SENATE BILL No. 243







February 21, 2001, Introduced by Senators STILLE, DE BEAUSSAERT, JOHNSON

and MC MANUS and referred to the Committee on Appropriations.





EXECUTIVE BUDGET BILL













A bill to make appropriations for the department of education and certain other purposes relating to education for the fiscal year ending September 30, 2002; to provide for the expenditure of the appropriations; to prescribe the powers and duties of certain state departments, school districts, and other governmental bodies; and to provide for the disposition of fees and other income received by certain legal entities and state agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of education for the fiscal year ending September 30, 2002, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF EDUCATION

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 457.3

GROSS APPROPRIATION $ 943,470,100 Total interdepartmental grants and

intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 943,470,100

Federal revenues:

Total federal revenues 890,026,700

Special revenue funds:

Total local revenues 4,889,600

Total private revenues 607,300

Total state restricted revenues 13,297,000

State general fund/general purpose $ 34,649,500

Sec. 102. STATE BOARD OF EDUCATION/OFFICE

OF THE SUPERINTENDENT

Full-time equated unclassified positions 6.0

Full-time equated classified positions 14.0

State board of education, per diem payments $ 19,400 Unclassified positions--6.0 FTE positions 515,600

State board/superintendent operations--14.0 FTE

positions 2,066,800

GROSS APPROPRIATION $ 2,601,800

Appropriated from:

Federal revenues:

Federal revenues 576,100

Special revenue funds:

Private revenues 23,000

State general fund/general purpose $ 2,002,700 Sec. 103. CENTRAL SUPPORT

Full-time equated classified positions 45.2

Central support--45.2 FTE positions $ 5,696,000

Worker's compensation 101,000 Education commission of the states 99,300

Property management services 1,302,000

Training and orientation workshops 100,000

Terminal leave payments 440,500

GROSS APPROPRIATION $ 7,738,800 Appropriated from:

Federal revenues:

Federal revenues 4,203,600

Special revenue funds:

Local cost sharing 60,800

Certification fees 171,400

Commodity distribution fees 5,500

Driver fees 22,600

Motorcycle license fees 4,400

Safety education fund 2,500

School loan exception fees 64,200

Teacher testing fees 9,800

Training and orientation workshop fees 100,000

State general fund/general purpose $ 3,094,000

Sec. 104. SCHOOL SUPPORT SERVICES

Full-time equated classified positions 41.4

School support operations--41.4 FTE positions $ 5,003,100 GROSS APPROPRIATION $ 5,003,100 Appropriated from:

Federal revenues:

Federal revenues 3,977,600

Special revenue funds:

Commodity distribution fees 44,300

Driver fees 495,900

Motorcycle license fees 139,100

Safety education fund 117,700

State general fund/general purpose $ 228,500

Sec. 105. DATA AND TECHNOLOGY SERVICES

Full-time equated classified positions 37.2

Data and technology operations--37.2 FTE positions $ 5,243,100

GROSS APPROPRIATION $ 5,243,100

Appropriated from:

Federal revenues:

Federal revenues 2,811,000

Special revenue funds:

Certification fees 261,700

Driver fees 10,600

State general fund/general purpose $ 2,159,800

Sec. 106. SPECIAL EDUCATION SERVICES

Full-time equated classified positions 68.6

Special education operations--68.6 FTE positions $ 7,405,800

GROSS APPROPRIATION $ 7,405,800 Appropriated from:

Federal revenues:

Federal revenues 7,090,200

Special revenue funds:

Certification fees 35,200

State general fund/general purpose $ 280,400

Sec. 107. MICHIGAN SCHOOLS FOR THE DEAF AND BLIND

Full-time equated classified positions 98.3

Michigan schools for the deaf and blind

operations--95.0 FTE positions $ 9,578,500 Technical resource and reproduction center 1,250,000

Summer institute 312,100

Michigan deaf/blind center--2.3 FTE positions 306,400

Camp Tuhsmeheta--1.0 FTE position 250,100

Private gifts - blind 90,000

Private gifts - deaf 50,000

GROSS APPROPRIATION $ 11,837,100

Appropriated from:

Federal revenues:

Federal revenues 2,466,900

Special revenue funds:

Local cost sharing 4,576,200

Local school district service fees 252,600

Private revenues 460,100

Student insurance revenue 205,100

State general fund/general purpose $ 3,876,200

Sec. 108. PROFESSIONAL PREPARATION SERVICES

Full-time equated classified positions 26.5

Professional preparation operations--26.5

FTE positions $ 2,736,300

Teacher quality enhancement 2,500,000

Department of attorney general 50,000

GROSS APPROPRIATION $ 5,286,300

Appropriated from:

Federal revenues:

Federal revenues 2,723,600

Special revenue funds:

Certification fees 2,294,400

Teacher testing fees 268,300

State general fund/general purpose $ 0

Sec. 109. FIELD SERVICES

Full-time equated classified positions 41.0

Field services operations--41.0 FTE positions $ 4,183,300

GROSS APPROPRIATION $ 4,183,300

Appropriated from:

Federal revenues:

Federal revenues 3,747,600

Special revenue funds:

State general fund/general purpose $ 435,700 Sec. 110. OFFICE OF SCHOOL EXCELLENCE

Full-time equated classified positions 54.0

School excellence operations--54.0 FTE positions $ 6,426,900

GROSS APPROPRIATION $ 6,426,900

Appropriated from:

Federal revenues:

Federal revenues 4,102,300

Special revenue funds:

Private revenues 29,400

State general fund/general purpose $ 2,295,200

Sec. 111. GOVERNMENT SERVICES

Full-time equated classified positions 12.3

Government services operations--12.3 FTE positions $ 1,108,300

GROSS APPROPRIATION $ 1,108,300

Appropriated from:

Federal revenues:

Federal revenues 650,300

Special revenue funds:

State general fund/general purpose $ 458,000

Sec. 112. SAFE SCHOOLS AND ADMINISTRATIVE LAW

Full-time equated classified positions 11.0

Safe schools operations--2.0 FTE positions $ 432,400

Administrative law operations--9.0 FTE positions 866,000

State tenure commission per diem 11,100

GROSS APPROPRIATION $ 1,309,500

Appropriated from:

Federal revenues:

Federal revenues 293,400

Special revenue funds:

State general fund/general purpose $ 1,016,100

Sec. 113. EDUCATION OPTIONS, CHARTERS,

AND CHOICE

Full-time equated classified positions 7.8

Education option operations--7.8 FTE positions $ 1,634,500 GROSS APPROPRIATION $ 1,634,500

Appropriated from:

Federal revenues:

Federal revenues 885,500

Special revenue funds:

State general fund/general purpose $ 749,000

Sec. 114. GRANTS AND DISTRIBUTIONS

FEDERAL PROGRAMS:

Acquired immunodeficiency syndrome education

grants $ 600,000 Class size reduction grants 50,275,700

Competitive child care and development 976,000

Drug-free schools grant 16,758,400

Eisenhower mathematics and science grants 12,940,000

Emergency immigrant 1,455,000

Goals 2000 grants 17,082,200

Handicapped infants and toddlers 16,000,000

Homeless children and youth 1,041,000

Michigan charter school subgrant program 9,000,000

Michigan model partnership for

character education 247,600

Preschool grants (PL 94-142) 13,500,000

Refugee children school impact grant 950,000

School-age child care grants 857,500

School lunch program-federal share 256,725,000

Serve America grants 840,000

Special education 20,089,800

Surplus commodity 2,506,000

Technology literacy challenge grants 17,784,300

Title I, comprehensive school reform 5,889,200

Title I, disadvantaged children 346,000,000

Title I, even start 5,500,000

Title I, migrant 12,000,000

Title VI, innovative strategies 13,480,900

STATE PROGRAMS:

Christa McAuliffe grants 94,800

Driver education 7,600,000

Motorcycle safety education 1,200,000

National board certification 50,000

Off-road vehicle safety training grant 194,300

Reading plan for Michigan grants 34,000,000

School breakfast programs 5,328,000

School readiness grants 12,900,000

GROSS APPROPRIATION $ 883,865,700

Appropriated from:

Federal revenues:

DAG-food and nutrition service, national

school lunch 256,725,000

DAG-the emergency food assistance program 2,506,000

DED-OBEMLA, emergency immigrant education

assistance 1,455,000 DED-OESE, charter schools 9,000,000

DED-OESE, class size reduction 50,275,700

DED-OESE, drug-free schools and communities 16,758,400

DED-OESE, goals 2000 22,082,200

DED-OESE, Eisenhower mathematics and science

administration 12,940,000

DED-OESE, reading excellence act 29,000,000

DED-OESE, technology literacy challenge fund 17,784,300

DED-OESE, title I, comprehensive school

reform 5,031,900

DED-OESE, title I, disadvantaged children 346,000,000

DED-OESE, title I, even start 5,500,000

DED-OESE, title I, migrant education 12,000,000

DED-OESE, title VI, innovative strategies 13,480,900

DED-OESE, title X, comprehensive school reform 857,300

DED-OESE, title X, fund for improvement of

education 247,600

DED-OSERS, handicapped infants and toddlers 16,000,000

DED-OSERS, handicapped preschool incentive

grants 13,500,000

DED-OSERS, handicapped program, individuals with

disabilities act 20,089,800

DED-OVAE, homeless children and youth 1,041,000

HHS-ACF, at-risk child care 976,000

HHS-ACF, refugee children 950,000

HHS-CDCP, AIDS education 600,000

HHS-ACF, dependent care block grant 857,500

Corporation for national and community service 840,000

Special revenue funds:

Private revenues 94,800

Certification fees 50,000

Driver fees 7,600,000

Motorcycle license fees 1,200,000

Safety education fund 194,300

State general fund/general purpose $ 18,228,000

Sec. 115. BUDGETARY SAVINGS

Budgetary savings $ (174,100)

GROSS APPROPRIATION $ (174,100)

Appropriated from:

Special revenue funds:

State general fund/general purpose $ (174,100)PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2001-2002 is $47,946,500.00 and state spending from state resources to be paid to local units of government for fiscal year 2001-2002 is $15,299,200.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

GRANTS AND DISTRIBUTIONS

STATE PROGRAMS:

Driver education $ 7,600,000

Motorcycle safety education 826,800

Off-road vehicle safety training grant 86,700

School readiness grants 1,457,700

School breakfast programs 5,328,000

TOTAL $ 15,299,200

Sec. 202. The appropriations authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this bill:

(a) "DAG" means the United States department of agriculture.

(b) "DED" means the United States department of education.

(c) "DED-OBEMLA" means the DED office of bilingual education and minority languages affairs.

(d) "DED-OESE" means the DED office of elementary and secondary education.

(e) "DED-OSERS" means the DED office of special education rehabilitation service.

(f) "DED-OVAE" means the DED office of vocational and adult education.

(g) "Department" means the Michigan department of education.

(h) "District" means a local school district as defined in section 6 of the revised school code, 1976 PA 451, MCL 380.6.

(i) "FTE" means full-time equated.

(j) "HHS" means the United States department of health and human services.

(k) "HHS-ACF" means the HHS administration for children and families.

(l) "HHS-CDCP" means the HHS center for disease control and prevention.

(m) "RPM" means reading plan for Michigan.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $20,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $700,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $250,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $3,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 206. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an Internet or Intranet site. Quarterly, the department shall provide to the appropriations subcommittee members, state budget office, and the fiscal agencies an electronic and paper copy listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, if any.

Sec. 207. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department.

(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Sec. 208. (1) The negative appropriation for budgetary savings in part 1 shall be satisfied by savings from the hiring freeze imposed in section 207 and, if necessary, by other savings identified by the department director and approved by the state budget director.

(2) Appropriation authorizations shall be adjusted after the approval of transfers by the legislature pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 209. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those included in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.

Sec. 210. The department shall provide the state budget director and the senate and house fiscal agencies with copies of the state board of education agenda and all supporting documents at the time the agenda and supporting documents are provided to state board of education members.

Sec. 211. Money in the school loan exception fee fund that is unexpended at the end of the fiscal year shall not revert to the general fund but shall be carried over to the succeeding fiscal year.

Sec. 212. The office for safe schools shall work with local school boards, law enforcement agencies, community leaders, and the office of drug control policy for the prevention of school violence. The office for safe schools shall develop and implement, and serve as coordinator of, a statewide clearinghouse for information, program development, model programs and policies, and technical assistance on school violence prevention.

Sec. 213. The department shall require all public school districts to maintain complete records within the personnel file of a teacher or school employee of any disciplinary actions taken by the local school board against the teacher or employee for sexual misconduct. The records shall not be destroyed or removed from the teacher's or employee's personnel file except as required by a court order.

STATE BOARD/OFFICE OF THE SUPERINTENDENT

Sec. 301. (1) The appropriations in part 1 may be used for per diem payments to members of boards, committees, and commissions for each day's board, committee, or commission work at which a quorum is present; for attending a hearing as authorized by the respective board, committee, or commission; or for performing official business as authorized by the respective board, committee, or commission. The per diem payments shall be at a rate as follows:

(a) State board of education - president $110.00 per

day.

(b) State board of education - member other than president $100.00 per day.

(c) State tenure commission - member $50.00 per day.

(2) A state board of education member shall not be paid a per diem for more than 24 days per year.

(3) The administrative secretary of the state board of education shall report to the public, the senate and house fiscal agencies, and the state budget director the previous quarter's expenses by fund source for members of the state board of education related to the performance of their responsibilities.

Sec. 302. From the amount appropriated in part 1 to the state board of education, not more than $35,000.00 shall be expended for travel.

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND

Sec. 401. The employees at the Michigan schools for the deaf and blind who work on a school year basis shall be considered annual employees for purposes of service credits, retirement, and insurance benefits.

Sec. 402. For each student enrolled at the Michigan schools for the deaf and blind, the department shall assess the intermediate school district of residence 100% of the cost of operating the student's instructional program. The amount shall exclude room and board related costs and the cost of weekend transportation between the school and the student's home.

Sec. 403. (1) If the former school for the blind campus in Lansing, declared surplus property by the department in December 1999, is not liquidated by October 1, 2001, the department may receive and expend revenues from lease agreements for the Lansing campus that have been negotiated with the approval of the department of management and budget. These funds are appropriated to the department for operation, maintenance, and renovation expenses associated with the leased space.

(2) If the department retains ownership of the site through September 30, 2002, the unexpended balances of appropriations and any surplus restricted revenue for the former school for the blind site in Lansing shall not lapse to the state general fund at the end of the fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2002, shall be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at the former Michigan school for the blind site in Lansing. The work project shall be performed by state employees or by contract when necessary at an estimated cost of $100,000.00. The estimated completion date of the work project is September 30, 2003.

Sec. 404. (1) The department may assess rent or lease excess property located on the campus of the Michigan schools for the deaf and blind in Flint to private or publicly funded organizations.

(2) In addition to those funds appropriated in part 1, the department may receive and expend additional funds from lease agreements at the Michigan schools for the deaf and blind Flint campus that have been negotiated with the approval of the department of management and budget. These funds are appropriated to the department for the operation, maintenance, and renovation expenses associated with the leased space.

(3) Proceeds from the sale of surplus property and facilities at the Michigan schools for the deaf and blind are appropriated for the purposes of repairs, renovations, and maintenance of the Flint campus.

(4) The unexpended balances of appropriations for Michigan schools for deaf and blind operations, and from proceeds of the sale of surplus property and facilities at the Michigan schools for the deaf and blind shall not lapse to the state general fund at the end of the fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2002 shall be carried forward as a work project or as restricted revenue and expended for special maintenance and repairs of facilities at the campus of the Michigan schools for the deaf and blind in Flint. The work shall be carried out by state employees, or by contract as necessary, at an estimated cost of $250,000.00. The estimated completion date of the work is September 30, 2003.

Sec. 405. The department may assist the department of community health, other departments, and local school districts to secure reimbursement for eligible services provided in Michigan schools from the federal medicaid program. The department may submit reports of direct expenses related to this effort to the department of community health for reimbursement.

Sec. 406. (1) The Michigan schools for the deaf and blind may promote its residential program as a possible appropriate option for children who are deaf or hard of hearing or who are blind or visually impaired. The Michigan schools for the deaf and blind shall distribute information detailing its services to all intermediate school districts in the state.

(2) Upon knowledge of or recognition by an intermediate school district that a child in the district is deaf or hard of hearing or blind or visually impaired, the intermediate school district shall provide to the parents of the child the literature distributed by the Michigan schools for the deaf and blind to intermediate school districts under subsection (1).

PROFESSIONAL PREPARATION SERVICES

Sec. 501. The department shall authorize teacher preparation institutions to provide an alternative program by which up to 1/2 of the required student internship or student teaching credits may be earned through substitute teaching. The department shall require that teacher preparation institutions collaborate with school districts to ensure that the quality of instruction provided to student teachers is comparable to that required in a traditional student teaching program.

EDUCATION OPTIONS, CHARTERS AND CHOICE

Sec. 601. (1) From the amount appropriated in part 1 for education options, charters and choices, there is allocated $350,000.00 to operate a charter public school academy office to administer charter public school academy legislation and associated regulations, and to coordinate the activities of the department relating to charter public school academies.

(2) From the amount appropriated in part 1 for education options, charters and choice, there is allocated up to $250,000.00 to fund an exchange program between teachers in Michigan school districts and public school academies and teachers in Michigan's sister state of Shiga in Japan.

GRANTS AND DISTRIBUTIONS

Sec. 701. The department shall disburse the funds to a general fund grantee in accordance with the same standards of timing and amount that apply to disbursements made by the department to a federal fund grantee. The disbursement shall be restricted to the minimum amount needed for immediate disbursement by the grantee. The department may waive this section if extenuating circumstances warrant and are substantiated in the grantee's application or other appropriate documentation. A waiver granted pursuant to this section shall not be effective until 15 days after written notice of the proposed waiver is given to the state budget office and the chairpersons of the senate and house appropriations subcommittees having jurisdiction over the department budget.

Sec. 702. The funds appropriated in part 1 for school breakfast programs shall be made available to all eligible applicant public school districts and public school academies as follows:

(a) The district or public school academy participates in the federal school breakfast program and meets all standards as prescribed by 7 C.F.R. parts 220 and 245.

(b) Payment is made for each breakfast served meeting standards prescribed in subdivision (a).

(c) The payment for a district or public school academy is at a per meal rate equal to the lesser of the district's or public school academy's actual cost, or 100% of the cost of a breakfast served by an efficiently operated breakfast program as determined by the department, less federal reimbursement, participant payments, and other state reimbursement. Determination of efficient cost by the department shall be determined by using a statistical sampling of statewide and regional cost as reported in a manner approved by the department for the preceding school year.

(d) The payment determined under subdivision (c) is prorated if the appropriation in part 1 is not sufficient to fund all payments determined under this section.

Sec. 703. (1) The funds appropriated in part 1 for school readiness programs shall be made available through a competitive application process as follows:

(a) An applicant may be any public or private nonprofit legal entity or agency other than a local or intermediate school district except a local or intermediate school district acting as a fiscal agent for a child caring organization regulated under 1973 PA 116, MCL 722.111 to 722.128.

(b) Applications shall be submitted in a form and manner as required by the department.

(c) Applications shall be reviewed by a diverse interagency committee composed of representatives of the department, appropriate community, volunteer, and social service agencies and organizations, and parents.

(d) Priority in the recommendation for awarding of grants by the state board of education to applicants shall be based upon the following criteria:

(i) Compliance with standards for early childhood development consistent with programs for 4-year-olds, as approved by the state board of education.

(ii) Active and continuous involvement of the parents or guardians of the children participating in the program.

(iii) Employment of teachers possessing proper training in early childhood development, including an early childhood (ZA) endorsement or child development associate, and trained support staff.

(iv) Evidence of collaboration with the community of providers in early childhood development programs including documentation of the total number of children in the community who would meet the criteria established in subparagraph (vi), and who are being served by other providers, and the number of children who will remain unserved by other community early childhood programs if this program is funded.

(v) The extent to which these funds will supplement other federal, state, local, or private funds.

(vi) The extent to which these funds will be targeted to children who will be at least 4, but less than 5, years of age as of December 1 of the year in which the programs are offered and who show evidence of 2 or more "at-risk" factors as defined in the state board of education report entitled, "children at risk" that was adopted by the state board on April 5, 1988.

(e) Whether the application contains a comprehensive evaluation plan that includes implementation of all program components required and an assessment of the gains of children participating in an early childhood development program.

(f) Applications shall provide for the establishment of a school readiness advisory committee that shall be involved in the planning and evaluation of the program and provides for the involvement of parents and appropriate community, volunteer, and social service agencies and organizations. There shall be on the committee at least 1 parent or guardian of a program participant for every 18 children enrolled in the program, with a minimum of 2 parent or guardian representatives. The committee shall do all of the following:

(i) Review the mechanisms and criteria used to determine referrals for participation in the school readiness program.

(ii) Review the health screening program for all participants.

(iii) Review the nutritional services provided to all participants.

(iv) Review the mechanisms in place for the referral of families to community social service agencies, as appropriate.

(v) Review the collaboration with and the involvement of appropriate community, volunteer, and social service agencies and organizations in addressing all aspects of education disadvantage.

(vi) Review, evaluate, and make recommendations for changes in the school readiness program.

(g) More than 50% of the children participating in the program shall meet the income eligibility criteria for free or reduced price lunch, as determined under the national school lunch act, chapter 281, 60 Stat. 230, 42 U.S.C. 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766b, and 1769 to 1769h, or meet income and all other eligibility criteria for participation in the Michigan family independence agency unified child day care program.

(2) Grant awards by the superintendent of public instruction may be at whatever level the superintendent determines appropriate. A grant, when combined with other sources of state revenue for this program, shall not exceed $3,300.00 per child or the cost of the program, whichever is less.

(3) Except as otherwise provided, an applicant that receives a first year grant under this section shall also receive priority for second year and third year funding. However, after three years of continuous funding, an applicant will be required to compete openly with new programs and other programs completing their third year. All grant awards are contingent on the availability of funds and documented evidence of grantee compliance with standards for early childhood development consistent with programs for 4-year-olds, as approved by the state board of education, and with all operational, fiscal, administrative, and other program requirements. A program which offers supplementary day care and thereby offers full-day programs as part of its early childhood development program shall receive priority in the allocation of competitive funds.

Sec. 704. (1) The reading plan for Michigan (RPM) is a series of elementary education strategies created for the purpose of improving reading skills of K-3 students so that all students are reading at an appropriate grade level prior to the start of the fourth grade. The RPM shall be developed by the department in consultation with the RPM advisory council as created by Executive Order 1998-4.

(2) Not later than November 15, 2001, the department shall submit a report to the governor, the legislature, the state budget director, and the senate and house fiscal agencies on their progress in achieving the goals of the RPM. The report shall include detailed results of each RPM strategy as implemented, as well as an assessment of the state's overall progress towards having every student read at an appropriate grade level by the start of fourth grade, the impact of early intervention services on special education referrals, and the end of social promotion.

Sec. 705. From the funds appropriated in part 1 for national board certification, the department shall pay 1/2 of the application fee for teachers who are deemed by the department by March 1, 2001 to be qualified to apply to the national board for professional teaching standards for professional teaching certificates or licenses and to provide grants to recognize and reward teachers who receive certification or licensure.

Sec. 706. From the $400,000.00 appropriated in part 1 of Public Act 263 of 2000 for innovative program demonstration grants, $200,000.00 shall be used for the fiscal year 2000-2001 and the remaining $200,000.00 for the fiscal year 2001-2002. The balance of the $400,000.00 not expended in fiscal year 2000-2001 shall not revert to the general fund but continue to be available in fiscal year 2001-2002 for the awarding of grants under this section. The department may use up to 4% of the funds appropriated for this section for administration of the innovative program demonstration grants awarded under this section. The department shall use the balance of the appropriation to provide grants to local school districts and intermediate school districts to develop the following innovative programs:

(a) School safety programs to examine creative ways to ensure safe schools in this state. The measures the program should examine include, but are not limited to, school uniforms, identification tags for staff, students, and volunteers, a school safety hotline, and the use of a school resource officer.

(b) Parental involvement programs to explore ways to increase parental and community involvement in schools. A funded program should focus on developing ways to utilize parents and community members as volunteers in the schools, increasing parent and teacher attendance at parent/teacher conferences, and provide training to teachers and administrators on utilizing parents as a valuable resource.

(c) Expanding curriculum programs to identify additions to the curriculum. A program shall have the approval of the local school board before applying for a grant. Programs such as stress management, conflict resolution, and character education are areas that can be included in a proposal under this subdivision and should be targeted at each grade level. A program can also look at parent/student/school contracts and should include expanding or implementing a gifted and talented program or hiring a resource coordinator for existing gifted and talented programs.

(2) The following are the primary goals for the innovative programs development grants:

(a) To provide the means for schools to experiment with new and innovative programs to improve school safety, parental involvement, and curriculum development.

(b) To demonstrate the value of the programs to justify continued local funding once the grant program has ended.

(c) To increase parental and community involvement in schools.

(d) To share information between the schools regarding successful innovative programs. This should include the posting of the information on the school's and department's website.

(3) The department shall use the following criteria in determining the awarding of grants under this section:

(a) The state shall be divided into 5 regions to ensure equality of funding. Each region shall receive at least 1 grant in each of the program areas.

(b) Although a school may apply for funding under all 3 program areas, it can be awarded grant funds in only 1 of the program areas.

(c) A program shall be funded for 2 years.

(d) Although the focus of the programs should be on new programs, it may include innovative programs already in place.

(e) Each program shall receive $10,000.00 for each fiscal year.

(f) Of the $200,000.00 appropriated each fiscal year, $10,000.00 each fiscal year shall be earmarked for each of the 5 regions for the development of parental involvement programs. These funds shall be used to hire a volunteer coordinator.

(g) Any other criteria the department considers necessary to implement this section.

(4) No later than September 30, 2002, a district receiving funding under this section shall report to the department on the results achieved by each innovative program. The report filed under this subsection shall include all of the following for each program:

(a) A description of the program and what steps were taken to implement the program.

(b) Any statistical data available before and after the funding period regarding the target area of the program.

(c) An analysis of the effectiveness of each program component.

(d) An analysis of the overall impact the program had on the students, school, community, and parents.

(e) The decision and reasoning as to why the program will be either continued or terminated after grant funding has ended.

(5) No later than November 29, 2002, the department shall compile the information received under subsection (3) and submit a report to the house and senate standing committees on education, the house and senate appropriations subcommittees on the department of education, the house and senate fiscal agencies, the state budget director, and the state board of education. The reports shall be posted on the department's website.