to needed community services through a
community-school-home partnership.
(3) To receive a grant under this section, an intermediate
district shall submit a plan to the department not later than
October
15, 2008 2009 in the form and manner prescribed by the
department. The plan shall do all of the following in a manner
prescribed by the department:
(a) Provide a plan for the delivery of the program components
described in subsection (2) that targets resources based on family
need and provides for educators trained in child development to
help parents understand their role in their child's developmental
process, thereby promoting school readiness and mitigating the need
for special education services.
(b) Demonstrate an adequate collaboration of local entities
involved in providing programs and services for preschool children
and their parents and, where there is a great start collaborative,
demonstrate that the planned services are part of the community's
great start strategic plan.
(c) Provide a projected budget for the program to be funded.
The intermediate district shall provide at least a 20% local match
from local public or private resources for the funds received under
this section. Not more than 1/2 of this matching requirement, up to
a total of 10% of the total project budget, may be satisfied
through in-kind services provided by participating providers of
programs or services. In addition, not more than 10% of the grant
may be used for program administration.
(4) Each intermediate district receiving a grant under this
section shall agree to include a data collection system approved by
the department. The data collection system shall provide a report
by October 15 of each year on the number of children in families
with income below 200% of the federal poverty level that received
services under this program and the total number of children who
received services under this program.
(5) The department or superintendent, as applicable, shall do
all of the following:
(a) The superintendent shall approve or disapprove the plans
and notify the intermediate district of that decision not later
than
November 15, 2008 2009. The amount allocated to each
intermediate district shall be at least an amount equal to 100% of
the
intermediate district's 2007-2008 2008-2009 payment under this
section.
(b) The department shall ensure that all programs funded under
this section utilize the most current validated research-based
methods and curriculum for providing the program components
described in subsection (2).
(c) The department shall submit a report to the state budget
director and the senate and house fiscal agencies summarizing the
data collection reports described in subsection (4) by December 1
of each year.
(6) An intermediate district receiving funds under this
section shall use the funds only for the program funded under this
section. An intermediate district receiving funds under this
section may carry over any unexpended funds received under this
section into the next fiscal year and may expend those unused funds
in the next fiscal year. A recipient of a grant shall return any
unexpended grant funds to the department in the manner prescribed
by the department not later than September 30 of the next fiscal
year after the fiscal year in which the funds are received.
Sec.
32l. (1) From the general fund money appropriated in
section
11, there is allocated for 2008-2009 an amount not to
exceed
$15,150,000.00 for competitive great start readiness program
grants
for the purposes of preparing children for success in
school,
through comprehensive part-day or full-day programs that
include
language, early literacy, early mathematics, nutritional
services,
and health and developmental screening, as described in
the
early childhood standards of quality for prekindergarten for
participating
children; a plan for parent and legal guardian
involvement;
and provision of referral services for families
eligible
for community social services. These grants shall be made
available
through a competitive application process as follows:
(a)
Any public or private nonprofit legal entity or agency may
apply
for a grant under this section. However, a district or
intermediate
district may not apply for a grant under this section
unless
the district or intermediate district is acting as a local
grantee
for the federal head start program operating under the head
start
act, 42 USC 9831 to 9852.
(b)
An applicant shall submit an application in the form and
manner
prescribed by the department.
(1) (c)
The department shall establish a
diverse interagency
committee to review the applications for competitive grants under
section 32d. The committee shall be composed of representatives of
the department, appropriate community, volunteer, and social
service agencies and organizations, and parents.
(2) (d)
The superintendent shall award the competitive grants
under section 32d to applicants that are in compliance with that
section and shall give priority for awarding the competitive grants
based
upon the following criteria:
(i) Compliance with the state board-approved early
childhood
standards
of quality for prekindergarten.
(ii) Active and continuous involvement of the parents
or
guardians
of the children participating in the program.
(iii) Employment of teachers possessing proper training,
including
a valid Michigan teaching certificate with an early
childhood
(ZA) endorsement, a valid Michigan teaching certificate
with
a child development associate credential (CDA), or the
equivalent
from another state, or a bachelor's degree in child
development
with a specialization in preschool teaching. However,
both
of the following apply to this subparagraph:
(A)
If an applicant demonstrates to the department that it is
unable
to fully comply with this subparagraph after making
reasonable
efforts to comply, the superintendent may still give
priority
to the applicant if the applicant will employ teachers who
have
significant but incomplete training in early childhood
education
or child development if the applicant provides to the
department,
and the department approves, a plan for each teacher to
come
into compliance with the standards in this subparagraph. A
teacher's
compliance plan must be completed within 4 years of the
date
of employment. Progress toward completion of the compliance
plan
shall consist of at least 2 courses per calendar year.
(B)
For a subcontracted program, the department shall consider
a
teacher with 90 credit hours and at least 4 years' teaching
experience
in a qualified preschool program to meet the
requirements
under this subparagraph.
(iv) Employment of paraprofessionals possessing proper
training
in
early childhood development, including an associate's degree in
early
childhood education or child development or the equivalent,
or
a child development associate (CDA) credential, or the
equivalent,
as approved by the state board. If an applicant
demonstrates
to the department that it is unable to fully comply
with
this subparagraph, after making reasonable efforts to comply,
the
superintendent of public instruction may still give priority to
an
applicant if the applicant will employ paraprofessionals who
have
completed at least 1 course in early childhood education or
child
development if the applicant provides to the department, and
the
department approves, a plan for each paraprofessional to come
into
compliance with the standards in this subparagraph. A
paraprofessional's
compliance plan must be completed within 2 years
of
the date of employment. Progress toward completion of the
compliance
plan shall consist of at least 2 courses or 60 clock
hours
of training per calendar year.
(v) Evidence of collaboration with the community of
child
development
programs, including, but not limited to, great start
readiness
and head start providers, including documentation of the
total
number of children in the community who would meet the
criteria
established in subparagraph (vii),
and who are being served
by
other providers, and the number of children who will remain
unserved
by other community early childhood programs if this
program
is funded.
(vi) The extent to which these funds will supplement
other
federal,
state, local, or private funds.
(vii) The extent to which these funds will be targeted
to
children
who will be at least 4, but less than 5, years of age as
of
December 1 of the year in which the programs are offered and who
show
evidence of 2 or more risk factors as defined in the state
board
report entitled "children at risk" that was adopted by the
state
board on April 5, 1988.
(viii) The program offers or contracts to programs that offer or
contract with another nonprofit or for-profit early childhood
program to provide supplementary day care and thereby offers full-
day programs as part of its early childhood development program.
(ix) The application contains a plan approved by the
department
to
conduct and report annual school readiness program evaluations
and
continuous improvement plans using criteria approved by the
department.
At a minimum, the evaluations shall include a self-
assessment
of program quality and assessment of the gains in
educational
readiness and progress of the children participating in
the
program.
(e)
An application shall demonstrate that the program has
established
or has joined a multidistrict, multiagency school
readiness
advisory committee that is involved in the planning and
evaluation
of the program and that provides for the involvement of
parents
and appropriate community, volunteer, and social service
agencies
and organizations. The advisory committee shall include at
least
1 parent or guardian of a program participant for every 18
children
enrolled in the program, with a minimum of 2 parent or
guardian
representatives. The advisory committee shall do all of
the
following:
(i) Review the mechanisms and criteria used to
determine
referrals
for participation in the great start readiness program.
(ii) Review the health screening program for all
participants.
(iii) Review the nutritional services provided to all
participants.
(iv) Review the mechanisms in place for the referral of
families
to community social service agencies, as appropriate.
(v) Review the collaboration with and the involvement
of
appropriate
community, volunteer, and social service agencies and
organizations
in addressing all aspects of education disadvantage.
(vi) Review, evaluate, and make recommendations for
changes in
the
school readiness program.
(vii) Review the agency's participation in a
collaborative
recruitment
and enrollment process with, at a minimum, all other
funded
preschool programs that may serve children in the same
geographic
area, including school district part-day programs
described
under section 32d and head start programs, to assure that
each
child is enrolled in the program most appropriate to his or
her
needs and to maximize the use of federal, state, and local
funds.
The collaborative recruitment and enrollment process should
be
established to reflect the geographic service areas of the
collaborative
partners. An effective process includes opportunities
for
families to meet with and learn about each program for which
their
child is eligible. A child who is income-eligible for head
start
must be referred to head start. If, after referral to head
start,
a family chooses to enroll a head-start-eligible child in
the
great start readiness program, a waiver indicating that the
family
has been informed of the child's eligibility to attend head
start
must be completed by the family in a form and manner
determined
by the department and submitted to the great start
readiness
program before the child may be enrolled in the great
start
readiness program. The great start readiness program shall
retain
the waiver in the child's enrollment file.
(2)
To be eligible for a grant under this section, the agency
must
demonstrate participation in a collaborative recruitment and
enrollment
process with all other funded preschool programs serving
children
in the same geographic area to assure that each child is
enrolled
in the program most appropriate to his or her needs.
(3)
To be eligible for a grant under this section, a program
shall
demonstrate that more than 50% of the children participating
in
the program live with families with a household income that is
less
than or equal to 300% of the federal poverty level.
(3) (4)
The superintendent may award competitive grants under
this
section 32d at
whatever level the superintendent determines
appropriate.
However, the amount of a competitive
grant under this
that section, when combined with other sources of state revenue for
this program, shall not exceed $3,400.00 per participating child or
the cost of the program, whichever is less.
(5)
For a grant recipient that enrolls pupils in a full-day
program
funded under this section, each child enrolled in the full-
day
program shall be counted as 2 children served by the program
for
purposes of determining the number of children to be served and
for
determining the amount of the grant award. A grant award shall
not
be increased solely on the basis of providing a full-day
program.
As used in this subsection, "full-day program" means a
program
that operates for at least the same length of day as a
district's
first grade program for a minimum of 4 days per week, 30
weeks
per year. A classroom that offers a full-day program must
enroll
all children for the full day to be considered a full-day
program.
(4) (6)
Except as otherwise provided in
this subsection, an
applicant that received a new grant under this section for 2007-
2008 shall also receive priority for funding under this section for
2008-2009 and competitive grant funding under section 32d for 2009-
2010. However, after 3 fiscal years of continuous funding, an
applicant is required to compete openly with new programs and other
programs completing their third year. All grant awards under this
section are contingent on the availability of funds and documented
evidence of grantee compliance with early childhood standards of
quality for prekindergarten, as approved by the state board, and
with all operational, fiscal, administrative, and other program
requirements.
(5) (7)
Notwithstanding section 17b, competitive grant
payments
to eligible entities under this section 32d shall be paid
on a schedule and in a manner determined by the department.
Sec. 32n. (1) From the funds appropriated in section 11, there
is allocated an amount not to exceed $0.00 for a statewide before-
or after-school program for children and youth. Before-school
programs are limited to school-aged children. This allocation will
be distributed through grants to counties based upon demonstrated
need. A single county shall not receive any more than 20% of the
total allocation. The department shall give priority for
distribution of this funding to programs that have secured
additional governmental and nongovernmental matching funds.
(2) The department shall share the administrative duties of
operating this program with the department of human services,
department
of community health, department of history, arts, and
libraries,
and department of energy, labor, and economic
growth.
(3) Funding priority in subsection (1) shall be reserved for
programs that use a curriculum focused upon improving academic
performance and healthy behavior, including abstinence from abuse
of alcohol and illegal drugs.
Sec. 39. (1) A district receiving funds under section 32d
shall submit a preapplication, in a form and manner prescribed by
the department, by a date specified by the department in the
immediately preceding state fiscal year. The preapplication shall
include a comprehensive needs assessment and community
collaboration plan, which is endorsed by the local great start
collaborative and is part of the community's great start strategic
plan that includes, but is not limited to, great start readiness
program and head start providers, and shall identify all of the
following:
(a) The estimated total number of children in the community
who meet the criteria of section 32d and how that calculation was
made.
(b) The estimated number of children in the community who meet
the criteria of section 32d and are being served by other early
childhood development programs operating in the community, and how
that calculation was made.
(c) The number of children the district will be able to serve
who meet the criteria of section 32d including a verification of
physical facility and staff resources capacity.
(d) The estimated number of children who meet the criteria of
section 32d who will remain unserved after the district and
community early childhood programs have met their funded
enrollments. The school district shall maintain a waiting list of
identified unserved eligible children who would be served when
openings are available.
(2) A district receiving funds under section 32d shall also
submit a final application for approval, in a form and manner
prescribed by the department, by a date specified by the
department, that details how the district complies with the program
components established by the department pursuant to section 32d.
(3) The number of prekindergarten children construed to be in
need of special readiness assistance under section 32d shall be
calculated for each district in the following manner: 1/2 of the
percentage of the district's pupils in grades 1 to 5 who are
eligible for free lunch, as determined using the district's pupil
membership count as of the pupil membership count day in the school
year prior to the fiscal year for which the calculation is made,
under the Richard B. Russell national school lunch act, 42 USC 1751
to 1769i, shall be multiplied by the average kindergarten
enrollment of the district on the pupil membership count day of the
2 immediately preceding fiscal years.
(4)
(1) Beginning in 2008-2009, the initial allocation for
each fiscal year to each eligible district under section 32d shall
be
determined by multiplying the number of children determined in
section
38 by the formula under
subsection (3) or the number of
children the district indicates it will be able to serve under
section
37(2)(c) subsection (1)(c), whichever is less, by $3,400.00
and shall be distributed among districts in decreasing order of
concentration
of eligible children as determined by section 38 the
formula under subsection (3). If the number of children a district
indicates
it will be able to serve under section 37(2)(c)
subsection (1)(c) includes children able to be served in a full-day
program, then the number able to be served in a full-day program
shall be doubled for the purposes of making this calculation of the
lesser
of the number of children determined in section 38 by the
formula under subsection (3) and the number of children the
district
indicates it will be able to serve under section 37(2)(c)
subsection (1)(c) and determining the amount of the initial
allocation to the district under section 32d. A district may
contract with a head start agency to serve children enrolled in
head start with a full-day program by blending head start funds
with a part-day great start readiness program allocation. All head
start and great start readiness program policies and regulations
apply to the blended program.
(5) (2)
If funds appropriated for eligible districts in
section 32d remain after the initial allocation under subsection
(1)
(4), the allocation under this subsection shall be
distributed
to each eligible district under section 32d in decreasing order of
concentration
of eligible children as determined by section 38 the
formula under subsection (3). The allocation shall be determined by
multiplying the number of children each eligible district served in
the immediately preceding fiscal year or the number of children the
district
indicates it will be able to serve under section 37(2)(c)
subsection (1)(c), whichever is less, minus the number of children
for
which the district received funding in subsection (1) (4) by
$3,400.00.
(6) (3)
If funds appropriated for eligible districts in
section
32d remain after the allocations under subsections (1) and
(2)
(4) and (5), remaining funds shall be distributed to each
eligible district under section 32d in decreasing order of
concentration
of eligible children as determined by section 38 the
formula under subsection (3). If the number of children the
district
indicates it will be able to serve under section 37(2)(c)
subsection (1)(c) exceeds the number of children for which funds
have
been received under subsections (1) and (2) (4) and (5), the
allocation under this subsection shall be determined by multiplying
the number of children the district indicates it will be able to
serve
under section 37(2)(c) subsection
(1)(c) less the number of
children
for which funds have been received under subsections (1)
and
(2) (4) and (5) by $3,400.00 until the funds allocated for
eligible districts in section 32d are distributed.
(7) (4)
If a district is participating in a
program under
section 32d for the first year, the maximum allocation under this
section is 32 multiplied by $3,400.00.
(5)
A district that received funds under this section in at
least
1 of the 2 immediately preceding fiscal years shall receive
priority
in funding over other eligible districts. However, funding
beyond
3 state fiscal years is contingent upon the availability of
funds
and documented evidence satisfactory to the department of
compliance
with all operational, fiscal, administrative, and other
program
requirements.
(8) (6)
A district that offers
supplementary day care funded
by funds other than those received under this section and therefore
offers full-day programs as part of its early childhood development
program shall receive priority in the allocation of funds under
this
section 32d over
other eligible districts. other than those
districts
funded under subsection (5).
(9) (7)
For any district with 315 or more
eligible pupils, the
number of eligible pupils shall be 65% of the number calculated
under
section 38 using the formula
under subsection (3). However,
none of these districts may have less than 315 pupils for purposes
of calculating the tentative allocation for eligible districts
under section 32d.
(10) (8)
If, taking into account the total
amount to be
allocated to the district as calculated under this section, a
district determines that it is able to include additional eligible
children in the great start readiness program without additional
funds
under this section 32d, the district may include additional
eligible children but shall not receive additional funding under
this
section 32d for
those children.
(9)
For a district that enrolls pupils in a full-day program
under
section 32d, each child enrolled in the full-day program
shall
be counted as 2 children served by the program for purposes
of
determining the number of children to be served and for
determining
the allocation under section 32d. A district’s
allocation
shall not be increased solely on the basis of providing
a
full-day program.
(10)
As used in this section, "part-day program" means a
program
that operates at least 4 days per week, 30 weeks per year,
with
at least 300 hours of teacher-child contact, and "full-day
program"
means a program that operates for at least the same length
of
day as the district's first grade program for a minimum of 4
days
per week, 30 weeks per year. A classroom that offers a full-
day
program must enroll all children for the full day to be
considered
a full-day program.
(11) A consortium of 2 or more districts shall be eligible for
an allocation under section 32d if the districts designate a
district or intermediate district to serve as the fiscal agent for
the consortium's allocation. A consortium shall submit a single
application for the total number of children to be served. The
consortium may decide, with approval of all consortium members, to
serve numbers of children based on the allocation to each district
or based on the allocation to the entire consortium, allowing
children residing in any district in the consortium to be served by
the consortium at any location.
Sec. 39a. (1) From the federal funds appropriated in section
11,
there is allocated for 2008-2009 2009-2010 to districts,
intermediate districts, and other eligible entities all available
federal funding, estimated at $752,987,500.00, for the federal
programs under the no child left behind act of 2001, Public Law
107-110. These funds are allocated as follows:
(a) An amount estimated at $8,033,600.00 to provide students
with drug- and violence-prevention programs and to implement
strategies to improve school safety, funded from DED-OESE, drug-
free schools and communities funds.
(b) An amount estimated at $7,461,800.00 for the purpose of
improving teaching and learning through a more effective use of
technology, funded from DED-OESE, educational technology state
grant funds.
(c) An amount estimated at $109,411,900.00 for the purpose of
preparing, training, and recruiting high-quality teachers and class
size reduction, funded from DED-OESE, improving teacher quality
funds.
(d) An amount estimated at $10,322,300.00 for programs to
teach English to limited English proficient (LEP) children, funded
from DED-OESE, language acquisition state grant funds.
(e) An amount estimated at $8,550,000.00 for the Michigan
charter school subgrant program, funded from DED-OESE, charter
school funds.
(f) An amount estimated at $898,300.00 for rural and low
income schools, funded from DED-OESE, rural and low income school
funds.
(g) An amount estimated at $1,000.00 to help schools develop
and implement comprehensive school reform programs, funded from
DED-OESE, title I and title X, comprehensive school reform funds.
(h) An amount estimated at $517,479,800.00 to provide
supplemental programs to enable educationally disadvantaged
children to meet challenging academic standards, funded from DED-
OESE, title I, disadvantaged children funds.
(i) An amount estimated at $2,152,700.00 for the purpose of
providing unified family literacy programs, funded from DED-OESE,
title I, even start funds.
(j) An amount estimated at $7,797,700.00 for the purpose of
identifying and serving migrant children, funded from DED-OESE,
title I, migrant education funds.
(k) An amount estimated at $24,733,200.00 to promote high-
quality school reading instruction for grades K-3, funded from DED-
OESE, title I, reading first state grant funds.
(l) An amount estimated at $2,849,000.00 for the purpose of
implementing innovative strategies for improving student
achievement, funded from DED-OESE, title VI, innovative strategies
funds.
(m) An amount estimated at $35,710,100.00 for the purpose of
providing high-quality extended learning opportunities, after
school and during the summer, for children in low-performing
schools, funded from DED-OESE, twenty-first century community
learning center funds. Of these funds, $50,000.00 may be used to
support the Michigan after-school partnership. All of the following
apply to the Michigan after-school partnership:
(i) The department shall collaborate with the department of
human services to extend the duration of the Michigan after-school
initiative, to be renamed the Michigan after-school partnership and
oversee its efforts to implement the policy recommendations and
strategic next steps identified in the Michigan after-school
initiative's report of December 15, 2003.
(ii) Funds shall be used to leverage other private and public
funding to engage the public and private sectors in building and
sustaining high-quality out-of-school-time programs and resources.
The co-chairs, representing the department and the department of
human services, shall name a fiduciary agent and may authorize the
fiduciary to expend funds and hire people to accomplish the work of
the Michigan after-school partnership.
(iii) Participation in the Michigan after-school partnership
shall be expanded beyond the membership of the initial Michigan
after-school initiative to increase the representation of parents,
youth, foundations, employers, and others with experience in
education, child care, after-school and youth development services,
and crime and violence prevention, and to include representation
from the department of community health. Each year, on or before
December 31, the Michigan after-school partnership shall report its
progress in reaching the recommendations set forth in the Michigan
after-school initiative's report to the legislature and the
governor.
(n) An amount estimated at $17,586,100.00 to help support
local school improvement efforts, funded from DED-OESE, title I,
local school improvement grants.
(2) From the federal funds appropriated in section 11, there
is
allocated for 2008-2009 2009-2010
to districts, intermediate
districts, and other eligible entities all available federal
funding, estimated at $32,559,700.00, for the following programs
that are funded by federal grants:
(a) An amount estimated at $600,000.00 for acquired
immunodeficiency syndrome education grants, funded from HHS-center
for disease control, AIDS funding.
(b) An amount estimated at $1,814,100.00 to provide services
to homeless children and youth, funded from DED-OVAE, homeless
children and youth funds.
(c) An amount estimated at $200,000.00 for refugee children
school impact grants, funded from HHS-ACF, refugee children school
impact funds.
(d) An amount estimated at $1,445,600.00 for serve America
grants, funded from the corporation for national and community
service funds.
(e) An amount estimated at $28,500,000.00 for providing career
and technical education services to pupils, funded from DED-OVAE,
basic grants to states.
(3) To the extent allowed under federal law, the funds
allocated under subsection (1)(h), (i), (k), and (n) may be used
for 1 or more reading improvement programs that meet at least 1 of
the following:
(a) A research-based, validated, structured reading program
that aligns learning resources to state standards and includes
continuous assessment of pupils and individualized education plans
for pupils.
(b) A mentoring program that is a research-based, validated
program or a statewide 1-to-1 mentoring program and is designed to
enhance the independence and life quality of pupils who are
mentally impaired by providing opportunities for mentoring and
integrated employment.
(c) A cognitive development program that is a research-based,
validated educational service program focused on assessing and
building essential cognitive and perceptual learning abilities to
strengthen pupil concentration and learning.
(d) A structured mentoring-tutorial reading program for pupils
in preschool to grade 4 that is a research-based, validated program
that develops individualized educational plans based on each
pupil's age, assessed needs, reading level, interests, and learning
style.
(4) All federal funds allocated under this section shall be
distributed in accordance with federal law and with flexibility
provisions outlined in Public Law 107-116, and in the education
flexibility partnership act of 1999, Public Law 106-25.
Notwithstanding section 17b, payments of federal funds to
districts, intermediate districts, and other eligible entities
under this section shall be paid on a schedule determined by the
department.
(5) As used in this section:
(a) "DED" means the United States department of education.
(b) "DED-OESE" means the DED office of elementary and
secondary education.
(c) "DED-OVAE" means the DED office of vocational and adult
education.
(d) "HHS" means the United States department of health and
human services.
(e) "HHS-ACF" means the HHS administration for children and
families.
Sec. 41. From the appropriation in section 11, there is
allocated
an amount not to exceed $2,800,000.00 for 2008-2009 2009-
2010 to applicant districts and intermediate districts offering
programs of instruction for pupils of limited English-speaking
ability under section 1153 of the revised school code, MCL
380.1153. Reimbursement shall be on a per pupil basis and shall be
based on the number of pupils of limited English-speaking ability
in membership on the pupil membership count day. Funds allocated
under this section shall be used solely for instruction in
speaking, reading, writing, or comprehension of English. A pupil
shall not be counted under this section or instructed in a program
under this section for more than 3 years.
Sec. 51a. (1) From the appropriation in section 11, there is
allocated
for 2008-2009 an amount not to exceed $1,023,783,000.00
$1,018,533,000.00 and for 2009-2010 an amount not to exceed
$1,065,483,000.00 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
300.206 and 300.208. 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 2008-2009 and for 2009-2010 the
amount
necessary, estimated at $224,800,000.00 $227,700,000.00 for
2008-2009 and estimated at $240,800,000.00 for 2009-2010, 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 the basic foundation
allowance under section 20 for the current fiscal year, 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 the
basic foundation allowance under section 20 for the current fiscal
year, 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 2008-2009 and for 2009-2010 the
amount
necessary, estimated at $1,600,000.00 $1,200,000.00 for
2008-2009 and estimated at $900,000.00 for 2009-2010, 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 2008-2009 and
for 2009-2010 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 2008-2009 and for 2009-2010 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) 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 2007-
2008
2008-2009 that the amounts allocated for 2007-2008 2008-2009
under subsections (2), (3), (6), (8), and (12) and sections 53a,
54,
and 56 will exceed expenditures for 2007-2008 2008-2009 under
subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and
56,
then for 2007-2008 2008-2009
only, for a district or
intermediate
district whose reimbursement for 2007-2008 2008-2009
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.
(d) Reimbursement for ancillary and other related services, as
defined by R 340.1701c of the Michigan administrative code, shall
not be provided when those services are covered by and available
through private group health insurance carriers or federal
reimbursed program sources unless the department and district or
intermediate district agree otherwise and that agreement is
approved by the state budget director. Expenses, other than the
incidental expense of filing, shall not be borne by the parent. In
addition, the filing of claims shall not delay the education of a
pupil. A district or intermediate district shall be responsible for
payment of a deductible amount and for an advance payment required
until the time a claim is paid.
(e) Beginning with calculations for 2004-2005, if an
intermediate district purchases a special education pupil
transportation service from a constituent district that was
previously purchased from a private entity; if the purchase from
the constituent district is at a lower cost, adjusted for changes