SB-0149, As Passed Senate, May 3, 2017
SUBSTITUTE FOR
SENATE BILL NO. 149
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 3, 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11r, 11s,
15, 18, 18c, 20, 20d, 20f, 20m, 21, 22a, 22b, 22d, 22g, 24, 24a,
24c, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 32d, 32p,
32q, 35, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 55, 56,
61a, 61b, 61c, 62, 64b, 65, 67, 74, 81, 94, 94a, 98, 99h, 99s, 99t,
102d, 104, 104c, 104d, 107, 147, 147a, 147c, 152a, 152b, and 166b
(MCL 388.1603, 388.1604, 388.1606, 388.1608b, 388.1611, 388.1611a,
388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1611s, 388.1615,
388.1618, 388.1618c, 388.1620, 388.1620d, 388.1620f, 388.1620m,
388.1621, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1624,
388.1624a, 388.1624c, 388.1625f, 388.1625g, 388.1626a, 388.1626b,
388.1626c, 388.1631a, 388.1631b, 388.1631d, 388.1631f, 388.1631j,
388.1632d, 388.1632p, 388.1632q, 388.1635, 388.1635a, 388.1639,
388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a,
388.1654, 388.1654b, 388.1655, 388.1656, 388.1661a, 388.1661b,
388.1661c, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674,
388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h, 388.1699s,
388.1699t, 388.1702d, 388.1704, 388.1704c, 388.1704d, 388.1707,
388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1752b, and
388.1766b), sections 3, 4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18,
20d, 20f, 22a, 22b, 22d, 22g, 24, 24a, 24c, 25f, 25g, 26a, 26b,
26c, 31a, 31d, 31f, 32d, 32p, 35, 35a, 39, 39a, 41, 51c, 51d, 53a,
54, 55, 56, 61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 99s, 102d, 104,
104d, 107, 147, 147a, 147c, 152a, and 166b as amended and sections
11s, 20m, 21, 31b, 31j, 32q, 54b, and 152b as added by 2016 PA 249,
section 8b as amended by 2015 PA 85, section 18c as amended by 2012
PA 201, sections 20, 61a, 61c, 98, 99h, 99t, and 104c as amended by
2016 PA 313, and section 51a as amended by 2016 PA 534, and by
adding sections 21h, 21j, 22m, 99c, 99k, 99u, and 160; and to
repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3. (1) "Achievement authority" means the education
achievement
authority, the public body corporate and special
authority
initially created under section 5 of article III and
section
28 of article VII of the state constitution of 1963 and the
urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512,
by an interlocal agreement effective August 11, 2011,
between
the school district of the city of Detroit and the board of
regents
of Eastern Michigan University, a state public university.
(2)
"Achievement school" means a public school within the
education
achievement system operated, managed, authorized,
established,
or overseen by the achievement authority.
(1) (3)
"Average daily
attendance", for the purposes of
complying with federal law, means 92% of the pupils counted in
membership on the pupil membership count day, as defined in section
6(7).
(2) (4)
"Board" means the
governing body of a district or
public school academy.
(3) (5)
"Center" means the center
for educational performance
and information created in section 94a.
(4) (6)
"Community district" means
a school district organized
under part 5b of the revised school code.
(5) (7)
"Cooperative education
program" means a written
voluntary agreement between and among districts to provide certain
educational programs for pupils in certain groups of districts. The
written agreement shall be approved by all affected districts at
least annually and shall specify the educational programs to be
provided and the estimated number of pupils from each district who
will participate in the educational programs.
(6) (8)
"Department", except in
section 107, means the
department of education.
(7) (9)
"District" means a local
school district established
under the revised school code or, except in sections 6(4), 6(6),
13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school
academy.
Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,
105,
105c, and 166b, district also includes the education
achievement
system. Except in section 20,
district also includes a
community district.
(8) (10)
"District of residence",
except as otherwise provided
in this subsection, means the district in which a pupil's custodial
parent or parents or legal guardian resides. For a pupil described
in section 24b, the pupil's district of residence is the district
in which the pupil enrolls under that section. For a pupil
described in section 6(4)(d), the pupil's district of residence
shall be considered to be the district or intermediate district in
which the pupil is counted in membership under that section. For a
pupil under court jurisdiction who is placed outside the district
in which the pupil's custodial parent or parents or legal guardian
resides, the pupil's district of residence shall be considered to
be the educating district or educating intermediate district.
(9) (11)
"District superintendent"
means the superintendent of
a
district , or
the chief administrator of a public
school academy.
,
or the chancellor of the achievement authority.
Sec.
4. (1) "Education achievement system" means the
achievement
authority and all achievement schools.
(1) (2)
"Elementary pupil" means
a pupil in membership in
grades K to 8 in a district not maintaining classes above the
eighth grade or in grades K to 6 in a district maintaining classes
above the eighth grade. For the purposes of calculating universal
service fund (e-rate) discounts, "elementary pupil" includes
children enrolled in a preschool program operated by a district in
its facilities.
(2) (3)
"Extended school year"
means an educational program
conducted by a district in which pupils must be enrolled but not
necessarily in attendance on the pupil membership count day in an
extended year program. The mandatory clock hours shall be completed
by each pupil not more than 365 calendar days after the pupil's
first day of classes for the school year prescribed. The department
shall prescribe pupil, personnel, and other reporting requirements
for the educational program.
(3) (4)
"Fiscal year" means the state
fiscal year that
commences October 1 and continues through September 30.
(4) (5)
"High school equivalency
certificate" means a
certificate granted for the successful completion of a high school
equivalency test.
(5) (6)
"High school equivalency
test" means the G.E.D. test
developed by the GED Testing Service, the Test Assessing Secondary
Completion (TASC) developed by CTS/McGraw-Hill, the HISET test
developed by the Education Testing Service (ETS), or another
comparable test approved by the department of talent and economic
development.
(6) (7)
"High school equivalency test
preparation program"
means a program that has high school level courses in English
language arts, social studies, science, and mathematics and that
prepares an individual to successfully complete a high school
equivalency test.
(7) (8)
"High school pupil" means
a pupil in membership in
grades 7 to 12, except in a district not maintaining grades above
the eighth grade.
Sec. 6. (1) "Center program" means a program operated by a
district or by an intermediate district for special education
pupils from several districts in programs for pupils with autism
spectrum disorder, pupils with severe cognitive impairment, pupils
with moderate cognitive impairment, pupils with severe multiple
impairments, pupils with hearing impairment, pupils with visual
impairment, and pupils with physical impairment or other health
impairment. Programs for pupils with emotional impairment housed in
buildings that do not serve regular education pupils also qualify.
Unless otherwise approved by the department, a center program
either shall serve all constituent districts within an intermediate
district or shall serve several districts with less than 50% of the
pupils residing in the operating district. In addition, special
education center program pupils placed part-time in noncenter
programs to comply with the least restrictive environment
provisions of section 612 of part B of the individuals with
disabilities education act, 20 USC 1412, may be considered center
program pupils for pupil accounting purposes for the time scheduled
in either a center program or a noncenter program.
(2) "District and high school graduation rate" means the
annual completion and pupil dropout rate that is calculated by the
center pursuant to nationally recognized standards.
(3) "District and high school graduation report" means a
report of the number of pupils, excluding adult education
participants, in the district for the immediately preceding school
year, adjusted for those pupils who have transferred into or out of
the district or high school, who leave high school with a diploma
or other credential of equal status.
(4) "Membership", except as otherwise provided in this
article,
means for a district, a public school academy, the
education
achievement system, or an
intermediate district the sum
of the product of .90 times the number of full-time equated pupils
in grades K to 12 actually enrolled and in regular daily attendance
on the pupil membership count day for the current school year, plus
the product of .10 times the final audited count from the
supplemental count day for the immediately preceding school year. A
district's, public school academy's, or intermediate district's
membership shall be adjusted as provided under section 25e for
pupils who enroll after the pupil membership count day in a strict
discipline academy operating under sections 1311b to 1311m of the
revised school code, MCL 380.1311b to 380.1311m. However, for a
district
that is a community district, in its first year of
operation,
"membership" means the
sum of the product of .90 times
the number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance in the community district
on the pupil membership count day for the current school year, plus
the product of .10 times the sum of the final audited count from
the supplemental count day of pupils in grades K to 12 actually
enrolled
and in regular daily attendance in a qualifying school
district
as defined in section 5 of the revised school code, MCL
380.5,
the community district for
the immediately preceding school
year plus the final audited count from the supplemental count day
of pupils in grades K to 12 actually enrolled and in regular daily
attendance in the education achievement system for the immediately
preceding school year. All pupil counts used in this subsection are
as determined by the department and calculated by adding the number
of pupils registered for attendance plus pupils received by
transfer and minus pupils lost as defined by rules promulgated by
the superintendent, and as corrected by a subsequent department
audit.
For the purposes of this section and section 6a, for a
school
of excellence that is a cyber school, as defined in section
551
of the revised school code, MCL 380.551, and is in compliance
with
section 553a of the revised school code, MCL 380.553a, a
pupil's
participation in the cyber school's educational program is
considered
regular daily attendance; for the education achievement
system,
a pupil's participation in a virtual educational program of
the
education achievement system or of an achievement school is
considered
regular daily attendance; and for a district a pupil's
participation
in a virtual course as defined in section 21f is
considered
regular daily attendance. The
amount of the foundation
allowance for a pupil in membership is determined under section 20.
In making the calculation of membership, all of the following, as
applicable, apply to determining the membership of a district, a
public
school academy, the education achievement system, or an
intermediate district:
(a) Except as otherwise provided in this subsection, and
pursuant to subsection (6), a pupil shall be counted in membership
in the pupil's educating district or districts. An individual pupil
shall not be counted for more than a total of 1.0 full-time equated
membership.
(b) If a pupil is educated in a district other than the
pupil's district of residence, if the pupil is not being educated
as part of a cooperative education program, if the pupil's district
of residence does not give the educating district its approval to
count the pupil in membership in the educating district, and if the
pupil is not covered by an exception specified in subsection (6) to
the requirement that the educating district must have the approval
of the pupil's district of residence to count the pupil in
membership, the pupil shall not be counted in membership in any
district.
(c) A special education pupil educated by the intermediate
district shall be counted in membership in the intermediate
district.
(d) A pupil placed by a court or state agency in an on-grounds
program of a juvenile detention facility, a child caring
institution, or a mental health institution, or a pupil funded
under section 53a, shall be counted in membership in the district
or intermediate district approved by the department to operate the
program.
(e)
A pupil enrolled in the Michigan schools Schools for the
deaf
and blind Deaf and Blind shall be counted in membership in the
pupil's intermediate district of residence.
(f) A pupil enrolled in a career and technical education
program supported by a millage levied over an area larger than a
single district or in an area vocational-technical education
program established pursuant to section 690 of the revised school
code, MCL 380.690, shall be counted only in the pupil's district of
residence.
(g) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(h)
A pupil enrolled in an achievement school shall be counted
in
membership in the education achievement system.For the purposes
of this section and section 6a, for a cyber school, as defined in
section 551 of the revised school code, MCL 380.551, that is in
compliance with section 553a of the revised school code, MCL
380.553a, a pupil's participation in the cyber school's educational
program is considered regular daily attendance, and for a district
or public school academy, a pupil's participation in a virtual
course as defined in section 21f is considered regular daily
attendance.
(i) For a new district or public school academy beginning its
operation
after December 31, 1994, or for the education achievement
system
or an achievement school, membership
for the first 2 full or
partial fiscal years of operation shall be determined as follows:
(i) If operations begin before the pupil membership count day
for the fiscal year, membership is the average number of full-time
equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current
school year and on the supplemental count day for the current
school year, as determined by the department and calculated by
adding the number of pupils registered for attendance on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day
for the fiscal year and not later than the supplemental count day
for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the supplemental count
day for the current school year.
(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted
in membership on the pupil membership count day in the public
school academy, the determination of the district's membership
shall exclude from the district's pupil count for the immediately
preceding supplemental count day any pupils who are counted in the
public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding
supplemental count day.
(k)
In a district, a public school academy, the education
achievement
system, or an intermediate district operating For an
extended school year program approved by the superintendent, a
pupil enrolled, but not scheduled to be in regular daily
attendance, on a pupil membership count day, shall be counted in
membership.
(l) To be counted in membership, a pupil shall meet the
minimum age requirement to be eligible to attend school under
section 1147 of the revised school code, MCL 380.1147, or shall be
enrolled under subsection (3) of that section, and shall be less
than 20 years of age on September 1 of the school year except as
follows:
(i) A special education pupil who is enrolled and receiving
instruction in a special education program or service approved by
the department, who does not have a high school diploma, and who is
less than 26 years of age as of September 1 of the current school
year shall be counted in membership.
(ii) A pupil who is determined by the department to meet all
of the following may be counted in membership:
(A) Is enrolled in a public school academy or an alternative
education high school diploma program, that is primarily focused on
educating pupils with extreme barriers to education, such as being
homeless as defined under 42 USC 11302.
(B) Had dropped out of school.
(C) Is less than 22 years of age as of September 1 of the
current school year.
(iii) If a child does not meet the minimum age requirement to
be eligible to attend school for that school year under section
1147 of the revised school code, MCL 380.1147, but will be 5 years
of age not later than December 1 of that school year, the district
may count the child in membership for that school year if the
parent or legal guardian has notified the district in writing that
he or she intends to enroll the child in kindergarten for that
school year.
(m) An individual who has achieved a high school diploma shall
not be counted in membership. An individual who has achieved a high
school equivalency certificate shall not be counted in membership
unless the individual is a student with a disability as defined in
R
340.1702 of the Michigan administrative code. Administrative
Code. An individual participating in a job training program funded
under former section 107a or a jobs program funded under former
section 107b, administered by the department of talent and economic
development, or participating in any successor of either of those 2
programs, shall not be counted in membership.
(n) If a pupil counted in membership in a public school
academy
or the education achievement system is also educated by a
district or intermediate district as part of a cooperative
education program, the pupil shall be counted in membership only in
the
public school academy or the education achievement system
unless a written agreement signed by all parties designates the
party or parties in which the pupil shall be counted in membership,
and the instructional time scheduled for the pupil in the district
or intermediate district shall be included in the full-time equated
membership determination under subdivision (q) and section 101.
However, for pupils receiving instruction in both a public school
academy
or the education achievement system and in a district or
intermediate district but not as a part of a cooperative education
program, the following apply:
(i) If the public school academy or the education
achievement
system
provides instruction for at least
1/2 of the class hours
required
under section 101, the public school academy or the
education
achievement system shall receive as
its prorated share of
the full-time equated membership for each of those pupils an amount
equal to 1 times the product of the hours of instruction the public
school
academy or the education achievement system provides divided
by the number of hours required under section 101 for full-time
equivalency, and the remainder of the full-time membership for each
of those pupils shall be allocated to the district or intermediate
district providing the remainder of the hours of instruction.
(ii) If the public school academy or the education
achievement
system
provides instruction for less than
1/2 of the class hours
required under section 101, the district or intermediate district
providing the remainder of the hours of instruction shall receive
as its prorated share of the full-time equated membership for each
of those pupils an amount equal to 1 times the product of the hours
of instruction the district or intermediate district provides
divided by the number of hours required under section 101 for full-
time equivalency, and the remainder of the full-time membership for
each of those pupils shall be allocated to the public school
academy. or
the education achievement system.
(o) An individual less than 16 years of age as of September 1
of the current school year who is being educated in an alternative
education program shall not be counted in membership if there are
also adult education participants being educated in the same
program or classroom.
(p) The department shall give a uniform interpretation of
full-time and part-time memberships.
(q) The number of class hours used to calculate full-time
equated memberships shall be consistent with section 101. In
determining full-time equated memberships for pupils who are
enrolled in a postsecondary institution, a pupil shall not be
considered to be less than a full-time equated pupil solely because
of the effect of his or her postsecondary enrollment, including
necessary travel time, on the number of class hours provided by the
district to the pupil.
(r) Full-time equated memberships for pupils in kindergarten
shall be determined by dividing the number of instructional hours
scheduled and provided per year per kindergarten pupil by the same
number used for determining full-time equated memberships for
pupils in grades 1 to 12. However, to the extent allowable under
federal law, for a district or public school academy that provides
evidence satisfactory to the department that it used federal title
I money in the 2 immediately preceding school fiscal years to fund
full-time kindergarten, full-time equated memberships for pupils in
kindergarten shall be determined by dividing the number of class
hours scheduled and provided per year per kindergarten pupil by a
number equal to 1/2 the number used for determining full-time
equated memberships for pupils in grades 1 to 12. The change in the
counting of full-time equated memberships for pupils in
kindergarten that took effect for 2012-2013 is not a mandate.
(s)
For a district , or
a public school academy ,
or the
education
achievement system that has pupils
enrolled in a grade
level
that was not offered by the district
, the or public
school
academy ,
or the education achievement system in
the immediately
preceding school year, the number of pupils enrolled in that grade
level to be counted in membership is the average of the number of
those pupils enrolled and in regular daily attendance on the pupil
membership count day and the supplemental count day of the current
school year, as determined by the department. Membership shall be
calculated by adding the number of pupils registered for attendance
in that grade level on the pupil membership count day plus pupils
received by transfer and minus pupils lost as defined by rules
promulgated by the superintendent, and as corrected by subsequent
department audit, plus the final audited count from the
supplemental count day for the current school year, and dividing
that sum by 2.
(t) A pupil enrolled in a cooperative education program may be
counted in membership in the pupil's district of residence with the
written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district
determines through the district's alternative or disciplinary
education program that the best instructional placement for a pupil
is in the pupil's home or otherwise apart from the general school
population, if that placement is authorized in writing by the
district superintendent and district alternative or disciplinary
education supervisor, and if the district provides appropriate
instruction as described in this subdivision to the pupil at the
pupil's home or otherwise apart from the general school population,
the district may count the pupil in membership on a pro rata basis,
with the proration based on the number of hours of instruction the
district actually provides to the pupil divided by the number of
hours required under section 101 for full-time equivalency. For the
purposes of this subdivision, a district shall be considered to be
providing appropriate instruction if all of the following are met:
(i) The district provides at least 2 nonconsecutive hours of
instruction per week to the pupil at the pupil's home or otherwise
apart from the general school population under the supervision of a
certificated teacher.
(ii) The district provides instructional materials, resources,
and supplies that are comparable to those otherwise provided in the
district's alternative education program.
(iii) Course content is comparable to that in the district's
alternative education program.
(iv) Credit earned is awarded to the pupil and placed on the
pupil's transcript.
(v) If a pupil was enrolled in a public school academy on the
pupil membership count day, if the public school academy's contract
with its authorizing body is revoked or the public school academy
otherwise ceases to operate, and if the pupil enrolls in a district
or
the education achievement system within
45 days after the pupil
membership
count day, the department shall adjust the district's or
the
education achievement system's pupil
count for the pupil
membership count day to include the pupil in the count.
(w) For a public school academy that has been in operation for
at least 2 years and that suspended operations for at least 1
semester and is resuming operations, membership is the sum of the
product of .90 times the number of full-time equated pupils in
grades K to 12 actually enrolled and in regular daily attendance on
the first pupil membership count day or supplemental count day,
whichever is first, occurring after operations resume, plus the
product of .10 times the final audited count from the most recent
pupil membership count day or supplemental count day that occurred
before suspending operations, as determined by the superintendent.
(x) If a district's membership for a particular fiscal year,
as otherwise calculated under this subsection, would be less than
1,550 pupils and the district has 4.5 or fewer pupils per square
mile, as determined by the department, and if the district does not
receive funding under section 22d(2), the district's membership
shall be considered to be the membership figure calculated under
this subdivision. If a district educates and counts in its
membership pupils in grades 9 to 12 who reside in a contiguous
district that does not operate grades 9 to 12 and if 1 or both of
the affected districts request the department to use the
determination allowed under this sentence, the department shall
include the square mileage of both districts in determining the
number of pupils per square mile for each of the districts for the
purposes of this subdivision. The membership figure calculated
under this subdivision is the greater of the following:
(i) The average of the district's membership for the 3-fiscal-
year period ending with that fiscal year, calculated by adding the
district's actual membership for each of those 3 fiscal years, as
otherwise calculated under this subsection, and dividing the sum of
those 3 membership figures by 3.
(ii) The district's actual membership for that fiscal year as
otherwise calculated under this subsection.
(y) Full-time equated memberships for special education pupils
who are not enrolled in kindergarten but are enrolled in a
classroom
program under R 340.1754 of the Michigan administrative
code
Administrative Code shall be determined by dividing the number
of class hours scheduled and provided per year by 450. Full-time
equated memberships for special education pupils who are not
enrolled in kindergarten but are receiving early childhood special
education services under R 340.1755 or R 340.1862 of the Michigan
administrative
code Administrative Code shall be determined by
dividing the number of hours of service scheduled and provided per
year per-pupil by 180.
(z) A pupil of a district that begins its school year after
Labor Day who is enrolled in an intermediate district program that
begins before Labor Day shall not be considered to be less than a
full-time pupil solely due to instructional time scheduled but not
attended by the pupil before Labor Day.
(aa) For the first year in which a pupil is counted in
membership on the pupil membership count day in a middle college
program, the membership is the average of the full-time equated
membership on the pupil membership count day and on the
supplemental count day for the current school year, as determined
by the department. If a pupil described in this subdivision was
counted in membership by the operating district on the immediately
preceding supplemental count day, the pupil shall be excluded from
the district's immediately preceding supplemental count for the
purposes of determining the district's membership.
(bb)
A district , a or
public school academy ,
or the
education
achievement system that educates a
pupil who attends a
United States Olympic Education Center may count the pupil in
membership regardless of whether or not the pupil is a resident of
this state.
(cc) A pupil enrolled in a district other than the pupil's
district of residence pursuant to section 1148(2) of the revised
school code, MCL 380.1148, shall be counted in the educating
district. or
the education achievement system.
(dd) For a pupil enrolled in a dropout recovery program that
meets the requirements of section 23a, the pupil shall be counted
as 1/12 of a full-time equated membership for each month that the
district operating the program reports that the pupil was enrolled
in the program and was in full attendance. However, if the special
membership counting provisions under this subdivision and the
operation of the other membership counting provisions under this
subsection result in a pupil being counted as more than 1.0 FTE in
a fiscal year, the payment made for the pupil under sections 22a
and 22b shall not be based on more than 1.0 FTE for that pupil, and
any portion of an FTE for that pupil that exceeds 1.0 shall instead
be paid under section 25g. The district operating the program shall
report to the center the number of pupils who were enrolled in the
program and were in full attendance for a month not later than 30
days after the end of the month. A district shall not report a
pupil as being in full attendance for a month unless both of the
following are met:
(i) A personalized learning plan is in place on or before the
first school day of the month for the first month the pupil
participates in the program.
(ii) The pupil meets the district's definition under section
23a of satisfactory monthly progress for that month or, if the
pupil does not meet that definition of satisfactory monthly
progress for that month, the pupil did meet that definition of
satisfactory monthly progress in the immediately preceding month
and appropriate interventions are implemented within 10 school days
after it is determined that the pupil does not meet that definition
of satisfactory monthly progress.
(ee) A pupil participating in a virtual course under section
21f shall be counted in membership in the district enrolling the
pupil.
(ff) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and
does not reopen for the next school year, the department shall
adjust
the membership count of the district or the education
achievement
system other public school
academy in which a former
pupil of the closed public school academy enrolls and is in regular
daily attendance for the next school year to ensure that the
district
or the education achievement system other public school
academy receives the same amount of membership aid for the pupil as
if
the pupil were counted in the district or the education
achievement
system other public school
academy on the supplemental
count day of the preceding school year.
(gg) If a special education pupil is expelled under section
1311 or 1311a of the revised school code, MCL 380.1311 and
380.1311a, and is not in attendance on the pupil membership count
day because of the expulsion, and if the pupil remains enrolled in
the district and resumes regular daily attendance during that
school year, the district's membership shall be adjusted to count
the pupil in membership as if he or she had been in attendance on
the pupil membership count day.
(hh) A pupil enrolled in a community district shall be counted
in
membership in the community district. For a community district
in
its first fiscal year of operations only, until the department
is
able to calculate the community district's membership, the
department
shall consider the community district's membership to be
the
same as the membership for the immediately preceding fiscal
year
for a district with the same boundaries as the community
district
that had membership for that fiscal year.
(ii) A part-time pupil enrolled in a nonpublic school in
grades K to 12 in accordance with section 166b shall not be counted
as more than 0.75 of a full-time equated membership.
(jj) A district that borders another state or a public school
academy that operates at least grades 9 to 12 and is located within
20 miles of a border with another state may count in membership a
pupil who is enrolled in a course at a college or university that
is located in the bordering state and within 20 miles of the border
with this state if all of the following are met:
(i) The pupil would meet the definition of an eligible student
under the postsecondary enrollment options act, 1996 PA 160, MCL
388.511 to 388.524, if the course were an eligible course under
that act.
(ii) The course in which the pupil is enrolled would meet the
definition of an eligible course under the postsecondary enrollment
options act, 1996 PA 160, MCL 388.511 to 388.524, if the course
were provided by an eligible postsecondary institution under that
act.
(iii) The department determines that the college or university
is an institution that, in the other state, fulfills a function
comparable to a state university or community college, as those
terms are defined in section 3 of the postsecondary enrollment
options act, 1996 PA 160, MCL 388.513, or is an independent
nonprofit degree-granting college or university.
(iv) The district or public school academy pays for a portion
of the pupil's tuition at the college or university in an amount
equal to the eligible charges that the district or public school
academy would pay to an eligible postsecondary institution under
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511
to 388.524, as if the course were an eligible course under that
act.
(v) The district or public school academy awards high school
credit to a pupil who successfully completes a course as described
in this subdivision.
(5) "Public school academy" means that term as defined in
section 5 of the revised school code, MCL 380.5.
(6)
"Pupil" means a person an individual in membership
in a
public school. A district must have the approval of the pupil's
district of residence to count the pupil in membership, except
approval by the pupil's district of residence is not required for
any of the following:
(a) A nonpublic part-time pupil enrolled in grades K to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.
(c)
A pupil enrolled in a public school academy. or the
education
achievement system.
(d) A pupil enrolled in a district other than the pupil's
district of residence under an intermediate district schools of
choice pilot program as described in section 91a or former section
91 if the intermediate district and its constituent districts have
been exempted from section 105.
(e) A pupil enrolled in a district other than the pupil's
district of residence if the pupil is enrolled in accordance with
section 105 or 105c.
(f) A pupil who has made an official written complaint or
whose parent or legal guardian has made an official written
complaint to law enforcement officials and to school officials of
the pupil's district of residence that the pupil has been the
victim of a criminal sexual assault or other serious assault, if
the official complaint either indicates that the assault occurred
at school or that the assault was committed by 1 or more other
pupils enrolled in the school the pupil would otherwise attend in
the district of residence or by an employee of the district of
residence. A person who intentionally makes a false report of a
crime to law enforcement officials for the purposes of this
subdivision is subject to section 411a of the Michigan penal code,
1931 PA 328, MCL 750.411a, which provides criminal penalties for
that conduct. As used in this subdivision:
(i) "At school" means in a classroom, elsewhere on school
premises, on a school bus or other school-related vehicle, or at a
school-sponsored activity or event whether or not it is held on
school premises.
(ii) "Serious assault" means an act that constitutes a felony
violation of chapter XI of the Michigan penal code, 1931 PA 328,
MCL 750.81 to 750.90h, or that constitutes an assault and
infliction of serious or aggravated injury under section 81a of the
Michigan penal code, 1931 PA 328, MCL 750.81a.
(g) A pupil whose district of residence changed after the
pupil membership count day and before the supplemental count day
and who continues to be enrolled on the supplemental count day as a
nonresident in the district in which he or she was enrolled as a
resident on the pupil membership count day of the same school year.
(h) A pupil enrolled in an alternative education program
operated by a district other than his or her district of residence
who meets 1 or more of the following:
(i) The pupil has been suspended or expelled from his or her
district of residence for any reason, including, but not limited
to, a suspension or expulsion under section 1310, 1311, or 1311a of
the revised school code, MCL 380.1310, 380.1311, and 380.1311a.
(ii) The pupil had previously dropped out of school.
(iii) The pupil is pregnant or is a parent.
(iv) The pupil has been referred to the program by a court.
(i) A pupil enrolled in the Michigan Virtual School, for the
pupil's enrollment in the Michigan Virtual School.
(j) A pupil who is the child of a person who works at the
district or who is the child of a person who worked at the district
as of the time the pupil first enrolled in the district but who no
longer works at the district due to a workforce reduction. As used
in this subdivision, "child" includes an adopted child, stepchild,
or legal ward.
(k) An expelled pupil who has been denied reinstatement by the
expelling district and is reinstated by another school board under
section 1311 or 1311a of the revised school code, MCL 380.1311 and
380.1311a.
(l) A pupil enrolled in a district other than the pupil's
district of residence in a middle college program if the pupil's
district of residence and the enrolling district are both
constituent districts of the same intermediate district.
(m) A pupil enrolled in a district other than the pupil's
district of residence who attends a United States Olympic Education
Center.
(n) A pupil enrolled in a district other than the pupil's
district of residence pursuant to section 1148(2) of the revised
school code, MCL 380.1148.
(o) A pupil who enrolls in a district other than the pupil's
district of residence as a result of the pupil's school not making
adequate yearly progress under the no child left behind act of
2001, Public Law 107-110, or the every student succeeds act, Public
Law 114-95.
However, except for pupils enrolled in the youth challenge
program at the site at which the youth challenge program operated
for 2015-2016, if a district educates pupils who reside in another
district and if the primary instructional site for those pupils is
established by the educating district after 2009-2010 and is
located within the boundaries of that other district, the educating
district must have the approval of that other district to count
those pupils in membership.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the first Wednesday
in October each school year or, for a district or building in which
school is not in session on that Wednesday due to conditions not
within the control of school authorities, with the approval of the
superintendent, the immediately following day on which school is in
session in the district or building.
(b) For a district or intermediate district maintaining school
during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) First Wednesday in October.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
(8) "Pupils in grades K to 12 actually enrolled and in regular
daily attendance" means pupils in grades K to 12 in attendance and
receiving instruction in all classes for which they are enrolled on
the pupil membership count day or the supplemental count day, as
applicable. Except as otherwise provided in this subsection, a
pupil who is absent from any of the classes in which the pupil is
enrolled on the pupil membership count day or supplemental count
day and who does not attend each of those classes during the 10
consecutive school days immediately following the pupil membership
count day or supplemental count day, except for a pupil who has
been excused by the district, shall not be counted as 1.0 full-time
equated membership. A pupil who is excused from attendance on the
pupil membership count day or supplemental count day and who fails
to attend each of the classes in which the pupil is enrolled within
30 calendar days after the pupil membership count day or
supplemental count day shall not be counted as 1.0 full-time
equated membership. In addition, a pupil who was enrolled and in
attendance
in a district, an intermediate district, a or public
school
academy , or the education achievement system before the
pupil membership count day or supplemental count day of a
particular year but was expelled or suspended on the pupil
membership count day or supplemental count day shall only be
counted as 1.0 full-time equated membership if the pupil resumed
attendance in the district, intermediate district, or public school
academy ,
or education achievement system within
45 days after the
pupil membership count day or supplemental count day of that
particular year. Pupils not counted as 1.0 full-time equated
membership due to an absence from a class shall be counted as a
prorated membership for the classes the pupil attended. For
purposes of this subsection, "class" means a period of time in 1
day when pupils and a certificated teacher or legally qualified
substitute teacher are together and instruction is taking place.
(9) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(10) "The revised school code" means 1976 PA 451, MCL 380.1 to
380.1852.
(11) "School district of the first class", "first class school
district", and "district of the first class" mean, for the purposes
of this article only, a district that had at least 40,000 pupils in
membership for the immediately preceding fiscal year.
(12) "School fiscal year" means a fiscal year that commences
July 1 and continues through June 30.
(13) "State board" means the state board of education.
(14) "Superintendent", unless the context clearly refers to a
district or intermediate district superintendent, means the
superintendent of public instruction described in section 3 of
article VIII of the state constitution of 1963.
(15) "Supplemental count day" means the day on which the
supplemental pupil count is conducted under section 6a.
(16) "Tuition pupil" means a pupil of school age attending
school in a district other than the pupil's district of residence
for whom tuition may be charged to the district of residence.
Tuition pupil does not include a pupil who is a special education
pupil, a pupil described in subsection (6)(c) to (o), or a pupil
whose parent or guardian voluntarily enrolls the pupil in a
district that is not the pupil's district of residence. A pupil's
district of residence shall not require a high school tuition
pupil, as provided under section 111, to attend another school
district after the pupil has been assigned to a school district.
(17) "State school aid fund" means the state school aid fund
established in section 11 of article IX of the state constitution
of 1963.
(18) "Taxable value" means the taxable value of property as
determined under section 27a of the general property tax act, 1893
PA 206, MCL 211.27a.
(19) "Textbook" means a book, electronic book, or other
instructional print or electronic resource that is selected and
approved
by the governing board of a district or, for an
achievement
school, by the chancellor of the achievement authority
and that contains a presentation of principles of a subject, or
that is a literary work relevant to the study of a subject required
for the use of classroom pupils, or another type of course material
that forms the basis of classroom instruction.
(20) "Total state aid" or "total state school aid" means the
total combined amount of all funds due to a district, intermediate
district,
or other entity under all of the provisions of this
article.
Sec. 8b. (1) The department shall assign a district code to
each public school academy that is authorized under the revised
school code and is eligible to receive funding under this article
within 30 days after a contract is submitted to the department by
the authorizing body of a public school academy.
(2) If the department does not assign a district code to a
public school academy within the 30-day period described in
subsection (1), the district code the department shall use to make
payments under this article to the newly authorized public school
academy shall be a number that is equivalent to the sum of the last
district code assigned to a public school academy located in the
same county as the newly authorized public school academy plus 1.
However, if there is not an existing public school academy located
in the same county as the newly authorized public school academy,
then the district code the department shall use to make payments
under this article to the newly authorized public school academy
shall be a 5-digit number that has the county code in which the
public school academy is located as its first 2 digits, 9 as its
third digit, 0 as its fourth digit, and 1 as its fifth digit. If
the number of public school academies in a county grows to exceed
100, the third digit in this 5-digit number shall then be 7 for the
public school academies in excess of 100.
(3) For each school of excellence that is a cyber school and
is authorized under part 6e of the revised school code, MCL 380.551
to 380.561, by a school district, intermediate school district,
community college other than a federal tribally controlled
community college, or other authorizing body that is not empowered
to authorize a school of excellence to operate statewide and is
eligible
to receive funding under this article, the all of the
following apply:
(a) The department shall assign a district code that includes
as the first 2 digits the county code in which the authorizing body
is located.
(b) If the cyber school does not provide instruction at a
specific location, the intermediate district that would normally
provide programs and services to the school district in which the
administrative office of cyber school is located shall provide
programs and services to the cyber school. The intermediate school
district required to provide programs and services to a cyber
school under this subdivision remains the same for as long as that
cyber school is in operation.
Sec.
11. (1) For the fiscal year ending September 30, 2016,
Senate Bill No. 149 as amended May 3, 2017
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$11,905,439,300.00
from the state school aid fund and the sum of
$55,100,000.00
from the general fund. For the
fiscal year ending
September 30, 2017, there is appropriated for the public schools of
this state and certain other state purposes relating to education
the
sum of $12,052,309,300.00 $12,036,869,300.00
from the state
school aid fund, the sum of $218,900,000.00 from the general fund,
an amount not to exceed $72,000,000.00 from the community district
education trust fund created under section 12 of the Michigan trust
fund act, 2000 PA 489, MCL 12.262, and an amount not to exceed
$100.00 from the water emergency reserve fund. For the fiscal year
ending September 30, 2018, there is appropriated for the public
schools of this state and certain other state purposes relating to
education the sum of <<$12,293,761,900.00>> from the state school aid
fund, the sum of $195,000,000.00 from the general fund, an amount
not to exceed $72,000,000.00 from the community district education
trust fund created under section 12 of the Michigan trust fund act,
2000 PA 489, MCL 12.262, and an amount not to exceed $100.00 from
the
water emergency reserve fund. In
addition, all other available
federal funds are appropriated each fiscal year for the fiscal
years
ending September 30, 2016 and September 30, 2017 and
September 30, 2018.
(2) The appropriations under this section shall be allocated
as provided in this article. Money appropriated under this section
from the general fund shall be expended to fund the purposes of
this article before the expenditure of money appropriated under
this section from the state school aid fund.
(3) Any general fund allocations under this article that are
not expended by the end of the state fiscal year are transferred to
the school aid stabilization fund created under section 11a.
Sec. 11a. (1) The school aid stabilization fund is created as
a separate account within the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school aid stabilization fund. The
state treasurer shall deposit into the school aid stabilization
fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of
the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid
stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school
aid stabilization fund. Money in the school aid stabilization fund
shall be expended only for purposes for which state school aid fund
money may be expended.
(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to
the school aid stabilization fund interest and earnings from fund
investments.
(5) Money in the school aid stabilization fund at the close of
a fiscal year shall remain in the school aid stabilization fund and
shall not lapse to the unreserved school aid fund balance or the
general fund.
(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount
available for expenditure from the state school aid fund for that
fiscal year, there is appropriated from the school aid
stabilization fund to the state school aid fund an amount equal to
the projected shortfall as determined by the department of
treasury, but not to exceed available money in the school aid
stabilization fund. If the money in the school aid stabilization
fund is insufficient to fully fund an amount equal to the projected
shortfall, the state budget director shall notify the legislature
as required under section 296(2) and state payments in an amount
equal to the remainder of the projected shortfall shall be prorated
in the manner provided under section 296(3).
(7) For 2016-2017 and for 2017-2018, in addition to the
appropriations in section 11, there is appropriated from the school
aid stabilization fund to the state school aid fund the amount
necessary to fully fund the allocations under this article.
Sec.
11j. From the appropriation in section 11, there is
allocated
an amount not to exceed $10,500,000.00 for 2015-2016 and
there
is allocated an amount not to exceed $126,500,000.00
$125,500,000.00
for 2016-2017 2017-2018 for payments to the school
loan bond redemption fund in the department of treasury on behalf
of districts and intermediate districts. Notwithstanding section
296 or any other provision of this act, funds allocated under this
section are not subject to proration and shall be paid in full.
Sec.
11k. For 2016-2017, 2017-2018,
there is appropriated from
the general fund to the school loan revolving fund an amount equal
to the amount of school bond loans assigned to the Michigan finance
authority, not to exceed the total amount of school bond loans held
in reserve as long-term assets. As used in this section, "school
loan revolving fund" means that fund created in section 16c of the
shared credit rating act, 1985 PA 227, MCL 141.1066c.
Sec.
11m. From the appropriation in section 11, there is
allocated
for 2015-2016 an amount not to exceed $1,000,000.00 and
there is allocated for 2016-2017 an amount not to exceed
$3,000,000.00
$5,500,000.00 and there is
allocated for 2017-2018 an
amount not to exceed $6,500,000.00 for fiscal year cash-flow
borrowing costs solely related to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
Sec. 11r. (1) From the appropriation in section 11, there is
allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be
deposited into the distressed districts emergency grant fund
created under this section for the purpose of funding grants under
this section.
(2) The distressed districts emergency grant fund is created
as a separate account within the state school aid fund. The state
treasurer may receive money or other assets from any source for
deposit into the distressed districts emergency grant fund. The
state treasurer shall direct the investment of the distressed
districts emergency grant fund and shall credit to the distressed
districts emergency grant fund interest and earnings from the fund.
(3) Subject to subsection (4), a district is eligible to
receive a grant from the distressed districts emergency grant fund
if either of the following applies:
(a) The district has adopted a resolution authorizing the
voluntary dissolution of the district approved by the state
treasurer under section 12 of the revised school code, MCL 380.12,
but the dissolution has not yet taken effect under that section.
(b) The district is a receiving district under section 12 of
the revised school code, MCL 380.12, and the district enrolls
pupils who were previously enrolled in a district that was
dissolved under section 12 of the revised school code, MCL 380.12,
in the immediately preceding school year.
(4) A district receiving funds under section 20g is not
eligible to receive funds under this section.
(5) The amount of a grant under this section shall be
determined by the state treasurer after consultation with the
superintendent of public instruction, but shall not exceed the
estimated amount of remaining district costs in excess of available
revenues, including, but not limited to, payroll, benefits,
retirement system contributions, pupil transportation, food
services, special education, building security, and other costs
necessary to allow the district to operate schools directly and
provide public education services until the end of the current
school fiscal year. For a district that meets the eligibility
criteria under subsection (3)(b), the amount of the grant shall be
determined in the same manner as transition costs under section
20g.
(6) Before disbursing funds under this section, the state
treasurer shall notify the house and senate appropriations
subcommittees on school aid and the house and senate fiscal
agencies. The notification shall include, but not be limited to,
the district receiving funds under this section, the amount of the
funds awarded under this section, an explanation of the district
conditions that necessitate funding under this section, and the
intended use of funds disbursed under this section.
(7) Except as otherwise provided in subsection (8), money in
the distressed districts emergency grant fund at the close of a
fiscal year shall remain in the distressed districts emergency
grant fund and shall not lapse to the state school aid fund or to
the general fund.
(8)
For 2015-2016 2016-2017 only, an amount not to exceed
$2,800,000.00
the remaining balance in the
work project that was
established under this section for 2014-2015, estimated at
$1,000,000.00, shall be lapsed from the distressed districts
emergency grant fund to the state school aid fund.
Sec. 11s. (1) From the general fund appropriation in section
11, there is allocated $10,142,500.00 for 2016-2017 and there is
allocated $8,730,000.00 for 2017-2018 for the purpose of providing
services and programs to children who reside within the boundaries
of a district with the majority of its territory located within the
boundaries of a city for which an executive proclamation of
emergency
is issued in the current or immediately preceding fiscal
year
2 fiscal years under the emergency management act, 1976 PA
390, MCL 30.401 to 30.421. From the funding appropriated in section
11, there is allocated for each fiscal year for 2016-2017 and for
2017-2018 $100.00 from the water emergency reserve fund for the
purposes of this section.
(2) From the allocation in subsection (1), there is allocated
to a district with the majority of its territory located within the
boundaries of a city in which an executive proclamation of
emergency
is issued in the current or immediately preceding fiscal
year
2 fiscal years and that has at least 5,000 4,500 pupils
in
membership
for the current 2016-2017 fiscal year
or has at least
4,000 pupils in membership for a fiscal year after 2016-2017, an
amount not to exceed $1,292,500.00 for 2016-2017 and an amount not
to exceed $2,625,000.00 for 2017-2018 for the purpose of employing
school nurses and school social workers. The district shall provide
a report to the department in a form, manner, and frequency
approved
prescribed by the department. The department shall provide
a copy of that report to the governor, the house and senate school
aid subcommittees, the house and senate fiscal agencies, and the
state budget director within 5 days after receipt. The report shall
provide at least the following information:
(a) How many personnel were hired using the funds allocated
under this subsection.
(b) A description of the services provided to pupils by those
personnel.
(c) How many pupils received each type of service identified
in subdivision (b).
(d) Any other information the department considers necessary
to ensure that the children described in subsection (1) received
appropriate levels and types of services.
(3) From the allocation in subsection (1), there is allocated
to an intermediate district that has a constituent district
described in subsection (2) an amount not to exceed $1,195,000.00
for 2016-2017 and an amount not to exceed $2,500,000.00 for 2017-
2018 to augment staff for the purpose of providing additional early
childhood services and for nutritional services to children
described in subsection (1), regardless of location of school of
attendance.
The For 2016-2017, the early childhood services to be
provided under this subsection are state early intervention
services as described in subsection (4) and early literacy
services. Beginning with 2017-2018, the early childhood services to
be provided under this subsection are state early intervention
services that are similar to the services described in the early on
Michigan state plan, including ensuring that all children described
in subsection (1) who are less than 4 years of age as of September
1, 2016 are assessed and evaluated at least twice annually. In
addition, funds allocated under this subsection may also be
expended to provide informational resources to parents, educators,
and the community, and to coordinate services with other local
agencies. The intermediate district shall provide a report to the
department in a form, manner, and frequency approved by the
department. The department shall provide a copy of that report to
the governor, the house and senate school aid subcommittees, the
house and senate fiscal agencies, and the state budget director
within 5 days after receipt. The report shall provide at least the
following information:
(a) How many personnel were hired using the funds appropriated
in this subsection.
(b) A description of the services provided to children by
those personnel.
(c) What types of additional nutritional services were
provided.
(d) How many children received each type of service identified
in subdivisions (b) and (c).
(e) What types of informational resources and coordination
efforts were provided.
(f) Any other information the department considers necessary
to ensure that the children described in subsection (1) received
appropriate levels and types of services.
(4)
From For 2016-2017 only,
from the allocation in subsection
(1), there is allocated an amount not to exceed $6,155,000.00 to
intermediate districts described in subsection (3) to provide state
early intervention services for children described in subsection
(1) who are less than 4 years of age as of September 1, 2016. The
intermediate district shall use these funds to provide state early
intervention services that are similar to the services described in
the early on Michigan state plan, including ensuring that all
children described in subsection (1) who are less than 4 years of
age as of September 1, 2016 are assessed and evaluated at least
twice annually.
(5) From the allocation in subsection (1), there is allocated
an amount not to exceed $1,500,000.00 for 2016-2017 and an amount
not to exceed $3,000,000.00 for 2017-2018 to intermediate districts
described in subsection (3) to enroll children described in
subsection (1) in school-day great start readiness programs,
regardless of household income eligibility requirements contained
in section 39. The department shall administer this funding
consistent with all other provisions of the great start readiness
programs contained in section 32d and section 39.
(6) For 2017-2018, from the allocation in subsection (1),
there is allocated an amount not to exceed $605,000.00 for
nutritional services to children described in subsection (1).
(7) (6)
In addition to other funding
allocated and
appropriated in this section, there is appropriated an amount not
to exceed $15,000,000.00 each fiscal year for 2016-2017 and 2017-
2018 for state restricted contingency funds. These contingency
funds are not available for expenditure until they have been
transferred to a section within this article under section 393(2)
of the management and budget act, 1984 PA 431, MCL 18.1393.
(8) Notwithstanding section 17b, payments under this section
shall be paid on a schedule determined by the department.
Sec. 15. (1) If a district or intermediate district fails to
receive its proper apportionment, the department, upon satisfactory
proof that the district or intermediate district was entitled
justly, shall apportion the deficiency in the next apportionment.
Subject to subsections (2) and (3), if a district or intermediate
district has received more than its proper apportionment, the
department, upon satisfactory proof, shall deduct the excess in the
next apportionment. Notwithstanding any other provision in this
article, state aid overpayments to a district, other than
overpayments in payments for special education or special education
transportation, may be recovered from any payment made under this
article other than a special education or special education
transportation payment, from the proceeds of a loan to the district
under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to
141.942, or from the proceeds of millage levied or pledged under
section 1211 of the revised school code, MCL 380.1211. State aid
overpayments made in special education or special education
transportation payments may be recovered from subsequent special
education or special education transportation payments, from the
proceeds of a loan to the district under the emergency municipal
loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds
of millage levied or pledged under section 1211 of the revised
school code, MCL 380.1211.
(2) If the result of an audit conducted by or for the
department affects the current fiscal year membership, affected
payments shall be adjusted in the current fiscal year. A deduction
due to an adjustment made as a result of an audit conducted by or
for the department, or as a result of information obtained by the
department from the district, an intermediate district, the
department of treasury, or the office of auditor general, shall be
deducted from the district's apportionments when the adjustment is
finalized. At the request of the district and upon the district
presenting evidence satisfactory to the department of the hardship,
the department may grant up to an additional 4 years for the
adjustment and may advance payments to the district otherwise
authorized under this article if the district would otherwise
experience a significant hardship in satisfying its financial
obligations.
(3) If, based on an audit by the department or the
department's designee or because of new or updated information
received by the department, the department determines that the
amount paid to a district or intermediate district under this
article for the current fiscal year or a prior fiscal year was
incorrect, the department shall make the appropriate deduction or
payment in the district's or intermediate district's allocation in
the next apportionment after the adjustment is finalized. The
deduction or payment shall be calculated according to the law in
effect in the fiscal year in which the incorrect amount was paid.
If the district does not receive an allocation for the fiscal year
or if the allocation is not sufficient to pay the amount of any
deduction, the amount of any deduction otherwise applicable shall
be satisfied from the proceeds of a loan to the district under the
emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942,
or from the proceeds of millage levied or pledged under section
1211 of the revised school code, MCL 380.1211, as determined by the
department.
(4) The department may conduct audits, or may direct audits by
designee of the department, for the current fiscal year and the
immediately preceding 3 fiscal years of all records related to a
program for which a district or intermediate district has received
funds under this article.
(5) Expenditures made by the department under this article
that are caused by the write-off of prior year accruals may be
funded by revenue from the write-off of prior year accruals.
(6) The department shall not deduct any funds from a district
due to a pupil being counted in membership before the effective
date of the amendatory act that added section 6(4)(jj), or
otherwise reduce an allocation under this article to a district
relative to the counting of a pupil in membership as provided under
section 6(4)(jj), if the district substantially complied with the
requirements under section 6(4)(jj) in a previous fiscal year as if
section 6(4)(jj) had been in effect in the previous fiscal year.
(7)
(6) In addition to funds appropriated in section 11 for
all
programs
and services, there is appropriated for 2016-2017 2017-
2018 for obligations in excess of applicable appropriations an
amount equal to the collection of overpayments, but not to exceed
amounts available from overpayments.
Sec. 18. (1) Except as provided in another section of this
article, each district or other entity shall apply the money
received by the district or entity under this article to salaries
and other compensation of teachers and other employees, tuition,
transportation, lighting, heating, ventilation, water service, the
purchase of textbooks, other supplies, and any other school
operating expenditures defined in section 7. However, not more than
20% of the total amount received by a district under sections 22a
and 22b or received by an intermediate district under section 81
may be transferred by the board to either the capital projects fund
or to the debt retirement fund for debt service. The money shall
not be applied or taken for a purpose other than as provided in
this section. The department shall determine the reasonableness of
expenditures and may withhold from a recipient of funds under this
article the apportionment otherwise due upon a violation by the
recipient.
(2) A district or intermediate district shall adopt an annual
budget in a manner that complies with the uniform budgeting and
accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days
after a district board adopts its annual operating budget for the
following school fiscal year, or after a district board adopts a
subsequent revision to that budget, the district shall make all of
the following available through a link on its website homepage, or
may make the information available through a link on its
intermediate district's website homepage, in a form and manner
prescribed by the department:
(a) The annual operating budget and subsequent budget
revisions.
(b) Using data that have already been collected and submitted
to the department, a summary of district expenditures for the most
recent fiscal year for which they are available, expressed in the
following 2 pie charts:
(i) A chart of personnel expenditures, broken into the
following subcategories:
(A) Salaries and wages.
(B) Employee benefit costs, including, but not limited to,
medical, dental, vision, life, disability, and long-term care
benefits.
(C) Retirement benefit costs.
(D) All other personnel costs.
(ii) A chart of all district expenditures, broken into the
following subcategories:
(A) Instruction.
(B) Support services.
(C) Business and administration.
(D) Operations and maintenance.
(c) Links to all of the following:
(i) The current collective bargaining agreement for each
bargaining unit.
(ii) Each health care benefits plan, including, but not
limited to, medical, dental, vision, disability, long-term care, or
any other type of benefits that would constitute health care
services, offered to any bargaining unit or employee in the
district.
(iii) The audit report of the audit conducted under subsection
(4) for the most recent fiscal year for which it is available.
(iv) The bids required under section 5 of the public employees
health benefits act, 2007 PA 106, MCL 124.75.
(v) The district's written policy governing procurement of
supplies, materials, and equipment.
(vi) The district's written policy establishing specific
categories of reimbursable expenses, as described in section
1254(2) of the revised school code, MCL 380.1254.
(vii) Either the district's accounts payable check register
for the most recent school fiscal year or a statement of the total
amount of expenses incurred by board members or employees of the
district that were reimbursed by the district for the most recent
school fiscal year.
(d) The total salary and a description and cost of each fringe
benefit included in the compensation package for the superintendent
of the district and for each employee of the district whose salary
exceeds $100,000.00.
(e) The annual amount spent on dues paid to associations.
(f) The annual amount spent on lobbying or lobbying services.
As used in this subdivision, "lobbying" means that term as defined
in section 5 of 1978 PA 472, MCL 4.415.
(g) Any deficit elimination plan or enhanced deficit
elimination plan the district was required to submit under the
revised school code.
(h) Identification of all credit cards maintained by the
district as district credit cards, the identity of all individuals
authorized to use each of those credit cards, the credit limit on
each credit card, and the dollar limit, if any, for each
individual's authorized use of the credit card.
(i) Costs incurred for each instance of out-of-state travel by
the school administrator of the district that is fully or partially
paid for by the district and the details of each of those instances
of out-of-state travel, including at least identification of each
individual on the trip, destination, and purpose.
(3) For the information required under subsection (2)(a),
(2)(b)(i), and (2)(c), an intermediate district shall provide the
same information in the same manner as required for a district
under subsection (2).
(4) For the purposes of determining the reasonableness of
expenditures, whether a district or intermediate district has
received the proper amount of funds under this article, and whether
a violation of this article has occurred, all of the following
apply:
(a) The department shall require that each district and
intermediate district have an audit of the district's or
intermediate district's financial and pupil accounting records
conducted at least annually, and at such other times as determined
by the department, at the expense of the district or intermediate
district, as applicable. The audits must be performed by a
certified public accountant or by the intermediate district
superintendent, as may be required by the department, or in the
case of a district of the first class by a certified public
accountant, the intermediate superintendent, or the auditor general
of the city. A district or intermediate district shall retain these
records for the current fiscal year and from at least the 3
immediately preceding fiscal years.
(b) If a district operates in a single building with fewer
than 700 full-time equated pupils, if the district has stable
membership, and if the error rate of the immediately preceding 2
pupil accounting field audits of the district is less than 2%, the
district may have a pupil accounting field audit conducted
biennially but must continue to have desk audits for each pupil
count. The auditor must document compliance with the audit cycle in
the pupil auditing manual. As used in this subdivision, "stable
membership" means that the district's membership for the current
fiscal year varies from the district's membership for the
immediately preceding fiscal year by less than 5%.
(c) A district's or intermediate district's annual financial
audit shall include an analysis of the financial and pupil
accounting data used as the basis for distribution of state school
aid.
(d) The pupil and financial accounting records and reports,
audits, and management letters are subject to requirements
established in the auditing and accounting manuals approved and
published by the department.
(e) All of the following shall be done not later than November
1 each year for reporting the prior fiscal year data:
(i) A district shall file the annual financial audit reports
with the intermediate district and the department.
(ii) The intermediate district shall file the annual financial
audit reports for the intermediate district with the department.
(iii) The intermediate district shall enter the pupil
membership audit reports for its constituent districts and for the
intermediate district, for the pupil membership count day and
supplemental count day, in the Michigan student data system.
(f) The annual financial audit reports and pupil accounting
procedures reports shall be available to the public in compliance
with the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(g) Not later than January 31 of each year, the department
shall notify the state budget director and the legislative
appropriations subcommittees responsible for review of the school
aid budget of districts and intermediate districts that have not
filed an annual financial audit and pupil accounting procedures
report required under this section for the school year ending in
the immediately preceding fiscal year.
(5) By November 1 each fiscal year, each district and
intermediate district shall submit to the center, in a manner
prescribed by the center, annual comprehensive financial data
consistent with the district's or intermediate district's audited
financial statements and consistent with accounting manuals and
charts of accounts approved and published by the department. For an
intermediate district, the report shall also contain the website
address where the department can access the report required under
section 620 of the revised school code, MCL 380.620. The department
shall ensure that the prescribed Michigan public school accounting
manual chart of accounts includes standard conventions to
distinguish expenditures by allowable fund function and object. The
functions shall include at minimum categories for instruction,
pupil support, instructional staff support, general administration,
school administration, business administration, transportation,
facilities operation and maintenance, facilities acquisition, and
debt service; and shall include object classifications of salary,
benefits, including categories for active employee health
expenditures, purchased services, supplies, capital outlay, and
other. Districts shall report the required level of detail
consistent with the manual as part of the comprehensive annual
financial report.
(6) By September 30 of each year, each district and
intermediate district shall file with the department the special
education actual cost report, known as "SE-4096", on a form and in
the manner prescribed by the department.
(7) By October 7 of each year, each district and intermediate
district shall file with the center the transportation expenditure
report, known as "SE-4094", on a form and in the manner prescribed
by the center.
(8) The department shall review its pupil accounting and pupil
auditing manuals at least annually and shall periodically update
those manuals to reflect changes in this article.
(9) If a district that is a public school academy purchases
property using money received under this article, the public school
academy shall retain ownership of the property unless the public
school academy sells the property at fair market value.
(10) If a district or intermediate district does not comply
with subsections (4), (5), (6), and (7), or if the department
determines that the financial data required under subsection (5)
are not consistent with audited financial statements, the
department shall withhold all state school aid due to the district
or intermediate district under this article, beginning with the
next payment due to the district or intermediate district, until
the district or intermediate district complies with subsections
(4), (5), (6), and (7). If the district or intermediate district
does not comply with subsections (4), (5), (6), and (7) by the end
of the fiscal year, the district or intermediate district forfeits
the amount withheld.
(11) If a district or intermediate district does not comply
with subsection (2), the department may withhold up to 10% of the
total state school aid due to the district or intermediate district
under this article, beginning with the next payment due to the
district or intermediate district, until the district or
intermediate district complies with subsection (2). If the district
or intermediate district does not comply with subsection (2) by the
end of the fiscal year, the district or intermediate district
forfeits the amount withheld.
(12)
Not later than By November 1
, 2016, of each year, if a
district or intermediate district offers virtual learning under
section 21f, the district or intermediate district shall submit to
the department a report that details the per-pupil costs of
operating the virtual learning by vendor type. The report shall
include at least all of the following information concerning the
operation of virtual learning for the immediately preceding school
fiscal
year: ending June 30, 2016:
(a) The name of the district operating the virtual learning
and of each district that enrolled students in the virtual
learning.
(b) The total number of students enrolled in the virtual
learning and the total number of membership pupils enrolled in the
virtual learning.
(c) For each pupil who is enrolled in a district other than
the district offering virtual learning, the name of that district.
(d) The district in which the pupil was enrolled before
enrolling in the district offering virtual learning.
(e) The number of participating students who had previously
dropped out of school.
(f) The number of participating students who had previously
been expelled from school.
(g) The total cost to enroll a student in the program. This
cost shall be reported on a per-pupil, per-course, per-semester or
trimester basis by vendor type. The total shall include costs
broken down by cost for content development, content licensing,
training, virtual instruction and instructional support, personnel,
hardware and software, payment to each virtual learning provider,
and other costs associated with operating virtual learning.
(h) The name of each virtual education provider contracted by
the district and the state in which each virtual education provider
is headquartered.
(13)
Not later than By March 31
, 2017, of each year, the
department shall submit to the house and senate appropriations
subcommittees on state school aid, the state budget director, and
the house and senate fiscal agencies a report summarizing the per-
pupil costs by vendor type of virtual courses available under
section 21f.
(14) As used in subsections (12) and (13), "vendor type" means
the following:
(a) Virtual courses provided by the Michigan Virtual
University.
(b) Virtual courses provided by a school of excellence that is
a cyber school, as defined in section 551 of the revised school
code, MCL 380.551.
(c) Virtual courses provided by third party vendors not
affiliated with a Michigan public school.
(d) Virtual courses created and offered by a district or
intermediate district.
(15) An allocation to a district or another entity under this
article is contingent upon the district's or entity's compliance
with this section.
(16) Beginning October 1, 2017, and not less than once every 3
months after that date, the department shall submit to the senate
and house subcommittees on school aid and to the senate and house
standing committees on education an itemized list of allocations
under this article to any association or consortium consisting of
associations. The report shall detail the recipient or recipients,
the amount allocated, and the purpose for which the funds were
distributed.
Sec. 18c. Any contract, mortgage, loan, or other instrument of
indebtedness
entered into by a public school academy
, the
achievement
authority, or an achievement school receiving
funds
under
this act article and a third party does not constitute an
obligation, either general, special, or moral, of this state or of
an authorizing body. The full faith and credit or the taxing power
of this state or any agency of this state, or the full faith and
credit of an authorizing body, shall not be pledged for the payment
of any contract, mortgage, loan, or other instrument of
indebtedness
entered into by a public school academy
, the
achievement
authority, or an achievement
school.
Sec.
20. (1) For 2016-2017, 2017-2018,
both of the following
apply:
(a)
The basic target foundation allowance, formerly known as
the
basic foundation allowance, is $8,229.00.$8,317.00.
(b)
The minimum foundation allowance is $7,511.00.$7,687.00.
(2) The amount of each district's foundation allowance shall
be
calculated as provided in this section, using a basic target
foundation allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount
of a district's foundation allowance shall be calculated as
follows, using in all calculations the total amount of the
district's foundation allowance as calculated before any proration:
(a) Except as otherwise provided in this subdivision, for a
district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the minimum
foundation allowance for the immediately preceding state fiscal
year,
but less than the basic target
foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the difference between twice the dollar amount of
the adjustment from the immediately preceding state fiscal year to
the
current state fiscal year made in the basic target foundation
allowance
and [(the difference between the basic target foundation
allowance
for the current state fiscal year and basic target
foundation allowance for the immediately preceding state fiscal
year
minus $20.00) $29.00) times (the difference between the
district's foundation allowance for the immediately preceding state
fiscal year and the minimum foundation allowance for the
immediately preceding state fiscal year) divided by the difference
between
the basic target foundation allowance for the current state
fiscal year and the minimum foundation allowance for the
immediately preceding state fiscal year.] However, the foundation
allowance
for a district that had less than the basic target
foundation allowance for the immediately preceding state fiscal
year
shall not exceed the basic target
foundation allowance for the
current state fiscal year.
(b) Except as otherwise provided in this subsection, for a
district that in the immediately preceding state fiscal year had a
foundation
allowance in an amount equal to the amount of the basic
target foundation allowance for the immediately preceding state
fiscal year, the district shall receive a foundation allowance for
2016-2017
2017-2018 in an amount equal to the basic target
foundation
allowance for 2016-2017.2017-2018.
(c) For a district that had a foundation allowance for the
immediately preceding state fiscal year that was greater than the
basic
target foundation allowance for the immediately preceding
state fiscal year, the district's foundation allowance is an amount
equal to the sum of the district's foundation allowance for the
immediately preceding state fiscal year plus the lesser of the
increase
in the basic target foundation allowance for the current
state fiscal year, as compared to the immediately preceding state
fiscal year, or the product of the district's foundation allowance
for the immediately preceding state fiscal year times the
percentage increase in the United States consumer price index in
the calendar year ending in the immediately preceding fiscal year
as reported by the May revenue estimating conference conducted
under section 367b of the management and budget act, 1984 PA 431,
MCL 18.1367b.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(e) For a district that received a foundation allowance
supplemental payment calculated under section 20m and paid under
section 22b for 2016-2017, the district's 2016-2017 foundation
allowance is considered to have been an amount equal to the sum of
the district's actual 2016-2017 foundation allowance as otherwise
calculated under this section plus the lesser of the per pupil
amount of the district's supplemental payment for 2016-2017 as
calculated under section 20m or the product of the district's
foundation allowance for the immediately preceding state fiscal
year times the percentage increase in the United States consumer
price index in the calendar year ending in the immediately
preceding fiscal year as reported by the May revenue estimating
conference conducted under section 367b of the management and
budget act, 1984 PA 431, MCL 18.1367b.
(4) Except as otherwise provided in this subsection, beginning
in 2014-2015, the state portion of a district's foundation
allowance is an amount equal to the district's foundation allowance
or
the basic target foundation allowance for the current state
fiscal year, whichever is less, minus the local portion of the
district's foundation allowance. For a district described in
subsection (3)(c), beginning in 2014-2015, the state portion of the
district's foundation allowance is an amount equal to $6,962.00
plus the difference between the district's foundation allowance for
the current state fiscal year and the district's foundation
allowance for 1998-99, minus the local portion of the district's
foundation allowance. For a district that has a millage reduction
required under section 31 of article IX of the state constitution
of 1963, the state portion of the district's foundation allowance
shall be calculated as if that reduction did not occur. For a
receiving district, if school operating taxes continue to be levied
on behalf of a dissolved district that has been attached in whole
or in part to the receiving district to satisfy debt obligations of
the dissolved district under section 12 of the revised school code,
MCL 380.12, the taxable value per membership pupil of property in
the receiving district used for the purposes of this subsection
does not include the taxable value of property within the
geographic area of the dissolved district. For a community
district, if school operating taxes continue to be levied by a
qualifying school district under section 12b of the revised school
code, MCL 380.12b, with the same geographic area as the community
district, the taxable value per membership pupil of property in the
community district to be used for the purposes of this subsection
does not include the taxable value of property within the
geographic area of the community district.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. For a pupil enrolled pursuant to section 105 or 105c
in a district other than the pupil's district of residence, the
allocation calculated under this section shall be based on the
lesser of the foundation allowance of the pupil's district of
residence or the foundation allowance of the educating district.
For a pupil in membership in a K-5, K-6, or K-8 district who is
enrolled in another district in a grade not offered by the pupil's
district of residence, the allocation calculated under this section
shall be based on the foundation allowance of the educating
district if the educating district's foundation allowance is
greater than the foundation allowance of the pupil's district of
residence. The calculation under this subsection shall take into
account a district's per-pupil allocation under section 20m.
(6) Except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a
public school academy, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy equal to the foundation
allowance of the district in which the public school academy is
located or the state maximum public school academy allocation,
whichever
is less. For Except as
otherwise provided in this
subsection, for pupils in membership, other than special education
pupils, in a public school academy that is a cyber school and is
authorized by a school district, the allocation calculated under
this section is an amount per membership pupil other than special
education pupils in the public school academy equal to the
foundation allowance of the district that authorized the public
school academy or the state maximum public school academy
allocation, whichever is less. However, a public school academy
that had an allocation under this subsection before 2009-2010 that
was equal to the sum of the local school operating revenue per
membership pupil other than special education pupils for the
district in which the public school academy is located and the
state portion of that district's foundation allowance shall not
have that allocation reduced as a result of the 2010 amendment to
this subsection. Notwithstanding section 101, for a public school
academy that begins operations after the pupil membership count
day, the amount per membership pupil calculated under this
subsection shall be adjusted by multiplying that amount per
membership pupil by the number of hours of pupil instruction
provided by the public school academy after it begins operations,
as determined by the department, divided by the minimum number of
hours of pupil instruction required under section 101(3). The
result of this calculation shall not exceed the amount per
membership pupil otherwise calculated under this subsection.
(7)
Except as otherwise provided in this subsection, for
pupils
attending an achievement school and in membership in the
education
achievement system, other than special education pupils,
the
allocation calculated under this section is an amount per
membership
pupil other than special education pupils equal to the
foundation
allowance of the district in which the achievement
school
is located, not to exceed the basic foundation allowance.
Notwithstanding
section 101, for an achievement school that begins
operation
after the pupil membership count day, the amount per
membership
pupil calculated under this subsection shall be adjusted
by
multiplying that amount per membership pupil by the number of
hours
of pupil instruction provided by the achievement school after
it
begins operations, as determined by the department, divided by
the
minimum number of hours of pupil instruction required under
section
101(3). The result of this calculation shall not exceed the
amount
per membership pupil otherwise calculated under this
subsection.
For the purposes of this subsection, if a public school
is
transferred from a district to the state school reform/redesign
district
or the achievement authority under section 1280c of the
revised
school code, MCL 380.1280c, that public school is
considered
to be an achievement school within the education
achievement
system and not a school that is part of a district, and
a
pupil attending that public school is considered to be in
membership
in the education achievement system and not in
membership
in the district that operated the school before the
transfer.
(7) (8)
Except as otherwise provided in
this subsection, for
pupils in membership, other than special education pupils, in a
community district, the allocation calculated under this section is
an amount per membership pupil other than special education pupils
in the community district equal to the foundation allowance of the
qualifying school district, as described in section 12b of the
revised school code, MCL 380.12b, that is located within the same
geographic area as the community district.
(8) (9)
Subject to subsection (4), for a
district that is
formed or reconfigured after June 1, 2002 by consolidation of 2 or
more districts or by annexation, the resulting district's
foundation allowance under this section beginning after the
effective date of the consolidation or annexation shall be the
lesser of the sum of the average of the foundation allowances of
each of the original or affected districts, calculated as provided
in this section, weighted as to the percentage of pupils in total
membership in the resulting district who reside in the geographic
area of each of the original or affected districts plus $100.00 or
the highest foundation allowance among the original or affected
districts. This subsection does not apply to a receiving district
unless there is a subsequent consolidation or annexation that
affects the district. The calculation under this subsection shall
take into account a district's per-pupil allocation under section
20m.
(9) (10)
Each fraction used in making
calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(10) (11)
State payments related to payment
of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(11) (12)
To assist the legislature in
determining the basic
minimum foundation allowance for the subsequent state fiscal year,
each revenue estimating conference conducted under section 367b of
the management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by
dividing the sum of the estimated total state school aid fund
revenue for the subsequent state fiscal year plus the estimated
total state school aid fund revenue for the current state fiscal
year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money
transferred into that fund from the countercyclical budget and
economic stabilization fund under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated
total school aid fund revenue for the current state fiscal year
plus the estimated total state school aid fund revenue for the
immediately preceding state fiscal year, adjusted for any change in
the rate or base of a tax the proceeds of which are deposited in
that fund. If a consensus revenue factor is not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus
index is not determined at the revenue estimating conference, the
principals of the revenue estimating conference shall report their
estimates to the house and senate subcommittees responsible for
school aid appropriations not later than 7 days after the
conclusion of the revenue conference.
(12) (13)
Payments to districts , and public
school academies
,
or the education achievement system shall
not be made under this
section. Rather, the calculations under this section shall be used
to determine the amount of state payments under section 22b.
(13) (14)
If an amendment to section 2 of
article VIII of the
state constitution of 1963 allowing state aid to some or all
nonpublic schools is approved by the voters of this state, each
foundation allowance or per-pupil payment calculation under this
section may be reduced.
(14) (15)
As used in this section:
(a) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(b) "Combined state and local revenue" means the aggregate of
the district's state school aid received by or paid on behalf of
the district under this section and the district's local school
operating revenue.
(c) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(g) "Local portion of the district's foundation allowance"
means an amount that is equal to the difference between (the sum of
the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills) and (the quotient of the
product of the captured assessed valuation under tax increment
financing acts times the district's certified mills divided by the
district's membership excluding special education pupils).
(h) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211. For a receiving district, if school operating taxes are
to be levied on behalf of a dissolved district that has been
attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, local school operating revenue
does not include school operating taxes levied within the
geographic area of the dissolved district.
(i) "Local school operating revenue per membership pupil"
means a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(j) "Maximum public school academy allocation", except as
otherwise provided in this subdivision, means the maximum per-pupil
allocation as calculated by adding the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year plus the difference between twice the amount of
the
difference between the basic target
foundation allowance for
the
current state fiscal year and the basic target foundation
allowance for the immediately preceding state fiscal year and [(the
amount
of the difference between the basic target foundation
allowance
for the current state fiscal year and the basic target
foundation allowance for the immediately preceding state fiscal
year
minus $20.00) $29.00) times (the difference between the
highest per-pupil allocation among all public school academies for
the immediately preceding state fiscal year and the minimum
foundation allowance for the immediately preceding state fiscal
year)
divided by the difference between the basic target foundation
allowance for the current state fiscal year and the minimum
foundation allowance for the immediately preceding state fiscal
year.]
For the purposes of this subdivision, for 2016-2017, 2017-
2018, the maximum public school academy allocation is
$7,511.00.$7,687.00.
(k) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(l) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, supportive housing property, industrial personal
property, commercial personal property, or property occupied by a
public school academy.
(m) "Principal residence", "qualified agricultural property",
"qualified forest property", "supportive housing property",
"industrial personal property", and "commercial personal property"
mean those terms as defined in section 1211 of the revised school
code, MCL 380.1211.
(n) "Receiving district" means a district to which all or part
of the territory of a dissolved district is attached under section
12 of the revised school code, MCL 380.12.
(o) "School operating purposes" means the purposes included in
the operation costs of the district as prescribed in sections 7 and
18 and purposes authorized under section 1211 of the revised school
code, MCL 380.1211.
(p) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(q) "Target foundation allowance for the immediately preceding
state fiscal year" means, for 2017-2018 only, the basic foundation
allowance in effect for the 2016-2017 fiscal year.
(r) (q)
"Tax increment financing
acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(s) (r)
"Taxable value per membership
pupil" means taxable
value, as certified by the county treasurer and reported to the
department, for the calendar year ending in the current state
fiscal year divided by the district's membership excluding special
education pupils for the school year ending in the current state
fiscal year.
(15) For the purposes of section 1211 of the revised school
code, MCL 380.1211, the basic foundation allowance under this
section is considered to be the target foundation allowance under
this section.
Sec. 20d. In making the final determination required under
former section 20a of a district's combined state and local revenue
per membership pupil in 1993-94 and in making calculations under
section
20 for 2016-2017, a
subsequent fiscal year, the department
and the department of treasury shall comply with all of the
following:
(a) For a district that had combined state and local revenue
per membership pupil in the 1994-95 state fiscal year of $6,500.00
or more and served as a fiscal agent for a state board designated
area vocational education center in the 1993-94 school year, total
state school aid received by or paid on behalf of the district
pursuant to this act in 1993-94 shall exclude payments made under
former section 146 and under section 147 on behalf of the
district's employees who provided direct services to the area
Senate Bill No. 149 as amended May 3, 2017
vocational education center. Not later than June 30, 1996, the
department shall make an adjustment under this subdivision to the
district's combined state and local revenue per membership pupil in
the 1994-95 state fiscal year and the department of treasury shall
make a final certification of the number of mills that may be
levied by the district under section 1211 of the revised school
code, MCL 380.1211, as a result of the adjustment under this
subdivision.
(b) If a district had an adjustment made to its 1993-94 total
state school aid that excluded payments made under former section
146 and under section 147 on behalf of the district's employees who
provided direct services for intermediate district center programs
operated
by the district under article 5, sections 51 to 56, if
nonresident pupils attending the center programs were included in
the district's membership for purposes of calculating the combined
state and local revenue per membership pupil for 1993-94, and if
there is a signed agreement by all constituent districts of the
intermediate district that an adjustment under this subdivision
shall be made, the foundation allowances for 1995-96 and 1996-97 of
all districts that had pupils attending the intermediate district
center program operated by the district that had the adjustment
shall be calculated as if their combined state and local revenue
per membership pupil for 1993-94 included resident pupils attending
the center program and excluded nonresident pupils attending the
center program.
Sec. 20f. (1) From the funds appropriated in section 11, there
is
allocated an amount not to exceed <<$18,000,000.00$19,400,000.00>>
for
2016-2017
2017-2018 for payments to eligible districts under this section.
(2) The funding under this subsection is from the allocation
under subsection (1). A district is eligible for funding under this
subsection if the district received a payment under this section as
it was in effect for 2013-2014. A district was eligible for funding
in 2013-2014 if the sum of the following was less than $5.00:
(a) The increase in the district's foundation allowance or
per-pupil payment as calculated under section 20 from 2012-2013 to
2013-2014.
(b) The district's equity payment per membership pupil under
former section 22c for 2013-2014.
(c) The quotient of the district's allocation under section
147a for 2012-2013 divided by the district's membership pupils for
2012-2013 minus the quotient of the district's allocation under
section 147a for 2013-2014 divided by the district's membership
pupils for 2013-2014.
(3) The amount allocated to each eligible district under
subsection (2) is an amount per membership pupil equal to the
amount per membership pupil the district received under this
section in 2013-2014.
(4) The funding under this subsection is from the allocation
under subsection (1). A district is eligible for funding under this
subsection
for 2016-2017 if the sum of the following is less than
$25.00:
(a) The increase in the district's foundation allowance or
per-pupil payment as calculated under section 20 from 2014-2015 to
2015-2016.
Senate Bill No. 149 as amended May 3, 2017 (1 of 2)
(b) The decrease in the district's best practices per-pupil
funding under former section 22f from 2014-2015 to 2015-2016.
(c) The decrease in the district's pupil performance per-pupil
funding under former section 22j from 2014-2015 to 2015-2016.
(d) The quotient of the district's allocation under section
31a for 2015-2016 divided by the district's membership pupils for
2015-2016 minus the quotient of the district's allocation under
section 31a for 2014-2015 divided by the district's membership
pupils for 2014-2015.
(5) The amount allocated to each eligible district under
subsection (4) is an amount per membership pupil equal to $25.00
minus the sum of the following:
(a) The increase in the district's foundation allowance or
per-pupil payment as calculated under section 20 from 2014-2015 to
2015-2016.
(b) The decrease in the district's best practices per-pupil
funding under former section 22f from 2014-2015 to 2015-2016.
(c) The decrease in the district's pupil performance per-pupil
funding under former section 22j from 2014-2015 to 2015-2016.
(d) The quotient of the district's allocation under section
31a for 2015-2016 divided by the district's membership pupils for
2015-2016 minus the quotient of the district's allocation under
section 31a for 2014-2015 divided by the district's membership
pupils for 2014-2015.
<<(6) THE FUNDING UNDER THIS SUBSECTION IS FROM THE ALLOCATION UNDER SUBSECTION (1). A DISTRICT IS ELIGIBLE FOR FUNDING UNDER THIS SUBSECTION FOR 2017-2018 IF THE SUM OF THE FOLLOWING IS LESS THAN $0.00:
(A) THE INCREASE IN THE DISTRICT'S FOUNDATION ALLOWANCE OR PER-PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FROM 2016-2017 TO 2017-2018.
(B) THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2017-2018 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2017-2018 MINUS THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017.
Senate Bill No. 149 as amended May 3, 2017 (2 of 2)
(C) THE PRODUCT OF THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 147A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017, MULTIPLIED BY NEGATIVE ONE.
(7) THE AMOUNT ALLOCATED TO EACH ELIGIBLE DISTRICT UNDER SUBSECTION (6) IS AN AMOUNT PER MEMBERSHIP PUPIL EQUAL TO $0.00 MINUS THE SUM OF THE FOLLOWING:
(A) THE INCREASE IN THE DISTRICT'S FOUNDATION ALLOWANCE OR PER-PUPIL PAYMENT AS CALCULATED UNDER SECTION 20 FROM 2016-2017 TO 2017-2018.
(B) THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2017-2018 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2017-2018 MINUS THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 31A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017.
(C) THE PRODUCT OF THE QUOTIENT OF THE DISTRICT'S ALLOCATION UNDER SECTION 147A FOR 2016-2017 DIVIDED BY THE DISTRICT'S MEMBERSHIP PUPILS FOR 2016-2017, MULTIPLIED BY NEGATIVE ONE.>>
<<(8)(6)>> If the
allocation under subsection (1) is insufficient
to
fully
fund payments under subsections <<(3) and (5)(3), (5), AND
(7)>> as otherwise
calculated under this section, the department shall prorate
payments under this section on an equal per-pupil basis.
Sec. 20m. (1) Foundation allowance supplemental payments for
2016-2017
2017-2018 to districts that in the 2015-2016 fiscal year
had a foundation allowance greater than $8,169.00 shall be
calculated under this section.
(2) The per-pupil allocation to each district under this
section shall be the difference between the dollar amount of the
adjustment
from the immediately preceding 2015-2016
state fiscal
year
to the current state fiscal year in the basic target
foundation allowance minus the dollar amount of the adjustment from
the
immediately preceding 2015-2016
fiscal year to the current
state fiscal year in a qualifying district's foundation allowance.
(3) If a district's local revenue per pupil does not exceed
the sum of its foundation allowance under section 20 plus the per-
pupil allocation under subsection (2), the total payment to the
district calculated under this section shall be the product of the
per-pupil allocation under subsection (2) multiplied by the
district's membership excluding special education pupils. If a
district's local revenue per pupil exceeds the foundation allowance
under section 20 but does not exceed the sum of the foundation
allowance under section 20 plus the per-pupil allocation under
subsection (2), the total payment to the district calculated under
this section shall be the product of the difference between the sum
of the foundation allowance under section 20 plus the per-pupil
allocation under subsection (2) minus the local revenue per pupil
multiplied by the district's membership excluding special education
pupils. If a district's local revenue per pupil exceeds the sum of
the foundation allowance under section 20 plus the per-pupil
allocation under subsection (2), there is no payment calculated
under this section for the district.
(4) Payments to districts shall not be made under this
section. Rather, the calculations under this section shall be made
and used to determine the amount of state payments under section
22b.
Sec. 21. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $5,000,000.00 for 2016-2017 and
there is allocated an amount not to exceed $100.00 for 2017-2018 to
make supplemental payments to eligible districts that are
identified under section 1280c of the revised school code, MCL
380.1280c, as being among the lowest achieving 5% of all public
schools in this state.
(2) A district is eligible to receive the supplemental
payments calculated under this section for 3 consecutive fiscal
years if all of the following conditions are met:
(a) The state school reform/redesign officer has appointed a
chief executive officer to take control of 1 or more public schools
in the district, as provided for in section 1280c(7) of the revised
school code, MCL 380.1280c, and there is at least 1 high school
operated by the district.
(b) As determined by the school reform office, an intervention
agreement meeting at least the following criteria has been executed
by the state school reform/redesign officer and the district. The
intervention agreement shall include, but is not limited to:
(i) The rights and responsibilities of the chief executive
officer. However, the intervention agreement shall not mitigate the
authority of the chief executive officer prescribed in applicable
statute including financial and employment authority.
(ii) The allocation of supplemental payments under this
section.
(iii) The compensation for the chief executive officer.
(iv) The role of the district's board and officers during the
intervention term.
(v) Termination and renewal rights of the school reform
office.
(vi) Liability provisions for the chief executive officer.
(vii) A dispute resolution process.
(viii) The length of the term of the agreement.
(ix) Other provisions as determined by the school reform
office for successful implementation of the chief executive officer
intervention.
(c) The district has not entered into and is not currently
operating under a local government option under the local financial
stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or
a successor act.
(3) The state school reform/redesign officer, at least
annually, shall appear in person before the house and senate
appropriations subcommittees responsible for school aid to provide
an update on the yearly progress of schools under the control of a
chief executive officer. In addition, the state school
reform/redesign officer shall provide a quarterly report concerning
the chief executive officer's use of funds to increase pupil
achievement.
(4) The supplemental payment provided to a district under this
section shall be calculated by multiplying the district's
foundation allowance by 20% of the high school's membership for the
prior fiscal year. The same dollar amount shall continue to be
available to the district for a maximum of 3 years, subject to the
conditions specified in subsection (2).
(5) From the allocation in subsection (1), in addition to the
supplemental payments calculated under subsection (4), there is
allocated an amount sufficient to pay for the appointment of chief
executive officers by the state school reform/redesign officer, as
provided for in section 1280c(7) of the revised school code, MCL
380.1280c.
(6) For the purposes of this section, a high school is a
school that operates exclusively all of grades 9 to 12.
(7) The funds allocated under this section for 2016-2017 are a
work project appropriation, and any unexpended funds for 2016-2017
are carried forward into 2017-2018. The purpose of the work project
is to make the second and third year supplemental payments to
districts as calculated under subsection (4). The estimated
completion date of the work project is September 30, 2019.
Sec. 21h. (1) From the appropriation in section 11, there is
allocated $100.00 for 2017-2018 for assisting districts assigned by
the superintendent to participate in a partnership to improve
student achievement. The purpose of the partnership is to identify
district needs, develop intervention plans, and partner with
public, private, and nonprofit organizations to coordinate
resources and improve student achievement. Assignment of a district
to a partnership is at the sole discretion of the superintendent.
(2) A district assigned to a partnership by the superintendent
is eligible for funding under this section if the district includes
at least 1 school that has been rated with a grade of "F", or
comparable performance rating, in the most recent state
accountability system rating, that is not under the supervision of
the state school reform/redesign office, and that does all of the
following:
(a) Completes a comprehensive needs evaluation in
collaboration with an intermediate school district, community
members, education organizations, and postsecondary institutions,
as applicable and approved by the superintendent, within 90 days of
assignment to the partnership described in this section. The
comprehensive needs evaluation shall include at least all of the
following:
(i) A review of the district's implementation and utilization
of a multi-tiered system of supports to ensure that it is used to
appropriately inform instruction.
(ii) A review of the district and school building leadership
and educator capacity to substantially improve student outcomes.
(iii) A review of classroom, instructional, and operational
practices and curriculum to ensure alignment with research-based
instructional practices and state curriculum standards.
(b) Develops an intervention plan that has been approved by
the superintendent and that addresses the needs identified in the
comprehensive needs evaluation completed under subdivision (a). The
intervention plan shall include at least all of the following:
(i) Specific actions that will be taken by the district and
each of its partners to improve student achievement.
(ii) Specific measurable benchmarks that will be met within 18
months to improve student achievement and identification of
expected student achievement outcomes to be attained within 3 years
after assignment to the partnership.
(3) Upon approval of the intervention plan developed under
subsection (2), the department shall assign a team of individuals
with expertise in comprehensive school and district reform to
partner with the district, the intermediate district, community
organizations, education organizations, and postsecondary
institutions identified in the intervention plan to review the
district's use of existing financial resources to ensure that those
resources are being used as efficiently and effectively as possible
to improve student academic achievement.
(4) Funds allocated under this section may be used to pay for
district expenditures approved by the superintendent to improve
student achievement. Funds may be used for professional development
for teachers or district or school leadership, increased
instructional time, teacher mentors, or other expenditures that
directly impact student achievement and cannot be paid from
existing district financial resources. An eligible district shall
not receive funds under this section for more than 3 years.
Notwithstanding section 17b, payments to eligible districts under
this section shall be paid on a schedule determined by the
department.
(5) The department shall annually report to the legislature on
the activities funded under this section and how those activities
impacted student achievement in eligible districts that received
funds under this section.
Sec. 21j. From the funds appropriated in section 11, there is
allocated an amount not to exceed $8,000,000.00 for 2017-2018 for
academic early warning, intervention, and supplemental funding to
districts under sections 21 and 21h. Money allocated under this
section is only available for transfer to section 21 or 21h under
section 393(2) of the management and budget act, 1984 PA 431, MCL
18.1393.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,260,000,000.00 for 2015-2016
and
an amount not to exceed $5,205,000,000.00
$5,199,000,000.00 for
2016-2017 and there is allocated an amount not to exceed
$5,176,000,000.00 for 2017-2018 for payments to districts and
qualifying public school academies to guarantee each district and
qualifying public school academy an amount equal to its 1994-95
total state and local per pupil revenue for school operating
purposes under section 11 of article IX of the state constitution
of 1963. Pursuant to section 11 of article IX of the state
constitution of 1963, this guarantee does not apply to a district
in a year in which the district levies a millage rate for school
district operating purposes less than it levied in 1994. However,
subsection (2) applies to calculating the payments under this
section. Funds allocated under this section that are not expended
in the state fiscal year for which they were allocated, as
determined by the department, may be used to supplement the
allocations under sections 22b and 51c in order to fully fund those
calculated allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the
district's 1994-95 total state and local per pupil revenue for
school operating purposes, there is allocated to each district a
state portion of the district's 1994-95 foundation allowance in an
amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state
portion of a district's 1994-95 foundation allowance is an amount
equal to the district's 1994-95 foundation allowance or $6,500.00,
whichever is less, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership. For
a district that has a millage reduction required under section 31
of article IX of the state constitution of 1963, the state portion
of the district's foundation allowance shall be calculated as if
that reduction did not occur. For a receiving district, if school
operating taxes are to be levied on behalf of a dissolved district
that has been attached in whole or in part to the receiving
district to satisfy debt obligations of the dissolved district
under section 12 of the revised school code, MCL 380.12, taxable
value per membership pupil of all property in the receiving
district that is nonexempt property and taxable value per
membership pupil of property in the receiving district that is
commercial personal property do not include property within the
geographic area of the dissolved district; ad valorem property tax
revenue of the receiving district captured under tax increment
financing acts does not include ad valorem property tax revenue
captured within the geographic boundaries of the dissolved district
under tax increment financing acts; and certified mills do not
include the certified mills of the dissolved district. For a
community district, the allocation as otherwise calculated under
this section shall be reduced by an amount equal to the amount of
local school operating tax revenue that would otherwise be due to
the community district if not for the operation of section 386 of
the revised school code, MCL 380.386, and the amount of this
reduction shall be offset by the increase in funding under section
22b(2).
(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection
shall be the sum of the amount calculated under subdivision (a)
plus the amount calculated under this subdivision. The amount
calculated under this subdivision shall be equal to the difference
between the district's 1994-95 foundation allowance minus $6,500.00
and the current year hold harmless school operating taxes per
pupil. If the result of the calculation under subdivision (a) is
negative, the negative amount shall be an offset against any state
payment calculated under this subdivision. If the result of a
calculation under this subdivision is negative, there shall not be
a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this
subdivision are as adjusted by ad valorem property tax revenue
captured under tax increment financing acts divided by the
district's membership. For a receiving district, if school
operating taxes are to be levied on behalf of a dissolved district
that has been attached in whole or in part to the receiving
district to satisfy debt obligations of the dissolved district
under section 12 of the revised school code, MCL 380.12, ad valorem
property tax revenue captured under tax increment financing acts do
not include ad valorem property tax revenue captured within the
geographic boundaries of the dissolved district under tax increment
financing acts.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy, there is allocated under this
section to the authorizing body that is the fiscal agent for the
qualifying public school academy for forwarding to the qualifying
public school academy an amount equal to the 1994-95 per pupil
payment to the qualifying public school academy under section 20.
(4) A district or qualifying public school academy may use
funds allocated under this section in conjunction with any federal
funds for which the district or qualifying public school academy
otherwise would be eligible.
(5) Except as otherwise provided in this subsection, for a
district that is formed or reconfigured after June 1, 2000 by
consolidation of 2 or more districts or by annexation, the
resulting district's 1994-95 foundation allowance under this
section beginning after the effective date of the consolidation or
annexation shall be the average of the 1994-95 foundation
allowances of each of the original or affected districts,
calculated as provided in this section, weighted as to the
percentage of pupils in total membership in the resulting district
in the state fiscal year in which the consolidation takes place who
reside in the geographic area of each of the original districts. If
an affected district's 1994-95 foundation allowance is less than
the 1994-95 basic foundation allowance, the amount of that
district's 1994-95 foundation allowance shall be considered for the
purpose of calculations under this subsection to be equal to the
amount of the 1994-95 basic foundation allowance. This subsection
does not apply to a receiving district unless there is a subsequent
consolidation or annexation that affects the district.
(6) Payments under this section are subject to section
25f.25g.
(7) As used in this section:
(a) "1994-95 foundation allowance" means a district's 1994-95
foundation allowance calculated and certified by the department of
treasury or the superintendent under former section 20a as enacted
in 1993 PA 336 and as amended by 1994 PA 283.
(b) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(c) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(d) "Current year hold harmless school operating taxes per
pupil" means the per pupil revenue generated by multiplying a
district's 1994-95 hold harmless millage by the district's current
year taxable value per membership pupil. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved
district that has been attached in whole or in part to the
receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12,
taxable value per membership pupil does not include the taxable
value of property within the geographic area of the dissolved
district.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal
property, commercial personal property, and property occupied by a
public school academy could be reduced as provided in section 1211
of the revised school code, MCL 380.1211, and the number of mills
of school operating taxes that could be levied on all property as
provided in section 1211(2) of the revised school code, MCL
380.1211, as certified by the department of treasury for the 1994
tax year. For a receiving district, if school operating taxes are
to be levied on behalf of a dissolved district that has been
attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, school operating taxes do not
include school operating taxes levied within the geographic area of
the dissolved district.
(g) "Homestead", "qualified agricultural property", "qualified
forest property", "supportive housing property", "industrial
personal property", and "commercial personal property" mean those
terms as defined in section 1211 of the revised school code, MCL
380.1211.
(h) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(i) "Nonexempt property" means property that is not a
principal residence, qualified agricultural property, qualified
forest property, supportive housing property, industrial personal
property, commercial personal property, or property occupied by a
public school academy.
(j) "Qualifying public school academy" means a public school
academy that was in operation in the 1994-95 school year and is in
operation in the current state fiscal year.
(k) "Receiving district" means a district to which all or part
of the territory of a dissolved district is attached under section
12 of the revised school code, MCL 380.12.
(l) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes as defined in
section 20.
(m) "Tax increment financing acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(n) "Taxable value per membership pupil" means each of the
following divided by the district's membership:
(i) For the number of mills by which the exemption from the
levy of school operating taxes on a homestead, qualified
agricultural property, qualified forest property, supportive
housing property, industrial personal property, commercial personal
property, and property occupied by a public school academy may be
reduced as provided in section 1211 of the revised school code, MCL
380.1211, the taxable value of homestead, qualified agricultural
property, qualified forest property, supportive housing property,
industrial personal property, commercial personal property, and
property occupied by a public school academy for the calendar year
ending in the current state fiscal year. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved
district that has been attached in whole or in part to the
receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12,
mills do not include mills within the geographic area of the
dissolved district.
(ii) For the number of mills of school operating taxes that
may be levied on all property as provided in section 1211(2) of the
revised school code, MCL 380.1211, the taxable value of all
property for the calendar year ending in the current state fiscal
year. For a receiving district, if school operating taxes are to be
levied on behalf of a dissolved district that has been attached in
whole or in part to the receiving district to satisfy debt
obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, school operating taxes do not
include school operating taxes levied within the geographic area of
the dissolved district.
Sec. 22b. (1) For discretionary nonmandated payments to
districts
under this section, there is allocated from the
appropriation
in section 11 an amount not to exceed
$3,692,000,000.00
for 2015-2016, and there is
allocated for 2016-
2017
an amount not to exceed $3,828,000,000.00 $3,844,000,000.00
from the state school aid fund and general fund appropriations in
section 11 and an amount not to exceed $72,000,000.00 from the
community district education trust fund appropriation in section
11, and there is allocated for 2017-2018 an amount not to exceed
$4,038,000,000.00 from the state school aid fund and general fund
appropriations in section 11 and an amount not to exceed
$72,000,000.00 from the community district education trust fund
appropriation in section 11. Except for money allocated from the
community district trust fund, money allocated under this section
that is not expended in the state fiscal year for which it was
allocated, as determined by the department, may be used to
supplement the allocations under sections 22a and 51c in order to
fully fund those calculated allocations for the same fiscal year.
(2) Subject to subsection (3) and section 296, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 20m, 51a(2),
51a(3), and 51a(11), minus the sum of the allocations to the
district under sections 22a and 51c. For a community district, the
allocation as otherwise calculated under this section shall be
increased by an amount equal to the amount of local school
operating tax revenue that would otherwise be due to the community
district if not for the operation of section 386 of the revised
school code, MCL 380.386, and this increase shall be paid from the
community district education trust fund allocation in subsection
(1) in order to offset the absence of local school operating
revenue in a community district in the funding of the state portion
of the foundation allowance under section 20(4).
(3) In order to receive an allocation under subsection (1),
each district shall do all of the following:
(a) Comply with section 1280b of the revised school code, MCL
380.1280b.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner
specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL
380.1230g.
(e) Comply with section 21f.
(4) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources,
and other business function software that is compatible with that
of the intermediate district in which the district is located and
with other districts located within that intermediate district.
(5) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state related to commercial or industrial property tax appeals,
including, but not limited to, appeals of classification, that
impact revenues dedicated to the state school aid fund.
(6) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state associated with lawsuits filed by 1 or more districts or
intermediate districts against this state. If the allocation under
this section is insufficient to fully fund all payments required
under this section, the payments under this subsection shall be
made in full before any proration of remaining payments under this
section.
(7) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by
an entity receiving funds under this article that challenges the
legislative determination of the adequacy of this funding or
alleges that there exists an unfunded constitutional requirement,
the state budget director may escrow or allocate from the
discretionary funds for nonmandated payments under this section the
amount as may be necessary to satisfy the claim before making any
payments to districts under subsection (2). If funds are escrowed,
the escrowed funds are a work project appropriation and the funds
are carried forward into the following fiscal year. The purpose of
the work project is to provide for any payments that may be awarded
to districts as a result of litigation. The work project shall be
completed upon resolution of the litigation.
(8) If the local claims review board or a court of competent
jurisdiction makes a final determination that this state is in
violation of section 29 of article IX of the state constitution of
1963 regarding state payments to districts, the state budget
director shall use work project funds under subsection (7) or
allocate from the discretionary funds for nonmandated payments
under this section the amount as may be necessary to satisfy the
amount owed to districts before making any payments to districts
under subsection (2).
(9) If a claim is made in court that challenges the
legislative determination of the adequacy of funding for this
state's constitutional obligations or alleges that there exists an
unfunded constitutional requirement, any interested party may seek
an expedited review of the claim by the local claims review board.
If the claim exceeds $10,000,000.00, this state may remove the
action to the court of appeals, and the court of appeals shall have
and shall exercise jurisdiction over the claim.
(10) If payments resulting from a final determination by the
local claims review board or a court of competent jurisdiction that
there has been a violation of section 29 of article IX of the state
constitution of 1963 exceed the amount allocated for discretionary
nonmandated payments under this section, the legislature shall
provide for adequate funding for this state's constitutional
obligations at its next legislative session.
(11) If a lawsuit challenging payments made to districts
related to costs reimbursed by federal title XIX Medicaid funds is
filed against this state, then, for the purpose of addressing
potential liability under such a lawsuit, the state budget director
may place funds allocated under this section in escrow or allocate
money from the funds otherwise allocated under this section, up to
a maximum of 50% of the amount allocated in subsection (1). If
funds are placed in escrow under this subsection, those funds are a
work project appropriation and the funds are carried forward into
the following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of the litigation. The work project shall be completed upon
resolution of the litigation. In addition, this state reserves the
right to terminate future federal title XIX Medicaid reimbursement
payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection,
"title XIX" means title XIX of the social security act, 42 USC 1396
to 1396v.
Sec. 22d. (1) From the appropriation in section 11, an amount
not
to exceed $5,000,000.00 is allocated for 2016-2017 2017-2018
for supplemental payments to rural districts under this section.
(2) From the allocation under subsection (1), there is
allocated
for 2016-2017 2017-2018 an amount not to exceed
$957,300.00 for payments under this subsection to districts that
meet all of the following:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at
least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from
any other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible
district under subsection (2) shall be determined under a spending
plan developed as provided in this subsection and approved by the
superintendent of public instruction. The spending plan shall be
developed cooperatively by the intermediate superintendents of each
intermediate district in which an eligible district is located. The
intermediate superintendents shall review the financial situation
of each eligible district, determine the minimum essential
financial needs of each eligible district, and develop and agree on
a spending plan that distributes the available funding under
subsection (2) to the eligible districts based on those financial
needs. The intermediate superintendents shall submit the spending
plan to the superintendent of public instruction for approval. Upon
approval by the superintendent of public instruction, the amounts
specified for each eligible district under the spending plan are
allocated under subsection (2) and shall be paid to the eligible
districts in the same manner as payments under section 22b.
(4) Subject to subsection (6), from the allocation in
subsection
(1), there is allocated for 2016-2017 2017-2018 an
amount not to exceed $4,042,700.00 for payments under this
subsection to districts that have 7.3 or fewer pupils per square
mile as determined by the department.
(5) The funds allocated under subsection (4) shall be
allocated on an equal per-pupil basis.
(6) A district receiving funds allocated under subsection (2)
is not eligible for funding allocated under subsection (4).
Sec. 22g. (1) From the funds appropriated in section 11, there
is allocated for 2016-2017 only an amount not to exceed $500,000.00
for competitive assistance grants to districts and intermediate
districts.
(2) Funds received under this section may be used for
reimbursement of transition costs associated with the dissolution,
consolidation, or annexation of districts or intermediate
districts. Grant funding shall be available for dissolutions,
consolidations, or annexations that occur on or after June 1, 2016.
Districts may spend funds allocated under this section over 3
fiscal years.
(3) In addition to the amount allocated under subsection (1),
from the funds appropriated in section 11, there is allocated for
2016-2017 an amount not to exceed $2,500,000.00 for grants to
districts or intermediate districts that received a grant under
this section as it was in effect for 2015-2016 for reimbursement of
remaining transition costs associated with a dissolution,
consolidation, or annexation that was approved during 2015-2016 by
the school electors of the applicable district or intermediate
district.
(4) Notwithstanding section 17b, grant payments under this
section shall be paid on a schedule determined by the department.
Sec. 22m. (1) From the appropriations in section 11, there is
allocated for 2017-2018 an amount not to exceed $1,100,000.00 for
supporting the integration of local data systems into the Michigan
data hub network based on common standards and applications that
are in compliance with section 19(7).
(2) An entity that is the fiscal agent for no more than 5
consortia of intermediate districts that previously received
funding from the technology readiness infrastructure grant under
former section 22i for the purpose of establishing regional data
hubs that are part of the Michigan data hub network is eligible for
funding under this section.
(3) The center shall work with an advisory committee composed
of representatives from intermediate districts within each of the
data hub regions to coordinate the activities of the Michigan data
hub network.
(4) The center, in collaboration with the Michigan data hub
network, shall determine the amount of funds distributed under this
section to each participating regional data hub within the network,
based upon a competitive grant process. Entities receiving funding
under this section shall represent geographically diverse areas in
this state.
(5) Notwithstanding section 17b, payments under this section
shall be made on a schedule determined by the center.
(6) To receive funding under this section, a regional data hub
must have a governance model that ensures local control of data,
data security, and student privacy issues. The integration of data
within each of the regional data hubs shall provide for the
actionable use of data by districts and intermediate districts
through common reports and dashboards and for efficiently providing
information to meet state and federal reporting purposes.
(7) Participation by a data hub region or an intermediate
district in the Michigan data hub network under this section is
voluntary and is not required.
(8) Entities receiving funding under this section shall use
the funds for all of the following:
(a) Creating an infrastructure that effectively manages the
movement of data between data systems used by intermediate
districts, districts, and other educational organizations in
Michigan based on common data standards to improve student
achievement.
(b) Utilizing the infrastructure to put in place commonly
needed integrations, reducing cost and effort to do that work while
increasing data accuracy and usability.
(c) Promoting the use of a more common set of applications by
promoting systems that integrate with the Michigan data hub
network.
(d) Promoting 100% district adoption of the Michigan data hub
network by September 30, 2018.
(e) Ensuring local control of data, data security, and student
data privacy.
(f) Utilizing the infrastructure to promote the actionable use
of data through common reports and dashboards that are consistent
statewide.
(g) Creating a governance model to facilitate sustainable
operations of the infrastructure in the future, including
administration, legal agreements, documentation, staffing, hosting,
and funding.
(h) Evaluating future data initiatives at all levels to
determine whether the initiatives can be enhanced by using the
standardized environment in the Michigan data hub network.
(9) Not later than January 1, 2018, the department shall
prepare a summary report of information provided by each entity
that received funds under this section that includes measurable
outcomes based on the objectives described under this section. The
report shall include a summary of compiled data from each entity to
provide a means to evaluate the effectiveness of the project. The
department shall submit the report to the house and senate
appropriations subcommittees on state school aid and on the
department budget and to the house and senate fiscal agencies.
(10) The center and the advisory committee established under
subsection (3) shall work to achieve 100% district adoption of the
Michigan data hub network by September 30, 2018.
Sec. 24. (1) From the appropriation in section 11, there is
allocated
for 2016-2017 2017-2018 an amount not to exceed
$8,000,000.00 for payments to the educating district or
intermediate district for educating pupils assigned by a court or
the department of health and human services to reside in or to
attend a juvenile detention facility or child caring institution
licensed by the department of health and human services and
approved by the department to provide an on-grounds education
program. The amount of the payment under this section to a district
or intermediate district shall be calculated as prescribed under
subsection (2).
(2) The total amount allocated under this section shall be
allocated by paying to the educating district or intermediate
district an amount equal to the lesser of the district's or
intermediate district's added cost or the department's approved
per-pupil allocation for the district or intermediate district. For
the purposes of this subsection:
(a) "Added cost" means 100% of the added cost each fiscal year
for educating all pupils assigned by a court or the department of
health and human services to reside in or to attend a juvenile
detention facility or child caring institution licensed by the
department of health and human services or the department of
licensing and regulatory affairs and approved by the department to
provide an on-grounds education program. Added cost shall be
computed by deducting all other revenue received under this article
for pupils described in this section from total costs, as approved
by the department, in whole or in part, for educating those pupils
in the on-grounds education program or in a program approved by the
department that is located on property adjacent to a juvenile
detention facility or child caring institution. Costs reimbursed by
federal funds are not included.
(b) "Department's approved per-pupil allocation" for a
district or intermediate district shall be determined by dividing
the total amount allocated under this section for a fiscal year by
the full-time equated membership total for all pupils approved by
the department to be funded under this section for that fiscal year
for the district or intermediate district.
(3) A district or intermediate district educating pupils
described in this section at a residential child caring institution
may operate, and receive funding under this section for, a
department-approved on-grounds educational program for those pupils
that is longer than 181 days, but not longer than 233 days, if the
child caring institution was licensed as a child caring institution
and offered in 1991-92 an on-grounds educational program that was
longer than 181 days but not longer than 233 days and that was
operated by a district or intermediate district.
(4) Special education pupils funded under section 53a shall
not be funded under this section.
Sec.
24a. From the appropriation in section 11, there is
allocated
an amount not to exceed $1,301,000.00 for 2015-2016 and
there
is allocated an amount not to exceed $1,328,100.00 for 2016-
2017
$1,339,000.00 for 2017-2018 for payments to intermediate
districts for pupils who are placed in juvenile justice service
facilities operated by the department of health and human services.
Each intermediate district shall receive an amount equal to the
state share of those costs that are clearly and directly
attributable to the educational programs for pupils placed in
facilities described in this section that are located within the
intermediate district's boundaries. The intermediate districts
receiving payments under this section shall cooperate with the
department of health and human services to ensure that all funding
allocated under this section is utilized by the intermediate
district and department of health and human services for
educational programs for pupils described in this section. Pupils
described in this section are not eligible to be funded under
section 24. However, a program responsibility or other fiscal
responsibility associated with these pupils shall not be
transferred from the department of health and human services to a
district or intermediate district unless the district or
intermediate district consents to the transfer.
Sec. 24c. From the appropriation in section 11, there is
allocated
an amount not to exceed $1,632,400.00 for 2016-2017
$1,528,400.00 for 2017-2018 for payments to districts for pupils
who are enrolled in a nationally administered community-based
education and youth mentoring program, known as the youth challenge
program, that is administered by the department of military and
veterans affairs. Both of the following apply to a district
receiving payments under this section:
(a) The district shall contract with the department of
military and veterans affairs to ensure that all funding allocated
under this section is utilized by the district and the department
of military and veterans affairs for the youth challenge program.
(b) The district may retain for its administrative expenses an
amount not to exceed 3% of the amount of the payment the district
receives under this section.
Sec. 25f. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to
exceed
$750,000.00 for 2016-2017 2017-2018
for payments to strict
discipline academies established under sections 1311b to 1311m of
the revised school code, MCL 380.1311b to 380.1311m, as provided
under this section.
(2) In order to receive funding under this section, a strict
discipline academy shall first comply with section 25e and use the
pupil transfer process under that section for changes in enrollment
as prescribed under that section.
(3) The total amount allocated to a strict discipline academy
under this section is an amount equal to the lesser of the strict
discipline academy's added cost or the department's approved per-
pupil allocation for the strict discipline academy. However, the
sum of the amounts received by a strict discipline academy under
this section and under section 24 shall not exceed the product of
the strict discipline academy's per-pupil allocation calculated
under section 20 multiplied by the strict discipline academy's
full-time equated membership. The department shall allocate funds
to strict discipline academies under this section on a monthly
basis. For the purposes of this subsection:
(a) "Added cost" means 100% of the added cost each fiscal year
for educating all pupils enrolled and in regular daily attendance
at a strict discipline academy. Added cost shall be computed by
deducting all other revenue received under this article for pupils
described in this subsection from total costs, as approved by the
department, in whole or in part, for educating those pupils in a
strict discipline academy. The department shall include all costs
including, but not limited to, educational costs, insurance,
management fees, technology costs, legal fees, auditing fees,
interest, pupil accounting costs, and any other administrative
costs necessary to operate the program or to comply with statutory
requirements. Costs reimbursed by federal funds are not included.
(b) "Department's approved per-pupil allocation" for a strict
discipline academy shall be determined by dividing the total amount
allocated under this subsection for a fiscal year by the full-time
equated membership total for all pupils approved by the department
to be funded under this subsection for that fiscal year for the
strict discipline academy.
(4) Special education pupils funded under section 53a shall
not be funded under this section.
(5) If the funds allocated under this section are insufficient
to fully fund the adjustments under subsection (3), payments under
this section shall be prorated on an equal per-pupil basis.
(6) Payments to districts under this section shall be made
according to the payment schedule under section 17b.
Sec. 25g. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to
exceed
$750,000.00 for 2016-2017 2017-2018
for the purposes of this
section. If the operation of the special membership counting
provisions under section 6(4)(dd) and the other membership counting
provisions under section 6(4) result in a pupil being counted as
more than 1.0 FTE in a fiscal year, then the payment made for the
pupil under sections 22a and 22b shall not be based on more than
1.0 FTE for that pupil, and that portion of the FTE that exceeds
1.0 shall be paid under this section in an amount equal to that
portion multiplied by the educating district's foundation allowance
or per-pupil payment calculated under section 20.
(2) Special education pupils funded under section 53a shall
not be funded under this section.
(3) If the funds allocated under this section are insufficient
to fully fund the adjustments under subsection (1), payments under
this section shall be prorated on an equal per-pupil basis.
(4) Payments to districts under this section shall be made
according to the payment schedule under section 17b.
Sec.
26a. From the funds appropriated in section 11, there is
allocated
an amount not to exceed $20,000,000.00 for 2015-2016 and
there
is allocated an amount not to exceed $20,000,000.00
$18,000,000.00 each fiscal year for 2016-2017 and for 2017-2018 to
reimburse districts and intermediate districts pursuant to section
12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692,
for
taxes levied in 2015 and 2016 as applicable. 2016 and 2017 as
applicable. The allocations shall be made not later than 60 days
after the department of treasury certifies to the department and to
the state budget director that the department of treasury has
received all necessary information to properly determine the
amounts due to each eligible recipient.
Sec. 26b. (1) From the appropriation in section 11, there is
allocated
for 2016-2017 2017-2018 an amount not to exceed
$4,405,100.00 for payments to districts, intermediate districts,
and community college districts for the portion of the payment in
lieu of taxes obligation that is attributable to districts,
intermediate districts, and community college districts pursuant to
section 2154 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.2154.
(2) If the amount appropriated under this section is not
sufficient to fully pay obligations under this section, payments
shall be prorated on an equal basis among all eligible districts,
intermediate districts, and community college districts.
Sec.
26c. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $278,000.00 for 2015-2016 and
there
is allocated an amount not to exceed $1,000,000.00 for 2016-
2017
$1,500,000.00 for 2017-2018 to the promise zone fund created
in subsection (3). The funds allocated under this section reflect
the amount of revenue from the collection of the state education
tax captured under section 17(2) of the Michigan promise zone
authority act, 2008 PA 549, MCL 390.1677.
(2) Funds allocated to the promise zone fund under this
section shall be used solely for payments to eligible districts and
intermediate districts, in accordance with section 17(3) of the
Michigan promise zone authority act, 2008 PA 549, MCL 390.1677,
that have a promise zone development plan approved by the
department of treasury under section 7 of the Michigan promise zone
authority act, 2008 PA 549, MCL 390.1667. Eligible districts and
intermediate districts shall use payments made under this section
for reimbursement for qualified educational expenses as defined in
section 3 of the Michigan promise zone authority act, 2008 PA 549,
MCL 390.1663.
(3) The promise zone fund is created as a separate account
within the state school aid fund to be used solely for the purposes
of the Michigan promise zone authority act, 2008 PA 549, MCL
390.1661 to 390.1679. All of the following apply to the promise
zone fund:
(a) The state treasurer shall direct the investment of the
promise zone fund. The state treasurer shall credit to the promise
zone fund interest and earnings from fund investments.
(b) Money in the promise zone fund at the close of a fiscal
year shall remain in the promise zone fund and shall not lapse to
the general fund.
(4) Subject to subsection (2), the state treasurer may make
payments from the promise zone fund to eligible districts and
intermediate districts pursuant to the Michigan promise zone
authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used
for the purposes of a promise zone authority created under that
act.
(5) Notwithstanding section 17b, payments under this section
shall be paid on a schedule determined by the department.
Sec. 31a. (1) From the state school aid fund money
appropriated
in section 11, there is allocated for 2016-2017 2017-
2018
an amount not to exceed $389,695,500.00
$490,195,500.00 for
payments
to eligible districts , and
eligible public school
academies ,
and the education achievement system for
the purposes
of
ensuring that pupils are proficient in reading English language
arts
by the end of grade 3, and
that pupils are proficient in
mathematics by the end of grade 8, that pupils are attending school
regularly, that high school graduates are career and college ready,
and
for the purposes under subsections (7) and (8).(11) and (12).
(2)
For a district or public school academy
, or the education
achievement
system, to be eligible to receive
funding under this
section,
other than funding under subsection (7) or (8), subsection
(4),
the sum of the district's or public
school academy's or the
education
achievement system's combined state
and local revenue per
membership pupil in the current state fiscal year, as calculated
under
section 20, must be less than or equal to the basic target
foundation allowance under section 20 for the current state fiscal
year.
(3)
For a district or public school academy that operates
grades
K to 3, or the education achievement system, to be eligible
to receive funding under this section, other than funding under
subsection
(7) or (8), (11) or (12), the district or public school
academy,
or the education achievement system, must implement, for
grades K to 3, must comply with the requirements under section
1280f of the revised school code, MCL 380.1280f, and use resources
to
address early literacy, and for at
least grades K to 3, 4 to
8
or, if the district or public school academy does not operate all
of grades 4 to 8, for all of those grades it operates, must
implement a multi-tiered system of supports that is an evidence-
based model that uses data-driven problem solving to integrate
academic and behavioral instruction and that uses intervention
delivered to all pupils in varying intensities based on pupil
needs. This multi-tiered system of supports must provide at least
all of the following essential elements:
(a) Implements effective instruction for all learners.
(b) Intervenes early.
(c) Provides a multi-tiered model of instruction and
intervention that provides the following:
(i) A core curriculum and classroom interventions available to
all pupils that meet the needs of most pupils.
(ii) Targeted group interventions.
(iii) Intense individual interventions.
(d) Monitors pupil progress to inform instruction.
(e) Uses data to make instructional decisions.
(f) Uses assessments including universal screening,
diagnostics, and progress monitoring.
(g) Engages families and the community.
(h) Implements evidence-based, scientifically validated,
instruction and intervention.
(i) Implements instruction and intervention practices with
fidelity.
(j) Uses a collaborative problem-solving model.
(4) From the allocation in subsection (1), there is allocated
an amount not to exceed $432,988,200.00 for 2017-2018 for the
purposes of this subsection. Except as otherwise provided in this
subsection, an eligible district or eligible public school academy
or
the education achievement system shall
receive under this
section for each membership pupil in the district or public school
academy
or the education achievement system who met the income
eligibility
criteria for free breakfast, lunch, or milk, as
determined
under the Richard B. Russell national school lunch act,
42
USC 1751 to 1769, and who is
determined to be economically
disadvantaged,
as reported to the department center in
the form and
manner
prescribed by the department center
not later than the fifth
Wednesday after the pupil membership count day of the immediately
preceding
fiscal year, and adjusted not later than December 31 of
the
immediately preceding fiscal year, an
amount per pupil equal to
11.5%
of the sum of the district's foundation allowance or the
public
school academy's or the education achievement system's per
pupil
amount calculated under section 20 plus the amount of the
district's
per-pupil allocation under section 20m, not to exceed
the
basic foundation allowance under section 20 for the current
state
fiscal year, or of the public school academy's or the
education
achievement system's per membership pupil amount
calculated
under section 20 for the current state fiscal year. an
amount determined by dividing the amount received by the district
or public school academy in 2016-2017 under this section by the
district's or public school academy's 2015-2016 head count of
students who met the income eligibility criteria for free
breakfast, lunch, or milk in 2015-2016. Those income eligibility
criteria are as determined under the Richard B. Russell national
school lunch act, 42 USC 1751 to 1769j. However, a public school
academy
that began operations as a public school academy , an
achievement
school that began operations as an achievement school,
or
a community district that first enrolls pupils, after the pupil
membership count day of the immediately preceding school year shall
receive
under this section subsection
for each membership pupil in
the
public school academy, in the education achievement system, or
in
the community district who met the income eligibility criteria
for
free breakfast, lunch, or milk, as determined under the Richard
B.
Russell national school lunch act and who is determined to be
economically
disadvantaged, as reported to the department
center in
the form and manner prescribed by the center not later than the
fifth Wednesday after the pupil membership count day of the current
fiscal
year, and adjusted not later than December 31 of the
current
fiscal
year, an amount per pupil equal to 11.5%
9% of the public
school
academy's , the education achievement system's, or the
community district's per membership pupil amount calculated under
section 20 for the current state fiscal year.
(5) From the allocation in subsection (1), there is allocated
an amount not to exceed $41,000,000.00 for 2017-2018 for the
purposes of this subsection. Except as otherwise provided in this
subsection, an eligible district or eligible public school academy
shall receive under this subsection for each membership pupil in
the district or public school academy who is determined to be
economically disadvantaged, as reported to the center in the form
and manner prescribed by the center not later than the fifth
Wednesday after the pupil membership count day of the immediately
preceding fiscal year, an amount per pupil equal to the amount
determined by dividing the allocation under this subsection by the
total statewide number of pupils determined to be economically
disadvantaged.
(6) For a district or public school academy to be eligible to
receive funding under this subsection, the district or public
school academy must administer to English language learners the
English language proficiency assessment known as the "WIDA ACCESS
for English language learners" or the "WIDA Alternate ACCESS". From
the allocation in subsection (1), there is allocated an amount not
to exceed $5,000,000.00 for 2017-2018 for payments to eligible
districts and eligible public school academies for services for
English language learners who have been administered the WIDA
ACCESS for English language learners. All of the following apply to
this funding:
(a) Funding allocated under this subsection shall be
distributed to eligible districts and eligible public school
academies based on the number of full-time equivalent English
language learners as follows:
(i) $620.00 per full-time equivalent English language learner
who has been assessed under the WIDA ACCESS for English language
learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA
Alternate ACCESS composite score between 1.0 and 1.9, or less, as
applicable to each assessment.
(ii) $410.00 per full-time equivalent English language learner
who has been assessed under the WIDA ACCESS for English language
learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA
Alternate ACCESS composite score between 2.0 and 2.9, or less, as
applicable to each assessment.
(b) If funds allocated under this subsection are insufficient
to fully fund the payments as prescribed under subdivision (a),
payments shall be prorated on an equal percentage basis, with the
same percentage proration applied to both funding categories.
(c) Each district or public school academy receiving funds
under this subsection shall submit to the department by July 15 of
each fiscal year a report, not to exceed 10 pages, on the usage by
the district or public school academy of funds under this section,
in a form and manner determined by the department, which shall
include a brief description of each program conducted or services
performed by the district or public school academy using funds
under this section and the amount of funds under this section
allocated to each of those programs or services. If a district or
public school academy does not comply with this subsection, the
department shall withhold an amount equal to the August payment due
under this subsection until the district or public school academy
complies with this subsection. If the district or public school
academy does not comply with this subsection by the end of the
state fiscal year, the withheld funds shall be forfeited to the
school aid fund.
(d) In order to receive funds under this subsection, a
district or public school academy shall allow access for the
department or the department's designee to audit all records
related to the program for which it receives those funds. The
district or public school academy shall reimburse this state for
all disallowances found in the audit.
(e) Beginning July 1, 2020, and every 3 years thereafter, the
department shall review the per-pupil distribution under
subdivision (a) to ensure that funding levels are appropriate and
make recommendations for adjustments to the members of the senate
and house subcommittees on K-12 school aid appropriations.
(7) A district or public school academy receiving funds under
subsection (4), (5), or (6) shall use those funds for programs and
activities designed to achieve all of the following:
(a) The chronic absenteeism rate for economically
disadvantaged pupils and English language learners enrolled in the
district or public school academy is not more than the chronic
absenteeism rate for pupils enrolled in the district or public
school academy who are not in either of these categories, as
defined and calculated by the center.
(b) The proportion of economically disadvantaged pupils and
English language learners who are in the bottom 30% in performance
on the grade 3 English language arts state assessment among pupils
enrolled in the district or public school academy does not exceed
the proportion of pupils who are not in either of these categories
who are in the bottom 30% in performance on the grade 3 English
language arts state assessment among pupils enrolled in the
district or public school academy, as calculated and reported by
the department in the top 30-bottom 30 analysis report under
subsection (13).
(c) The proportion of economically disadvantaged pupils and
English language learners who are in the bottom 30% in performance
on the grade 8 mathematics state assessment among pupils enrolled
in the district or public school academy does not exceed the
proportion of pupils who are not in either of these categories who
are in the bottom 30% in performance on the grade 8 English
language arts state assessment among pupils enrolled in the
district or public school academy, as calculated and reported by
the department in the top 30-bottom 30 analysis report under
subsection (13).
(d) At least 65% of pupils in grades 9 to 12 have enrolled in
career and technical education programming, advanced placement or
international baccalaureate courses, or dual enrollment or
concurrent enrollment courses described in section 64b and at least
80% of those pupils have successfully completed the courses.
(8) (5)
Except as otherwise provided in
this section, a
district
or public school academy , or the education achievement
system,
receiving funding under this
section shall use that money
in a way that is consistent with subsection (7) and only to provide
instructional programs and direct noninstructional services,
including, but not limited to, medical, mental health, or
counseling services, for at-risk pupils; for school health clinics;
and
for the purposes of subsection (6), (7), (8), or (11).
subsections (10), (11), and (12). In addition, a district that is a
school district of the first class or a district or public school
academy
in which at least 50% of the pupils in membership met the
income
eligibility criteria for free breakfast, lunch, or milk were
determined to be economically disadvantaged in the immediately
preceding state fiscal year, as determined and reported as
described
in subsection (4) , or the education achievement system
if
it meets this requirement, and
(22), may use not more than 20%
of the funds it receives under this section for school security. A
district ,
the or public school academy , or the education
achievement
system shall not use any of that
money for
administrative costs. The instruction or direct noninstructional
services provided under this section may be conducted before or
after regular school hours or by adding extra school days to the
school year.
(9) A district or public school academy that receives funds
under this section may use up to 5% of those funds to provide
research-based professional development to district and school
leadership and teachers that is aligned to professional learning
standards; is integrated into district, school building, and
classroom practices; is consistent with subsection (7); and is
solely related to the following:
(a) Implementing the multi-tiered system of supports required
in subsection (3) with fidelity and utilizing the data from that
system to inform curriculum and instruction.
(b) Implementing section 1280f of the revised school code, MCL
380.1280f, as required under subsection (3), with fidelity.
(c) Improving the district's or public school academy's
performance on the metrics described in subsection (7).
(10) (6)
A district or public school academy
that receives
funds under this section and that operates a school breakfast
program under section 1272a of the revised school code, MCL
380.1272a,
or the education achievement system if it operates a
school
breakfast program, shall use from
the funds received under
this section an amount, not to exceed $10.00 per pupil for whom the
district
or public school academy or the education achievement
system
receives funds under this section,
necessary to pay for
costs associated with the operation of the school breakfast
program.
(11) (7)
From the funds allocated under
subsection (1), there
is
allocated for 2016-2017 2017-2018
an amount not to exceed
$5,557,300.00
$6,057,300.00 to support child and adolescent health
centers.
These grants shall be awarded for 5 consecutive years
beginning
with 2003-2004 primary health
care services provided to
children and adolescents up to age 21. These funds shall be
expended
in a form and manner approved determined jointly by the
department
and the department of health and human services. Each
grant
recipient shall remain in compliance with the terms of the
grant
award or shall forfeit the grant award for the duration of
the
5-year period after the noncompliance. To continue to receive
funding
for a child and adolescent health center under this section
a
grant recipient shall ensure that the child and adolescent health
center
has an advisory committee and that at least one-third of the
members
of the advisory committee are parents or legal guardians of
school-aged
children. A child and adolescent health center program
shall
recognize the role of a child's parents or legal guardian in
the
physical and emotional well-being of the child. Funding under
this
subsection shall be used to support child and adolescent
health
center services provided to children up to age 21. If any
funds allocated under this subsection are not used for the purposes
of this subsection for the fiscal year in which they are allocated,
those unused funds shall be used that fiscal year to avoid or
minimize any proration that would otherwise be required under
subsection
(12) (16) for that fiscal year.
(12) (8)
From the funds allocated under
subsection (1), there
is
allocated for 2016-2017 2017-2018
an amount not to exceed
$5,150,000.00 for the state portion of the hearing and vision
screenings as described in section 9301 of the public health code,
1978 PA 368, MCL 333.9301. A local public health department shall
pay at least 50% of the total cost of the screenings. The frequency
of the screenings shall be as required under R 325.13091 to R
325.13096 and R 325.3271 to R 325.3276 of the Michigan
administrative
code. Administrative Code. Funds shall be awarded in
a form and manner approved jointly by the department and the
department of health and human services. Notwithstanding section
17b, payments to eligible entities under this subsection shall be
paid on a schedule determined by the department.
(13) The department shall calculate and publish a top 30-
bottom 30 analysis report annually in order to determine each
district's performance in the metrics described in subsection
(7)(b) and (c). In addition, the department shall publish each
district's performance for each of the metrics described in
subsection (7) no later than December 30 of each year or 1 month
after fully audited state assessment data is received by the
department, whichever is later.
(14) (9)
Each district or public school
academy receiving
funds
under this section and the education achievement system shall
submit to the department by July 15 of each fiscal year a report,
not
to exceed 10 pages, on the usage by the district or public
school
academy or the education achievement system of funds under
this
section, which report shall include in the form and manner
prescribed by the department, that includes a brief description of
each program conducted or services performed by the district or
public
school academy or the education achievement system using
funds under this section, the amount of funds under this section
allocated to each of those programs or services, the total number
of at-risk pupils served by each of those programs or services, and
the data necessary for the department and the department of health
and human services to verify matching funds for the temporary
assistance for needy families program. In prescribing the form and
manner of the report, the department shall ensure that districts
are allowed to make any expenditure that is permissible under this
section. From these reports, the department shall publish a summary
of programs conducted or services performed in districts and public
school academies that demonstrate significant improvements on the
metrics described in subsection (7), as determined by the
department.
If a district or public school academy or
the education
achievement
system does not comply with this
subsection, the
department shall withhold an amount equal to the August payment due
under
this section until the district or public school academy or
the
education achievement system complies
with this subsection. If
the
district or public school academy or the education achievement
system
does not comply with this
subsection by the end of the state
fiscal year, the withheld funds shall be forfeited to the school
aid fund.
(15) (10)
In order to receive funds under
this section, a
district
or public school academy or the education achievement
system
shall allow access for the department
or the department's
designee to audit all records related to the program for which it
receives
those funds. The district or public school academy or the
education
achievement system shall reimburse
the state for all
disallowances found in the audit.
(11)
Subject to subsections (6), (7), and (8), a district may
use
up to 100% of the funds it receives under this section to
implement
schoolwide reform in schools with 40% or more of their
pupils
identified as at-risk pupils by providing instructional or
noninstructional
services consistent with the school improvement
plan.
(16) (12)
If necessary, and before any
proration required
under section 296, the department shall prorate payments under this
section by reducing the amount of the per pupil payment under this
section by a dollar amount calculated by determining the amount by
which the amount necessary to fully fund the requirements of this
section exceeds the maximum amount allocated under this section and
then dividing that amount by the total statewide number of pupils
who
met the income eligibility criteria for free breakfast, lunch,
or
milk were determined to be
economically disadvantaged in the
immediately
preceding fiscal year. , as described in subsection
(4).
(17) (13)
If a district is formed by consolidation after June
1,
1995, and if 1 or more of the original districts were not
eligible
before the consolidation for an additional allowance under
this
section, the amount of the additional allowance under this
section
for the consolidated district shall be based on the number
of
pupils described in subsection (1) enrolled in the consolidated
district
who reside in the territory of an original district that
was
eligible before the consolidation for an additional allowance
under
this section. In addition, if If
a district is dissolved
pursuant to section 12 of the revised school code, MCL 380.12, the
intermediate district to which the dissolved school district was
constituent shall determine the estimated number of pupils that
meet
the income eligibility criteria for free breakfast, lunch, or
milk,
as described under subsection (4), are
economically
disadvantaged and that are enrolled in each of the other districts
within the intermediate district and provide that estimate to the
department for the purposes of distributing funds under this
section within 60 days after the school district is declared
dissolved.
(14)
As used in this section, "at-risk pupil" means a pupil
for
whom the district has documentation that the pupil meets any of
the
following criteria:
(a)
Is a victim of child abuse or neglect.
(b)
Is a pregnant teenager or teenage parent.
(c)
Has a family history of school failure, incarceration, or
substance
abuse.
(d)
For pupils for whom the results of the state summative
assessment
have been received, is a pupil who did not achieve
proficiency
on the English language arts, mathematics, science, or
social
studies content area assessment.
(e)
Is a pupil who is at risk of not meeting the district's
core
academic curricular objectives in English language arts or
mathematics,
as demonstrated on local assessments.
(f)
The pupil is enrolled in a priority or priority-successor
school,
as defined in the elementary and secondary education act of
2001
flexibility waiver approved by the United States Department of
Education.
(g)
In the absence of state or local assessment data, the
pupil
meets at least 2 of the following criteria, as documented in
a
form and manner approved by the department:
(i) The pupil is eligible for free or reduced price
breakfast,
lunch,
or milk.
(ii) The pupil is absent more than 10% of enrolled days
or 10
school
days during the school year.
(iii) The pupil is homeless.
(iv) The pupil is a migrant.
(v) The pupil is an English language learner.
(vi) The pupil is an immigrant who has immigrated
within the
immediately
preceding 3 years.
(vii) The pupil did not complete high school in 4 years
and is
still
continuing in school as identified in the Michigan cohort
graduation
and dropout report.
(15)
Beginning in 2018-2019, if a district, public school
academy,
or the education achievement system does not demonstrate
to
the satisfaction of the department that at least 50% of at-risk
pupils
are proficient in English language arts by the end of grade
3
as measured by the state assessment for the immediately preceding
school
year and demonstrate to the satisfaction of the department
improvement
over each of the 3 immediately preceding school years
in
the percentage of at-risk pupils that are career- and college-
ready
as determined by proficiency on the English language arts,
mathematics,
and science content area assessments on the grade 11
summative
assessment under section 1279g(2)(a) of the revised
school
code, MCL 380.1279g, the district, public school academy, or
education
achievement system shall ensure all of the following:
(a)
The district, public school academy, or the education
achievement
system shall determine the proportion of total at-risk
pupils
that represents the number of pupils in grade 3 that are not
proficient
in English language arts by the end of grade 3, and the
district,
public school academy, or the education achievement
system
shall expend that same proportion multiplied by 1/2 of its
total
at-risk funds under this section on tutoring and other
methods
of improving grade 3 English language arts proficiency.
(b)
The district, public school academy, or the education
achievement
system shall determine the proportion of total at-risk
pupils
that represent the number of pupils in grade 11 that are not
career-
and college-ready as measured by the student's score on the
English
language arts, mathematics, and science content area
assessments
on the grade 11 summative assessment under section
1279g(2)(a)
of the revised school code, MCL 380.1279g, and the
district,
public school academy, or the education achievement
system
shall expend that same proportion multiplied by 1/2 of its
total
at-risk funds under this section on tutoring and other
activities
to improve scores on the college entrance examination
portion
of the Michigan merit examination.
(16)
As used in subsection (15), "total at-risk pupils" means
the
sum of the number of pupils in grade 3 that are not proficient
in
English language arts by the end of third grade as measured on
the
state assessment and the number of pupils in grade 11 that are
not
career- and college-ready as measured by the student's score on
the
English language arts, mathematics, and science content area
assessments
on the grade 11 summative assessment under section
1279g(2)(a)
of the revised school code, MCL 380.1279g.
(18) Beginning in 2020-2021, if a district or public school
academy has not achieved all of the metrics in subsection (7) or
made satisfactory progress as determined by the superintendent, the
superintendent shall assign a team of persons with expertise in
comprehensive school and district reform to partner with the
district or public school academy, the intermediate district in
which it is located, community organizations, local employers,
education organizations, and postsecondary institutions as
determined by the superintendent to conduct an evaluation that
includes at least all of the following:
(a) Reviewing the district's or public school academy's
implementation and utilization of its multi-tiered system of
supports and ensuring that the system is being used to
appropriately inform instruction of at-risk pupils and make
recommendations for changes.
(b) Conducting an academic performance audit that includes
recommendations for changes if necessary for at least all of the
following:
(i) District and school building leadership and educator
capacity to substantially improve student outcomes.
(ii) Classroom, instructional, and operational practices and
curriculum and alignment with research-based instructional
practices and state curriculum standards.
(c) Reviewing the district's use of financial resources with
recommendations to more effectively use those resources to improve
academic achievement for at-risk pupils.
(d) Assurance that evaluation costs will be paid from the
funds received under this section only after an agreement
specifying the roles and responsibilities of the partners and
establishing 18-month benchmarks has been signed by the partners
and approved by the state superintendent.
(19) (17)
A district or public school academy
that receives
funds
under this section or the education achievement system may
use funds received under this section to provide an anti-bullying
or crisis intervention program.
(20) (18)
The department shall collaborate
with the department
of health and human services to prioritize assigning Pathways to
Potential Success coaches to elementary schools that have a high
percentage
of pupils in grades K to 3 who are not reading at grade
level.proficient in English language arts, based
upon state
assessments for pupils in those grades.
(21) For the purpose of determining the number of economically
disadvantaged pupils enrolled in a community district for 2017-
2018, disadvantaged pupils who were enrolled in the education
achievement system for 2016-2017 shall be considered to have been
enrolled in the community district for 2016-2017.
(22) As used in this section:
(a) "At-risk pupil" means a pupil who is economically
disadvantaged or an English language learner for whom the district
has documentation that the pupil meets any of the following
criteria:
(i) The pupil did not achieve proficiency on the English
language arts state assessment for grade 3 or is at risk of not
achieving proficiency, as determined by the district or public
school academy using data provided as part of the multi-tiered
system of supports described in subsection (3).
(ii) The pupil did not achieve proficiency on the mathematics
state assessment for grade 8 or is at risk of not achieving
proficiency, as determined by the district or public school academy
using data provided as part of the multi-tiered system of supports
described in subsection (3).
(iii) The pupil is chronically absent as defined by and
reported to the center.
(b) "Economically disadvantaged" means a pupil who has been
determined to meet the income eligibility criteria for free or
reduced-price breakfast, lunch, or milk, as determined under the
Richard B. Russell national school lunch act, 42 USC 1751 to 1769j;
who is in a household receiving supplemental nutrition assistance
program or temporary assistance for needy families assistance; or
who is homeless, migrant, or in foster care, as reported to the
center.
(c) "English language learner" means a limited English
proficient pupil who speaks a language other than English as his or
her primary language and has a difficulty speaking, reading,
writing, or understanding English, as reported to the center.
Sec. 31b. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $1,500,000.00 for 2016-2017 for
2017-2018
for grants to at-risk districts for
implementing a year-
round
balanced calendar instructional program for at least 1 of its
schools.
(2) The department shall select districts for grants under
this section from among applicant districts that meet both of the
following:
(a) The district meets 1 or both of the following:
(i) Is eligible in 2016-2017 2017-2018 for the community
eligibility option for free and reduced price lunch under 42 USC
1759a.
(ii) At least 50% of the pupils in membership in the district
met the income eligibility criteria for free breakfast, lunch, or
milk in the immediately preceding state fiscal year, as determined
under the Richard B. Russell national school lunch act, 42 USC 1751
to
1769i.1769j.
(b) The board of the district has adopted a resolution stating
that
the district will implement for the first time a year-round
balanced
calendar instructional calendar program that
will begin in
2017-2018
2018-2019 for at least 1 school operated by the district
and
committing to providing the year-round balanced calendar
instructional
calendar program in each of those schools for at
least 3 school years.
(3) A district seeking a grant under this section shall apply
to the department in the form and manner prescribed by the
department
not later than December 1, 2016. 2017. The department
shall select districts for grants and make notification not later
than
February 1, 2017.2018.
(4) The department shall award grants under this section on a
competitive basis, but shall give priority based solely on
consideration of the following criteria:
(a)
Giving priority to districts that, as of June 30, 2016, in
the immediately preceding fiscal year, had lower general fund
balances as a percentage of revenues.
(b) Giving priority to districts that operate at least 1
school that has been identified by the department as either a
priority school or a focus school.
(c) Ensuring that grant funding includes both rural and urban
districts.
(5) The amount of a grant under this section to any 1 district
shall not exceed $750,000.00.
(6) A grant payment under this section to a district shall be
used for necessary modifications to instructional facilities and
other
nonrecurring costs of preparing for the operation of a year-
round
balanced calendar instructional program as approved by the
department.
(7) A district receiving a grant under this section is not
required to provide more than the minimum number of days and hours
of pupil instruction prescribed under section 101, but shall spread
at least those minimum amounts of pupil instruction over the entire
year
in each of its schools in which a year-round balanced calendar
instructional calendar is implemented. The district shall commit to
providing
the year-round balanced
calendar instructional calendar
in each of those schools for at least 3 school years.
(8) For a district receiving a grant under this section,
excessive heat is considered to be a condition not within the
control of school authorities for the purpose of days or hours
being counted as days or hours of pupil instruction under section
101(4).
(9) Notwithstanding section 17b, grant payments to districts
under this section shall be paid on a schedule determined by the
department.
Sec. 31d. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $22,495,100.00 for 2016-2017
2017-2018 for the purpose of making payments to districts and other
eligible entities under this section.
(2) The amounts allocated from state sources under this
section shall be used to pay the amount necessary to reimburse
districts for 6.0127% of the necessary costs of the state mandated
portion of the school lunch programs provided by those districts.
The amount due to each district under this section shall be
computed by the department using the methods of calculation adopted
by the Michigan supreme court in the consolidated cases known as
Durant v State of Michigan, Michigan supreme
court docket no.
104458-104492.456 Mich 175 (1997).
(3) The payments made under this section include all state
payments made to districts so that each district receives at least
6.0127% of the necessary costs of operating the state mandated
portion of the school lunch program in a fiscal year.
(4) The payments made under this section to districts and
other eligible entities that are not required under section 1272a
of the revised school code, MCL 380.1272a, to provide a school
lunch program shall be in an amount not to exceed $10.00 per
eligible pupil plus 5 cents for each free lunch and 2 cents for
each reduced price lunch provided, as determined by the department.
(5) From the federal funds appropriated in section 11, there
is
allocated for 2016-2017 2017-2018
all available federal funding,
estimated
at $510,000,000.00 $520,000,000.00
for the national
school lunch program and all available federal funding, estimated
at $3,200,000.00 for the emergency food assistance program.
(6) Notwithstanding section 17b, payments to eligible entities
other than districts under this section shall be paid on a schedule
determined by the department.
(7) In purchasing food for a school lunch program funded under
this section, preference shall be given to food that is grown or
produced by Michigan businesses if it is competitively priced and
of comparable quality.
Sec.
31f. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $2,500,000.00 for 2015-2016 and
there
is allocated an amount not to exceed $2,500,000.00 for 2016-
2017
$4,500,000.00 each fiscal
year for 2016-2017 and for 2017-2018
for the purpose of making payments to districts to reimburse for
the cost of providing breakfast.
(2) The funds allocated under this section for school
breakfast programs shall be made available to all eligible
applicant districts that meet all of the following criteria:
(a) The district participates in the federal school breakfast
program and meets all standards as prescribed by 7 CFR parts 220
and 245.
(b) Each breakfast eligible for payment meets the federal
standards described in subdivision (a).
(3) The payment for a district under this section is at a per
meal rate equal to the lesser of the district's actual cost or 100%
of the statewide average cost of a breakfast served, as determined
and approved by the department, less federal reimbursement,
participant payments, and other state reimbursement. The statewide
average cost shall be determined by the department using costs as
reported in a manner approved by the department for the preceding
school year.
(4) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
(5) In purchasing food for a school breakfast program funded
under this section, preference shall be given to food that is grown
or produced by Michigan businesses if it is competitively priced
and of comparable quality.
Sec. 31j. (1) From the general fund money appropriated in
section 11, there is allocated an amount not to exceed $250,000.00
for
2016-2017 2017-2018 for a pilot project to support districts in
the purchase of locally grown fruits and vegetables as described in
this section.
(2) The department shall provide funding to prosperity regions
2 and 4 for the pilot project described under this section. From
the funding identified in subsection (1), funding retained by the
prosperity regions for administration of the project shall not
exceed 10%, and funding retained by the department for
administration shall not exceed 6%.
(3) The department shall develop and implement a competitive
grant program for districts within the identified prosperity
regions to assist in paying for the costs incurred by the district
to purchase or increase purchases of whole or minimally processed
fruits, vegetables, and legumes grown in this state. The maximum
amount that may be drawn down on a grant to a district shall be
based on the number of meals served by the school district during
the previous school year under the Richard B. Russell national
school
lunch act, 42 USC 1751 to 1769. 1769j.
The department shall
collaborate with the Michigan department of agriculture and rural
development to provide training to newly participating schools and
electronic information on Michigan agriculture.
(4) The goals of the pilot project include improving daily
nutrition and eating habits for children through the school
settings while investing in Michigan's agricultural and related
food business economy.
(5) A district that receives a grant under this section shall
use those funds for the costs incurred by the school district to
purchase whole or minimally processed fruits, vegetables, and
legumes that meet all of the following:
(a) Are purchased on or after the date the district received
notification from the department of the amount to be distributed to
the district under this subsection, including purchases made to
launch
meals in September 2016 2017
for the 2016-2017 2017-2018
school year.
(b) Are grown in this state and, if minimally processed, are
also processed in this state.
(c) Are used for meals that are served as part of the United
States Department of Agriculture's child nutrition programs.
(6) For Michigan-grown fruits, vegetables, and legumes that
satisfy the requirements of subsection (5), matching reimbursements
shall be made in an amount not to exceed 10 cents for every school
meal that is served as part of the United States Department of
Agriculture's child nutrition programs and that uses Michigan-grown
fruits, vegetables, and legumes.
(7) A district that receives a grant for reimbursement under
this section shall use the grant to purchase whole or minimally
processed fruits, vegetables, and legumes that are grown in this
state and, if minimally processed, are also processed in this
state.
(8) In awarding grants under this section, the department
shall work in conjunction with prosperity region offices, in
consultation with Michigan-based farm to school resource
organizations, to develop scoring criteria that assess an
applicant's ability to procure Michigan-grown products, prepare and
menu Michigan-grown products, promote and market Michigan-grown
products, and submit letters of intent from districts on plans for
educational activities that promote the goals of the program.
(9) The department shall give preference to districts that
propose educational activities that meet 1 or more of the
following: promote healthy food activities; have clear educational
objectives; involve parents or the community; and connect to a
school's farm-to-school procurement activities.
(10) In awarding grants, the department shall also consider
all of the following: the percentage of children who qualify for
free or reduced price school meals under the Richard B. Russell
national
school lunch act, 42 USC 1751 to 1769; 1769j; the variety
of school sizes and geographic locations within the identified
prosperity regions; and existing or future collaboration
opportunities between more than 1 district in a prosperity region.
(11) As a condition of receiving a grant under this section, a
district shall provide or direct its vendors to provide to
prosperity region offices copies of monthly receipts that show the
quantity of different Michigan-grown fruits, vegetables, and
legumes purchased, the amount of money spent on each of these
products, and the name and Michigan location of the farm that grew
the products. The district shall also provide to the prosperity
region monthly lunch numbers and lunch participation rates, and
calendars or monthly menus noting when and how Michigan-grown
products were used in meals. The district and school food service
director or directors also shall agree to respond to brief online
surveys and to provide a report that shows the percentage
relationship of Michigan spending compared to total food spending.
Not
later than March 1, 2017, 2018,
each prosperity region office
shall submit a report to the department on expected outcomes and
related measurements for economic development and children's
nutrition and readiness to learn based on progress so far. The
report shall include at least all of the following:
(a) The extent to which farmers and related businesses,
including distributors and processors, see an increase in market
opportunities and income generation through sales of Michigan or
local products to districts. All of the following apply for
purposes of this subdivision:
(i) The data used to determine the amount of this increase
shall be the total dollar amount of Michigan or local fruits,
vegetables, and legumes purchased by schools, along with the number
of different types of products purchased; school food purchasing
trends identified along with products that are of new and growing
interest among food service directors; the number of businesses
impacted; and the percentage of total food budget spent on
Michigan-grown fruits, vegetables, and legumes.
(ii) The prosperity region office shall use purchasing data
collected for the project and surveys of school food service
directors on the impact and success of the project as the source
for the data described in subparagraph (i).
(b) The ability to which pupils can access a variety of
healthy Michigan-grown foods through schools and increase their
consumption of those foods. All of the following apply for purposes
of this subdivision:
(i) The data used to determine whether this subparagraph is
met shall be the number of pupils exposed to Michigan-grown fruits,
vegetables, and legumes at schools; the variety of products served;
new items taste-tested or placed on menus; and the increase in
pupil willingness to try new local, healthy foods.
(ii) The prosperity region office shall use purchasing data
collected for the project, meal count and enrollment numbers,
school menu calendars, and surveys of school food service directors
as the source for the data described in subparagraph (i).
(12) The department shall compile the reports provided by
prosperity region offices under subsection (11) into 1 legislative
report. The department shall provide this report not later than
April
1, 2017 2018 to the house and senate subcommittees
responsible for school aid, the house and senate fiscal agencies,
and the state budget director.
Sec. 32d. (1) From the funds appropriated in section 11, there
is allocated to eligible intermediate districts and consortia of
intermediate districts for great start readiness programs an amount
not
to exceed $243,600,000.00 for 2016-2017. 2017-2018. Funds
allocated under this section for great start readiness programs
shall
be used to provide part-day, school-day, or GSRP/head start
GSRP/Head Start blended comprehensive free compensatory classroom
programs designed to improve the readiness and subsequent
achievement of educationally disadvantaged children who meet the
participant eligibility and prioritization guidelines as defined by
the department. For a child to be eligible to participate in a
program under this section, the child shall be at least 4, but less
than 5, years of age as of September 1 of the school year in which
the program is offered and shall meet those eligibility and
prioritization guidelines.
(2) Funds allocated under subsection (1) shall be allocated to
intermediate districts or consortia of intermediate districts based
on the formula in section 39. An intermediate district or
consortium of intermediate districts receiving funding under this
section shall act as the fiduciary for the great start readiness
programs. In order to be eligible to receive funds allocated under
this subsection from an intermediate district or consortium of
intermediate districts, a district, a consortium of districts, or a
public or private for-profit or nonprofit legal entity or agency
shall comply with this section and section 39.
(3) In addition to the allocation under subsection (1), from
the general fund money appropriated under section 11, there is
allocated
an amount not to exceed $300,000.00 for 2016-2017 2017-
2018 for a competitive grant to continue a longitudinal evaluation
of children who have participated in great start readiness
programs.
(4) To be eligible for funding under this section, a program
shall prepare children for success in school through comprehensive
part-day,
school-day, or GSRP/head start GSRP/Head
Start blended
programs that contain all of the following program components, as
determined by the department:
(a) Participation in a collaborative recruitment and
enrollment process to assure that each child is enrolled in the
program most appropriate to his or her needs and to maximize the
use of federal, state, and local funds.
(b) An age-appropriate educational curriculum that is in
compliance with the early childhood standards of quality for
prekindergarten children adopted by the state board.
(c) Nutritional services for all program participants
supported by federal, state, and local resources as applicable.
(d) Physical and dental health and developmental screening
services for all program participants.
(e) Referral services for families of program participants to
community social service agencies, including mental health
services, as appropriate.
(f) Active and continuous involvement of the parents or
guardians of the program participants.
(g) A plan to conduct and report annual great start readiness
program evaluations and continuous improvement plans using criteria
approved by the department.
(h) Participation in a school readiness advisory committee
convened as a workgroup of the great start collaborative that
provides for the involvement of classroom teachers, parents or
guardians of program participants, and community, volunteer, and
social service agencies and organizations, as appropriate. The
advisory committee annually shall review and make recommendations
regarding the program components listed in this subsection. The
advisory committee also shall make recommendations to the great
start collaborative regarding other community services designed to
improve all children's school readiness.
(i) The ongoing articulation of the kindergarten and first
grade programs offered by the program provider.
(j) Participation in this state's great start to quality
process with a rating of at least 3 stars.
(5) An application for funding under this section shall
provide for the following, in a form and manner determined by the
department:
(a) Ensure compliance with all program components described in
subsection (4).
(b) Except as otherwise provided in this subdivision, ensure
that at least 90% of the children participating in an eligible
great start readiness program for whom the intermediate district is
receiving funds under this section are children who live with
families with a household income that is equal to or less than 250%
of the federal poverty level. If the intermediate district
determines that all eligible children are being served and that
there are no children on the waiting list under section 39(1)(d)
who live with families with a household income that is equal to or
less than 250% of the federal poverty level, the intermediate
district may then enroll children who live with families with a
household income that is equal to or less than 300% of the federal
poverty level. The enrollment process shall consider income and
risk factors, such that children determined with higher need are
enrolled before children with lesser need. For purposes of this
subdivision, all age-eligible children served in foster care or who
are experiencing homelessness or who have individualized education
plans recommending placement in an inclusive preschool setting
shall be considered to live with families with household income
equal to or less than 250% of the federal poverty level regardless
of actual family income and shall be prioritized for enrollment
within the lowest quintile.
(c) Ensure that the applicant only uses qualified personnel
for this program, as follows:
(i) Teachers possessing proper training. A lead teacher must
have a valid teaching certificate with an early childhood (ZA or
ZS) endorsement or a bachelor's or higher degree in child
development or early childhood education with specialization in
preschool teaching. However, if an applicant demonstrates to the
department that it is unable to fully comply with this subparagraph
after making reasonable efforts to comply, teachers who have
significant but incomplete training in early childhood education or
child development may be used if the applicant provides to the
department, and the department approves, a plan for each teacher to
come into compliance with the standards in this subparagraph. A
teacher's compliance plan must be completed within 2 years of the
date of employment. Progress toward completion of the compliance
plan shall consist of at least 2 courses per calendar year.
(ii) Paraprofessionals possessing proper training in early
childhood education, including an associate's degree in early
childhood education or child development or the equivalent, or a
child development associate (CDA) credential. However, if an
applicant demonstrates to the department that it is unable to fully
comply with this subparagraph after making reasonable efforts to
comply, the applicant may use paraprofessionals who have completed
at least 1 course that earns college credit in early childhood
education or child development if the applicant provides to the
department, and the department approves, a plan for each
paraprofessional to come into compliance with the standards in this
subparagraph. A paraprofessional's compliance plan must be
completed within 2 years of the date of employment. Progress toward
completion of the compliance plan shall consist of at least 2
courses or 60 clock hours of training per calendar year.
(d) Include a program budget that contains only those costs
that are not reimbursed or reimbursable by federal funding, that
are clearly and directly attributable to the great start readiness
program, and that would not be incurred if the program were not
being offered. Eligible costs include transportation costs. The
program budget shall indicate the extent to which these funds will
supplement other federal, state, local, or private funds. Funds
received under this section shall not be used to supplant any
federal funds received by the applicant to serve children eligible
for a federally funded preschool program that has the capacity to
serve those children.
(6) For a grant recipient that enrolls pupils in a school-day
program funded under this section, each child enrolled in the
school-day program shall be counted as described in section 39 for
purposes of determining the amount of the grant award.
(7)
For a grant recipient that enrolls pupils in a GSRP/head
start
GSRP/Head Start blended program, the grant recipient shall
ensure
that all head start Head
Start and GSRP policies and
regulations are applied to the blended slots, with adherence to the
highest standard from either program, to the extent allowable under
federal law.
(8) An intermediate district or consortium of intermediate
districts receiving a grant under this section shall designate an
early childhood coordinator, and may provide services directly or
may contract with 1 or more districts or public or private for-
profit or nonprofit providers that meet all requirements of
subsections (4) and (5).
(9) An intermediate district or consortium of intermediate
districts may retain for administrative services provided by the
intermediate district or consortium of intermediate districts an
amount not to exceed 4% of the grant amount. Expenses incurred by
subrecipients engaged by the intermediate district or consortium of
intermediate districts for directly running portions of the program
shall be considered program costs or a contracted program fee for
service.
(10) An intermediate district or consortium of intermediate
districts may expend not more than 2% of the total grant amount for
outreach, recruiting, and public awareness of the program.
(11) Each grant recipient shall enroll children identified
under subsection (5)(b) according to how far the child's household
income is below 250% of the federal poverty level by ranking each
applicant child's household income from lowest to highest and
dividing the applicant children into quintiles based on how far the
child's household income is below 250% of the federal poverty
level, and then enrolling children in the quintile with the lowest
household income before enrolling children in the quintile with the
next lowest household income until slots are completely filled. If
the grant recipient determines that all eligible children are being
served and that there are no children on the waiting list under
section 39(1)(d) who live with families with a household income
that is equal to or less than 250% of the federal poverty level,
the grant recipient may then enroll children who live with families
with a household income that is equal to or less than 300% of the
federal poverty level. The enrollment process shall consider income
and risk factors, such that children determined with higher need
are enrolled before children with lesser need. For purposes of this
subdivision, all age-eligible children served in foster care or who
are experiencing homelessness or who have individualized education
plans recommending placement in an inclusive preschool setting
shall be considered to live with families with household income
equal to or less than 250% of the federal poverty level regardless
of actual family income and shall be prioritized for enrollment
within the lowest quintile.
(12) An intermediate district or consortium of intermediate
districts receiving a grant under this section shall allow parents
of eligible children who are residents of the intermediate district
or within the consortium to cho