SB 1095, As Passed Senate

SB-1095, As Passed Senate, March 29, 2006

SUBSTITUTE FOR

SENATE BILL NO. 1095

(As amended, March 29, 2006)

<<A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 3, 6, 11, 11a, 11f, 11g, 11j, 11k, 14, 15,

17a, 17b, 18, 20, 20j, 22a, 22b, 22d, 24, 25a, 26a, 26b, 31a, 31d,

31f, 32c, 32d, 32j, 32k, 32l, 39, 39a, 41, 41a, 51a, 51c, 51d, 53a, 54,

54a, 56, 57, 61a, 62, 74, 81, 94a, 98, 98b, 99, 101, 105, 105c,

107, 121, 147, 161a, and 167 (MCL 388.1603, 388.1606, 388.1611,

388.1611a, 388.1611f, 388.1611g, 388.1611j, 388.1611k, 388.1614,

388.1615, 388.1617a, 388.1617b, 388.1618, 388.1620, 388.1620j,

388.1622a, 388.1622b, 388.1622d, 388.1624, 388.1625a, 388.1626a,

388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632c, 388.1632d,

388.1632j, 388.1632k, 388.1632l, 388.1639, 388.1639a, 388.1641, 88.1641a,

388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1654a,

Senate Bill No. 1095 as amended March 29, 2006

388.1656, 388.1657, 388.1661a, 388.1662, 388.1674, 388.1681,

388.1694a, 388.1698, 388.1698b, 388.1699, 388.1701, 388.1705,

388.1705c, 388.1707, 388.1721, 388.1747, 388.1761a, and 388.1767),

sections 3, 6, 11, 11a, 11f, 11g, 11j, 15, 18, 20, 20j, 22a, 22b,

22d, 24, 26a, 31a, 31d, 32c, 32d, 32j, 39, 39a, 41, 41a, 51a, 51c,

51d, 53a, 54, 56, 57, 61a, 62, 74, 81, 94a, 98, 98b, 99, 101, 105,

105c, 107, 147, and 167 as amended and sections 11k, 26b, 31f, 32l,

and 54a as added by 2005 PA 155, section 14 as amended by 1993 PA

336, section 17a as amended by 2005 PA 95, section 17b as amended

by 2005 PA 150, sections 25a and 161a as added by 1998 PA 553, section

32k as added by 2004 PA 351, and section 121 as amended by 1995 PA 130,

and by adding sections 11m, 11n, 22c, 22e, 24a, 24c, 29, 31c, 32, 32b,

32m, 34, 34a, 35, 64, 65, 66, 98a, 99c, and 104; and to repeal acts and

parts of acts.>>

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. (1) "Average daily attendance", for the purposes of

complying with federal law and except as used in section ~~6(4)(cc)~~

6(4)(bb), means 92% of the membership as defined in section 6(4).

(2) "Board" means the governing body of a district or public

school academy.

(3) "Center" means the center for educational performance and

information created in section 94a.

(4) "Cooperative education program" means a written voluntary

agreement between and among districts to provide certain

educational programs for pupils in certain groups of districts. The

written agreement shall be approved by all affected districts at

least annually and shall specify the educational programs to be

provided and the estimated number of pupils from each district who

will participate in the educational programs.

(5) "Department", except in ~~sections 107 and 107b~~ section

107, means the department of education.

(6) "District" means a local school district established under

the revised school code, a local act school district, or, except in

sections 6(4), 6(6), 13, 20, 22a, 23, 31a, 105, and 105c, a public

school academy. Except in sections 6(4), 6(6), 13, 20, 22a, 105,

and 105c, district also includes a university school.

(7) "District of residence", except as otherwise provided in

this subsection, means the district in which a pupil's custodial

parent or parents or legal guardian resides. For a pupil described

in section 24b, the pupil's district of residence is the district

in which the pupil enrolls under that section. For a pupil

described in section 6(4)(d), the pupil's district of residence

shall be considered to be the district or intermediate district in

which the pupil is counted in membership under that section. For a

pupil under court jurisdiction who is placed outside the district

in which the pupil's custodial parent or parents or legal guardian

resides, the pupil's district of residence shall be considered to

be the educating district or educating intermediate district.

(8) "District superintendent" means the superintendent of a

district, the chief administrator of a public school academy, or

the chief administrator of a university school.

Sec. 6. (1) "Center program" means a program operated by a

district or intermediate district for special education pupils from

several districts in programs for ~~the autistically impaired,~~

~~trainable mentally impaired, severely mentally impaired, severely~~

~~multiply impaired, hearing impaired, physically and otherwise~~

~~health impaired, and visually impaired~~ 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 ~~emotionally impaired~~ pupils with

emotional impairment housed in buildings that do not serve regular

education pupils also qualify. Unless otherwise approved by the

department, a center program either shall serve all constituent

districts within an intermediate district or shall serve several

districts with less than 50% of the pupils residing in the

operating district. In addition, special education center program

pupils placed part-time in noncenter programs to comply with the

least restrictive environment provisions of section 612 of part B

of the individuals with disabilities education act, 20 USC 1412,

may be considered center program pupils for pupil accounting

purposes for the time scheduled in either a center program or a

noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult participants, in

the district for the immediately preceding school year, adjusted

for those pupils who have transferred into or out of the district

or high school, who leave high school with a diploma or other

credential of equal status.

(4) "Membership", except as otherwise provided in this act,

means for a district, public school academy, university school, or

intermediate district the sum of the product of .75 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .25

times the final audited count from the supplemental count day for

the immediately preceding school year. All pupil counts used in

this subsection are as determined by the department and calculated

by adding the number of pupils registered for attendance plus

pupils received by transfer and minus pupils lost as defined by

rules promulgated by the superintendent, and as corrected by a

subsequent department audit. The amount of the foundation allowance

for a pupil in membership is determined under section 20. In making

the calculation of membership, all of the following, as applicable,

apply to determining the membership of a district, public school

academy, university school, or intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a vocational education program

supported by a millage levied over an area larger than a single

district or in an area vocational-technical education program

established pursuant to section 690 of the revised school code, MCL

380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a university school shall be counted

in membership in the university school.

(h) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

(i) For a new district, university school, or public school

academy beginning its operation after December 31, 1994, membership

for the first 2 full or partial fiscal years of operation shall be

determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) In a district, public school academy, university school,

or intermediate district operating an extended school year program

approved by the superintendent, a pupil enrolled, but not scheduled

to be in regular daily attendance on a pupil membership count day,

shall be counted.

(l) Pupils to be counted in membership shall be not less than 5

years of age on December 1 and less than 20 years of age on

September 1 of the school year except a special education pupil who

is enrolled and receiving instruction in a special education

program or service approved by the department and not having a high

school diploma who is less than 26 years of age as of September 1

of the current school year shall be counted in membership.

(m) An individual who has obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

counted in membership. An individual participating in a job

training program funded under former section 107a or a jobs program

funded under former section 107b, administered by the Michigan

strategic fund or the department of labor and economic growth, or

participating in any successor of either of those 2 programs, shall

not be counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy and in a

district or intermediate district but not as a part of a

cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours specified in subdivision (q), the

public school academy shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy provides divided by the number of hours specified in

subdivision (q) for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

(ii) If the public school academy provides instruction for less

than 1/2 of the class hours specified in subdivision (q), the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours specified in subdivision (q) for full-time equivalency, and

the remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

(r) 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. ~~However, beginning in 2006-2007, if~~

~~a pupil is eligible to enroll in kindergarten but is enrolled in a~~

~~prekindergarten, developmental kindergarten, or similar class, the~~

~~pupil shall not be counted as a pupil in membership, and the costs~~

~~associated with educating the pupil shall instead be reported and~~

~~reimbursed under section 31b.~~

(s) For a district, university school, or public school

academy that has pupils enrolled in a grade level that was not

offered by the district, university school, or public school

academy in the immediately preceding school year, the number of

pupils enrolled in that grade level to be counted in membership is

the average of the number of those pupils enrolled and in regular

daily attendance on the pupil membership count day and the

supplemental count day of the current school year, as determined by

the department. Membership shall be calculated by adding the number

of pupils registered for attendance in that grade level on the

pupil membership count day plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by subsequent department audit,

plus the final audited count from the supplemental count day for

the current school year, and dividing that sum by 2.

(t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies, except computers, that are comparable to those

otherwise provided in the district's alternative education program.

(iii) Course content is comparable to that in the district's

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district or public school academy that expelled

the pupil.

(w) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(x) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .75 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .25 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(y) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d, the district's membership shall

be considered to be the membership figure calculated under this

subdivision. If a district educates and counts in its membership

pupils in grades 9 to 12 who reside in a contiguous district that

does not operate grades 9 to 12 and if 1 or both of the affected

districts request the department to use the determination allowed

under this sentence, the department shall include the square

mileage of both districts in determining the number of pupils per

square mile for each of the districts for the purposes of this

subdivision. The membership figure calculated under this

subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

(ii) The district's actual membership for that fiscal year as

otherwise calculated under this subsection.

(z) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district in which a former pupil

of the public school academy enrolls and is in regular daily

attendance for the next school year to ensure that the district

receives the same amount of membership aid for the pupil as if the

pupil were counted in the district on the supplemental count day of

the preceding school year.

~~(aa) For 2005-2006 only, if a pupil who has been evacuated~~

~~from another state and has relocated in this state due to a natural~~

~~disaster enrolls in a district within 60 days after the pupil~~

~~membership count day, the department shall adjust the district's~~

~~pupil count for the pupil membership count day to include the pupil~~

~~in the count.~~

(aa) ~~(bb)~~ Full-time equated memberships for preprimary-aged

special education pupils who are not enrolled in kindergarten but

are enrolled in a classroom program under R 340.1754 of the

Michigan administrative code shall be determined by dividing the

number of class hours scheduled and provided per year by 450. Full-

time equated memberships for preprimary-aged special education

pupils who are not enrolled in kindergarten but are receiving

nonclassroom services under R 340.1755 of the Michigan

administrative code shall be determined by dividing the number of

hours of service scheduled and provided per year per pupil by 180.

(bb) ~~(cc)~~ Full-time equated memberships for pupils enrolled

in a public school academy that is wholly contained within a county

juvenile detention facility shall be considered to be the average

daily attendance of pupils enrolled in the public school academy

for the immediately preceding fiscal year, as reported by the

public school academy and audited by the intermediate district in

which the public school academy is located. However, if a public

school academy described in this subdivision does not provide

definitive information to the auditing intermediate district to

support the pupil memberships generated by average daily

attendance, then full-time equated memberships for pupils enrolled

in that public school academy shall be calculated as otherwise

provided under this subsection.

(5) "Public school academy" means a public school academy,

urban high school academy, or strict discipline academy operating

under the revised school code.

(6) "Pupil" means a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

school.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90g, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(i) A pupil enrolled in the Michigan virtual high school, for

the pupil's enrollment in the Michigan virtual high school.

(j) A pupil who is the child of a person who is employed by

the district. As used in this subdivision, "child" includes an

adopted child, stepchild, or legal ward.

However, if a district that is not a first class district

educates pupils who reside in a first class district and if the

primary instructional site for those pupils is located within the

boundaries of the first class district, the educating district must

have the approval of the first class district to count those pupils

in membership. As used in this subsection, "first class district"

means a district organized as a school district of the first class

under the revised school code.

(7) "Pupil membership count day" of a district or intermediate

district means:

(a) Except as provided in subdivision (b), the fourth

Wednesday ~~in September each school year~~ after Labor day each

school year or, for a district or building in which school is not

in session on that Wednesday, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) Fourth Wednesday ~~in September~~ after Labor day.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

day and who does not attend each of those classes during the 10

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, shall not be counted as 1.0 full-time

equated membership. A pupil who is excused from attendance on the

pupil membership count day or supplemental count day and who fails

to attend each of the classes in which the pupil is enrolled within

30 calendar days after the pupil membership count day or

supplemental count day shall not be counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

day of a particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

as 1.0 full-time equated membership due to an absence from a class

shall be counted as a prorated membership for the classes the pupil

attended. For purposes of this subsection, "class" means a period

of time in 1 day when pupils and a certificated teacher or legally

qualified substitute teacher are together and instruction is taking

place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(12) "State board" means the state board of education.

(13) "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.

(14) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(15) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged. Tuition pupil does not include a

pupil who is a special education pupil or a pupil described in

subsection (6)(d) to (j). 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.

(16) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(17) "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.

(18) "Textbook" means a book that is selected and approved by

the governing board of a district and that contains a presentation

of principles of a subject, or that is a literary work relevant to

the study of a subject required for the use of classroom pupils, or

another type of course material that forms the basis of classroom

instruction.

(19) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under all of the provisions of this act.

(20) "University school" means an instructional program

operated by a public university under section 23 that meets the

requirements of section 23.

Sec. 11. (1) ~~For the fiscal year ending~~ ~~September 30, 2005~~,

~~there is appropriated for the public schools of this state and~~

~~certain other state purposes relating to education the sum of~~

~~$10,907,222,200.00 from the state school aid fund established by~~

~~section 11 of article IX of the state constitution of 1963, the sum~~

~~of $41,100,000.00 from the proceeds of capitalization of the school~~

~~bond loan fund revolving fund, and the sum of $165,200,000.00 from~~

~~the general fund.~~ For the fiscal year ending September 30, 2006,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

~~$11,257,600,000.00~~ $11,205,863,200.00 from the state school aid

Senate Bill No. 1095 as amended March 29, 2006

fund established by section 11 of article IX of the state

constitution of 1963, the sum of $44,500,000.00 from the proceeds

of capitalization of the school bond loan fund revolving fund, and

the sum of $62,714,000.00 from the general fund. For the fiscal

year ending September 30, 2007, there is appropriated for the

public schools of this state and certain other state purposes

relating to education the sum of <<$11,668,853,800.00>> from the state

school aid fund established by section 11 of article IX of the

state constitution of 1963 and the sum of $35,000,000.00 from the

general fund. In addition, available federal funds are appropriated

for each fiscal year.

(2) The appropriations under this section shall be allocated

as provided in this act. Money appropriated under this section from

the general fund shall be expended to fund the purposes of this act

before the expenditure of money appropriated under this section

from the state school aid fund. If the maximum amount appropriated

under this section from the state school aid fund for a fiscal year

exceeds the amount necessary to fully fund allocations under this

act from the state school aid fund, that excess amount shall not be

expended in that state fiscal year and shall not lapse to the

general fund, but instead shall be deposited into the school aid

stabilization fund created in section 11a.

(3) If the maximum amount appropriated under this section from

the state school aid fund and the school aid stabilization fund for

a fiscal year exceeds the amount available for expenditure from the

state school aid fund for that fiscal year, payments under sections

11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,

and 56 shall be made in full. In addition, for districts beginning

operations after 1994-95 that qualify for payments under section

22b, payments under section 22b shall be made so that the

qualifying districts receive the lesser of an amount equal to the

1994-95 foundation allowance of the district in which the district

beginning operations after 1994-95 is located or $5,500.00. The

amount of the payment to be made under section 22b for these

qualifying districts shall be as calculated under section 22a, with

the balance of the payment under section 22b being subject to the

proration otherwise provided under this subsection and subsection

(4). If proration is necessary, ~~after 2002-2003,~~ state payments

under each of the other sections of this act from all state funding

sources shall be prorated in the manner prescribed in subsection

(4) as necessary to reflect the amount available for expenditure

from the state school aid fund for the affected fiscal year.

However, if the department of treasury determines that proration

will be required under this subsection, or if the department of

treasury determines that further proration is required under this

subsection after an initial proration has already been made for a

fiscal year, the department of treasury shall notify the state

budget director, and the state budget director shall notify the

legislature at least 30 calendar days or 6 legislative session

days, whichever is more, before the department reduces any payments

under this act because of the proration. During the 30 calendar day

or 6 legislative session day period after that notification by the

state budget director, the department shall not reduce any payments

under this act because of proration under this subsection. The

legislature may prevent proration from occurring by, within the 30

calendar day or 6 legislative session day period after that

notification by the state budget director, enacting legislation

appropriating additional funds from the general fund,

countercyclical budget and economic stabilization fund, state

school aid fund balance, or another source to fund the amount of

the projected shortfall.

(4) If proration is necessary, the department shall calculate

the proration in district and intermediate district payments that

is required under subsection (3) as follows:

(a) The department shall calculate the percentage of total

state school aid allocated under this act for the affected fiscal

year for each of the following:

(i) Districts.

(ii) Intermediate districts.

(iii) Entities other than districts or intermediate districts.

(b) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(i) for districts by

reducing payments to districts. This reduction shall be made by

calculating an equal dollar amount per pupil as necessary to

recover this percentage of the proration amount and reducing each

district's total state school aid from state sources, other than

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

51a(2), 51a(12), 51c, and 53a, by that amount.

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(ii) for intermediate

districts by reducing payments to intermediate districts. This

reduction shall be made by reducing the payments to each

intermediate district, other than payments under sections 11f, 11g,

26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage

basis.

(d) The department shall recover a percentage of the proration

amount required under subsection (3) that is equal to the

percentage calculated under subdivision (a)(iii) for entities other

than districts and intermediate districts by reducing payments to

these entities. This reduction shall be made by reducing the

payments to each of these entities, other than payments under

sections 11j, 26a, and 26b, on an equal percentage basis.

(5) Except for the allocation under section 26a, any general

fund allocations under this act that are not expended by the end of

the state fiscal year are transferred to the school aid

stabilization fund created under section 11a.

Sec. 11a. (1) The school aid stabilization fund is created as

a separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from

any source for deposit into the school aid stabilization fund. The

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

for a fiscal year that remains in the state school aid fund as of

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

(3) Money available in the school aid stabilization fund may

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

shall be expended only for purposes for which state school aid fund

money may be expended.

(4) The state treasurer shall direct the investment of the

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

(5) Money in the school aid stabilization fund at the close of

a fiscal year shall remain in the school aid stabilization fund and

shall not lapse to the unreserved school aid fund balance or the

general fund.

(6) If the maximum amount appropriated under section 11 from

the state school aid fund for a fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

stabilization fund to the state school aid fund an amount equal to

the projected shortfall as determined by the department of

treasury, but not to exceed available money in the school aid

stabilization fund. If the money in the school aid stabilization

fund is insufficient to fully fund an amount equal to the projected

shortfall, the state budget director shall notify the legislature

as required under section 11(3) and state payments in an amount

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 11(4).

(7) ~~Each school fiscal year for 2004-2005 and for 2005-2006~~

For 2006-2007, there is transferred from the school aid

stabilization fund to the state school aid fund the amount

necessary to fully fund the allocations under this act.

Sec. 11f. (1) From the appropriations under section 11, there

is allocated for the purposes of this section an amount not to

exceed $32,000,000.00 for the fiscal year ending September 30,

~~2006~~ 2007 and for each succeeding fiscal year through the fiscal

year ending September 30, 2008. Payments under this section will

cease after September 30, 2008. These allocations are for paying

the amounts described in subsection (4) to districts and

intermediate districts, other than those receiving a lump sum

payment under subsection (2), that were not plaintiffs in the

consolidated cases known as Durant v State of Michigan, Michigan

supreme court docket no. 104458-104492 and that, on or before March

2, 1998, submitted to the state treasurer a board resolution

waiving any right or interest the district or intermediate district

has or may have in any claim or litigation based on or arising out

of any claim or potential claim through September 30, 1997 that is

or was similar to the claims asserted by the plaintiffs in the

consolidated cases known as Durant v State of Michigan. The waiver

resolution shall be in form and substance as required under

subsection (7). The state treasurer is authorized to accept such a

waiver resolution on behalf of this state. The amounts described in

this subsection represent offers of settlement and compromise of

any claim or claims that were or could have been asserted by these

districts and intermediate districts, as described in this

subsection.

(2) In addition to any other money appropriated under this

act, there was appropriated from the state school aid fund an

amount not to exceed $1,700,000.00 for the fiscal year ending

September 30, 1999. This appropriation was for paying the amounts

described in this subsection to districts and intermediate

districts that were not plaintiffs in the consolidated cases known

as Durant v State of Michigan; that, on or before March 2, 1998,

submitted to the state treasurer a board resolution waiving any

right or interest the district or intermediate district had or may

have had in any claim or litigation based on or arising out of any

claim or potential claim through September 30, 1997 that is or was

similar to the claims asserted by the plaintiffs in the

consolidated cases known as Durant v State of Michigan; and for

which the total amount listed in section 11h and paid under this

section was less than $75,000.00. For a district or intermediate

district qualifying for a payment under this subsection, the entire

amount listed for the district or intermediate district in section

11h was paid in a lump sum on November 15, 1998 or on the next

business day following that date. The amounts paid under this

subsection represent offers of settlement and compromise of any

claim or claims that were or could have been asserted by these

districts and intermediate districts, as described in this

subsection.

(3) This section does not create any obligation or liability

of this state to any district or intermediate district that does

not submit a waiver resolution described in this section. This

section, any other provision of this act, and section 353e of the

management and budget act, 1984 PA 431, MCL 18.1353e, are not

intended to admit liability or waive any defense that is or would

be available to this state or its agencies, employees, or agents in

any litigation or future litigation with a district or intermediate

district.

(4) The amount paid each fiscal year to each district or

intermediate district under subsection (1) shall be 1/20 of the

total amount listed in section 11h for each listed district or

intermediate district that qualifies for a payment under subsection

(1). The amounts listed in section 11h and paid in part under this

subsection and in a lump sum under subsection (2) are offers of

settlement and compromise to each of these districts or

intermediate districts to resolve, in their entirety, any claim or

claims that these districts or intermediate districts may have

asserted for violations of section 29 of article IX of the state

constitution of 1963 through September 30, 1997, which claims are

or were similar to the claims asserted by the plaintiffs in the

consolidated cases known as Durant v State of Michigan. This

section, any other provision of this act, and section 353e of the

management and budget act, 1984 PA 431, MCL 18.1353e, shall not be

construed to constitute an admission of liability to the districts

or intermediate districts listed in section 11h or a waiver of any

defense that is or would have been available to the state or its

agencies, employees, or agents in any litigation or future

litigation with a district or intermediate district.

(5) The entire amount of each payment under subsection (1)

each fiscal year shall be paid on November 15 of the applicable

fiscal year or on the next business day following that date.

(6) Funds paid to a district or intermediate district under

this section shall be used only for textbooks, electronic

instructional material, software, technology, infrastructure or

infrastructure improvements, school buses, school security,

training for technology, or to pay debt service on voter-approved

bonds issued by the district or intermediate district before the

effective date of this section. For intermediate districts only,

funds paid under this section may also be used for other

nonrecurring instructional expenditures including, but not limited

to, nonrecurring instructional expenditures for vocational

education, or for debt service for acquisition of technology for

academic support services. Funds received by an intermediate

district under this section may be used for projects conducted for

the benefit of its constituent districts at the discretion of the

intermediate board. To the extent payments under this section are

used by a district or intermediate district to pay debt service on

debt payable from millage revenues, and to the extent permitted by

law, the district or intermediate district may make a corresponding

reduction in the number of mills levied for that debt service.

(7) The resolution to be adopted and submitted by a district

or intermediate district under this section and section 11g shall

read as follows:

"Whereas, the board of ____________________ (name of district

or intermediate district) desires to settle and compromise, in

their entirety, any claim or claims that the district (or

intermediate district) has or had for violations of section 29 of

article IX of the state constitution of 1963, which claim or claims

are or were similar to the claims asserted by the plaintiffs in the

consolidated cases known as Durant v State of Michigan, Michigan

supreme court docket no. 104458-104492.

Whereas, the district (or intermediate district) agrees to

settle and compromise these claims for the consideration described

in sections 11f and 11g of the state school aid act of 1979, 1979

PA 94, MCL 388.1611f and 388.1611g, and in the amount specified for

the district (or intermediate district) in section 11h of the state

school aid act of 1979, 1979 PA 94, MCL 388.1611h.

Whereas, the board of _______________ (name of district or

intermediate district) is authorized to adopt this resolution.

Now, therefore, be it resolved as follows:

1. The board of ____________________ (name of district or

intermediate district) waives any right or interest it may have in

any claim or potential claim through September 30, 1997 relating to

the amount of funding the district or intermediate district is, or

may have been, entitled to receive under the state school aid act

of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, or any other source

of state funding, by reason of the application of section 29 of

article IX of the state constitution of 1963, which claims or

potential claims are or were similar to the claims asserted by the

plaintiffs in the consolidated cases known as Durant v State of

Michigan, Michigan supreme court docket no. 104458-104492.

2. The board of ____________________ (name of district or

intermediate district) directs its secretary to submit a certified

copy of this resolution to the state treasurer no later than 5 p.m.

eastern standard time on March 2, 1998, and agrees that it will not

take any action to amend or rescind this resolution.

3. The board of ____________________ (name of district or

intermediate district) expressly agrees and understands that, if it

takes any action to amend or rescind this resolution, the state,

its agencies, employees, and agents shall have available to them

any privilege, immunity, and/or defense that would otherwise have

been available had the claims or potential claims been actually

litigated in any forum.

4. This resolution is contingent on continued payments by the

state each fiscal year as determined under sections 11f and 11g of

the state school aid act of 1979, 1979 PA 94, MCL 388.1611f and

388.1611g. However, this resolution shall be an irrevocable waiver

of any claim to amounts actually received by the school district or

intermediate school district under sections 11f and 11g of the

state school aid act of 1979.".

Sec. 11g. (1) From the ~~general fund~~ appropriation in section

11, there is allocated for this section an amount not to exceed

$34,961,000.00 for the fiscal year ending September 30, ~~2006~~

2007. There is allocated for this section an amount not to exceed

$35,000,000.00 for each succeeding fiscal year through the fiscal

year ending September 30, 2013. Payments under this section will

cease after September 30, 2013. These allocations are for paying

the amounts described in subsection (3) to districts and

intermediate districts, other than those receiving a lump sum

payment under section 11f(2), that were not plaintiffs in the

consolidated cases known as Durant v State of Michigan, Michigan

supreme court docket no. 104458-104492 and that, on or before March

2, 1998, submitted to the state treasurer a waiver resolution

described in section 11f. The amounts paid under this section

represent offers of settlement and compromise of any claim or

claims that were or could have been asserted by these districts and

intermediate districts, as described in this section.

(2) This section does not create any obligation or liability

of this state to any district or intermediate district that does

not submit a waiver resolution described in section 11f. This

section, any other provision of this act, and section 353e of the

management and budget act, 1984 PA 431, MCL 18.1353e, are not

intended to admit liability or waive any defense that is or would

be available to this state or its agencies, employees, or agents in

any litigation or future litigation with a district or intermediate

district regarding these claims or potential claims.

(3) The amount paid each fiscal year to each district or

intermediate district under this section shall be the sum of the

following:

(a) 1/30 of the total amount listed in section 11h for the

district or intermediate district.

(b) If the district or intermediate district borrows money and

issues bonds under section 11i, an additional amount in each fiscal

year calculated by the department of treasury that, when added to

the amount described in subdivision (a), will cause the net present

value as of November 15, 1998 of the total of the 15 annual

payments made to the district or intermediate district under this

section, discounted at a rate as determined by the state treasurer,

to equal the amount of the bonds issued by that district or

intermediate district under section 11i and that will result in the

total payments made to all districts and intermediate districts in

each fiscal year under this section being no more than the amount

appropriated under this section in each fiscal year.

(4) The entire amount of each payment under this section each

fiscal year shall be paid on May 15 of the applicable fiscal year

or on the next business day following that date. If a district or

intermediate district borrows money and issues bonds under section

11i, the district or intermediate district shall use funds received

under this section to pay debt service on bonds issued under

section 11i. If a district or intermediate district does not borrow

money and issue bonds under section 11i, the district or

intermediate district shall use funds received under this section

only for the following purposes, in the following order of

priority:

(a) First, to pay debt service on voter-approved bonds issued

by the district or intermediate district before the effective date

of this section.

(b) Second, to pay debt service on other limited tax

obligations.

district or intermediate district under the revised school code.

(5) To the extent payments under this section are used by a

district or intermediate district to pay debt service on debt

payable from millage revenues, and to the extent permitted by law,

the district or intermediate district may make a corresponding

reduction in the number of mills levied for debt service.

(6) A district or intermediate district may pledge or assign

payments under this section as security for bonds issued under

section 11i, but shall not otherwise pledge or assign payments

under this section.

Sec. 11j. From the appropriation in section 11, ~~from the~~

~~proceeds of capitalization of the school bond loan fund revolving~~

~~fund,~~ there is allocated an amount not to exceed ~~$41,100,000.00~~

~~for 2004-2005, and there is allocated an amount not to exceed~~

~~$44,500,000.00 for 2005-2006,~~ $48,000,000.00 for 2006-2007 for

payments to the school loan bond redemption fund in the department

of treasury on behalf of districts and intermediate districts.

Notwithstanding section 11 or any other provision of this act,

funds allocated under this section are not subject to proration and

shall be paid in full.

Sec. 11k. For ~~2004-2005 and 2005-2006~~ 2006-2007, there is

appropriated from the general fund to the school loan revolving

fund an amount equal to the amount of school bond loans assigned to

the Michigan municipal bond authority, not to exceed the total

amount of school bond loans held in reserve as long-term assets. As

used in this section, "school loan revolving fund" means that fund

created in section 16c of the shared credit rating act, 1985 PA

227, MCL 141.1066c.

Sec. 11m. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $3,500,000.00 for 2006-2007

for reimbursing districts and intermediate districts for costs

incurred in obtaining the criminal history checks and criminal

records checks required to be conducted on school employees and

contractors under section 1230g of the revised school code, MCL

380.1230g. All of the following apply to the reimbursement:

(a) A district or intermediate district may obtain

reimbursement for a criminal history check and criminal records

check conducted on a school employee or contractor only if the

district or intermediate district was required to obtain a

fingerprint-based criminal records check on the school employee or

contractor under section 1230a of the revised school code, MCL

380.1230a, or under section 53 of the pupil transportation act,

1990 PA 187, MCL 257.1853, before January 1, 2006 and the district

or intermediate district actually obtained a fingerprint-based

criminal records check on that school employee or contractor before

January 1, 2006.

(b) To obtain reimbursement, the district or intermediate

district shall apply to the department in the form and manner

prescribed by the department. In the application, the district or

intermediate district shall certify that it has complied with

section 1230g of the revised school code, MCL 380.1230g.

(2) The money appropriated under this section is considered a

work project appropriation and any unencumbered or unallotted funds

remaining at the end of the fiscal year are carried forward into

the succeeding fiscal year. The following is in compliance with

section 451a of the management and budget act, 1984 PA 431, MCL

Senate Bill No. 1095 as amended March 29, 2006

18.1451a:

(a) The purpose of the work project is to reimburse districts

and intermediate districts for costs incurred in obtaining the

criminal history checks and criminal records checks required to be

conducted on school employees and contractors under section 1230g

of the revised school code, MCL 380.1230g.

(b) The project will be accomplished as provided under this

section and section 1230g of the revised school code, MCL

380.1230g.

(d) The estimated completion date of the project is July 2008.

<<SEC. 11N. From the appropriations in section 11, there is allocated for 2006-2007 an amount not to exceed $22,800,000.00 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. 14. If the ~~returns~~ data from an intermediate district

or district upon which a statement of the amount to be disbursed or

paid are determined to be defective or incomplete, making it

impracticable to ascertain the apportionment to be disbursed or

paid, the department shall withhold the amount of the apportionment

that cannot be ascertained until the department is able to

ascertain by the best evidence available the facts upon which the

ratio and amount of the apportionment depend, and then shall make

the apportionment accordingly.

Sec. 15. (1) If a district or intermediate district fails to

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

Subject to subsections (2) and (3), if a district or intermediate

district has received more than its proper apportionment, the

department, upon satisfactory proof, shall deduct the excess in the

next apportionment. Notwithstanding any other provision in this

act, state aid overpayments to a district, other than overpayments

in payments for special education or special education

transportation, may be recovered from any payment made under this

act other than a special education or special education

transportation payment. State aid overpayments made in special

education or special education transportation payments may be

recovered from subsequent special education or special education

transportation payments.

(2) If the result of an audit conducted by or for the

department affects the current fiscal year membership, affected

payments shall be adjusted in the current fiscal year. A deduction

due to an adjustment made as a result of an audit conducted by or

for the department, or as a result of information obtained by the

department from the district, an intermediate district, the

department of treasury, or the office of auditor general, shall be

deducted from the district's apportionments within the next fiscal

year after the fiscal year in which the adjustment is finalized. At

the request of the district and upon the district presenting

evidence satisfactory to the department of the hardship, the

department may grant up to an additional 4 years for the adjustment

if the district would otherwise experience a significant hardship.

(3) If, because of the receipt of new or updated data, the

department determines during a fiscal year that the amount paid to

a district or intermediate district under this act for a prior

fiscal year was incorrect under the law in effect for that year,

the department may make the appropriate deduction or payment in the

district's or intermediate district's allocation for the fiscal

year in which the determination is made. The deduction or payment

shall be calculated according to the law in effect in the fiscal

year in which the improper amount was paid.

(4) Expenditures made by the department under this act that

are caused by the write-off of prior year accruals may be funded by

revenue from the write-off of prior year accruals.

(5) In addition to funds appropriated in section 11 for all

programs and services, there is appropriated each fiscal year for

~~2004-2005 and~~ 2005-2006 and 2006-2007 for ~~prior year~~ obligations

in excess of applicable ~~prior year~~ appropriations, an amount

equal to the collection of ~~prior year~~ overpayments, but not to

exceed amounts available from ~~prior year~~ overpayments.

Sec. 17a. (1) The department may withhold all or part of any

payment that a district or intermediate district is entitled to

receive under this act to the extent the withholdings are a

component part of a plan, developed and implemented pursuant to the

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

141.2821, or other statutory authority, for financing an

outstanding obligation upon which the district or intermediate

district defaulted. Amounts withheld shall be used to pay, on

behalf of the district or intermediate district, unpaid amounts or

subsequently due amounts, or both, of principal and interest on the

outstanding obligation upon which the district or intermediate

district defaulted.

(2) The state treasurer may withhold all or part of any

payment that a district or intermediate district is entitled to

receive under this act to the extent authorized or required under

section 15 of the school bond qualification, approval, and loan

act, 2005 PA 92, MCL 388.1935.

(3) Under an agreement entered into by a district or

intermediate district assigning all or a portion of the payment

that it is eligible to receive under this act to the Michigan

municipal bond authority or to the trustee of a pooled arrangement

or pledging the amount for payment of an obligation it incurred

with the Michigan municipal bond authority or with the trustee of a

pooled arrangement, the state treasurer shall transmit to the

Michigan municipal bond authority or a trustee designated by the

authority or to the trustee of a pooled arrangement the amount of

the payment that is assigned or pledged under the agreement.

Notwithstanding the payment dates prescribed by this act for

distributions under this act, the state treasurer may advance all

or part of a payment that is dedicated for distribution or for

which the appropriation authorizing the payment has been made if

and to the extent, under the terms of an agreement entered into by

a district or intermediate district and the Michigan municipal bond

authority, the payment that the district or intermediate district

is eligible to receive has been assigned to or pledged for payment

of an obligation it incurred with the Michigan municipal bond

authority. This subsection does not require the state to make an

appropriation to any school district or intermediate school

district and shall not be construed as creating an indebtedness of

the state, and any agreement made pursuant to this subsection shall

contain a statement to that effect. As used in this subsection,

"trustee of a pooled arrangement" means the trustee of a trust

approved by the state treasurer and, subject to the conditions and

requirements of that approval, established for the purpose of

offering for sale, as part of a pooled arrangement, certificates

representing undivided interests in notes issued by districts or

intermediate districts under section 1225 of the revised school

code, 1976 PA 451, MCL 380.1225. If a trustee applies to the state

treasurer for approval of a trust for the purposes of this

subsection, the state treasurer shall approve or disapprove the

trust within 10 days after receipt of the application.

Sec. 17b. (1) Not later than October 20, November 20, December

20, January 20, February 20, March 20, April 20, May 20, June 20,

July 20, and August 20, the department shall prepare ~~a statement~~

electronic files of the amount to be distributed under this act in

the installment to the districts and intermediate districts and

deliver the ~~statement~~ electronic files to the state treasurer,

and the state treasurer shall pay the installments on each of those

dates or, if the date is not a business day, on the immediately

preceding business day before that date. Except as otherwise

provided in this act, the portion of the district's or intermediate

district's state fiscal year entitlement to be included in each

installment shall be 1/11. A district or intermediate district

shall accrue the payments received in July and August to the school

fiscal year ending the immediately preceding June 30.

(2) The state treasurer shall make payment under this section

by drawing a warrant in favor of the treasurer of each district or

intermediate district for the amount payable to the district or

intermediate district according to the ~~statement~~ electronic files

and delivering the warrant to the treasurer of each district or

intermediate district, or if the state treasurer receives a written

request by the treasurer of the district or intermediate district

specifying an account, by electronic funds transfer to that account

of the amount payable to the district or intermediate district

according to the ~~statement~~ electronic files. The department may

make adjustments in payments made under this section through

additional payments when changes in law or errors in computation

cause the regularly scheduled payment to be less than the amount to

which the district or intermediate district is entitled pursuant to

this act.

(3) Except as otherwise provided in this act, grant payments

under this act shall be paid according to subsection (1).

(4) Upon the written request of a district or intermediate

district and the submission of proof satisfactory to the department

of a need of a temporary and nonrecurring nature, the

superintendent, with the written concurrence of the state treasurer

and the state budget director, may authorize an advance release of

funds due a district or intermediate district under this act. An

advance authorized under this subsection shall not cause funds to

be paid to a district or intermediate district more than 30 days

earlier than the established payment date for those funds.

Sec. 18. (1) Except as provided in another section of this

act, each district or other entity shall apply the money received

by the district or entity under this act to salaries and other

compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks which are designated by the board to be used

in the schools under the board's charge, other supplies, and any

other school operating expenditures defined in section 7. However,

not more than 20% of the total amount received by a district under

article 2 or intermediate district under article 8 may be

transferred by the board to either the capital projects fund or to

the debt retirement fund for debt service. The money shall not be

applied or taken for a purpose other than as provided in this

section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

act the apportionment otherwise due for the fiscal year following

the discovery by the department of a violation by the recipient.

(2) Within 30 days after a board or intermediate board adopts

its annual operating budget for the following school fiscal year,

or after a board or intermediate board adopts a subsequent revision

to that budget, the district or intermediate district shall make

the budget and subsequent budget revisions available on its

website, or a district may make the information available on its

intermediate district's website, in a form and manner prescribed by

the department.

(3) ~~(2)~~ For the purpose of determining the reasonableness of

expenditures and whether a violation of this act has occurred, the

department shall require that each district and intermediate

district have an audit of the district's or intermediate district's

financial and pupil accounting records conducted at least annually

at the expense of the district or intermediate district, as

applicable, by a certified public accountant or by the intermediate

district superintendent, as may be required by the department, or

in the case of a district of the first class by a certified public

accountant, the intermediate superintendent, or the auditor general

of the city. An intermediate district's annual financial audit

shall be accompanied by the intermediate district's pupil

accounting procedures report. A district's or intermediate

district's annual financial audit shall include an analysis of the

financial and pupil accounting data used as the basis for

distribution of state school aid. The pupil accounting records and

reports, audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department. Except as otherwise provided in this

subsection, a district shall file the annual financial audit

reports with the intermediate district not later than 120 days

after the end of each school fiscal year and the intermediate

district shall forward the annual financial audit reports for its

constituent districts and for the intermediate district, and the

pupil accounting procedures report for the pupil membership count

day and supplemental count day, to the department not later than

November 15 of each year. The annual financial audit reports and

pupil accounting procedures reports shall be available to the

public in compliance with the freedom of information act, 1976 PA

442, MCL 15.231 to 15.246. Not later than December 1 of each year,

the department shall notify the state budget director and the

legislative appropriations subcommittees responsible for review of

the school aid budget of districts and intermediate districts that

have not filed an annual financial audit and pupil accounting

procedures report required under this section for the school year

ending in the immediately preceding fiscal year.

(4) ~~(3)~~ By November 15 of each year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with accounting manuals and charts of accounts approved

and published by the department. Effective with the report due on

November 15, 2006, 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.

(5) ~~(4)~~ By September 30 of each year, each district and

intermediate district shall file with the department the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the department.

(6) ~~(5)~~ By October 7 of each year, each district and

intermediate district shall file with the department the

transportation expenditure report, known as "SE-4094", on a form

and in the manner prescribed by the department.

(7) ~~(6) Not later than~~ ~~July 1, 1999, the department shall~~

~~approve and publish pupil accounting and pupil auditing manuals.~~

The department shall review ~~those~~ its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this act. ~~The pupil accounting~~

~~manuals in effect for the 1996-97 school year, including subsequent~~

~~revisions issued by the superintendent, shall be the interim~~

~~manuals in effect until new manuals are approved and published.~~

~~However, the clarification of class-by-class accounting provided in~~

~~the department's~~ ~~April 15, 1998~~ ~~memorandum on pupil accounting~~

~~procedures shall be excluded from the interim manuals.~~

(8) ~~(7)~~ If a district that is a public school academy

purchases property using money received under this act, the public

school academy shall retain ownership of the property unless the

public school academy sells the property at fair market value.

(9) ~~(8)~~ If a district or intermediate district does not

comply with subsection ~~(2),~~ (3), (4), or (5), or (6), the

department shall withhold all state school aid due to the district

or intermediate district under this act, beginning with the next

payment due to the district or intermediate district, until the

district or intermediate district complies with subsections ~~(2),~~

(3), (4), ~~and~~ (5), and (6). If the district or intermediate

district does not comply with subsections ~~(2),~~ (3), (4), ~~and~~

(5), and (6) by the end of the fiscal year, the district or

intermediate district forfeits the amount withheld.

Sec. 20. (1) ~~For 2003-2004 and for 2004-2005, the basic~~

~~foundation allowance is $6,700.00 per membership pupil.~~ For 2005-

2006, the basic foundation allowance is $6,875.00. For 2006-2007,

the basic foundation allowance is $7,100.00.

(2) The amount of each district's foundation allowance shall

be calculated as provided in this section, using a basic foundation

allowance in the amount specified in subsection (1).

(3) Except as otherwise provided in this section, the amount

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

(a) 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 at least equal to the amount of

the basic foundation allowance for the immediately preceding state

fiscal year, the district shall receive a foundation allowance in

an amount equal to the sum of the district's foundation allowance

for the immediately preceding state fiscal year plus the dollar

amount of the adjustment from the immediately preceding state

fiscal year to the current state fiscal year in the basic

foundation allowance. However, for 2002-2003, the foundation

allowance for a district under this subdivision is an amount equal

to the sum of the district's foundation allowance for the

immediately preceding state fiscal year plus $200.00.

(b) For a district that in the 1994-95 state fiscal year had a

foundation allowance greater than $6,500.00, the district's

foundation allowance is an amount equal to the sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the lesser of the increase in the basic foundation

allowance for the current state fiscal year, as compared to the

immediately preceding state fiscal year, or the product of the

district's foundation allowance for the immediately preceding state

fiscal year times the percentage increase in the United States

consumer price index in the calendar year ending in the immediately

preceding fiscal year as reported by the May revenue estimating

conference conducted under section 367b of the management and

budget act, 1984 PA 431, MCL 18.1367b. For 2002-2003, for a

district that in the 1994-95 state fiscal year had a foundation

allowance greater than $6,500.00, the district's foundation

allowance is an amount equal to the sum of the district's

foundation allowance for the immediately preceding state fiscal

year plus the lesser of $200.00 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.

a whole dollar amount, the district's foundation allowance shall be

rounded up to the nearest whole dollar.

(d) For a district that received a payment under ~~former~~

section 22c as that section was in effect for 2001-2002, the

district's 2001-2002 foundation allowance shall be considered to

have been an amount equal to the sum of the district's actual 2001-

2002 foundation allowance as otherwise calculated under this

section plus the per pupil amount of the district's equity payment

for 2001-2002 under former section 22c as that section was in

effect for 2001-2002.

(e) Beginning in 2007-2008, for a district that receives a

payment under section 22c for 2006-2007, the district's 2006-2007

foundation allowance shall be considered to have been an amount

equal to the sum of the district's actual 2006-2007 foundation

allowance as otherwise calculated under this section plus the per

pupil amount of the district's equity payment for 2006-2007 under

section 22c.

(4) Except as otherwise provided in this subsection, the state

portion of a district's foundation allowance is an amount equal to

the district's foundation allowance or $6,500.00, whichever is

less, minus the difference between the product of the taxable value

per membership pupil of all property in the district that is not a

principal residence or qualified agricultural property times the

lesser of 18 mills or the number of mills of school operating taxes

levied by the district in 1993-94 and the quotient of the ad

valorem property tax revenue of the district captured under 1975 PA

197, MCL 125.1651 to 125.1681, the tax increment finance authority

act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development

financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the

brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651

to 125.2672, divided by the district's membership excluding special

education pupils. For a district described in subsection (3)(b),

the state portion of the district's foundation allowance is an

amount equal to $6,962.00 plus the difference between the

district's foundation allowance for the current state fiscal year

and the district's foundation allowance for 1998-99, minus the

difference between the product of the taxable value per membership

pupil of all property in the district that is not a principal

residence or qualified agricultural property times the lesser of 18

mills or the number of mills of school operating taxes levied by

the district in 1993-94 and the quotient of the ad valorem property

tax revenue of the district captured under 1975 PA 197, MCL

125.1651 to 125.1681, the tax increment finance authority act, 1980

PA 450, MCL 125.1801 to 125.1830, the local development financing

act, 1986 PA 281, MCL 125.2151 to 125.2174, or the brownfield

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

divided by the district's membership excluding special education

pupils. For a district that has a millage reduction required under

section 31 of article IX of the state constitution of 1963, the

state portion of the district's foundation allowance shall be

calculated as if that reduction did not occur. The $6,500.00 amount

prescribed in this subsection shall be adjusted each year by an

amount equal to the dollar amount of the difference between the

basic foundation allowance for the current state fiscal year and

$5,000.00, minus $200.00.

(5) The allocation calculated under this section for a pupil

shall be based on the foundation allowance of the pupil's district

of residence. However, for a pupil enrolled in a district other

than the pupil's district of residence, if the foundation allowance

of the pupil's district of residence has been adjusted pursuant to

subsection (19), the allocation calculated under this section shall

not include the adjustment described in subsection (19). For a

pupil enrolled pursuant to section 105 or 105c in a district other

than the pupil's district of residence, the allocation calculated

under this section shall be based on the lesser of the foundation

allowance of the pupil's district of residence or the foundation

allowance of the educating district. For a pupil in membership in a

K-5, K-6, or K-8 district who is enrolled in another district in a

grade not offered by the pupil's district of residence, the

allocation calculated under this section shall be based on the

foundation allowance of the educating district if the educating

district's foundation allowance is greater than the foundation

allowance of the pupil's district of residence. The calculation

under this subsection shall take into account a district's per

pupil allocation under section 20j(2).

(6) Subject to subsection (7) and section 22b(3) and except as

otherwise provided in this subsection, for pupils in membership,

other than special education pupils, in a public school academy or

a university school, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy or university school equal to

the sum of the local school operating revenue per membership pupil

other than special education pupils for the district in which the

public school academy or university school is located and the state

portion of that district's foundation allowance, or the sum of the

basic foundation allowance under subsection (1) plus $300.00,

whichever is less. Notwithstanding section 101(2), for a public

school academy that begins operations after the pupil membership

count day, the amount per membership pupil calculated under this

subsection shall be adjusted by multiplying that amount per

membership pupil by the number of hours of pupil instruction

provided by the public school academy after it begins operations,

as determined by the department, divided by the minimum number of

hours of pupil instruction required under section 101(3). The

result of this calculation shall not exceed the amount per

membership pupil otherwise calculated under this subsection.

(7) If more than 25% of the pupils residing within a district

are in membership in 1 or more public school academies located in

the district, then the amount per membership pupil calculated under

this section for a public school academy located in the district

shall be reduced by an amount equal to the difference between the

product of the taxable value per membership pupil of all property

in the district that is not a principal residence or qualified

agricultural property times the lesser of 18 mills or the number of

mills of school operating taxes levied by the district in 1993-94

and the quotient of the ad valorem property tax revenue of the

district captured under 1975 PA 197, MCL 125.1651 to 125.1681, the

tax increment finance authority act, 1980 PA 450, MCL 125.1801 to

125.1830, the local development financing act, 1986 PA 281, MCL

125.2151 to 125.2174, or the brownfield redevelopment financing

act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the

district's membership excluding special education pupils, in the

school fiscal year ending in the current state fiscal year,

calculated as if the resident pupils in membership in 1 or more

public school academies located in the district were in membership

in the district. In order to receive state school aid under this

act, a district described in this subsection shall pay to the

authorizing body that is the fiscal agent for a public school

academy located in the district for forwarding to the public school

academy an amount equal to that local school operating revenue per

membership pupil for each resident pupil in membership other than

special education pupils in the public school academy, as

determined by the department.

(8) If a district does not receive an amount calculated under

subsection (9); if the number of mills the district may levy on a

principal residence and qualified agricultural property under

section 1211(1) of the revised school code, MCL 380.1211, is 0.5

mills or less; and if the district elects not to levy those mills,

the district instead shall receive a separate supplemental amount

calculated under this subsection in an amount equal to the amount

the district would have received had it levied those mills, as

determined by the department of treasury. A district shall not

receive a separate supplemental amount calculated under this

subsection for a fiscal year unless in the calendar year ending in

the fiscal year the district levies 18 mills or the number of mills

of school operating taxes levied by the district in 1993, whichever

is less, on property that is not a principal residence or qualified

agricultural property.

(9) For a district that had combined state and local revenue

per membership pupil in the 1993-94 state fiscal year of more than

$6,500.00 and that had fewer than 350 pupils in membership, if the

district elects not to reduce the number of mills from which a

principal residence and qualified agricultural property are exempt

and not to levy school operating taxes on a principal residence and

qualified agricultural property as provided in section 1211(1) of

the revised school code, MCL 380.1211, and not to levy school

operating taxes on all property as provided in section 1211(2) of

the revised school code, MCL 380.1211, there is calculated under

this subsection for 1994-95 and each succeeding fiscal year a

separate supplemental amount in an amount equal to the amount the

district would have received per membership pupil had it levied

school operating taxes on a principal residence and qualified

agricultural property at the rate authorized for the district under

section 1211(1) of the revised school code, MCL 380.1211, and

levied school operating taxes on all property at the rate

authorized for the district under section 1211(2) of the revised

school code, MCL 380.1211, as determined by the department of

treasury. If in the calendar year ending in the fiscal year a

district does not levy 18 mills or the number of mills of school

operating taxes levied by the district in 1993, whichever is less,

on property that is not a principal residence or qualified

agricultural property, the amount calculated under this subsection

will be reduced by the same percentage as the millage actually

levied compares to the 18 mills or the number of mills levied in

1993, whichever is less.

(10) Subject to subsection (4), for a district that is formed

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation shall be the average of the

foundation allowances of each of the original or affected

districts, calculated as provided in this section, weighted as to

the percentage of pupils in total membership in the resulting

district who reside in the geographic area of each of the original

or affected districts. The calculation under this subsection shall

take into account a district's per pupil allocation under section

20j(2).

(11) Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(12) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(13) To assist the legislature in determining the basic

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under section 353e of the management

and budget act, 1984 PA 431, MCL 18.1353e, 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.

membership factor by the revenue adjustment factor. However, for

2005-2006 and 2006-2007, the index shall be 1.00. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(14) If the principals at the revenue estimating conference

reach a consensus on the index described in subsection (13)(c), the

basic foundation allowance for the subsequent state fiscal year

shall be at least the amount of that consensus index multiplied by

the basic foundation allowance specified in subsection (1).

(15) If at the January revenue estimating conference it is

estimated that pupil membership, excluding intermediate district

membership, for the subsequent state fiscal year will be greater

than 101% of the pupil membership, excluding intermediate district

membership, for the current state fiscal year, then it is the

intent of the legislature that the executive budget proposal for

the school aid budget for the subsequent state fiscal year include

a general fund/general purpose allocation sufficient to support the

membership in excess of 101% of the current year pupil membership.

(16) For a district that had combined state and local revenue

per membership pupil in the 1993-94 state fiscal year of more than

$6,500.00, that had fewer than 7 pupils in membership in the 1993-

94 state fiscal year, that has at least 1 child educated in the

district in the current state fiscal year, and that levies the

number of mills of school operating taxes authorized for the

district under section 1211 of the revised school code, MCL

380.1211, a minimum amount of combined state and local revenue

shall be calculated for the district as provided under this

subsection. The minimum amount of combined state and local revenue

for 1999-2000 shall be $67,000.00 plus the district's additional

expenses to educate pupils in grades 9 to 12 educated in other

districts as determined and allowed by the department. The minimum

amount of combined state and local revenue under this subsection,

before adding the additional expenses, shall increase each fiscal

year by the same percentage increase as the percentage increase in

the basic foundation allowance from the immediately preceding

fiscal year to the current fiscal year. The state portion of the

minimum amount of combined state and local revenue under this

subsection shall be calculated by subtracting from the minimum

amount of combined state and local revenue under this subsection

the sum of the district's local school operating revenue and an

amount equal to the product of the sum of the state portion of the

district's foundation allowance plus the amount calculated under

section 20j times the district's membership. As used in this

subsection, "additional expenses" means the district's expenses for

tuition or fees, not to exceed $6,500.00 as adjusted each year by

an amount equal to the dollar amount of the difference between the

basic foundation allowance for the current state fiscal year and

$5,000.00, minus $200.00, plus a room and board stipend not to

exceed $10.00 per school day for each pupil in grades 9 to 12

educated in another district, as approved by the department.

(17) For a district in which 7.75 mills levied in 1992 for

school operating purposes in the 1992-93 school year were not

renewed in 1993 for school operating purposes in the 1993-94 school

year, the district's combined state and local revenue per

membership pupil shall be recalculated as if that millage reduction

did not occur and the district's foundation allowance shall be

calculated as if its 1994-95 foundation allowance had been

calculated using that recalculated 1993-94 combined state and local

revenue per membership pupil as a base. A district is not entitled

to any retroactive payments for fiscal years before 2000-2001 due

to this subsection.

(18) For a district in which an industrial facilities

exemption certificate that abated taxes on property with a state

equalized valuation greater than the total state equalized

valuation of the district at the time the certificate was issued or

$700,000,000.00, whichever is greater, was issued under 1974 PA

198, MCL 207.551 to 207.572, before the calculation of the

district's 1994-95 foundation allowance, the district's foundation

allowance for 2002-2003 is an amount equal to the sum of the

district's foundation allowance for 2002-2003, as otherwise

calculated under this section, plus $250.00.

(19) For a district that received a grant under former section

32e for 2001-2002, the district's foundation allowance for 2002-

2003 and each succeeding fiscal year shall be adjusted to be an

amount equal to the sum of the district's foundation allowance, as

otherwise calculated under this section, plus the quotient of 100%

of the amount of the grant award to the district for 2001-2002

under former section 32e divided by the number of pupils in the

district's membership for 2001-2002 who were residents of and

enrolled in the district. Except as otherwise provided in this

subsection, a district qualifying for a foundation allowance

adjustment under this subsection shall use the funds resulting from

this adjustment for at least 1 of grades K to 3 for purposes

allowable under former section 32e as in effect for 2001-2002. For

an individual school or schools operated by a district qualifying

for a foundation allowance under this subsection that have been

determined by the department to meet the adequate yearly progress

standards of the federal no child left behind act of 2001, Public

Law 107-110, in both mathematics and English language arts at all

applicable grade levels for all applicable subgroups, the district

may submit to the department an application for flexibility in

using the funds resulting from this adjustment that are

attributable to the pupils in the school or schools. The

application shall identify the affected school or schools and the

affected funds and shall contain a plan for using the funds for

specific purposes identified by the district that are designed to

reduce class size, but that may be different from the purposes

otherwise allowable under this subsection. The department shall

approve the application if the department determines that the

purposes identified in the plan are reasonably designed to reduce

class size. If the department does not act to approve or disapprove

an application within 30 days after it is submitted to the

department, the application is considered to be approved. If an

application for flexibility in using the funds is approved, the

district may use the funds identified in the application for any

purpose identified in the plan.

~~(20) For a district that is a qualifying school district with~~

~~a school reform board in place under part 5a of the revised school~~

~~code, MCL 380.371 to 380.376, the district's foundation allowance~~

~~for 2002-2003 shall be adjusted to be an amount equal to the sum of~~

~~the district's foundation allowance, as otherwise calculated under~~

~~this section, plus the quotient of $15,000,000.00 divided by the~~

~~district's membership for 2002-2003. If a district ceases to meet~~

~~the requirements of this subsection, the department shall adjust~~

~~the district's foundation allowance in effect at that time based on~~

Senate Bill No. 1095 as amended March 29, 2006 (1 of 2)

~~a 2002-2003 foundation allowance for the district that does not~~

~~include the 2002-2003 adjustment under this subsection. This~~

~~subsection only applies for 2002-2003, 2003-2004, and 2004-2005.~~

~~Beginning in 2005-2006, the foundation allowance of a district that~~

~~received an adjustment under this subsection for those fiscal years~~

~~shall be calculated as if those adjustments did not occur.~~

<<(20) FOR A DISTRICT THAT LEVIED 1.9 MILLS IN 1993 TO FINANCE AN OPERATING DEFICIT, THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE CALCULATED AS IF THOSE MILLS WERE INCLUDED AS OPERATING MILLS IN THE CALCULATION OF THE DISTRICT'S 1994-1995 FOUNDATION ALLOWANCE. A DISTRICT IS NOT ENTITLED TO ANY RETROACTIVE PAYMENTS FOR FISCAL YEARS BEFORE 2006-2007 DUE TO THIS SUBSECTION. A DISTRICT RECEIVING AN ADJUSTMENT UNDER THIS SUBSECTION SHALL NOT RECEIVE MORE THAN $500,000.00 FOR A FISCAL YEAR AS A RESULT OF THIS ADJUSTMENT.

(21) FOR A DISTRICT IN WHICH THE SCHOOL ELECTORS VOTED IN 1993 ON A PROPOSAL TO OVERRIDE A MILLAGE REDUCTION REQUIRED UNDER SECTION 31 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 OF 4.38 MILLS FOR OPERATING PURPOSES BUT DID NOT APPROVE THE PROPOSAL, THE DISTRICT'S COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL SHALL BE RECALCULATED AS IF THAT MILLAGE REDUCTION DID NOT OCCUR AND, BEGINNING IN 2006-2007, THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE CALCULATED AS IF ITS 1994-1995 FOUNDATION ALLOWANCE HAD BEEN CALCULATED USING THE RECALCULATED 1993-1994 COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL AS A BASE. A DISTRICT IS NOT ENTITLED TO ANY RETROACTIVE PAYMENTS FOR FISCAL YEARS BEFORE 2006-2007 DUE TO THIS SUBSECTION. A DISTRICT RECEIVING AN ADJUSTMENT UNDER THIS SUBSECTION SHALL NOT RECEIVE MORE THAN $100.00 FOR A FISCAL YEAR AS A RESULT OF THIS ADJUSTMENT.

(22) FOR A DISTRICT IN WHICH 4.91 MILLS LEVIED IN 1992 FOR SCHOOL OPERATING PURPOSES IN THE 1992-93 SCHOOL YEAR WERE NOT RENEWED IN 1993 FOR SCHOOL OPERATING PURPOSES IN THE 1993-94 SCHOOL YEAR, THE DISTRICT'S COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL SHALL BE RECALCULATED AS IF THAT MILLAGE REDUCTION DID NOT OCCUR AND, BEGINNING IN 2006-2007, THE DISTRICT'S FOUNDATION ALLOWANCE SHALL BE CALCULATED AS IF ITS 1994-95 FOUNDATION ALLOWANCE HAD BEEN CALCULATED USING THAT RECALCULATED 1993-94 COMBINED STATE AND LOCAL REVENUE PER MEMBERSHIP PUPIL AS A BASE. A DISTRICT IS NOT ENTITLED TO ANY RETROACTIVE PAYMENTS FOR FISCAL YEARS BEFORE 2006-2007 DUE TO THIS SUBSECTION. A DISTRICT RECEIVING AN ADJUSTMENT UNDER THIS SUBSECTION SHALL NOT RECEIVE MORE THAN $100.00 FOR A FISCAL YEAR AS A RESULT OF THIS ADJUSTMENT.>>

<<(23)>> ~~(21)~~ Payments to districts, university schools, or

public school academies shall not be made under this section.

Rather, the calculations under this section shall be used to

determine the amount of state payments under section 22b.

<<(24)>> ~~(22)~~ 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

Senate Bill No. 1095 as amended March 29, 2006 (2 of 2)

foundation allowance or per pupil payment calculation under this

section may be reduced.

<<(25)>> ~~(23)~~ As used in this section:

(a) "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.

(b) "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.

for which a particular calculation is made.

(d) "Immediately preceding state fiscal year" means the state

fiscal year immediately preceding the current state fiscal year.

(e) "Local school operating revenue" means school operating

taxes levied under section 1211 of the revised school code, MCL

380.1211.

(f) "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.

(g) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(h) "Principal residence" and "qualified agricultural

property" mean those terms as defined in section 7dd of the general

property tax act, 1893 PA 206, MCL 211.7dd.

(i) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18.

(j) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(k) "Taxable value per membership pupil" means taxable value,

as certified by the department of treasury, for the calendar year

ending in the current state fiscal year divided by the district's

membership excluding special education pupils for the school year

ending in the current state fiscal year.

Sec. 20j. (1) Foundation allowance supplemental payments for

~~2005-2006~~ 2006-2007 to districts that in the 1994-95 state fiscal

year had a foundation allowance greater than $6,500.00 shall be

calculated under this section.

(2) The per pupil allocation to each district under this

section shall be the difference between the dollar amount of the

adjustment from the 1998-99 state fiscal year to the current state

fiscal year in the basic foundation allowance minus the dollar

amount of the adjustment from the 1998-99 state fiscal year to the

current state fiscal year in the district's foundation allowance.

(3) If a district's local revenue per pupil does not exceed

the sum of its foundation allowance under section 20 plus the per

pupil allocation under subsection (2), the total payment to the

district calculated under this section shall be the product of the

per pupil allocation under subsection (2) multiplied by the

district's membership excluding special education pupils. If a

district's local revenue per pupil exceeds the foundation allowance

under section 20 but does not exceed the sum of the foundation

allowance under section 20 plus the per pupil allocation under

subsection (2), the total payment to the district calculated under

this section shall be the product of the difference between the sum

of the foundation allowance under section 20 plus the per pupil

allocation under subsection (2) minus the local revenue per pupil

multiplied by the district's membership excluding special education

pupils. If a district's local revenue per pupil exceeds the sum of

the foundation allowance under section 20 plus the per pupil

allocation under subsection (2), there is no payment calculated

under this section for the district.

(4) Payments to districts shall not be made under this

section. Rather, the calculations under this section shall be made

and used to determine the amount of state payments under section

22b.

Sec. 22a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$6,615,000,000.00 for 2004-2005~~

~~and an amount not to exceed $6,459,000,000.00~~ $6,407,500,000.00

for 2005-2006 and an amount not to exceed $6,214,000,000.00 for

2006-2007 for payments to districts, qualifying university schools,

and qualifying public school academies to guarantee each district,

qualifying university school, and qualifying public school academy

an amount equal to its 1994-95 total state and local per pupil

revenue for school operating purposes under section 11 of article

IX of the state constitution of 1963. Pursuant to section 11 of

article IX of the state constitution of 1963, this guarantee does

not apply to a district in a year in which the district levies a

millage rate for school district operating purposes less than it

levied in 1994. However, subsection (2) applies to calculating the

payments under this section. Funds allocated under this section

that are not expended in the state fiscal year for which they were

allocated, as determined by the department, may be used to

supplement the allocations under sections 22b and 51c in order to

fully fund those calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the

district's 1994-95 total state and local per pupil revenue for

school operating purposes, there is allocated to each district a

state portion of the district's 1994-95 foundation allowance in an

amount calculated as follows:

(a) Except as otherwise provided in this subsection, the state

portion of a district's 1994-95 foundation allowance is an amount

equal to the district's 1994-95 foundation allowance or $6,500.00,

whichever is less, minus the difference between the product of the

taxable value per membership pupil of all property in the district

that is not a homestead or qualified agricultural property times

the lesser of 18 mills or the number of mills of school operating

taxes levied by the district in 1993-94 and the quotient of the ad

valorem property tax revenue of the district captured under 1975 PA

197, MCL 125.1651 to 125.1681, the tax increment finance authority

act, 1980 PA 450, MCL 125.1801 to 125.1830, the local development

financing act, 1986 PA 281, MCL 125.2151 to 125.2174, or the

brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651

to 125.2672, divided by the district's membership. For a district

that has a millage reduction required under section 31 of article

IX of the state constitution of 1963, the state portion of the

district's foundation allowance shall be calculated as if that

reduction did not occur.

(b) For a district that had a 1994-95 foundation allowance

greater than $6,500.00, the state payment under this subsection

shall be the sum of the amount calculated under subdivision (a)

plus the amount calculated under this subdivision. The amount

calculated under this subdivision shall be equal to the difference

between the district's 1994-95 foundation allowance minus $6,500.00

and the current year hold harmless school operating taxes per

pupil. If the result of the calculation under subdivision (a) is

negative, the negative amount shall be an offset against any state

payment calculated under this subdivision. If the result of a

calculation under this subdivision is negative, there shall not be

a state payment or a deduction under this subdivision. The taxable

values per membership pupil used in the calculations under this

subdivision are as adjusted by ad valorem property tax revenue

captured under 1975 PA 197, MCL 125.1651 to 125.1681, the tax

increment finance authority act, 1980 PA 450, MCL 125.1801 to

125.1830, the local development financing act, 1986 PA 281, MCL

125.2151 to 125.2174, or the brownfield redevelopment financing

act, 1996 PA 381, MCL 125.2651 to 125.2672, divided by the

district's membership.

(3) Beginning in 2003-2004, for pupils in membership in a

qualifying public school academy or qualifying university school,

there is allocated under this section to the authorizing body that

is the fiscal agent for the qualifying public school academy for

forwarding to the qualifying public school academy, or to the board

of the public university operating the qualifying university

school, an amount equal to the 1994-95 per pupil payment to the

qualifying public school academy or qualifying university school

under section 20.

(4) A district, qualifying university school, or qualifying

public school academy may use funds allocated under this section in

conjunction with any federal funds for which the district,

qualifying university school, or qualifying public school academy

otherwise would be eligible.

(5) For a district that is formed or reconfigured after June

1, 2000 by consolidation of 2 or more districts or by annexation,

the resulting district's 1994-95 foundation allowance under this

section beginning after the effective date of the consolidation or

annexation shall be the average of the 1994-95 foundation

allowances of each of the original or affected districts,

calculated as provided in this section, weighted as to the

percentage of pupils in total membership in the resulting district

in the state fiscal year in which the consolidation takes place who

reside in the geographic area of each of the original districts. If

an affected district's 1994-95 foundation allowance is less than

the 1994-95 basic foundation allowance, the amount of that

district's 1994-95 foundation allowance shall be considered for the

purpose of calculations under this subsection to be equal to the

amount of the 1994-95 basic foundation allowance.

(6) As used in this section:

(a) "1994-95 foundation allowance" means a district's 1994-95

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

in 1993 PA 336 and as amended by 1994 PA 283.

(b) "Current state fiscal year" means the state fiscal year

for which a particular calculation is made.

pupil" means the per pupil revenue generated by multiplying a

district's 1994-95 hold harmless millage by the district's current

year taxable value per membership pupil.

(d) "Hold harmless millage" means, for a district with a 1994-

95 foundation allowance greater than $6,500.00, the number of mills

by which the exemption from the levy of school operating taxes on a

homestead and qualified agricultural property could be reduced as

provided in section 1211(1) of the revised school code, MCL

380.1211, and the number of mills of school operating taxes that

could be levied on all property as provided in section 1211(2) of

the revised school code, MCL 380.1211, as certified by the

department of treasury for the 1994 tax year.

(e) "Homestead" means that term as defined in section 1211 of

the revised school code, MCL 380.1211.

(f) "Membership" means the definition of that term under

section 6 as in effect for the particular fiscal year for which a

particular calculation is made.

(g) "Qualified agricultural property" means that term as

defined in section 1211 of the revised school code, MCL 380.1211.

(h) "Qualifying public school academy" means a public school

academy that was in operation in the 1994-95 school year and is in

operation in the current state fiscal year.

(i) "Qualifying university school" means a university school

that was in operation in the 1994-95 school year and is in

operation in the current fiscal year.

(j) "School operating taxes" means local ad valorem property

taxes levied under section 1211 of the revised school code, MCL

380.1211, and retained for school operating purposes.

(k) "Taxable value per membership pupil" means each of the

following divided by the district's membership:

(i) For the number of mills by which the exemption from the

levy of school operating taxes on a homestead and qualified

agricultural property may be reduced as provided in section 1211(1)

of the revised school code, MCL 380.1211, the taxable value of

homestead and qualified agricultural property for the calendar year

Senate Bill No. 1095 as amended March 29, 2006

ending in the current state fiscal year.

(ii) For the number of mills of school operating taxes that may

be levied on all property as provided in section 1211(2) of the

revised school code, MCL 380.1211, the taxable value of all

property for the calendar year ending in the current state fiscal

year.

Sec. 22b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$2,923,200,000.00 for 2004-2005~~

~~and an amount not to exceed $3,197,736,800.00~~ $3,217,550,000.00

for 2005-2006 and an amount not to exceed <<$3,604,550,200.00>> for

2006-2007 for discretionary nonmandated payments to districts under

this section. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22a and 51c in order to fully fund those

calculated allocations for the same fiscal year.

(2) Subject to subsection (3) and section 11, the allocation

to a district under this section shall be an amount equal to the

sum of the amounts calculated under sections 20, 20j, 51a(2),

51a(3), and 51a(12), minus the sum of the allocations to the

district under sections 22a and 51c.

(3) In order to receive an allocation under this section, each

district shall administer in each grade level that it operates in

grades 1 to 5 a standardized assessment approved by the department

of grade-appropriate basic educational skills. A district may use

the Michigan literacy progress profile to satisfy this requirement

for grades 1 to 3. Also, if the revised school code is amended to

require annual assessments at additional grade levels, in order to

receive an allocation under this section each district shall comply

with that requirement.

(4) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state associated with lawsuits filed by 1 or more districts or

intermediate districts against this state. If the allocation under

this section is insufficient to fully fund all payments required

under this section, the payments under this subsection shall be

made in full before any proration of remaining payments under this

section.

(5) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, and 51c. If a claim is made by an

entity receiving funds under this act that challenges the

legislative determination of the adequacy of this funding or

alleges that there exists an unfunded constitutional requirement,

the state budget director may escrow or allocate from the

discretionary funds for nonmandated payments under this section the

amount as may be necessary to satisfy the claim before making any

payments to districts under subsection (2). If funds are escrowed,

the escrowed funds are a work project appropriation and the funds

are carried forward into the following fiscal year. The purpose of

the work project is to provide for any payments that may be awarded

to districts as a result of litigation. The work project shall be

completed upon resolution of the litigation.

(6) If the local claims review board or a court of competent

jurisdiction makes a final determination that this state is in

violation of section 29 of article IX of the state constitution of

1963 regarding state payments to districts, the state budget

director shall use work project funds under subsection (5) or

allocate from the discretionary funds for nonmandated payments

under this section the amount as may be necessary to satisfy the

amount owed to districts before making any payments to districts

under subsection (2).

(7) If a claim is made in court that challenges the

legislative determination of the adequacy of funding for this

state's constitutional obligations or alleges that there exists an

unfunded constitutional requirement, any interested party may seek

an expedited review of the claim by the local claims review board.

If the claim exceeds $10,000,000.00, this state may remove the

action to the court of appeals, and the court of appeals shall have

and shall exercise jurisdiction over the claim.

(8) If payments resulting from a final determination by the

local claims review board or a court of competent jurisdiction that

there has been a violation of section 29 of article IX of the state

constitution of 1963 exceed the amount allocated for discretionary

nonmandated payments under this section, the legislature shall

provide for adequate funding for this state's constitutional

obligations at its next legislative session.

(9) If a lawsuit challenging payments made to districts

related to costs reimbursed by federal title XIX medicaid funds is

filed against this state during 2001-2002, 2002-2003, or 2003-2004,

50% of the amount allocated in subsection (1) not previously paid

out for 2002-2003, 2003-2004, and each succeeding fiscal year is 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. 22c. From the appropriation in section 11, there is

allocated for 2006-2007 an amount not to exceed $41,200,000.00 to

make equity payments to districts that have a foundation allowance

or per pupil payment calculated under section 20 for 2006-2007 of

less than $7,160.00. The equity payment for a district shall be an

amount calculated by subtracting the district's 2006-2007

foundation allowance or per pupil payment from $7,160.00 and

multiplying the result by the district's membership.

Sec. 22d. (1) From the amount allocated under section 22b, an

amount not to exceed $750,000.00 is allocated for ~~2005-2006~~ 2006-

2007 for additional payments to small, geographically isolated

districts under this section.

(2) To be eligible for a payment under this section, a

district shall meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

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 this section 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 this

section 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 this section and shall be paid to the eligible

districts in the same manner as payments under section 22b.

Sec. 22e. From the appropriation in section 11, there is

allocated for 2006-2007 an amount not to exceed $100.00 for deficit

adjustments.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2005-2006~~ 2006-2007 an amount not to exceed

~~$8,000,000.00~~ $10,000,000.00 for payments to the educating

district or intermediate district for educating pupils assigned by

a court or the department of human services to reside in or to

attend a juvenile detention facility or child caring institution

licensed by the department of human services and approved by the

department to provide an on-grounds education program. The amount

of the payment under this section to a district or intermediate

district shall be calculated as prescribed under subsection (2).

(2) ~~For 2005-2006, 70% of 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, and 30% of the total amount allocated under~~

~~this section shall be allocated by paying to the educating district~~

~~or intermediate district an amount equal to the district’s or~~

~~intermediate district’s added cost.~~ For 2006-2007, 80% of 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, and 20% of the total amount

allocated under this section shall be allocated by paying to the

educating district or intermediate district an amount equal to the

district’s or intermediate district’s added cost. For 2007-2008,

90% of 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, and 10%

of the total amount allocated under this section shall be allocated

by paying to the educating district or intermediate district an

amount equal to the district’s or intermediate district’s added

cost. Beginning with allocations for 2008-2009, 100% of the total

amount allocated under this section shall be allocated by paying to

the educating district or intermediate district an amount equal to

the lesser of the district’s or intermediate district’s added cost

or the department’s approved per pupil allocation for the district

or intermediate district. For the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

human services to reside in or to attend a juvenile detention

facility or child caring institution licensed by the department of

human services or the department of labor and economic growth and

approved by the department to provide an on-grounds education

program. Added cost shall be computed by deducting all other

revenue received under this act for pupils described in this

section from total costs, as approved by the department, in whole

or in part, for educating those pupils in the on-grounds education

program or in a program approved by the department that is located

on property adjacent to a juvenile detention facility or child

caring institution. Costs reimbursed by federal funds are not

included.

(b) "Department’s approved per pupil allocation" for a

district or intermediate district shall be determined by dividing

the total amount allocated under this section for a fiscal year by

the full-time equated membership total for all pupils approved by

the department to be funded under this section for that fiscal year

for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed $3,000,000.00 for 2006-2007 for

payments to intermediate districts for pupils who are placed in

juvenile justice service facilities operated by the department of

human services. Each intermediate district shall receive an amount

equal to the state share of those costs that are clearly and

directly attributable to the educational programs for pupils placed

in facilities described in this section that are located within the

intermediate district’s boundaries. The intermediate districts

receiving payments under this section shall cooperate with the

department of human services to ensure that all funding allocated

under this section is utilized by the intermediate district and

department of human services for educational programs for pupils

described in this section. Pupils described in this section are not

eligible to be funded under section 24. However, a program

responsibility or other fiscal responsibility associated with these

pupils shall not be transferred from the department of human

services to a district or intermediate district unless the district

or intermediate district consents to the transfer.

Sec. 24c. From the appropriation in section 11, there is

allocated an amount not to exceed $1,253,100.00 for 2006-2007 for

payments to districts for pupils who are enrolled in a nationally

administered community based education and youth mentoring program,

known as the youth challenge program, that is located within the

district and is administered by the department of military and

veteran’s affairs. A district receiving payments under this section

shall contract with the department of military and veteran's

affairs to ensure that all funding allocated under this section is

utilized by the district and the department of military and

veteran’s affairs for the youth challenge program.

Sec. 25a. If a pupil described in section ~~6(6)(g)~~ 6(6)(f)

enrolls pursuant to section ~~6(6)(g)~~ 6(6)(f) during a school year

in a district other than the district in which the pupil is counted

in membership, the educating district shall report the enrollment

information to the department and to the district in which the

pupil is counted in membership, and the district in which the pupil

is counted in membership shall pay to the educating district an

amount equal to the amount of the foundation allowance received by

Senate Bill No. 1095 as amended March 29, 2006

the district in which the pupil is counted in membership, prorated

according to the number of days of the school year ending in the

fiscal year the pupil is educated in the educating district

compared to the number of days of the school year ending in the

fiscal year the pupil was actually enrolled in the district in

which the pupil is counted in membership. If a district does not

make the payment required under this section within 30 days after

receipt of the report, the department shall calculate the amount

owed, shall deduct that amount from the remaining state school aid

payments to the district for that fiscal year under this act, and

shall pay that amount to the educating district. The district in

which the pupil is counted in membership and the educating district

shall provide to the department all information the department

requires to enforce this section.

Sec. 26a. From the state school aid fund appropriation in

section 11, there is allocated an amount not to exceed

~~$45,000,000.00~~ <<$37,900,000.00>> for ~~2005-2006~~ 2006-2007, and from

the general fund appropriation in section 11, there is allocated an

amount not to exceed <<$12,300,000.00>> for 2006-2007 to reimburse

districts, intermediate districts, and the state school aid fund

pursuant to section 12 of the Michigan renaissance zone act, 1996

PA 376, MCL 125.2692, for taxes levied in ~~2005~~ 2006 or for

payments to districts as reimbursement for interest paid as a

result of property tax refunds. 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

Senate Bill No. 1095 as amended March 29, 2006 (1 of 2)

determine the amounts due to each eligible recipient.

Sec. 26b. (1) ~~Beginning in 2005-2006, there is allocated from~~

From the general fund appropriation in section 11, there is

allocated for 2006-2007 an amount not to exceed $2,400,000.00 for

payments to districts, intermediate districts, and community

college districts for the portion of the payment in lieu of taxes

obligation that is attributable to districts, intermediate

districts, and community college districts pursuant to section 2154

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

shall be prorated on an equal basis among all eligible districts,

intermediate districts, and community college districts.

<<SEC. 29. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $100.00 FOR 2006-2007 FOR ADDITIONAL PAYMENTS TO ELIGIBLE DISTRICTS FOR DECLINING ENROLLMENT ASSISTANCE.

(2) A DISTRICT IS ELIGIBLE FOR A PAYMENT UNDER THIS SECTION IF ALL OF THE FOLLOWING APPLY:

(A) THE DISTRICT’S PUPIL MEMBERSHIP FOR THE CURRENT FISCAL YEAR IS LESS THAN THE DISTRICT’S PUPIL MEMBERSHIP FOR THE IMMEDIATELY PRECEDING FISCAL YEAR AND THE DISTRICT’S PUPIL MEMBERSHIP FOR THE IMMEDIATELY PRECEDING FISCAL YEAR IS LESS THAN THE DISTRICT’S PUPIL MEMBERSHIP FOR THE PREVIOUSLY PRECEDING FISCAL YEAR AS CALCULATED UNDER SECTION 6 FOR THAT FISCAL YEAR.

(B) THE DISTRICT’S AVERAGE PUPIL MEMBERSHIP 1 IS GREATER THAN THE DISTRICT’S PUPIL MEMBERSHIP FOR THE CURRENT FISCAL YEAR AS CALCULATED UNDER SECTION 6.

(3) PAYMENTS TO EACH ELIGIBLE DISTRICT SHALL BE EQUAL TO THE DIFFERENCE BETWEEN THE DISTRICT’S AVERAGE PUPIL MEMBERSHIP AND THE DISTRICT’S PUPIL MEMBERSHIP AS CALCULATED UNDER SECTION 6 FOR THE CURRENT FISCAL YEAR MULTIPLIED BY THE DISTRICT’S FOUNDATION ALLOWANCE AS CALCULATED UNDER SECTION 20. IF THE TOTAL AMOUNT OF THE PAYMENTS CALCULATED UNDER THIS SUBSECTION EXCEEDS THE ALLOCATION FOR THIS SECTION, THE PAYMENT TO EACH DISTRICT SHALL BE PRORATED ON AN EQUAL PERCENTAGE BASIS.

(4) FOR THE PURPOSES OF THIS SECTION, "AVERAGE PUPIL MEMBERSHIP" MEANS THE AVERAGE OF THE DISTRICT’S MEMBERSHIP FOR THE 3-FISCAL-YEAR PERIOD ENDING WITH THE CURRENT FISCAL YEAR, CALCULATED BY ADDING THE DISTRICT’S ACTUAL MEMBERSHIP FOR EACH OF THOSE 3 FISCAL YEARS, AS

Senate Bill No. 1095 as amended March 29, 2006 (2 of 2)

OTHERWISE CALCULATED UNDER SECTION 6, AND DIVIDING THE SUM OF THOSE 3 MEMBERSHIP FIGURES BY 3.>>

Sec. 31a. (1) From the money appropriated in section 11, there

is allocated for ~~2005-2006~~ 2006-2007 an amount not to exceed

~~$314,200,000.00~~ <<$321,350,000.00>> for payments to eligible districts

and eligible public school academies under this section. Subject to

subsection ~~(12)~~ <<(13)>>, the amount of the additional allowance

under this section, other than funding under subsection <<(6) or (7)

>>, shall be based on the number of actual pupils in membership

in the district or public school academy who met the income

eligibility criteria for free breakfast, lunch, or milk in the

immediately preceding state fiscal year, as determined under the

Richard B. Russell national school lunch act, 42 USC 1751 to ~~1769h~~

1769i, and reported to the department by October 31 of the

immediately preceding fiscal year and adjusted not later than

Senate Bill No. 1095 as amended March 29, 2006

December 31 of the immediately preceding fiscal year. However, for

a public school academy that began operations as a public school

academy after the pupil membership count day of the immediately

preceding school year, the basis for the additional allowance under

this section shall be the number of actual pupils in membership in

the public school academy who met the income eligibility criteria

for free breakfast, lunch, or milk in the current state fiscal

year, as determined under the Richard B. Russell national school

lunch act.

(2) To be eligible to receive funding under this section,

other than funding under subsection (6)<< or (7)>>, a district or

public school academy that has not been previously determined to be

eligible shall apply to the department, in a form and manner

prescribed by the department, and a district or public school

academy must meet all of the following:

(a) The sum of the district's or public school academy's

combined state and local revenue per membership pupil in the

current state fiscal year, as calculated under section 20, plus the

amount of the district's per pupil allocation under section 20j(2),

is less than or equal to $6,500.00 adjusted by the dollar amount of

the difference between the basic foundation allowance under section

20 for the current state fiscal year and $5,000.00, minus $200.00.

(b) The district or public school academy agrees to use the

funding only for purposes allowed under this section and to comply

with the program and accountability requirements under this

section.

(3) Except as otherwise provided in this subsection, an

eligible district or eligible public school academy shall receive

under this section for each membership pupil in the district or

public school academy who met the income eligibility criteria for

free breakfast, lunch, or milk, as determined under the Richard B.

Russell national school lunch act and as reported to the department

by October 31 of the immediately preceding fiscal year and adjusted

not later than December 31 of the immediately preceding fiscal

year, an amount per pupil equal to 11.5% of the sum of the

district's foundation allowance or public school academy's per

pupil amount calculated under section 20, plus the amount of the

district's per pupil allocation under section 20j(2), not to exceed

$6,500.00 adjusted by the dollar amount of the difference between

the basic foundation allowance under section 20 for the current

state fiscal year and $5,000.00, minus $200.00, or of the public

school academy's per membership pupil amount calculated under

section 20 for the current state fiscal year. A public school

academy that began operations as a public school academy after the

pupil membership count day of the immediately preceding school year

shall receive under this section for each membership pupil in the

public school academy who met the income eligibility criteria for

free breakfast, lunch, or milk, as determined under the Richard B.

Russell national school lunch act and as reported to the department

by October 31 of the current fiscal year and adjusted not later

than December 31 of the current fiscal year, an amount per pupil

equal to 11.5% of the public school academy's per membership pupil

amount calculated under section 20 for the current state fiscal

year.

Senate Bill No. 1095 as amended March 29, 2006

(4) Except as otherwise provided in this section, a district

or public school academy receiving funding under this section shall

use that money only to provide instructional programs and direct

noninstructional services, including, but not limited to, medical

or counseling services, for at-risk pupils; for school health

clinics; and for the purposes of subsection (5), or (6), <<or (7)

>>. In addition, a district that is organized as a school district

of the first class under the revised school code or a district or

public school academy in which at least 50% of the pupils in

membership met the income eligibility criteria for free breakfast,

lunch, or milk in the immediately preceding state fiscal year, as

determined and reported as described in subsection (1), may use not

more than 15% of the funds it receives under this section for

school security. A district or public school academy shall not use

any of that money for administrative costs or to supplant another

program or other funds, except for funds allocated to the district

or public school academy under this section in the immediately

preceding year and already being used by the district or public

school academy for at-risk pupils. The instruction or direct

noninstructional services provided under this section may be

conducted before or after regular school hours or by adding extra

school days to the school year and may include, but are not limited

to, tutorial services, early childhood programs to serve children

age 0 to 5, and reading programs as described in former section 32f

as in effect for 2001-2002. A tutorial method may be conducted with

paraprofessionals working under the supervision of a certificated

teacher. The ratio of pupils to paraprofessionals shall be between

Senate Bill No. 1095 as amended March 29, 2006

10:1 and 15:1. Only 1 certificated teacher is required to supervise

instruction using a tutorial method. As used in this subsection,

"to supplant another program" means to take the place of a

previously existing instructional program or direct

noninstructional services funded from a funding source other than

funding under this section.

(5) Except as otherwise provided in subsection ~~(11)~~ <<(12)>>, a

district or public school academy that receives funds under this

section and that operates a school breakfast program under section

1272a of the revised school code, MCL 380.1272a, shall use from the

funds received under this section an amount, not to exceed $10.00

per pupil for whom the district or public school academy receives

funds under this section, necessary to operate the school breakfast

program.

(6) From the funds allocated under subsection (1), there is

allocated for ~~2005-2006~~ 2006-2007 an amount not to exceed

~~$3,743,000.00~~ $5,743,000.00 to support ~~teen~~ child and adolescent

health centers. From the funds allocated in this subsection,

$2,000,000.00 shall be awarded to the 11 child and adolescent

health centers that received planning grants from the department of

community health in 2005 and were approved for operating a center,

but for which operating funds were not awarded. These grants shall

be awarded for 3 5 consecutive years beginning with 2003-2004 in

a form and manner approved jointly by the department and the

department of community health. Each grant recipient shall remain

in compliance with the terms of the grant award or shall forfeit

the grant award for the duration of the ~~3-year~~ 5-year period

Senate Bill No. 1095 as amended March 29, 2006

after the noncompliance. Beginning in 2004-2005, to continue to

receive funding for a ~~teen~~ child and adolescent health center

under this section a grant recipient shall ensure that the ~~teen~~

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 ~~teen~~

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)~~ <<(13)>> for that fiscal year.

(7) From the funds allocated under subsection (1), there is

allocated for 2006-2007 an amount not to exceed $5,150,000.00 for

payments to districts and intermediate districts 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.

Senate Bill No. 1095 as amended March 29, 2006

<<(8)>> ~~(7)~~ Each district or public school academy receiving

funds under this section shall submit to the department by July 15

of each fiscal year a report, not to exceed 10 pages, on the usage

by the district or public school academy of funds under this

section, which report shall include at least a brief description of

each program conducted by the district or public school academy

using funds under this section, the amount of funds under this

section allocated to each of those programs, the number of at-risk

pupils eligible for free or reduced price school lunch who were

served by each of those programs, and the total number of at-risk

pupils served by each of those programs. If a district or public

school academy does not comply with this subsection, the department

shall withhold an amount equal to the August payment due under this

section until the district or public school academy complies with

this subsection. If the district or public school academy does not

comply with this subsection by the end of the state fiscal year,

the withheld funds shall be forfeited to the school aid fund.

<<(9)>> ~~(8)~~ In order to receive funds under this section, a

district or public school academy shall allow access for the

department or the department's designee to audit all records

related to the program for which it receives those funds. The

district or public school academy shall reimburse the state for all

Senate Bill No. 1095 as amended March 29, 2006

disallowances found in the audit.

<<(10)>> ~~(9)~~ Subject to subsections (5), (6), <<(7), and (12) ~~and~~

~~(11)~~ >>, any district may use up to 100% of the funds it

receives under this section to reduce the ratio of pupils to

teachers in grades K-6, or any combination of those grades, in

school buildings in which the percentage of pupils described in

subsection (1) exceeds the district's aggregate percentage of those

pupils. Subject to subsections (5), (6), <<(7), and (12) ~~and~~ ~~(11)~~

>>,

if a district obtains a waiver from the department, the district

may use up to 100% of the funds it receives under this section to

reduce the ratio of pupils to teachers in grades K-6, or any

combination of those grades, in school buildings in which the

percentage of pupils described in subsection (1) is at least 60% of

the district's aggregate percentage of those pupils and at least

30% of the total number of pupils enrolled in the school building.

To obtain a waiver, a district must apply to the department and

demonstrate to the satisfaction of the department that the class

size reductions would be in the best interests of the district's

at-risk pupils.

<<(11)>> ~~(10)~~ A district or public school academy may use funds

received under this section for adult high school completion,

general educational development (G.E.D.) test preparation, adult

English as a second language, or adult basic education programs

described in section 107.

<<(12)>> ~~(11)~~ For an individual school or schools operated by a

district or public school academy receiving funds under this

section that have been determined by the department to meet the

Senate Bill No. 1095 as amended March 29, 2006

adequate yearly progress standards of the federal no child left

behind act of 2001, Public Law 107-110, in both mathematics and

English language arts at all applicable grade levels for all

applicable subgroups, the district or public school academy may

submit to the department an application for flexibility in using

the funds received under this section that are attributable to the

pupils in the school or schools. The application shall identify the

affected school or schools and the affected funds and shall contain

a plan for using the funds for specific purposes identified by the

district that are designed to benefit at-risk pupils in the school,

but that may be different from the purposes otherwise allowable

under this section. The department shall approve the application if

the department determines that the purposes identified in the plan

are reasonably designed to benefit at-risk pupils in the school. If

the department does not act to approve or disapprove an application

within 30 days after it is submitted to the department, the

application is considered to be approved. If an application for

flexibility in using the funds is approved, the district may use

the funds identified in the application for any purpose identified

in the plan.

<<(13)>> ~~(12)~~ If necessary, and before any proration required

under section 11, the department shall prorate payments under this

section by reducing the amount of the per pupil payment under this

section by a dollar amount calculated by determining the amount by

which the amount necessary to fully fund the requirements of this

section exceeds the maximum amount allocated under this section and

then dividing that amount by the total statewide number of pupils

Senate Bill No. 1095 as amended March 29, 2006

who met the income eligibility criteria for free breakfast, lunch,

or milk in the immediately preceding fiscal year, as described in

subsection (1).

<<(14)>> ~~(13)~~ If a district is formed by consolidation after

June 1, 1995, and if 1 or more of the original districts was not

eligible before the consolidation for an additional allowance under

this section, the amount of the additional allowance under this

section for the consolidated district shall be based on the number

of pupils described in subsection (1) enrolled in the consolidated

district who reside in the territory of an original district that

was eligible before the consolidation for an additional allowance

under this section.

<<(15)>> ~~(14)~~ A district or public school academy that does not

meet the eligibility requirement under subsection (2)(a) is

eligible for funding under this section if at least 1/4 of the

pupils in membership in the district or public school academy met

the income eligibility criteria for free breakfast, lunch, or milk

in the immediately preceding state fiscal year, as determined and

reported as described in subsection (1), and at least 4,500 of the

pupils in membership in the district or public school academy met

the income eligibility criteria for free breakfast, lunch, or milk

in the immediately preceding state fiscal year, as determined and

reported as described in subsection (1). A district or public

school academy that is eligible for funding under this section

because the district meets the requirements of this subsection

shall receive under this section for each membership pupil in the

district or public school academy who met the income eligibility

Senate Bill No. 1095 as amended March 29, 2006

criteria for free breakfast, lunch, or milk in the immediately

preceding fiscal year, as determined and reported as described in

subsection (1), an amount per pupil equal to 11.5% of the sum of

the district's foundation allowance or public school academy's per

pupil allocation under section 20, plus the amount of the

district's per pupil allocation under section 20j(2), not to exceed

$6,500.00 adjusted by the dollar amount of the difference between

the basic foundation allowance under section 20 for the current

state fiscal year and $5,000.00, minus $200.00.

<<(16)>> ~~(15)~~ As used in this section, "at-risk pupil" means a

pupil for whom the district has documentation that the pupil meets

at least 2 of the following criteria: is a victim of child abuse or

neglect; is below grade level in English language and communication

skills or mathematics; is a pregnant teenager or teenage parent; is

eligible for a federal free or reduced-price lunch subsidy; has

atypical behavior or attendance patterns; or has a family history

of school failure, incarceration, or substance abuse. For pupils

for whom the results of at least the applicable Michigan education

assessment program (MEAP) test have been received, at-risk pupil

also includes a pupil who does not meet the other criteria under

this subsection but who did not achieve at least a score of level 2

on the most recent MEAP English language arts, mathematics, or

science test for which results for the pupil have been received.

For pupils for whom the results of the Michigan merit examination

have been received, at-risk pupil also includes a pupil who does

not meet the other criteria under this subsection but who did not

achieve proficiency on the reading component of the most recent

Michigan merit examination for which results for the pupil have

been received, did not achieve proficiency on the mathematics

component of the most recent Michigan merit examination for which

results for the pupil have been received, or did not achieve basic

competency on the science component of the most recent Michigan

merit examination for which results for the pupil have been

received. For pupils in grades K-3, at-risk pupil also includes a

pupil who is at risk of not meeting the district's core academic

curricular objectives in English language arts or mathematics.

Sec. 31c. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $1,875,000.00 for 2006-2007

for grants to eligible districts to fund pilot programs designed to

address the needs of pupils whose parent or parents are

incarcerated. For the purposes of this section, eligible districts

are those for which the quotient of pupils in membership eligible

for free breakfast, milk, or lunch as determined under the Richard

B. Russell national school lunch act and as reported to the

department by October 31, 2005 and adjusted not later than December

31, 2005, divided by the district's current year membership is at

least 0.6.

(2) Except as otherwise provided in this subsection, upon

approval by the department each district eligible for funding under

this section shall receive a grant of $75,000.00. If the district

is a school district of the first class under the revised school

code, then upon approval by the department the district shall

receive a grant of $150,000.00. A district must submit a grant

application indicating the services to be provided with grant funds

to the department by November 15, 2006, and the department shall

notify eligible districts of their grant status by January 15,

2007. As part of the pilot program, a district awarded funding

under this section shall do at least all of the following:

(a) Provide video conferencing or audio conferencing

opportunities, or both, between a district pupil and his or her

incarcerated parent or parents on a regular basis.

(b) Provide academic or social support by qualified persons to

pupils whose parent or parents are incarcerated.

(3) If grant funds remain unallocated after the department

determines the grant status of eligible districts, then the

remaining funds shall be distributed to districts approved for

funding on an equal percentage basis.

(4) Not later than November 15, 2007, a district that received

a grant under this section in 2006-2007 shall submit to the

department a summary of activities provided with the grant funds,

number of pupils served, and an evaluation of whether the program

was successful.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $22,495,100.00 for ~~2005-2006~~

2006-2007 for the purpose of making payments to districts and other

eligible entities under this section.

(2) The amounts allocated from state sources under this

section shall be used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be

computed by the department using the methods of calculation adopted

by the Michigan supreme court in the consolidated cases known as

Durant v State of Michigan, Michigan supreme court docket no.

104458-104492.

(3) The payments made under this section include all state

payments made to districts so that each district receives at least

6.0127% of the necessary costs of operating the state mandated

portion of the school lunch program in a fiscal year.

(4) The payments made under this section to districts and

other eligible entities that are not required under section 1272a

of the revised school code, MCL 380.1272a, to provide a school

lunch program shall be in an amount not to exceed $10.00 per

eligible pupil plus 5 cents for each free lunch and 2 cents for

each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there

is allocated for ~~2005-2006~~ 2006-2007 all available federal

funding, estimated at ~~$303,684,000.00~~ $320,000,000.00, for the

national school lunch program and all available federal funding,

estimated at $2,506,000.00, for the emergency food assistance

program.

(6) Notwithstanding section 17b, payments to eligible entities

other than districts under this section shall be paid on a schedule

determined by the department.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed ~~$0.00 for 2004-2005~~

$9,625,000.00 for 2006-2007 for the purpose of making payments to

districts to reimburse for the cost of providing breakfast. ~~The~~

Senate Bill No. 1095 as amended March 29, 2006

~~funds appropriated under this section shall be made available to~~

~~all eligible applicant districts as determined under section 702 of~~

~~2004 PA 346.~~

(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 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.

Sec. 32. From the appropriations in section 11 for 2006-2007,

there is allocated an amount not to exceed $91,000,100.00 from the

state school aid fund and an amount not to exceed <<$12,950,000.00>>

from the general fund to fund the great start early childhood

programs, as provided under sections 32b, 32c, 32d, 32j, <<32k,>> 32 l,

and

32m. The programs funded under this section provide a comprehensive

early childhood system with the purposes of creating a coordinated

collaborative system for early learning, improving parenting

skills, encouraging early mathematics and reading literacy

training, improving school readiness, and mitigating the need for

special education services.

Sec. 32b. (1) From the funds allocated under section 32, there

is allocated an amount not to exceed $100.00 for 2006-2007 for

competitive grants to intermediate districts for the creation of

great start communities or other community purposes as identified

by the early childhood investment corporation. These dollars may

not be expended until the early childhood investment corporation

has identified matching dollars of at least an equal amount.

(2) The early childhood investment corporation shall award

grants to eligible intermediate districts in an amount to be

determined by the corporation.

(3) In order to receive funding, each intermediate district

applicant shall agree to convene local great start collaboratives

to address the availability of the 6 components of a great start

system in its communities: physical health, social-emotional

health, family supports, basic needs, economic stability and

safety, and parenting education and early education and care, to

ensure that every child in the community is ready for kindergarten.

Specifically, each grant will fund the following:

(a) A community needs assessment and strategic plan for the

development of a comprehensive system of early childhood services

and supports, accessible to all children from birth to kindergarten

and their families.

(b) Identification of local resources and services for

Senate Bill No. 1095 as amended March 29, 2006

children with disabilities, developmental delays, or special needs

and their families.

and childcare programs.

(d) Evaluation of local programs.

Sec. 32c. (1) From the ~~general fund appropriation in section~~

11 funds allocated from the general fund under section 32, there

is allocated an amount not to exceed <<~~$250,000.00~~ $500,000.00>> for

~~2005-2006~~

2006-2007 to the department for grants for community-based

collaborative prevention services designed to promote marriage and

foster positive parenting skills; improve parent/child interaction,

especially for children 0-3 years of age; promote access to needed

community services; increase local capacity to serve families at

risk; improve school readiness; and support healthy family

environments that discourage alcohol, tobacco, and other drug use.

The allocation under this section is to fund secondary prevention

programs as defined by the children's trust fund for the prevention

of child abuse and neglect.

(2) The funds allocated under subsection (1) shall be

distributed through a joint request for proposals process

established by the department in conjunction with the children's

trust fund and the ~~state's interagency systems reform~~ interagency

director's workgroup. Projects funded with grants awarded under

this section shall meet all of the following:

(a) Be secondary prevention initiatives and voluntary to

consumers. This appropriation is not intended to serve the needs of

children for whom and families in which neglect or abuse has been

substantiated.

(b) Demonstrate that the planned services are part of a

community's integrated comprehensive family support strategy

endorsed by the ~~local multi-purpose collaborative body~~ community

collaborative.

be in-kind services, unless this requirement is waived by the

interagency ~~systems reform~~ director's workgroup.

(3) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

(4) Not later than January 30 of the next fiscal year, the

department shall prepare and submit to the governor and the

legislature an annual report of outcomes achieved by the providers

of the community-based collaborative prevention services funded

under this section for a fiscal year.

Sec. 32d. (1) From ~~the state school aid fund money~~

~~appropriated under section 11~~ funds allocated under section 32,

there is allocated an amount not to exceed ~~$72,600,000.00~~

$80,000,000.00 for ~~2005-2006~~ 2006-2007 for school readiness or

preschool and parenting program grants to enable eligible

districts, as determined under section 37, to develop or expand, in

conjunction with whatever federal funds may be available,

including, but not limited to, federal funds under title I of the

elementary and secondary education act of 1965, 20 USC 6301 to

6578, chapter 1 of title I of the Hawkins-Stafford elementary and

secondary school improvement amendments of 1988, Public Law 100-

297, and the head start act, 42 USC 9831 to ~~9852a~~ 9852,

comprehensive compensatory programs designed to do 1 or both of the

following:

(a) Improve the readiness and subsequent achievement of

educationally disadvantaged children as defined by the department

who will be at least 4, but less than 5 years of age, as of

December 1 of the school year in which the programs are offered,

and who show evidence of 2 or more risk factors as defined in the

state board report entitled "children at risk" that was adopted by

the state board on April 5, 1988.

(b) Provide preschool and parenting education programs similar

to those under former section 32b as in effect for 2001-2002.

(2) A comprehensive compensatory program funded under this

section ~~may~~ shall include an age-appropriate educational

curriculum, as described in the early childhood standards of

quality for prekindergarten children adopted by the state board,

that prepares children for success in school, including language,

early literacy, and early mathematics. In addition, the

comprehensive program shall include nutritional services, health

screening for participating children, a plan for parent and legal

guardian involvement, and provision of referral services for

families eligible for community social services.

(3) In addition to the allocation under subsection (1), from

the general fund money allocated under section 11 32, there is

allocated an amount not to exceed $200,000.00 for ~~2005-2006~~ 2006-

2007 for a competitive grant to continue a longitudinal evaluation

of children who have participated in the Michigan school readiness

program.

(4) A district receiving a grant under this section may

contract for the provision of the comprehensive compensatory

program and retain for administrative services an amount equal to

not more than 5% of the grant amount. A district may expend not

more than 10% of the total grant amount for administration of the

program.

(5) A grant recipient receiving funds under this section shall

report to the department on the midyear report the number of

children participating in the program who meet the income or other

eligibility criteria specified under section 37(3)(g) and the total

number of children participating in the program. For children

participating in the program who meet the income or other

eligibility criteria specified under section 37(3)(g), grant

recipients shall also report whether or not a parent is available

to provide care based on employment status. For the purposes of

this subsection, "employment status" shall be defined by the

department of human services in a manner consistent with maximizing

the amount of spending that may be claimed for temporary assistance

for needy families maintenance of effort purposes.

Sec. 32j. (1) From the ~~appropriations in section 11~~ funds

allocated under section 32, there is allocated an amount not to

exceed ~~$3,326,000.00~~ $10,000,000.00 for ~~2005-2006~~ 2006-2007 for

great parents, great start grants to intermediate districts to

provide programs for parents with preschool children. The purpose

of these programs is to encourage early mathematics and reading

literacy, improve school readiness, reduce the need for special

education services, and foster the maintenance of stable families

by encouraging positive parenting skills.

(2) To qualify for funding under this section, a program shall

provide services to all families with children age 5 or younger

residing within the intermediate district who choose to

participate, including at least all of the following services:

(a) Providing parents with information on child development

from birth to age 5.

(b) Providing parents with methods to enhance parent-child

interaction that promote social and emotional development for

infants and toddlers and age-appropriate language, mathematics, and

early reading skills; including, but not limited to, encouraging

parents to read to their preschool children at least 1/2 hour per

day.

to promote intellectual, physical, and social growth of

preschoolers, including the acquisition of age-appropriate

language, mathematics, and early reading skills.

(d) Promoting access to needed community services through a

community-school-home partnership.

(e) Promoting marriage.

(3) To receive a grant under this section, an intermediate

district shall submit a plan to the department not later than

October 1, ~~2005~~ 2006 in the form and manner prescribed by the

department. The plan shall do all of the following in a manner

prescribed by the department:

(a) Provide a plan for the delivery of the program components

described in subsection (2) that provides for educators trained in

child development to help parents understand their role in their

child's developmental process, thereby promoting school readiness

and mitigating the need for special education services.

(b) Demonstrate an adequate collaboration of local entities

involved in providing programs and services for preschool children

and their parents.

The intermediate district shall provide at least a 20% local match

from local public or private resources for the funds received under

this section. Not more than 1/2 of this matching requirement, up to

a total of 10% of the total project budget, may be satisfied

through in-kind services provided by participating providers of

programs or services. In addition, not more than 10% of the grant

may be used for program administration.

(4) Each intermediate district receiving a grant under this

section shall agree to include a data collection system approved by

the department. The data collection system shall provide a report

by October 15 of each year on the number of children in families

with income below 200% of the federal poverty level that received

services under this program and the total number of children who

received services under this program.

(5) The department or superintendent, as applicable, shall do

all of the following:

(a) The superintendent shall approve or disapprove the plans

and notify the intermediate district of that decision not later

than November 15, ~~2005~~ 2006. The amount allocated by each

intermediate district shall be at least an amount equal to ~~3.5%~~

Senate Bill No. 1095 as amended March 29, 2006 (1 of 2)

300.66% of the intermediate district's ~~2002-2003~~ 2005-2006

payment under this section. ~~81.~~

(b) The department shall ensure that all programs funded under

this section utilize the most current validated research-based

methods and curriculum for providing the program components

described in subsection (2).

director and the senate and house fiscal agencies summarizing the

data collection reports described in subsection (4) by December 1

of each year.

(6) An intermediate district receiving funds under this

section shall use the funds only for the program funded under this

section. An intermediate district receiving funds under this

section may carry over any unexpended funds received under this

section to subsequent fiscal years and may expend those unused

funds in subsequent fiscal years.

<<Sec. 32k. (1) From the funds ~~appropriated in section 11~~ allocated under section 32, there is allocated for 2006-2007 an amount not to exceed $0.00 for a statewide before- or after-school program to provide youth with a safe, engaging environment to motivate and inspire learning outside the traditional classroom setting. Before-school programs are limited to elementary school-aged children. Effective before- or after-school programs combine academic, enrichment, and recreation activities to guide learning and inspire children and youth in various activities. The before- or after-school programs can meet the needs of the communities served by the programs.

(2) The department shall work in collaboration with the family independence agency under this section.

(3) The department shall, through a competitive bid process, provide grants or contracts up to $0.00 in state school aid funds for the program based on community needs. A county shall receive no more than 20% of the funds allocated under this section for this program. The use of funds under this section should not be considered an ongoing commitment of funding.

(4) The before- or after-school programs funded under this section shall include, at a minimum, at least 3 of the following topics:

(a) Abstinence-based pregnancy prevention.

(b) Chemical abuse and dependency including nonmedical services.

(d) Academic assistance, including assistance with reading and writing.

(e) Preparation toward future self-sufficiency.

(f) Leadership development.

(g) Case management or mentoring.

Senate Bill No. 1095 as amended March 29, 2006 (2 of 2)

(h) Parental involvement.

(i) Anger management.

(5) The department may enter into grants or contracts with independent contractors including, but not limited to, faith-based organizations, boys or girls clubs, schools, or nonprofit organizations. The department shall grant priority in funding independent contractors who secure at least 25% in matching funds. The matching funds may either be fulfilled through local, state, or federal funds, or through in-kind or other donations.

(6) A referral to a program may be made by, but is not limited to, any of the following: a teacher, counselor, parent, police officer, judge, or social worker.

(7) By August 30, ~~2005~~ 2007, the department before- or after-school program expenditures shall be audited and the department shall work in collaboration with independent contractors to provide a report on the before- or after-school program to the senate and house standing committees dealing with human services and education, the senate and house appropriations subcommittees for this act, the senate and house fiscal agencies, and the senate and house policy offices. The report shall include the number of participants and the average cost per participant, as well as changes noted in program participants in any of the following categories:

(a) Juvenile crime.

(b) Aggressive behavior.

(d) Development of new skills and interests.

(e) School attendance and dropout rates.

(f) Behavioral changes in school.

(8) Private foundations may contribute funding to this program, as determined by the department.>>

Sec. 32l. (1) From the ~~general fund money appropriated in~~

~~section 11~~ funds allocated from the general fund under section 32,

there is allocated for ~~2005-2006~~ 2006-2007 an amount not to

exceed $12,250,000.00 for competitive school readiness program

grants for the purposes of preparing children for success in

school, including language, early literacy, and early mathematics.

These grants shall be made available through a competitive

application process as follows:

(a) Any public or private nonprofit legal entity or agency may

apply for a grant under this section. However, a district or

intermediate district may not apply for a grant under this section

unless the district or intermediate district is acting as a fiscal

agent for a child caring organization regulated under 1973 PA 116,

MCL 722.111 to 722.128.

(b) An applicant shall submit an application in the form and

manner prescribed by the department.

committee to review the applications. The committee shall be

composed of representatives of the department, appropriate

community, volunteer, and social service agencies and

organizations, and parents.

(d) The superintendent shall award the grants and shall give

priority for awarding the grants based upon the following criteria:

(i) Compliance with the state board-approved early childhood

standards of quality for prekindergarten.

(ii) Active and continuous involvement of the parents or

guardians of the children participating in the program.

(iii) Employment of teachers possessing proper training,

including a valid Michigan teaching certificate with an early

childhood (ZA) endorsement, a valid Michigan teaching certificate

with a child development associate credential, or a bachelor's

degree in child development with a specialization in preschool

teaching, and employment of paraprofessionals possessing proper

training in early childhood development, including an associate's

degree in early childhood education or child development or the

equivalent, or a child development associate (CDA) credential, or

the equivalent, as approved by the state board. A paraprofessional

who does not meet these requirements may be employed for not more

than 2 years while obtaining proper credentials if he or she has

completed at least 1 course in an appropriate training program.

(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 report entitled "children at risk" that was adopted by

the state board on April 5, 1988.

(vii) The program offers supplementary day care and thereby

offers full-day programs as part of its early childhood development

program.

(viii) The application contains a plan approved by the

department to conduct and report annual school readiness program

evaluations and continuous improvement plans using criteria

approved by the department. At a minimum, the evaluations shall

include a self-assessment of program quality and assessment of the

gains in educational readiness and progress of the children

participating in the program.

(e) An application shall demonstrate that the program has

established or has joined a multidistrict, multiagency school

readiness advisory committee that is involved in the planning and

evaluation of the program and that provides for the involvement of

parents and appropriate community, volunteer, and social service

agencies and organizations. The advisory committee shall include at

least 1 parent or guardian of a program participant for every 18

children enrolled in the program, with a minimum of 2 parent or

guardian representatives. The advisory committee shall do all of

the following:

(i) Review the mechanisms and criteria used to determine

referrals for participation in the 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.

(2) To be eligible for a grant under this section, a program

shall demonstrate that more than 50% of the children participating

in the program live with families with a household income that is

less than or equal to 250% of the federal poverty level.

(3) The superintendent may award grants under this section at

whatever level the superintendent determines appropriate. However,

the amount of a grant under this section, when combined with other

sources of state revenue for this program, shall not exceed

$3,300.00 per participating child or the cost of the program,

whichever is less.

(4) Except as otherwise provided in this subsection, an

applicant that receives a new grant under this section for ~~2005-~~

~~2006~~ 2006-2007 shall also receive priority for funding under this

section for ~~2006-2007 and~~ 2007-2008 and 2008-2009. However, after

3 fiscal years of continuous funding, an applicant is required to

compete openly with new programs and other programs completing

their third year. All grant awards under this section are

contingent on the availability of funds and documented evidence of

grantee compliance with early childhood standards of quality for

prekindergarten, as approved by the state board, and with all

operational, fiscal, administrative, and other program

requirements.

(5) Notwithstanding section 17b, payments to eligible entities

under this section shall be paid on a schedule and in a manner

determined by the department.

Sec. 32m. (1) From the state school aid fund appropriation in

section 11, there is allocated an amount not to exceed

$1,000,000.00 for 2006-2007 for grants under this section. The

department shall make grants to applicant districts or intermediate

districts to assist in funding programs to provide preschool

children with a book each month from birth to age 5.

(2) All of the following apply to a grant under this section:

Senate Bill No. 1095 as amended March 29, 2006 (1 of 6)

(a) A district or intermediate district shall apply for the

grant to the department in the form and manner prescribed by the

department.

(b) The grants shall be distributed through a competitive

process established by the department. The selection of grant

recipients shall be based on the ability of the grant recipient to

serve children in the area and the need for the program in the area

served by the grant recipient.

raised funds at least equal to the amount of the grant under this

section.

(d) Grant funds shall be used only for costs of providing

preschool children with a book each month from birth to age 5. A

grant recipient may operate the program itself or work within a

contractual or cooperative arrangement with another local unit of

government, a foundation, or another nonprofit entity.

(e) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

<<Sec. 34. (1) From the appropriations in section 11, there is allocated an amount not to exceed $500,000.00 for 2006-2007 to the department for grants to districts under this section.

(2) Not more than 76% of the money allocated under this section shall be used for grants to districts for the first year of a 5-year grant program to develop an early intervening model program for grades K to 3. The early intervening program will instruct classroom teachers and support staff on how to monitor individual pupil learning and how to provide specific support or learning strategies to pupils as early as possible in order to reduce the need for special education placement. The program will include literacy and numeracy supports, sensory motor skill development, behavior supports, instructional consultation for teachers, and the development of a parent/school learning plan. Specific support or learning strategies may include support in or out of the general classroom in areas including reading, writing, math, visual memory, motor skill development, behavior, or language development. These would be provided based on an understanding of the individual child's learning needs. All of the following apply to the grants:

(a) Each site funded by a grant shall serve as either a model site of practice or a site of improvement. A model site will serve as an ongoing model that provides the early intervening program for pupils and conducts professional development on site for personnel visiting from a site of improvement. A site of improvement is a site that seeks to implement the early intervening program.

Senate Bill No. 1095 as amended March 29, 2006 (2 of 6)

(b) The grants shall be distributed through a process established by the department. The selection of grant recipients shall be based on the ability to serve as a model site of practice or, for a site of improvement, based on the highest demonstrated need to improve opportunities for learning success as reflected by either a combined percentage of pupils who are learning disabled, emotionally impaired, or speech and language impaired that is higher than the statewide percentage of those pupils or a percentage of pupils reading below grade level as measured by the statewide third grade English language arts assessment that is higher than the statewide percentage of those pupils, as determined by the department. The department shall ensure geographic diversity in awarding grants.

(c) The department shall award up to 19 grants, with not more than 4 of the grants for development of model sites of practice and not more than 15 of the grants for sites of improvement. A model site of practice shall use the grant funds to make professional development on how to provide the program available on site to personnel from sites of improvement. A site of improvement shall use the grant funds to pay for the expenses of obtaining this professional development and other expenses related to implementing an early intervening program.

(d) The amount of a grant to a district shall be $40,000.00.

(e) A grant shall be used for early intervening programs for pupils at the elementary level only.

(3) Not more than 24% of the money allocated under this section shall be used for grants to districts for programs that provide early intervening strategies for pupils in grades K to 3 using schoolwide systems of academic and behavioral supports and shall be scientifically research-based. The strategies to be provided shall include at least pupil performance indicators based upon response to intervention, instructional consultation for teachers, and ongoing progress monitoring. A schoolwide system of academic and behavioral support should be based on a support team available to the classroom teachers. The members of this team could include the principal, special education staff, reading teachers, and other appropriate personnel who would be available to systematically study the needs of the individual child and work with the teacher to match instruction to the needs of the individual child. These grants shall be distributed through a competitive process established by the department. A grant shall be used for providing these programs for pupils at the elementary level only.

(4) The department shall develop guidelines on the use of the grant funds allocated under this section. These guidelines shall ensure that the use of these grant funds is consistent with research and instructional programs that include data-driven processes and proven methods of success.

(5) Programs funded under this section shall invite visitation and feedback from the regional literacy training center in which service area the recipient district is located, as identified by the department.

(6) Notwithstanding section 17b, payments under this section may be made pursuant to an agreement with the department.

(7) Not later than January 30 of the next fiscal year, the department shall prepare and submit to the governor, the senate and house standing committees on education, and the senate and house appropriations subcommittees having jurisdiction over state school aid an annual report of outcomes achieved by the grant recipients funded under this section for a fiscal year. For this report, the funded sites shall collect data prescribed by the department and report to the department on the percentage of pupils reading at grade level before implementation of the program and the percentage of pupils reading at grade level after

Senate Bill No. 1095 as amended March 29, 2006 (3 of 6)

implementation of the program, as measured by the statewide third grade English language arts assessment.

SEC. 34A. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $100.00 FOR 2006-2007 FOR COMPETITIVE GRANTS TO ELIGIBLE DISTRICTS FOR MATHEMATICS AND READING LITERACY PROGRAMS FOR PUPILS IN GRADES K TO 3 TO PREPARE ALL STUDENTS TO ACHIEVE ADEQUATE YEARLY PROGRESS AS DEFINED UNDER THE NO CHILD LEFT BEHIND ACT OF 2001, PUBLIC LAW 107-110.

(2) DISTRICTS MAY SUBMIT 1 APPLICATION FOR A MAXIMUM OF 5 ELEMENTARY SCHOOL BUILDINGS PER APPLICATION. THE DEPARTMENT SHALL GIVE PRIORITY TO THOSE APPLICATIONS THAT MEET THE FOLLOWING 4 CRITERIA:

(A) DISTRICTS WITH ELEMENTARY SCHOOL BUILDINGS THAT DID NOT ACHIEVE ADEQUATE YEARLY PROGRESS AS DEFINED UNDER THE NO CHILD LEFT BEHIND ACT OF 2001, PUBLIC LAW 107-110, FOR 2 OUT OF THE LAST 3 SCHOOL YEARS DUE TO STUDENT PROFICIENCY IN MATHEMATICS OR READING.

(B) IN ADDITION, PRIORITY IN AWARDING GRANTS SHALL BE GIVEN TO PROGRAMS THAT:

(i) REDUCE THE NUMBER OF PUPILS REQUIRING SPECIAL EDUCATION PROGRAMS AND SERVICES.

(ii) IMPROVE STANDARDIZED ASSESSMENT SCORES IN THE AREAS OF MATHEMATICS AND READING.

(iii) CAN BE REPLICATED IN OTHER ELEMENTARY SCHOOLS IN THE STATE IF FOUND TO BE SUCCESSFUL IN MEETING THE GOALS OF THIS SECTION.

(3) TO QUALIFY FOR FUNDING UNDER THIS SECTION, A PROPOSED MATHEMATICS OR READING IMPROVEMENT PROGRAM MUST MEET ALL OF THE FOLLOWING CRITERIA:

(A) BE A RESEARCH-BASED, VALIDATED, STRUCTURED PROGRAM.

(B) PROVIDE AN ASSESSMENT OF MATHEMATICS OR READING SKILLS OF PUPILS IN GRADES K TO 3 TO IDENTIFY THOSE PUPILS WHO ARE PERFORMING BELOW GRADE-LEVEL STATE STANDARDS IN MATHEMATICS OR READING AND MUST PROVIDE SPECIAL ASSISTANCE TO SUCH PUPILS.

(D) BE PART OF A LOCAL BOARD-APPROVED 1 SCHOOL IMPROVEMENT PLAN.

(4) A GRANT APPLICATION SHALL BE SUBMITTED TO THE DEPARTMENT IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. TO BE CONSIDERED FOR A GRANT UNDER THIS SECTION, A GRANT APPLICATION MUST PROVIDE AT LEAST ALL OF THE FOLLOWING:

(A) IDENTIFICATION OF A MATHEMATICS OR READING IMPROVEMENT PROGRAM THAT MEETS ALL OF THE CRITERIA IN SUBSECTION (3).

(B) A PROJECTED BUDGET FOR THE PROGRAM. ALLOWABLE EXPENSES SHALL BE DETERMINED BY THE DEPARTMENT, BUT MAY INCLUDE CURRICULA AND MATERIAL AND SUPPLY PURCHASES, AS WELL AS TEACHER PROFESSIONAL DEVELOPMENT.

(C) DISTRICTS MUST PROVIDE AT LEAST A 20% LOCAL MATCH FROM LOCAL PUBLIC OR PRIVATE RESOURCES FOR THE FUNDS RECEIVED UNDER THIS SECTION. NOT MORE THAN 1/2 OF THIS MATCHING REQUIREMENT, UP TO A TOTAL OF 10% OF THE TOTAL PROJECT BUDGET, MAY BE SATISFIED THROUGH IN-KIND SERVICES PROVIDED BY PARTICIPATING PROVIDERS OF PROGRAMS OR SERVICES.

Senate Bill No. 1095 as amended March 29, 2006 (4 of 6)

(D) DISTRICTS RECEIVING A GRANT UNDER THIS SECTION MUST AGREE TO SET ASIDE 1.5% OF THE GRANT AWARD FOR DATA COLLECTION AND STATEWIDE EVALUATION ACTIVITIES.

(E) A DISTRICT MAY EXPEND NOT MORE THAN 5% OF THE TOTAL GRANT AMOUNT FOR ADMINISTRATION OF THE PROGRAM.

(F) FOR EACH SCHOOL BUILDING RECEIVING FUNDING UNDER THIS SECTION, THE AMOUNT OF THE GRANT SHALL NOT EXCEED $100,000.00 PER SCHOOL BUILDING ANNUALLY.

(5) A PROGRAM RECEIVING FUNDING UNDER THIS SECTION MAY BE CONDUCTED OUTSIDE OF REGULAR SCHOOL HOURS OR OUTSIDE OF THE REGULAR SCHOOL CALENDAR.

(6) SUBJECT TO AVAILABLE REVENUES, FUNDING TO DISTRICTS UNDER THIS SECTION IS INTENDED TO BE THE FIRST YEAR OF 3 YEARS OF FUNDING. FUNDS ALLOCATED UNDER THIS SECTION MAY BE EXPENDED THROUGH THE END OF THE FOLLOWING FISCAL YEAR.

SEC. 35. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $100.00 FOR 2006-2007 FOR COMPETITIVE GRANTS TO ELIGIBLE DISTRICTS TO IMPLEMENT, EXPAND, OR ENHANCE MIDDLE SCHOOL AFTERSCHOOL PROGRAMS THAT PROVIDE ACADEMIC ENRICHMENT OPPORTUNITIES DESIGNED TO HELP STUDENTS MEET LOCAL, STATE AND FEDERAL STANDARDS IN MATHEMATICS, SCIENCE, AND COMPUTER TECHNOLOGY AND TO PREPARE STUDENTS FOR A MORE RIGOROUS HIGH SCHOOL CURRICULUM.

(2) DISTRICTS MAY SUBMIT APPLICATIONS FOR A MAXIMUM OF 5 SCHOOL BUILDINGS PER APPLICATION FOR MIDDLE SCHOOL AFTERSCHOOL PROGRAMS. ALL STUDENTS WHO ATTEND THOSE SCHOOLS ARE ELIGIBLE TO ATTEND THE AFTERSCHOOL PROGRAM. THE DEPARTMENT SHALL GIVE PRIORITY TO APPLICATIONS THAT MEET THE FOLLOWING CRITERIA:

(A) DISTRICTS WITH ENROLLMENT AREAS HAVING A 50% OR HIGHER POVERTY RATE AS DETERMINED BY THE MOST RECENT UNITED STATES CENSUS DATA.

(B) SCHOOL BUILDINGS WITH 30% OR MORE ENROLLED STUDENTS ELIGIBLE FOR FREE OR REDUCED PRICE LUNCH, AS DETERMINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT, 42 USC 1751 TO 1769H.

(C) SCHOOL BUILDINGS THAT DID NOT ACHIEVE ADEQUATE YEARLY PROGRESS AS DEFINED UNDER THE NO CHILD LEFT BEHIND ACT OF 2001, PUBLIC LAW 107-110, FOR 2 OUT OF THE LAST 3 SCHOOL YEARS DUE TO STUDENT PROFICIENCY IN MATHEMATICS OR SCIENCE.

(D) SCHOOL BUILDINGS THAT ARE IN CONSORTIUM WITH AT LEAST 1 COMMUNITY-BASED ORGANIZATION THAT PROVIDES SERVICES TO YOUTH THAT ARE CONSISTENT WITH THE GOALS OF THIS PROGRAM.

(3) ELIGIBLE PROGRAMS MUST PROVIDE THE FOLLOWING COMPONENTS:

(A) OPERATE A MINIMUM OF 3 HOURS EACH DAY AFTER REGULARLY SCHEDULED SCHOOL DAYS, 5 SCHOOL DAYS PER WEEK, DURING THE SCHOOL YEAR. ELIGIBLE PROGRAMS MAY ALSO OPERATE DURING ANY OTHER HOURS OR PERIODS WHEN SCHOOL IS NOT IN SESSION.

(B) INCLUDE AN ARRAY OF SUPERVISED SERVICES SUCH AS TUTORIAL SERVICES, HOMEWORK ASSISTANCE, AND ACADEMIC ENRICHMENT ACTIVITIES THAT ARE DESIGNED TO HELP STUDENTS MEET LOCAL, STATE, AND FEDERAL STANDARDS IN MATHEMATICS, SCIENCE, AND COMPUTER TECHNOLOGY AND TO PREPARE STUDENTS FOR A RIGOROUS HIGH SCHOOL CURRICULUM. IN ADDITION, ELIGIBLE PROGRAMS ARE ENCOURAGED TO INCLUDE OTHER ACTIVITIES THAT PROVIDE OPPORTUNITIES FOR

Senate Bill No. 1095 as amended March 29, 2006 (5 of 6)

LEARNING MATHEMATICS, SCIENCE, AND COMPUTER TECHOLOGY SKILLS, INCLUDING, BUT NOT LIMITED TO:

(i) RECREATIONAL ACTIVITIES

(ii) MUSICAL AND ARTISTIC ACTIVITIES

(iii) OPPORTUNITIES TO USE ADVANCED TECHNOLOGY, PARTICULARLY FOR THOSE STUDENTS WHO DO NOT HAVE ACCESS TO COMPUTERS OR TELECOMMUNICATIONS AT HOME.

(iv) ACTIVITIES THAT ENCOURAGE ADULT FAMILY MEMBERS TO SUPPORT THEIR CHILDREN’S ACADEMIC ACHIEVEMENT.

(v) YOUTH DEVELOPMENT ACTIVITIES, INCLUDING DRUG AND VIOLENCE PREVENTION PROGRAMS.

(C) IN ADDITION TO THE COMPONENTS 1 DESCRIBED IN SUBDIVISION (B), ELIGIBLE MIDDLE SCHOOL AFTERSCHOOL PROGRAMS MUST PROVIDE CAREER PATHWAY AND POSTSECONDARY EDUCATION GUIDANCE AND COUNSELING.

(A) A PLAN FOR THE DELIVERY OF THE PROGRAM COMPONENTS DESCRIBED IN SUBSECTION (3).

(B) EVIDENCE OF ADEQUATE COLLABORATION OF LOCAL ENTITIES INVOLVED IN PROVIDING PROGRAMS AND SERVICES FOR SCHOOL-AGE CHILDREN. A LETTER OF SUPPORT OR COLLABORATION FROM AN AREA MULTIPURPOSE COLLABORATIVE BODY IS 1 FORM OF SUFFICIENT EVIDENCE.

(C) A PROJECTED BUDGET FOR EACH OF THE PROGRAM SITES TO BE FUNDED. ALLOWABLE EXPENSES SHALL BE DETERMINED BY THE DEPARTMENT.

(D) FOR THOSE SCHOOL BUILDINGS THAT DO NOT MEET THE PRIORITY DESCRIBED IN SUBSECTION (2)(B), DISTRICTS MUST PROVIDE AT LEAST A

20% LOCAL MATCH FROM LOCAL PUBLIC OR PRIVATE RESOURCES FOR THAT SCHOOL BUILDING, WHICH MAY BE SATISFIED THROUGH IN-KIND SERVICES PROVIDED BY COMMUNITY-BASED ORGANIZATIONS.

(E) DISTRICTS RECEIVING A GRANT UNDER THIS SECTION MUST AGREE TO SET ASIDE 1.5% OF THE GRANT AWARD FOR DATA COLLECTION AND STATEWIDE EVALUATION.

(F) DISTRICTS RECEIVING A GRANT UNDER THIS SECTION MAY CONTRACT FOR THE PROVISION OF THE AFTERSCHOOL PROGRAM AND RETAIN FOR ADMINISTRATIVE SERVICES AN AMOUNT EQUAL TO NOT MORE THAN 5% OF THE GRANT AMOUNT. A DISTRICT MAY EXPEND NOT MORE THAN 10% OF THE TOTAL GRANT AMOUNT FOR ADMINISTRATION 1 OF THE PROGRAM.

(G) A PROVISION FOR IMPLEMENTING A SLIDING SCALE OF TUITION BASED UPON A STUDENT’S FAMILY INCOME. TUITION MAY NOT BE CHARGED TO A STUDENT WHOSE FAMILY INCOME IS AT OR BELOW 250% OF THE FEDERAL POVERTY GUIDELINES PUBLISHED BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES.

(H) IF THE PROGRAM IS PROVIDED IN A NON-SCHOOL FACILITY, THE FACILITY MUST BE LICENSED AS A CHILD CARE CENTER AND MUST BE AT LEAST AS AVAILABLE AND AS ACCESSIBLE TO STUDENTS AS THE SCHOOL BUILDING. APPLICATIONS MUST ADDRESS HOW STUDENTS WILL BE SAFELY

TRANSPORTED OR ESCORTED TO AND FROM OFF-CAMPUS LOCATIONS.

Senate Bill No. 1095 as amended March 29, 2006 (6 of 6)

(5) SUBJECT TO AVAILABLE REVENUES, FUNDING TO DISTRICTS UNDER

THIS SECTION IS INTENDED TO BE THE FIRST YEAR OF 5 YEARS OF FUNDING. FUNDS ALLOCATED UNDER THIS SECTION MAY BE EXPENDED THROUGH THE END OF THE FOLLOWING FISCAL YEAR.

(6) FOR THE PURPOSES OF THIS SECTION, "MIDDLE SCHOOL AFTERSCHOOL PROGRAM" IS DEFINED AS A PROGRAM SERVING STUDENTS IN GRADES 6, 7, OR 8, EXCEPT IN A K-6 BUILDING OR AN 8-12 BUILDING.>>

Sec. 39. (1) The tentative allocation for each fiscal year to

each eligible district under section 32d shall be determined by

multiplying the number of children determined in section 38 or the

number of children the district indicates it will be able to serve

under section 37(2)(c), whichever is less, by ~~$3,300.00~~ $3,400.00

and shall be distributed among districts in decreasing order of

concentration of eligible children as determined by section 38

until the money allocated in section 32d is distributed. If the

number of children a district indicates it will be able to serve

under section 37(2)(c) includes children able to be served in a

full-day program, then the number able to be served in a full-day

program shall be doubled for the purposes of making this

calculation of the lesser of the number of children determined in

section 38 and the number of children the district indicates it

will be able to serve under section 37(2)(c) and determining the

amount of the tentative allocation to the district under section

32d.

(2) A district that received funds under this section in at

least 1 of the 2 immediately preceding fiscal years shall receive

priority in funding over other eligible districts. However, funding

beyond 3 state fiscal years is contingent upon the availability of

funds and documented evidence satisfactory to the department of

compliance with all operational, fiscal, administrative, and other

program requirements.

(3) A district that offers supplementary day care funded by

funds other than those received under this section and therefore

offers full-day programs as part of its early childhood development

program shall receive priority in the allocation of funds under

this section over other eligible districts other than those

districts funded under subsection (2).

(4) For any district with 315 or more eligible pupils, the

number of eligible pupils shall be 65% of the number calculated

under section 38. However, none of these districts may have less

than 315 pupils for purposes of calculating the tentative

allocation under section 32d.

(5) If, taking into account the total amount to be allocated

to the district as calculated under this section, a district

determines that it is able to include additional eligible children

in the school readiness program without additional funds under this

section, the district may include additional eligible children but

shall not receive additional funding under this section for those

children.

(6) For a district that enrolls pupils in a full-day program

under section 32d, each child enrolled in the full-day program

shall be counted as 2 children served by the program for purposes

of determining the number of children to be served and for

determining the allocation under section 32d. A district’s

allocation shall not be increased solely on the basis of providing

a full-day program.

(7) As used in this section, "full-day program" means a

program that operates for at least the same length of day as the

district’s first grade program for a minimum of 4 days per week, 30

weeks per year. A classroom that offers a full-day program must

enroll all children for the full day to be considered a full-day

program.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2005-2006~~ 2006-2007 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$652,919,600.00~~ $636,978,000.00,

for the federal programs under the no child left behind act of

2001, Public Law 107-110. These funds are allocated as follows:

(a) An amount estimated at ~~$12,050,500.00~~ $9,625,800.00 to

provide students with drug- and violence-prevention programs and to

implement strategies to improve school safety, funded from DED-

OESE, drug-free schools and communities funds.

(b) An amount estimated at ~~$9,401,400.00~~ $6,140,900.00 for

the purpose of improving teaching and learning through a more

effective use of technology, funded from DED-OESE, educational

technology state grant funds.

preparing, training, and recruiting high-quality teachers and class

size reduction, funded from DED-OESE, improving teacher quality

funds.

(d) An amount estimated at $7,627,400.00 for programs to teach

English to limited English proficient (LEP) children, funded from

DED-OESE, language acquisition state grant funds.

(e) An amount estimated at $8,550,000.00 for the Michigan

charter school subgrant program, funded from DED-OESE, charter

school funds.

(f) An amount estimated at $58,000.00 for Michigan model

partnership for character education programs, funded from DED-OESE,

title X, fund for improvement of education funds.

(g) An amount estimated at $468,700.00 for rural and low

income schools, funded from DED-OESE, rural and low income school

funds.

(h) An amount estimated at ~~$6,231,800.00~~ $3,115,900.00 to

help schools develop and implement comprehensive school reform

programs, funded from DED-OESE, title I and title X, comprehensive

school reform funds.

(i) An amount estimated at $428,860,300.00 to provide

supplemental programs to enable educationally disadvantaged

children to meet challenging academic standards, funded from DED-

OESE, title I, disadvantaged children funds.

(j) An amount estimated at ~~$6,314,100.00~~ $3,022,700.00 for

the purpose of providing unified family literacy programs, funded

from DED-OESE, title I, even start funds.

(k) An amount estimated at $8,186,200.00 for the purpose of

identifying and serving migrant children, funded from DED-OESE,

title I, migrant education funds.

(l) An amount estimated at $22,928,000.00 to promote high-

quality school reading instruction for grades K-3, funded from DED-

OESE, title I, reading first state grant funds.

(m) An amount estimated at ~~$5,698,000.00~~ $2,848,900.00 for

the purpose of implementing innovative strategies for improving

student achievement, funded from DED-OESE, title VI, innovative

strategies funds.

(n) An amount estimated at $29,296,000.00 for the purpose of

providing high-quality extended learning opportunities, after

school and during the summer, for children in low-performing

schools, funded from DED-OESE, twenty-first century community

learning center funds. Of these funds, $25,000.00 may be used to

support the Michigan after-school partnership. All of the following

apply to the Michigan after-school partnership:

(i) The department shall collaborate with the department of

human services to extend the duration of the Michigan after-school

initiative, to be renamed the Michigan after-school partnership and

oversee its efforts to implement the policy recommendations and

strategic next steps identified in the Michigan after-school

initiative's report of December 15, 2003.

(ii) Funds shall be used to leverage other private and public

funding to engage the public and private sectors in building and

sustaining high-quality out-of-school-time programs and resources.

The co-chairs, representing the department and the department of

human services, shall name a fiduciary agent and may authorize the

fiduciary to expend funds and hire people to accomplish the work of

the Michigan after-school partnership.

(iii) Participation in the Michigan after-school partnership

shall be expanded beyond the membership of the initial Michigan

after-school initiative to increase the representation of parents,

youth, foundations, employers, and others with experience in

education, child care, after-school and youth development services,

and crime and violence prevention, and to include representation

from the Michigan department of community health. Each year, on or

before December 31, the Michigan after-school partnership shall

report its progress in reaching the recommendations set forth in

the Michigan after-school initiative's report to the legislature

and the governor.

~~(o) An amount estimated at $1,000,000.00 for community service~~

~~state grants, funded from DED-OESE, community service state grant~~

~~funds.~~

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2005-2006~~ 2006-2007 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at $4,646,400.00, for the following programs

that are funded by federal grants:

(a) An amount estimated at $600,000.00 for acquired

immunodeficiency syndrome education grants, funded from HHS-center

for disease control, AIDS funding.

(b) An amount estimated at $1,500,100.00 to provide services

to homeless children and youth, funded from DED-OVAE, homeless

children and youth funds.

school impact grants, funded from HHS-ACF, refugee children school

impact funds.

(d) An amount estimated at $1,445,600.00 for serve America

grants, funded from the corporation for national and community

service funds.

(e) An amount estimated at $100,700.00 to encourage interstate

and intrastate coordination of migrant education, funded from DED-

OESE, title I, migrant education program funds.

(3) To the extent allowed under federal law, the funds

allocated under subsection (1)(i), (j), and (l) may be used for 1 or

more reading improvement programs that meet at least 1 of the

following:

(a) A research-based, validated, structured reading program

that aligns learning resources to state standards and includes

continuous assessment of pupils and individualized education plans

for pupils.

(b) A mentoring program that is a research-based, validated

program or a statewide 1-to-1 mentoring program and is designed to

enhance the independence and life quality of pupils who are

mentally impaired by providing opportunities for mentoring and

integrated employment.

validated educational service program focused on assessing and

building essential cognitive and perceptual learning abilities to

strengthen pupil concentration and learning.

(d) A structured mentoring-tutorial reading program for pupils

in preschool to grade 4 that is a research-based, validated program

that develops individualized educational plans based on each

pupil's age, assessed needs, reading level, interests, and learning

style.

(4) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(5) As used in this section:

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

(b) "DED-OESE" means the DED office of elementary and

secondary education.

education.

(d) "HHS" means the United States department of health and

human services.

(e) "HHS-ACF" means the HHS administration for children and

families.

Sec. 41. From the appropriation in section 11, there is

allocated an amount not to exceed $2,800,000.00 for ~~2005-2006~~

2006-2007 to applicant districts and intermediate districts

offering programs of instruction for pupils of limited English-

speaking ability under section 1153 of the revised school code, MCL

380.1153. Reimbursement shall be on a per pupil basis and shall be

based on the number of pupils of limited English-speaking ability

in membership on the pupil membership count day. Funds allocated

under this section shall be used solely for instruction in

speaking, reading, writing, or comprehension of English. A pupil

shall not be counted under this section or instructed in a program

under this section for more than 3 years.

Sec. 41a. From the federal funds appropriated in section 11,

there is allocated an amount estimated at $1,232,100.00 for ~~2005-~~

~~2006~~ 2006-2007 from the United States department of education -

office of elementary and secondary education, language acquisition

state grant funds, to districts and intermediate districts offering

programs of instruction for pupils of limited English-speaking

ability.

Sec. 51a. (1) ~~From the appropriation in section 11, there is~~

~~allocated for 2004-2005 an amount not to exceed $896,383,000.00~~

~~from state sources and all available federal funding under sections~~

~~611 to 619 of part B of the individuals with disabilities education~~

~~act, 20 USC 1411 to 1419, estimated at $329,850,000.00 plus any~~

~~carryover federal funds from previous year appropriations.~~ From

Senate Bill No. 1095 as amended March 29, 2006

the appropriation in section 11, there is allocated for 2005-2006

an amount not to exceed ~~$955,883,000.00~~ $936,083,000.00 from

state sources and all available federal funding under sections 611

to 619 of part B of the individuals with disabilities education

act, 20 USC 1411 to 1419, estimated at $345,850,000.00, plus any

carryover federal funds from previous year appropriations. From the

appropriation in section 11, there is allocated for 2006-2007 an

amount not to exceed <<$993,433,000.00>> from state sources and all

available federal funding under sections 611 to 619 of part B of

the individuals with disabilities education act, 20 USC 1411 to

1419, estimated at $350,700,000.00, plus any carryover federal

funds from previous year appropriations. The allocations under this

subsection are for the purpose of reimbursing districts and

intermediate districts for special education programs, services,

and special education personnel as prescribed in article 3 of the

revised school code, MCL 380.1701 to 380.1766; net tuition payments

made by intermediate districts to the Michigan schools for the deaf

and blind; and special education programs and services for pupils

who are eligible for special education programs and services

according to statute or rule. For meeting the costs of special

education programs and services not reimbursed under this article,

a district or intermediate district may use money in general funds

or special education funds, not otherwise restricted, or

contributions from districts to intermediate districts, tuition

payments, gifts and contributions from individuals, or federal

funds that may be available for this purpose, as determined by the

intermediate district plan prepared pursuant to article 3 of the

Senate Bill No. 1095 as amended March 29, 2006

revised school code, MCL 380.1701 to 380.1766. All federal funds

allocated under this section in excess of those allocated under

this section for 2002-2003 may be distributed in accordance with

the flexible funding provisions of the individuals with

disabilities education act, ~~title VI of Public Law 91-230~~ Public

Law 108-446, including, but not limited to, 34 CFR 300.234 and

300.235. Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(2) From the funds allocated under subsection (1), there is

allocated each fiscal year ~~for 2004-2005 and~~ for 2005-2006 and

for 2006-2007 the amount necessary, estimated at ~~$175,500,000.00~~

~~for 2004-2005 and $187,700,000.00~~ $193,500,000.00 for 2005-2006

and <<$207,250,000.00>> for 2006-2007, for payments toward reimbursing

districts and intermediate districts for 28.6138% of total approved

costs of special education, excluding costs reimbursed under

section 53a, and 70.4165% of total approved costs of special

education transportation. Allocations under this subsection shall

be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (12), times

the sum of the foundation allowance under section 20 of the pupil's

district of residence plus the amount of the district's per pupil

allocation under section 20j(2), not to exceed $6,500.00 adjusted

by the dollar amount of the difference between the basic foundation

allowance under section 20 for the current fiscal year and

$5,000.00 minus $200.00, or, for a special education pupil in

membership in a district that is a public school academy or

university school, times an amount equal to the amount per

membership pupil calculated under section 20(6). For an

intermediate district, the amount allocated under this subdivision

toward fulfilling the specified percentages shall be an amount per

special education membership pupil, excluding pupils described in

subsection (12), and shall be calculated in the same manner as for

a district, using the foundation allowance under section 20 of the

pupil's district of residence, not to exceed $6,500.00 adjusted by

the dollar amount of the difference between the basic foundation

allowance under section 20 for the current fiscal year and

$5,000.00 minus $200.00, and that district's per pupil allocation

under section 20j(2).

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments under subdivision (a)

do not fulfill the specified percentages shall be paid the amount

necessary to achieve the specified percentages for the district or

intermediate district.

(3) From the funds allocated under subsection (1), there is

allocated each fiscal year ~~for 2004-2005 and~~ for 2005-2006 and

for 2006-2007 the amount necessary, estimated at ~~$3,000,000.00 for~~

~~2004-2005 and $2,500,000.00~~ $1,900,000.00 for 2005-2006 and

$2,100,000.00 for 2006-2007, to make payments to districts and

intermediate districts under this subsection. If the amount

allocated to a district or intermediate district for a fiscal year

under subsection (2)(b) is less than the sum of the amounts

allocated to the district or intermediate district for 1996-97

under sections 52 and 58, there is allocated to the district or

intermediate district for the fiscal year an amount equal to that

difference, adjusted by applying the same proration factor that was

used in the distribution of funds under section 52 in 1996-97 as

adjusted to the district's or intermediate district's necessary

costs of special education used in calculations for the fiscal

year. This adjustment is to reflect reductions in special education

program operations or services between 1996-97 and subsequent

fiscal years. Adjustments for reductions in special education

program operations or services shall be made in a manner determined

by the department and shall include adjustments for program or

service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this act for

the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department each fiscal year ~~for 2004-2005 and~~

for 2005-2006 and for 2006-2007 to districts, intermediate

districts, or other eligible entities on a competitive grant basis

for programs, equipment, and services that the department

determines to be designed to benefit or improve special education

on a statewide scale.

(6) From the amount allocated in subsection (1), there is

allocated an amount not to exceed $2,200,000.00 each fiscal year

~~for 2004-2005 and~~ for 2005-2006 and for 2006-2007 to reimburse

100% of the net increase in necessary costs incurred by a district

or intermediate district in implementing the revisions in the

administrative rules for special education that became effective on

July 1, 1987. As used in this subsection, "net increase in

necessary costs" means the necessary additional costs incurred

solely because of new or revised requirements in the administrative

rules minus cost savings permitted in implementing the revised

rules. Net increase in necessary costs shall be determined in a

manner specified by the department.

(7) For purposes of this article, all of the following apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Except as otherwise provided in subdivision (c), beginning

with the 2004-2005 fiscal year, a district or intermediate district

that employed special education support services staff to provide

special education support services in 2003-2004 or in a subsequent

fiscal year and that in a fiscal year after 2003-2004 receives the

same type of support services from another district or intermediate

district shall report the cost of those support services for

special education reimbursement purposes under this act. This

subdivision does not prohibit the transfer of special education

classroom teachers and special education classroom aides if the

pupils counted in membership associated with those special

education classroom teachers and special education classroom aides

are transferred and counted in membership in the other district or

intermediate district in conjunction with the transfer of those

teachers and aides.

~~(c) If the department determines before bookclosing for 2004-~~

~~2005 that the amounts allocated under this section for 2004-2005~~

~~will exceed expenditures under this section for 2004-2005, then for~~

~~2004-2005 only, for a district or intermediate district whose~~

~~reimbursement for 2004-2005 would otherwise be affected by~~

~~subdivision (b), subdivision (b) does not apply to the calculation~~

~~of the reimbursement for that district or intermediate district and~~

~~reimbursement for that district or intermediate district shall be~~

~~calculated in the same manner as it was for 2003-2004. If the~~

~~amount of the excess allocations under this section is not~~

~~sufficient to fully fund the calculation of reimbursement to those~~

~~districts and intermediate districts under this subdivision, then~~

~~the calculations and resulting reimbursement under this subdivision~~

~~shall be prorated on an equal percentage basis.~~

services, as defined by R 340.1701c of the Michigan administrative

code, shall not be provided when those services are covered by and

available through private group health insurance carriers or

federal reimbursed program sources unless the department and

district or intermediate district agree otherwise and that

agreement is approved by the state budget director. Expenses, other

than the incidental expense of filing, shall not be borne by the

parent. In addition, the filing of claims shall not delay the

education of a pupil. A district or intermediate district shall be

responsible for payment of a deductible amount and for an advance

payment required until the time a claim is paid.

(8) From the allocation in subsection (1), there is allocated

each fiscal year ~~for 2004-2005 and~~ for 2005-2006 and for 2006-

2007 an amount not to exceed $15,313,900.00 to intermediate

districts. The payment under this subsection to each intermediate

district shall be equal to the amount of the 1996-97 allocation to

the intermediate district under subsection (6) of this section as

in effect for 1996-97.

(9) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan schools for the deaf and

blind shall not be included in the membership count of a district,

but shall be counted in membership in the intermediate district of

residence.

(10) Special education personnel transferred from 1 district

to another to implement the revised school code shall be entitled

to the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(11) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

(12) From the funds allocated in subsection (1), there is

allocated each fiscal year ~~for 2004-2005 and~~ for 2005-2006 and

for 2006-2007 the amount necessary, estimated at ~~$7,000,000.00 for~~

~~2004-2005 and $6,600,000.00~~ $6,500,000.00 for 2005-2006 and

$7,800,000.00 for 2006-2007, to pay the foundation allowances for

pupils described in this subsection. The allocation to a district

under this subsection shall be calculated by multiplying the number

of pupils described in this subsection who are counted in

membership in the district times the sum of the foundation

allowance under section 20 of the pupil's district of residence

plus the amount of the district's per pupil allocation under

section 20j(2), not to exceed $6,500.00 adjusted by the dollar

amount of the difference between the basic foundation allowance

under section 20 for the current fiscal year and $5,000.00 minus

$200.00, or, for a pupil described in this subsection who is

counted in membership in a district that is a public school academy

or university school, times an amount equal to the amount per

membership pupil under section 20(6). The allocation to an

intermediate district under this subsection shall be calculated in

the same manner as for a district, using the foundation allowance

under section 20 of the pupil's district of residence, not to

exceed $6,500.00 adjusted by the dollar amount of the difference

between the basic foundation allowance under section 20 for the

current fiscal year and $5,000.00 minus $200.00, and that

district's per pupil allocation under section 20j(2). This

subsection applies to all of the following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

intermediate district and provided educational services by the

department of community health.

(13) After payments under subsections (2) and (12) and section

51c, the remaining expenditures from the allocation in subsection

(1) shall be made in the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payment required under subsection (8).

(f) 100% of the payments under section 56.

(14) The allocations under subsection (2), subsection (3), and

subsection (12) shall be allocations to intermediate districts only

and shall not be allocations to districts, but instead shall be

calculations used only to determine the state payments under

section 22b.

Sec. 51c. As required by the court in the consolidated cases

known as Durant v State of Michigan, Michigan supreme court docket

no. 104458-104492, from the allocation under section 51a(1), there

is allocated each fiscal year ~~for 2004-2005 and~~ for 2005-2006 and

for 2006-2007 the amount necessary, estimated at ~~$642,000,000.00~~

~~for 2004-2005 and $690,200,000.00~~ $665,300,000.00 for 2005-2006

and $707,400,000.00 for 2006-2007, for payments to reimburse

districts for 28.6138% of total approved costs of special education

excluding costs reimbursed under section 53a, and 70.4165% of total

approved costs of special education transportation. Funds allocated

under this section that are not expended in the state fiscal year

for which they were allocated, as determined by the department, may

be used to supplement the allocations under sections 22a and 22b in

order to fully fund those calculated allocations for the same

fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated for ~~2005-2006~~ 2006-2007 all available

federal funding, estimated at ~~$65,000,000.00~~ $74,000,000.00, for

special education programs that are funded by federal grants. All

federal funds allocated under this section shall be distributed in

accordance with federal law. Notwithstanding section 17b, payments

of federal funds to districts, intermediate districts, and other

eligible entities under this section shall be paid on a schedule

determined by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated for ~~2005-2006~~ 2006-2007:

(a) An amount estimated at $15,000,000.00 for handicapped

infants and toddlers, funded from DED-OSERS, handicapped infants

and toddlers funds.

(b) An amount estimated at $14,000,000.00 for preschool grants

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

incentive funds.

special education programs funded by DED-OSERS, handicapped

program, individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States department of education office of special education and

rehabilitative services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766, minus the district's foundation allowance

calculated under section 20, and minus the amount calculated for

the district under section 20j. For intermediate districts,

reimbursement for pupils described in ~~section~~ subsection (2)

shall be calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed $6,500.00 adjusted by the dollar amount of

the difference between the basic foundation allowance under section

20 for the current fiscal year and $5,000.00, minus $200.00, and

under section 20j.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of community health.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $12,800,000.00 of the allocation for ~~2005-~~

~~2006~~ 2006-2007 in section 51a(1) shall be allocated under this

section.

Sec. 54. ~~In addition to the aid received under section 52,~~

~~each~~ Each intermediate district shall receive an amount per pupil

for each pupil in attendance at the Michigan schools for the deaf

and blind. The amount shall be proportionate to the total

instructional cost at each school. Not more than $1,688,000.00 of

the allocation for ~~2005-2006~~ 2006-2007 in section 51a(1) shall be

allocated under this section.

Sec. 54a. From the state school aid fund money appropriated in

section 11, there is allocated an amount not to exceed $250,000.00

for ~~2005-2006~~ 2006-2007 to the lending library located at central

Michigan university from which districts and intermediate districts

can borrow assessment materials designed specifically for children

with severe loss of vision or hearing, severe cognitive or motor

disabilities, or multiple disabilities and for children who require

the most specialized types of psychological and educational

assessment. The lending library shall make test assessment

materials available through borrowing to districts and intermediate

districts. The lending library shall also provide information about

the lending library at meetings and conferences for school

personnel and shall develop a website to describe the services

offered by the lending library. The lending library also ~~should~~

shall mail information about the services offered by the lending

library to all districts and intermediate districts.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1743, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1743, membership and taxable value

of the district shall not be included in the membership and taxable

value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount each fiscal year not to exceed $36,881,100.00

for 2005-2006 and for 2006-2007 to reimburse intermediate districts

levying millages for special education pursuant to part 30 of the

revised school code, MCL 380.1711 to 380.1743. The purpose, use,

and expenditure of the reimbursement shall be limited as if the

funds were generated by these millages and governed by the

intermediate district plan adopted pursuant to article 3 of the

revised school code, MCL 380.1701 to 380.1766. As a condition of

receiving funds under this section, an intermediate district

distributing any portion of special education millage funds to its

constituent districts shall submit for departmental approval and

implement a distribution plan.

(3) Reimbursement for those millages levied in 2004-2005 shall

be made in 2005-2006 at an amount per 2004-2005 membership pupil

computed by subtracting from ~~$142,100.00~~ $142,900.00 the 2004-

2005 taxable value behind each membership pupil and multiplying the

resulting difference by the 2004-2005 millage levied. Reimbursement

for those millages levied in 2005-2006 shall be made in 2006-2007

at an amount per 2005-2006 membership pupil computed by subtracting

from $150,900.00 the 2005-2006 taxable value behind each membership

pupil and multiplying the resulting difference by the 2005-2006

millage levied.

Sec. 57. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $285,000.00 for ~~2005-2006~~ 2006-

2007 for grants to intermediate districts for advanced and

accelerated students.

(2) To qualify for funding under this section, a grant

recipient shall support part of the cost of summer institutes for

advanced and accelerated students and, to the extent the funding

allows, provide comprehensive programs for advanced and accelerated

pupils.

(3) Except as otherwise provided in this subsection, the

amount of a single grant award under this section shall not exceed

$5,000.00. Intermediate districts may form a consortium, and that

consortium may receive a maximum grant amount of $5,000.00 for each

participant intermediate district. Each intermediate district or

consortium must apply for grant funding by April 1, ~~2006~~ 2007 and

demonstrate compliance with subsection (2).

(4) A district, intermediate district, or consortium that

receives a grant under this section shall provide at least a 25%

match for grant money received under this section from local public

or private resources.

(5) Any unallocated grant funds may be allocated to

intermediate districts and consortia receiving grants under this

section in an equal amount per intermediate district.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $30,000,000.00 for ~~2005-2006~~

2006-2007 to reimburse on an added cost basis districts, except for

a district that served as the fiscal agent for a vocational

education consortium in the 1993-94 school year, and secondary area

vocational-technical education centers for secondary-level

vocational-technical education programs, including parenthood

education programs, according to rules approved by the

superintendent. Applications for participation in the programs

shall be submitted in the form prescribed by the department. The

department shall determine the added cost for each vocational-

technical program area. The allocation of added cost funds shall be

based on the type of vocational-technical programs provided, the

number of pupils enrolled, and the length of the training period

provided, and shall not exceed 75% of the added cost of any

program. With the approval of the department, the board of a

district maintaining a secondary vocational-technical education

program may offer the program for the period from the close of the

school year until September 1. The program shall use existing

facilities and shall be operated as prescribed by rules promulgated

by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

vocational administration, shared time vocational administration,

and career education planning district vocational-technical

administration. The definition of what constitutes administration

and reimbursement shall be pursuant to guidelines adopted by the

superintendent. Not more than $800,000.00 of the allocation in

subsection (1) shall be distributed under this subsection.

(3) From the allocation in subsection (1), there is allocated

an amount not to exceed $388,700.00 for ~~2005-2006~~ 2006-2007 to

intermediate districts with constituent districts that had combined

state and local revenue per membership pupil in the 1994-95 state

fiscal year of $6,500.00 or more, served as a fiscal agent for a

state board designated area vocational education center in the

1993-94 school year, and had an adjustment made to their 1994-95

combined state and local revenue per membership pupil pursuant to

section 20d. The payment under this subsection to the intermediate

district shall equal the amount of the allocation to the

intermediate district for 1996-97 under this subsection.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the operation

of the program that is commensurate with the revenue that would

have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

each fiscal year an amount not to exceed $9,000,000.00 for 2005-

Senate Bill No. 1095 as amended March 29, 2006 (1 of 2)

2006 and for 2006-2007 to reimburse intermediate districts and area

vocational-technical education programs established under section

690(3) of the revised school code, MCL 380.690, levying millages

for area vocational-technical education pursuant to sections 681 to

690 of the revised school code, MCL 380.681 to 380.690. The

purpose, use, and expenditure of the reimbursement shall be limited

as if the funds were generated by those millages.

(3) Reimbursement for the millages levied in 2004-2005 shall

be made in 2005-2006 at an amount per 2004-2005 membership pupil

computed by subtracting from ~~$151,200.00~~ $152,000.00 the 2004-

2005 taxable value behind each membership pupil and multiplying the

resulting difference by the 2004-2005 millage levied. Reimbursement

for the millages levied in 2005-2006 shall be made in 2006-2007 at

an amount per 2005-2006 membership pupil computed by subtracting

from $160,300.00 the 2005-2006 taxable value behind each membership

pupil and multiplying the resulting difference by the 2005-2006

millage levied.

<<SEC. 64. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $100.00 FOR GRANTS TO INTERMEDIATE DISTRICTS OR A DISTRICT OF THE FIRST CLASS THAT ARE IN CONSORTIUM WITH A COMMUNITY COLLEGE AND A HOSPITAL TO CREATE AND IMPLEMENT A MIDDLE COLLEGE FOCUSED ON THE FIELD OF HEALTH SCIENCES.

(2) AWARDS SHALL BE MADE IN A MANNER AND FORM AS DETERMINED BY THE DEPARTMENT; HOWEVER, AT A MINIMUM, ELIGIBLE CONSORTIA FUNDED UNDER THIS SECTION SHALL ENSURE THE MIDDLE COLLEGE PROVIDES ALL OF THE FOLLOWING:

(A) OUTREACH PROGRAMS TO PROVIDE INFORMATION TO MIDDLE SCHOOL AND HIGH SCHOOL STUDENTS ABOUT CAREER OPPORTUNITIES IN THE HEALTH SCIENCES FIELD.

(B) AN INDIVIDUALIZED EDUCATION PLAN FOR EACH PUPIL ENROLLED IN THE PROGRAM.

(D) CLINICAL ROTATIONS THAT PROVIDE OPPORTUNITIES FOR PUPILS TO OBSERVE CAREERS IN THE HEALTH SCIENCES.

(3) FOR THE PURPOSES OF THIS SECTION, "MIDDLE COLLEGE" IS DEFINED AS A SERIES OF COURSES AND OTHER REQUIREMENTS AND CONDITIONS ESTABLISHED BY THE CONSORTIUM THAT ALLOW A PUPIL TO GRADUATE WITH A HIGH SCHOOL DIPLOMA AND A CERTIFICATE OR ASSOCIATE DEGREE FROM A COMMUNITY COLLEGE.>>

Sec. 65. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed <<$780,100.00>> for 2006-2007 for

Senate Bill No. 1095 as amended March 29, 2006 (2 of 2)

<< >> grants to districts or intermediate districts, as determined by

the department of labor and economic growth, for eligible

precollege programs in engineering and the sciences.

<<(2) From the funds allocated under subsection (1), the department

of labor and economic growth shall award $680,100.00 for 2006-2007 to the

2 eligible existing programs that received funds appropriated for these

purposes in the appropriations act containing the department of labor and

economic growth budget for 2005-2006.

(3) From the funds allocated under subsection (1), the deparment of labor and economic growth shall award $100,000.00 for 2006-2007 to the Kalamazoo regional education service agency to support an area program substantially similar to the 2 eligible existing programs receiving funds under subsection (1).>>

Senate Bill No. 1095 as amended March 29, 2006 (1 of 2)

<<(4)>> The department of labor and economic growth shall submit a

report to the appropriations subcommittees responsible for this act

and to the house and senate fiscal agencies by February 1, 2007

regarding dropout rates, grade point averages, enrollment in

science, engineering, and math-based curricula, and employment in

science, engineering, and mathematics-based fields for pupils who

were enrolled in the programs awarded funds under this section or

under preceding legislation. The report shall continue to evaluate

the effectiveness of the precollege programs in engineering and

sciences funded under this section.

<<SEC. 66. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED $100.00 FOR GRANTS TO INTERMEDIATE DISTRICTS OR CONSORTIUMS OF INTERMEDIATE DISTRICTS AND COMMUNITY COLLEGES TO AID THE DEPARTMENT AND THE DEPARTMENT OF LABOR AND ECONOMIC GROWTH IN IDENTIFYING EXISTING CAREER AND TECHNICAL EDUCATION CURRICULA AND DEVELOPING NEW CAREER AND TECHNICAL EDUCATION CURRICULA THAT INCORPORATE THE MICHIGAN MERIT CORE CONTENT STANDARDS AND CREDIT REQUIREMENTS.

(2) GRANT APPLICATIONS SHALL BE SUBMITTED TO THE DEPARTMENT IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.

(3) CURRICULA, CLASSROOM MATERIALS, AND RELATED PROFESSIONAL DEVELOPMENT DESIGNS AND MATERIALS CREATED USING THESE GRANT FUNDS MUST BE MADE AVAILABLE TO ALL DISTRICTS.

(4) THE DEPARTMENT SHALL AWARD GRANTS TO ELIGIBLE RECIPIENTS IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT; HOWEVER, THE DEPARTMENT SHALL GIVE PRIORITY TO GRANT PROPOSALS THAT PROVIDE THE MOST INNOVATIVE AND COST-EFFECTIVE APPROACHES TO REVOLUTIONIZING CAREER AND TECHNICAL EDUCATION TO PREPARE STUDENTS FOR WORK AND POSTSECONDARY EDUCATION IN THE 21ST CENTURY.>>

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$1,625,000.00~~ $2,965,000.00

for ~~2005-2006~~ 2006-2007 for the purposes of ~~subsections (2) and~~

~~(3)~~ this section.

(2) From the allocation in subsection (1), there is allocated

each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction or driver skills

road tests pursuant to sections 51 and 52 of the pupil

transportation act, 1990 PA 187, MCL 257.1851 and 257.1852. The

Senate Bill No. 1095 as amended March 29, 2006 (2 of 2)

payments shall be in an amount determined by the department not to

exceed 75% of the actual cost of instruction and driver

compensation for each public or nonpublic school bus driver

attending a course of instruction. For the purpose of computing

compensation, the hourly rate allowed each school bus driver shall

not exceed the hourly rate received for driving a school bus.

Reimbursement compensating the driver during the course of

instruction or driver skills road tests shall be made by the

department to the college or university or intermediate district

providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated

each fiscal year the amount necessary to pay the reasonable costs

of nonspecial education auxiliary services transportation provided

pursuant to section 1323 of the revised school code, MCL 380.1323.

Districts funded under this subsection shall not receive funding

under any other section of this act for nonspecial education

auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is

allocated an amount not to exceed $1,340,000.00 for 2006-2007 for

reimbursement to districts and intermediate districts for costs

associated with the inspection of school buses and pupil

transportation vehicles by the department of state police as

required under section 715a of the Michigan vehicle code, 1949 PA

300, MCL 257.715a, and section 39 of the pupil transportation act,

1990 PA 187, MCL 257.1839. The department of state police shall

prepare a statement of costs attributable to each district for

which bus inspections are provided and submit it to the department

and to each affected district in a time and manner determined

jointly by the department and the department of state police. The

department shall reimburse each district and intermediate district

for costs detailed on the statement within 30 days after receipt of

the statement. Districts for which services are provided shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection.

Sec. 81. (1) Except as otherwise provided in this section,

from the appropriation in section 11, there is allocated for ~~2005-~~

~~2006~~ 2006-2007 to the intermediate districts the sum necessary,

but not to exceed ~~$77,702,100.00~~ $80,805,500.00, to provide state

aid to intermediate districts under this section. Except as

otherwise provided in this section, there shall be allocated to

each intermediate district for ~~2005-2006~~ 2006-2007 an amount

equal to ~~100.0%~~ 103.3% of the amount appropriated under this

subsection for ~~2004-2005, excluding the portion that was allocated~~

~~for the purposes of section 32j~~ 2005-2006. Funding provided under

this section shall be used to comply with requirements of this act

and the revised school code that are applicable to intermediate

districts, and for which funding is not provided elsewhere in this

act, and to provide technical assistance to districts as authorized

by the intermediate school board.

(2) From the allocation in subsection (1), there is allocated

an amount not to exceed $500,000.00 for 2006-2007 for payments to

intermediate districts for purposes of this subsection.

Intermediate districts receiving funds under this section shall

collaborate with the department to develop expanded professional

development opportunities for teachers to update and expand their

knowledge and skills needed to support the Michigan merit

curriculum.

(3) ~~(2)~~ From the allocation in subsection (1), there is

allocated to an intermediate district, formed by the consolidation

or annexation of 2 or more intermediate districts or the attachment

of a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(4) ~~(3)~~ During a fiscal year, the department shall not

increase an intermediate district's allocation under subsection (1)

because of an adjustment made by the department during the fiscal

year in the intermediate district's taxable value for a prior year.

Instead, the department shall report the adjustment and the

estimated amount of the increase to the house and senate fiscal

agencies and the state budget director not later than June 1 of the

fiscal year, and the legislature shall appropriate money for the

adjustment in the next succeeding fiscal year.

(5) ~~(4)~~ In order to receive funding under this section, an

intermediate district shall demonstrate to the satisfaction of the

department that the intermediate district employs at least 1 person

who is trained in pupil counting procedures, rules, and

regulations.

Sec. 94a. (1) There is created within the office of the state

budget director in the department of management and budget the

center for educational performance and information. The center

shall do all of the following:

(a) Coordinate the collection of all data required by state

and federal law from all entities receiving funds under this act.

(b) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities.

reliability of the data and the collection process.

(d) Develop state and model local data collection policies,

including, but not limited to, policies that ensure the privacy of

individual student data. State privacy policies shall ensure that

student social security numbers are not released to the public for

any purpose.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide reports to the citizens of this state to allow

them to assess allocation of resources and the return on their

investment in the education system of this state.

(g) Assist all entities receiving funds under this act in

complying with audits performed according to generally accepted

accounting procedures.

(h) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts or intermediate districts as required

under state or federal law shall make arrangements with the center,

and with the districts or intermediate districts, to have the

center collect the information and to provide it to the department,

officer, or agency as necessary. To the extent that it does not

cause financial hardship, the center shall arrange to collect the

information in a manner that allows electronic submission of the

information to the center. Each affected state department, officer,

or agency shall provide the center with any details necessary for

the center to collect information as provided under this

subsection. This subsection does not apply to information collected

by the department of treasury under the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; ~~1961~~

~~PA 108, MCL 388.951 to 388.963~~ the school bond qualification,

approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or

section 1351a of the revised school code, MCL 380.1351a.

(3) The state budget director shall appoint a CEPI advisory

committee, consisting of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

director.

(d) One representative from the state education agency.

(e) One representative each from the department of labor and

economic growth and the department of treasury.

(f) Three representatives from intermediate school districts.

(g) One representative from each of the following educational

organizations:

(i) Michigan association of school boards.

(ii) Michigan association of school administrators.

(iii) Michigan school business officials.

(h) One representative representing private sector firms

responsible for auditing school records.

(i) Other representatives as the state budget director

determines are necessary.

(4) The CEPI advisory committee appointed under subsection (3)

shall provide advice to the director of the center regarding the

management of the center's data collection activities, including,

but not limited to:

(a) Determining what data is necessary to collect and maintain

in order to perform the center's functions in the most efficient

manner possible.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

accuracy of the data.

(f) Establishing and maintaining state and model local

policies related to data collection, including, but not limited to,

privacy policies related to individual student data.

(g) Ensuring the data is made available to state and local

policymakers and citizens of this state in the most useful format

possible.

(h) Other matters as determined by the state budget director

or the director of the center.

(5) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(6) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$2,000,000.00 for 2005-2006~~

$4,500,000.00 for 2006-2007 to the department of management and

budget to support the operations of the center and the development

and implementation of a comprehensive data management and student

tracking system. The center shall cooperate with the state

education agency to ensure that this state is in compliance with

federal law and is maximizing opportunities for increased federal

funding to improve education in this state. In addition, from the

federal funds appropriated in section 11 for ~~2005-2006~~ 2006-2007,

there is allocated the amount necessary, estimated at $3,543,200.00

in order to fulfill federal reporting requirements. :

~~(a) An amount not to exceed $839,000.00 funded from DED-OESE,~~

~~title I, disadvantaged children funds.~~

~~(b) An amount not to exceed $55,700.00 funded from DED-OESE,~~

~~title I, reading first state grant funds.~~

~~(c) An amount not to exceed $47,000.00 funded from DED-OESE,~~

~~title I, migrant education funds.~~

~~(d) An amount not to exceed $285,000.00 funded from DED-OESE,~~

~~improving teacher quality funds.~~

~~(e) An amount not to exceed $73,000.00 funded from DED-OESE,~~

~~drug-free schools and communities funds.~~

~~(f) An amount not to exceed $150,000.00 funded under sections~~

~~611 to 619 of part B of the individuals with disabilities education~~

~~act, title VI of Public Law 91-230, 20 USC 1411 to 1419.~~

~~(g) An amount not to exceed $13,500.00 for data collection~~

~~systems, funded from DED-NCES, common core data funds.~~

~~(h) An amount not to exceed $400,000.00 for the collection and~~

~~dissemination of state assessment data, funded from DED-OESE, title~~

~~VI, state assessments funds.~~

~~(i) An amount not to exceed $80,000.00 for data collection~~

~~systems, funded from DED-NCES, task award funds.~~

~~(j) An amount not to exceed $100,000.00 for data collection~~

~~systems development funded from DED-NCES, performance based data~~

~~management initiative.~~

(7) ~~(k) An~~ From the general fund allocation under subsection

(6), there is allocated for 2006-2007 an amount not to exceed

~~$1,500,000.00~~ $2,500,000.00 to support the development and

implementation of a comprehensive ~~K-12~~ longitudinal educational

data management and student tracking system. , In addition, from

the federal funds allocated in subsection (6), there is allocated

for 2006-2007 an amount not to exceed $1,500,000.00 funded from the

competitive grants of DED-OESE, title II, educational technology

funds for the purposes of this subsection. Not later than November

30, ~~2005~~ 2006, the department shall award a single grant to an

eligible partnership that includes an intermediate district with at

least 1 high-need local school district and the center.

~~(7) If the center, in partnership with the department,~~

~~receives a federal grant appropriated in the department's budget to~~

~~support the development and implementation of a comprehensive data~~

~~management and pupil tracking system, the center shall first expend~~

~~those funds before expending funds allocated under this section.~~

(8) The center and the department shall work cooperatively to

develop a cost allocation plan that pays for center expenses from

the appropriate federal fund revenues.

(9) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year.

(10) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (6) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(11) As used in this section:

~~(a) "DED-NCES" means the United States department of education~~

~~national center for education statistics.~~

(a) ~~(b)~~ "DED-OESE" means the United States department of

education office of elementary and secondary education.

(b) ~~(c)~~ "High-need local school district" means a local

educational agency as defined in the enhancing education through

technology part of the no child left behind act of 2001, Public Law

107-110.

Sec. 98. (1) From the state school aid fund money appropriated

in section 11, there is allocated an amount not to exceed

$525,000.00 for 2006-2007 and from the general fund money

appropriated in section 11, there is allocated an amount not to

exceed ~~$1,750,000.00 for 2005-2006~~ $2,750,000.00 for 2006-2007 to

provide a grant to the Michigan virtual university for the

development, implementation, and operation of the Michigan virtual

high school; to provide professional development opportunities for

educators; and to fund other purposes described in this section. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2005-2006~~ 2006-2007 an amount estimated at

~~$2,250,000.00 from DED-OESE, title II, improving teacher quality~~

~~funds~~ $3,250,000.00.

(2) The Michigan virtual high school shall have the following

goals:

(a) Significantly expand curricular offerings for high schools

across this state through agreements with districts or licenses

from other recognized providers. The Michigan virtual high school

shall explore options for providing rigorous civics curricula

online.

(b) Create statewide instructional models using interactive

multimedia tools delivered by electronic means, including, but not

limited to, the internet, digital broadcast, or satellite network,

for distributed learning at the high school level.

competencies through on-line learning.

~~(d) Offer teachers opportunities to learn new skills and~~

~~strategies for developing and delivering instructional services.~~

~~(e) Accelerate this state's ability to respond to current and~~

~~emerging educational demands.~~

(d) Provide online test preparation resources for pupils.

(e) ~~(f)~~ Grant high school diplomas through a dual enrollment

method with districts.

(f) ~~(g)~~ Act as a broker for college level equivalent

courses, as defined in section 1471 of the revised school code, MCL

380.1471, and dual enrollment courses from postsecondary education

institutions.

(3) From the general fund money allocated in subsection (1),

an amount estimated at, but not to exceed $1,000,000.00, shall be

used by the Michigan virtual high school to provide online test

preparation resources for all Michigan high school pupils using

web-based tools that align with the Michigan merit exam

requirements, including the ACT and the revised MEAP exam. These

resources shall include the following:

(a) Practice test opportunities for students.

(b) Information on effective test taking strategies.

(c) Diagnostic tools to identify student learning gaps.

(d) Self-paced online instructional tutorials.

(e) Electronic reports that provide feedback for students and

school personnel.

(4) ~~(3)~~ The Michigan virtual high school course offerings

shall include, but are not limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) General education development test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs and services for

teachers.

(5) ~~(4)~~ From the federal funds allocated in subsection (1),

there is allocated for 2006-2007 an amount estimated at

$2,250,000.00 from DED-OESE, title II, improving teacher quality

funds for a grant to the Michigan virtual university for the

purpose of this subsection. The state education agency shall sign a

memorandum of understanding with the Michigan virtual university

regarding the DED-OESE, title II, improving teacher quality funds

as provided under this subsection. The memorandum of understanding

under this subsection shall require that the Michigan virtual

university coordinate the following activities related to DED-OESE,

title II, improving teacher quality funds in accordance with

federal law:

(a) Develop, and assist districts in the development and use

of, proven, innovative strategies to deliver intensive professional

development programs that are both cost-effective and easily

accessible, such as strategies that involve delivery through the

use of technology, peer networks, and distance learning.

(b) Encourage and support the training of teachers and

administrators to effectively integrate technology into curricula

and instruction.

include higher education institutions for the purposes of providing

professional development activities for teachers,

paraprofessionals, and principals as defined in federal law.

(d) Offer teachers opportunities to learn new skills and

strategies for developing and delivering instructional services.

(e) Provide online professional development opportunities for

educators to update and expand knowledge and skills needed to

support the Michigan merit curriculum core content standards and

credit requirements.

~~(5) If a home-schooled or nonpublic school student is a~~

~~resident of a district that subscribes to services provided by the~~

~~Michigan virtual high school, the student may use the services~~

~~provided by the Michigan virtual high school to the district~~

~~without charge to the student beyond what is charged to a district~~

~~pupil using the same services.~~

~~(6) From the allocations in subsection (1), the amount~~

~~necessary, not to exceed $1,250,000.00, shall be used to provide~~

~~online professional development for classroom teachers. This~~

~~allocation is intended to be for the last of 3 years. These funds~~

~~may be used for designing and building courses, marketing and~~

~~outreach, workshops and evaluation, content acquisition, technical~~

~~assistance, project management, and customer support. The Michigan~~

~~virtual university shall offer at least 5 hours of online~~

~~professional development for classroom teachers under this section~~

~~each fiscal year beginning in 2004-2005 without charge to the~~

~~teachers or to districts or intermediate districts.~~

(6) ~~(7)~~ The Michigan virtual university shall offer at least

200 hours of online professional development for classroom teachers

under this section each fiscal year beginning in 2006-2007 without

charge to the teachers or to districts or intermediate districts. A

district or intermediate district may require a full-time teacher

to participate in at least 5 hours of online professional

development provided by the Michigan virtual university under

subsection ~~(6)~~ (5). Five hours of this professional development

shall be considered to be part of the 51 hours allowed to be

counted as hours of pupil instruction under section 101(10).

(7) ~~(8) In addition to the other funds allocated under this~~

~~section, from~~ From the federal funds appropriated in ~~section 11~~

subsection (1), there is allocated for ~~2005-2006~~ 2006-2007 an

amount estimated at $1,000,000.00 from the DED-OESE, title II,

educational technology grant funds to support e-learning and

virtual school initiatives consistent with the goals contained in

the United States national educational technology plan issued in

January 2005. Not later than November 30, 2006, from the funds

allocated in this subsection, the department shall award a single

grant of $1,000,000.00 to a consortium or partnership established

by the Michigan virtual university that meets the requirements of

this subsection. To be eligible for this funding, a consortium or

partnership established by the Michigan virtual university shall

include at least 1 intermediate district and at least 1 high-need

local district. All of the following apply to this funding:

(a) An eligible consortium or partnership must demonstrate

the following:

(i) Prior success in delivering online courses and

instructional services to K-12 pupils throughout this state.

(ii) Expertise in designing, developing, and evaluating online

K-12 course content.

(iii) Experience in maintaining a statewide help desk service

for pupils, online teachers, and other school personnel.

(iv) Knowledge and experience in providing technical assistance

and support to K-12 schools in the area of online education.

(v) Experience in training and supporting K-12 educators in

this state to teach online courses.

(vi) Demonstrated technical expertise and capacity in managing

complex technology systems.

(vii) Experience promoting twenty-first century learning skills

through the use of online technologies.

(b) The Michigan virtual university, which operates the

Michigan virtual high school, shall perform the following tasks

related to this funding:

(i) ~~(a)~~ Examine the curricular and specific course content

needs of middle and high school students in the areas of

mathematics and science.

(ii) ~~(b)~~ Design, develop, and acquire online courses and

related supplemental resources aligned to state standards to create

a comprehensive and rigorous statewide catalog of online courses

and instructional services.

(iii) ~~(c)~~ Conduct a demonstration pilot to promote new and

innovative online courses and instructional services.

(iv) ~~(d)~~ Evaluate existing online teaching and learning

practices and develop continuous improvement strategies to enhance

student achievement.

(v) ~~(e)~~ Develop, support, and maintain the technology

infrastructure and related software required to deliver online

courses and instructional services to students statewide.

~~(f) Begin to develop a web-based practice assessment and~~

~~classroom remediation program that includes reading, mathematics,~~

~~social science, and science for pupils in grades 3 to 8. The~~

~~Michigan virtual high school may contract with an outside provider~~

~~to provide the services under this subdivision. The program must~~

~~meet all of the following:~~

(i~~) Have the ability to register pupils online.~~

(ii~~) Be accessible on the internet.~~

(~~iii~~~~) Provide test results immediately upon completion of the~~

~~test.~~

(iv~~) Provide remedial services by linking to textbooks in the~~

~~classroom.~~

(v~~) Provide results that are reported to the district~~

~~superintendent, the school principal, and the department and are~~

~~made available to parents, and that are tracked by pupil,~~

~~classroom, school, and district.~~

~~(9) Not later than November 30, 2005, from the funds allocated~~

~~in subsection (8), the department shall award a single grant of~~

~~$1,000,000.00 to a consortium or partnership established by the~~

~~Michigan virtual university that meets the requirements of this~~

~~section. To be eligible for this funding, a consortium or~~

~~partnership established by the Michigan virtual university shall~~

~~include at least 1 intermediate district and at least 1 high-need~~

~~local district. An eligible consortium or partnership must~~

~~demonstrate the following:~~

~~(a) Prior success in delivering online courses and~~

~~instructional services to K-12 students throughout this state.~~

~~(b) Expertise in designing, developing, and evaluating online~~

~~K-12 course content.~~

~~(c) Experience in maintaining a statewide help desk service~~

~~for students, online teachers, and other school personnel.~~

~~(d) Knowledge and experience in providing technical assistance~~

~~and support to K-12 schools in the area of online education.~~

~~(e) Experience in training and supporting K-12 educators in~~

~~this state to teach online courses.~~

~~(f) Demonstrated technical expertise and capacity in managing~~

~~complex technology systems.~~

~~(g) Experience promoting twenty-first century learning skills~~

~~through the innovative use of online technologies.~~

(8) From the state school aid fund allocation in subsection

(1), an amount not to exceed $525,000.00 for 2006-2007 shall be

awarded as a single grant to an intermediate district working in

partnership with the Michigan virtual high school for a statewide

license for "my dream explorer", a career exploration and planning

tool, to be made available to all pupils at no cost.

(9) If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan virtual high school, the student may use the services

provided by the Michigan virtual high school to the district

Senate Bill No. 1095 as amended March 29, 2006

without charge to the student beyond what is charged to a district

pupil using the same services.

(10) As used in this section:

(a) "DED-OESE" means the United States department of education

office of elementary and secondary education.

(b) "High-need local district" means a local educational

agency as defined in the enhancing education through technology

part of the no child left behind act of 2001, Public Law 107-110.

<<SEC. 98A. FROM THE APPROPRIATIONS IN SECTION 11, THERE IS ALLOCATED FOR 2006-2007 AN AMOUNT NOT TO EXCEED $100.00 FOR COMPETITIVE GRANTS TO DISTRICTS AND INTERMEDIATE DISTRICTS UNDER THIS SECTION. GRANTS AWARDED UNDER THIS SECTION ARE FOR THE SUPPORT OF MIDDLE AND HIGH SCHOOL PUPILS TO ENROLL IN COURSES AT THE MICHIGAN VIRTUAL HIGH SCHOOL. A DISTRICT OR INTERMEDIATE DISTRICT THAT DOES NOT EXPEND THE ENTIRE GRANT RECEIVED UNDER THIS SECTION MAY CARRY FORWARD THE UNEXPENDED FUNDS TO THE NEXT FISCAL YEAR TO SUPPORT THE COSTS OF EDUCATING ADDITIONAL PUPILS AT THE MICHIGAN VIRTUAL HIGH SCHOOL.>>

Sec. 98b. (1) From the federal funds appropriated in section

11 there is allocated for ~~2005-2006~~ 2006-2007 an amount ~~not to~~

~~exceed $2,500,000.00 from the competitive grants of DED-OESE, title~~

~~II, educational technology grants funds, and an amount not to~~

~~exceed~~ estimated at $3,000,000.00 from funds carried forward from

~~2003-2004~~ 2005-2006 from unexpended DED-OESE, title II,

educational technology grants funds, for the freedom to learn

program described in this section. ~~In addition, from the state~~

~~school aid fund money appropriated in section 11, there is~~

~~allocated for 2005-2006 an amount not to exceed $250,000.00 for the~~

~~purposes of this section.~~

(2) The allocations in subsection (1) shall be used to

develop, implement, and operate the freedom to learn program and

make program grants. The goal of the program is to achieve one-to-

one access to wireless technology for K-12 pupils through statewide

and local public-private partnerships. To implement the program,

the state education agency shall sign a memorandum of understanding

with Ferris state university that provides for joint administration

of program grants under this subsection and authorizes the creation

of an independent institute. If sufficient private funds are

obtained for this purpose, Ferris state university shall create an

independent institute to assume responsibility for the freedom to

learn program and to use the allocations in subsection (1) and any

funds from alternative sources to do all of the following:

(a) Carry out all goals and activities of the freedom to learn

program described in this section.

(b) Establish itself as a national leadership organization in

1-to-1 research, development, and mentoring.

participation in the freedom to learn program and other 1-to-1

learning programs.

(3) Ferris state university and the state education agency

shall make grants to districts as described in this section. In

awarding the grants, Ferris state university and the state

education agency shall give priority to applications that

demonstrate that the district's program will meet all of the

following:

(a) Will be ready for immediate implementation and will have

begun professional development on technology integration in the

classroom.

(b) Will utilize state structure and resources for

professional development, as coordinated by Ferris state

university.

described in subsection (10) or will participate in an approved

alternative 1-to-1 deployment described in subsection (11).

(d) Will agree to participate in the program and its

professional development and evaluation components for 4 years.

(4) The amount of program grants to districts is estimated at

$250.00 per pupil in membership in grade 6 in ~~2005-2006~~ 2006-

2007, or in another grade allowed in this section, or per grade 6

teacher if the funding is awarded in a ratio of at least 20 pupils

funded for each teacher funded. The state education agency and

Ferris state university shall establish grant criteria that

maximize the distribution of federal funds to achieve the $250.00

per pupil or teacher in districts that qualify for federal funds.

To qualify for a grant under this section, a district shall submit

an application to the state education agency and Ferris state

university and complete the application process established by the

state education agency and Ferris state university. The application

shall include at least all of the following:

(a) If the district is applying for federal funds, how the

district will meet the requirements of the competitive grants under

DED-OESE, title II, part D.

(b) How the district will provide the opportunity for each

pupil in membership in grade 6 to receive a wireless computing

device. If the district has already achieved one-to-one wireless

access in grade 6 or if the district's school building grade

configuration makes implementation of the program for grade 6

impractical, the district may apply for a grant for the next

highest grade. If the district does not have a grade 6 or higher,

the district may apply for funding for the next lowest grade level.

If the district operates 1 or more schools that are not meeting

adequate yearly progress, as determined by the department, and that

contain grade 6, the district may apply for funding for a school

building-wide program for 1 or more of those schools. A public

school academy that does not offer a grade higher than grade 5 may

apply to receive a grant under this section for pupils in the

highest grade offered by the public school academy.

the grant funds. The plan shall describe a plan for professional

development on technology integration, content and curriculum, and

local partnerships with the other districts and representatives

from businesses, industry, and higher education. The plan shall

include at least the following:

(i) The academic achievement goals, which may include, but are

not limited to, goals related to mathematics, science, and language

arts.

(ii) The engagement goals, which may include, but are not

limited to, goals related to retention rates, dropout rates,

detentions, and suspensions.

(iii) The professional development goals, which may include, but

are not limited to, goals related to staff and teacher development

and performance indicators.

(d) A 3- to 5-year plan or funding model for increasing the

share that is borne locally of the expenditures for one-to-one

wireless access. Ferris state university shall provide districts

with sample local plans and funding models for the purposes of this

subdivision and with information on available federal and private

resources.

(e) How the district will amend its local technology plan as

required under state and federal law to reflect the program under

this section.

(5) A district that receives a grant under this section shall

provide at least a $25.00 per pupil match for grant money received

under this section from local public or private resources.

(6) The amount of a grant under this section to a single

district for a fiscal year shall not exceed 25% of the total amount

available for grants under this section for that fiscal year.

(7) A district that received money under section 98 in 2002-

2003 for a wireless technology grant is eligible to receive a grant

under this section.

(8) The federal funding under subsection (1) shall be used

first to provide the grants under this subsection. A district

described in this subsection shall apply to Ferris state university

and the state education agency for a grant in the form and manner

prescribed by the department. An application under this section is

not subject to the requirements of subsection (3) if the

application demonstrates that the program will meet all of the

following:

(a) Will continue as a demonstration program.

(b) Will provide regional assistance to schools that are not

meeting adequate yearly progress, as determined by the department,

and to new grant recipients, as directed by the state education

agency and Ferris state university.

initiatives.

(9) Not more than 25% of the DED-OESE, title II, educational

technology grants funds under subsection (1) that are allocated for

grants to districts that participate in the statewide public-

private partnership under subsection (10) may be used to provide

statewide professional development that will be coordinated by

Ferris state university.

(10) The department of management and budget shall maintain a

statewide public-private partnership to implement the program.

(11) A district may elect to purchase or lease wireless

computing devices from a vendor other than the statewide

partnership described in subsection (10) if Ferris state university

determines that the vendor meets or exceeds minimum requirements

and the vendor is identified in the district's grant application.

Districts may apply to receive additional grants of $250.00 per

pupil for use in professional development activities specific to

the alternative deployment solution instead of the statewide

professional development as described under subsection (9).

(12) The state education agency shall sign a memorandum of

understanding with Ferris state university regarding DED-OESE,

title II, educational technology grants, as provided under this

subsection not later than October 1, ~~2005~~ 2006. Ferris state

university shall coordinate activities described in this subsection

with the freedom to learn grants described under this section. The

memorandum of understanding shall require that Ferris state

university coordinate the following state activities related to

DED-OESE, title II, educational technology grants in accordance

with federal law:

(a) Assist in the development of innovative strategies for the

delivery of specialized or rigorous academic courses and curricula

through the use of technology, including distance learning

technologies.

(b) Establish and support public-private initiatives for the

acquisition of educational technology.

(13) Funds allocated under this section that are not expended

in the state fiscal year for which they were allocated may be

carried forward to a subsequent state fiscal year.

(14) It is the intent of the legislature that all plans or

applications submitted by the state education agency to the United

States department of education relating to the distribution of

federal funds under this section are for the purposes described in

this section.

(15) The state education agency shall ensure that the program

goals and plans for the freedom to learn program are contained in

the state technology plan required by federal law.

(16) From the funds allocated under this section from the

state school aid fund, an amount not to exceed $250,000.00 is

allocated to Ferris state university to be used for statewide

administration of the freedom to learn program.

(17) Notwithstanding section 17b, payments under this section

may be made pursuant to an agreement with the department.

(18) It is the intent of the legislature that this state will

seek to raise private funds for the current and future funding of

the freedom to learn program under this section and all of the

program components.

(19) As used in this section:

(a) "DED-OESE" means the United States department of education

office of elementary and secondary education.

(b) "State education agency" means the department.

Sec. 99. (1) From the state school aid fund money appropriated

in section 11, there is allocated an amount not to exceed

~~$2,416,000.00 for 2005-2006~~ $3,416,000.00 for 2006-2007 and from

the general fund appropriation in section 11, there is allocated an

amount not to exceed $84,000.00 for ~~2005-2006~~ 2006-2007 for

implementing the comprehensive master plan for mathematics and

science centers developed by the department and approved by the

state board on August 8, 2002, and for other purposes as described

in this section. In addition, from the federal funds appropriated

in section 11, there is allocated for ~~2005-2006~~ 2006-2007 an

amount estimated at $4,456,000.00 from DED-OESE, title II,

mathematics and science partnership grants.

(2) Within a service area designated locally, approved by the

department, and consistent with the master plan described in

subsection (1), an established mathematics and science center shall

address 2 or more of the following 6 basic services, as described

in the master plan, to constituent districts and communities:

leadership, pupil services, curriculum support, community

involvement, professional development, and resource clearinghouse

services.

(3) The department shall not award a state grant under this

section to more than 1 mathematics and science center located in a

designated region as prescribed in the 2002 master plan unless each

of the grants serves a distinct target population or provides a

service that does not duplicate another program in the designated

region.

(4) As part of the technical assistance process, the

department shall provide minimum standard guidelines that may be

used by the mathematics and science center for providing fair

access for qualified pupils and professional staff as prescribed in

this section.

(5) Allocations under this section to support the activities

and programs of mathematics and science centers shall be continuing

support grants to all 33 established mathematics and science

centers. Each established mathematics and science center that was

funded in ~~2003-2004~~ 2005-2006 shall receive state funding in an

amount equal to the amount it received under this section for

~~2003-2004~~ 2005-2006. If a center declines state funding or a

center closes, the remaining money available under this section

shall be distributed on a pro rata basis to the remaining centers,

as determined by the department.

(6) From the funds allocated in subsection (1), there is

allocated $1,000,000.00 in a form and manner determined by the

department to those centers able to provide curriculum and

professional development support to assist districts in

implementing the Michigan merit curriculum components for

mathematics and science.

(7) ~~(6)~~ In order to receive state funds under this section,

a grant recipient shall allow access for the department or the

department's designee to audit all records related to the program

for which it receives such funds. The grant recipient shall

reimburse the state for all disallowances found in the audit.

(8) ~~(7)~~ Not later than September 30, 2007, the department

shall reevaluate and update the comprehensive master plan described

in subsection (1).

(9) ~~(8)~~ The department shall give preference in awarding the

federal grants allocated in subsection (1) to eligible existing

mathematics and science centers.

(10) ~~(9)~~ In order to receive state funds under this section,

a grant recipient shall provide at least a 10% local match from

local public or private resources for the funds received under this

section.

(11) ~~(10)~~ As used in this section:

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

(b) "DED-OESE" means the DED office of elementary and

secondary education.

Sec. 99c. (1) From the state school aid fund money

appropriated in section 11, there is allocated for 2006-2007 an

amount not to exceed $100,000.00 for grants to districts for

purchasing automated external defibrillators.

(2) To be eligible to receive a grant under this section, a

district shall meet all of the following:

(a) Shall apply to the department in the form and manner

prescribed by the department.

(b) Shall provide at least a 50% local match from local public

or private resources for the funds received under this section.

department and designed to maximize the effectiveness of the grant

funds.

(3) Grants shall be awarded to districts under this section in

descending order of a district's percentage of pupils who met the

income eligibility criteria for free breakfast, lunch, or milk as

determined under the Richard B. Russell national school lunch act

and as reported to the department by October 31, 2005 and adjusted

not later than December 31, 2005.

(4) The department shall not award a grant to a district under

this section to purchase more than 1 automated external

defibrillator unless the department determines that each district

either has at least 1 automated external defibrillator or has been

awarded a grant under this section for purchasing 1 automated

external defibrillator. After that point, until the total amount

allocated under this section has been used, the department shall

award grants to districts in the same order as prescribed in

subsection (3) in sufficient amount to ensure that the district

receiving a grant for more than 1 automated external defibrillator

will have enough automated external defibrillators after the grant

to place 1 in each high school it operates.

(5) A district receiving a grant under this section may decide

where to place an automated external defibrillator purchased

pursuant to the grant.

Sec. 101. (1) To be eligible to receive state aid under this

act, not later than the fifth Wednesday after the pupil membership

count day and not later than the fifth Wednesday after the

supplemental count day, each district superintendent through the

secretary of the district's board shall file with the intermediate

superintendent a certified and sworn copy of the number of pupils

enrolled and in regular daily attendance in the district as of the

pupil membership count day and as of the supplemental count day, as

applicable, for the current school year. In addition, a district

maintaining school during the entire year, as provided under

section 1561 of the revised school code, MCL 380.1561, shall file

with the intermediate superintendent a certified and sworn copy of

the number of pupils enrolled and in regular daily attendance in

the district for the current school year pursuant to rules

promulgated by the superintendent. Not later than the seventh

Wednesday after the pupil membership count day and not later than

the seventh Wednesday after the supplemental count day, the

intermediate district shall transmit to the center revised data, as

applicable, for each of its constituent districts. If a district

fails to file the sworn and certified copy with the intermediate

superintendent in a timely manner, as required under this

subsection, the intermediate district shall notify the department

and state aid due to be distributed under this act shall be

withheld from the defaulting district immediately, beginning with

the next payment after the failure and continuing with each payment

until the district complies with this subsection. If an

intermediate district fails to transmit the data in its possession

in a timely and accurate manner to the center, as required under

this subsection, state aid due to be distributed under this act

shall be withheld from the defaulting intermediate district

immediately, beginning with the next payment after the failure and

continuing with each payment until the intermediate district

complies with this subsection. If a district or intermediate

district does not comply with this subsection by the end of the

fiscal year, the district or intermediate district forfeits the

amount withheld. A person who willfully falsifies a figure or

statement in the certified and sworn copy of enrollment shall be

punished in the manner prescribed by section 161.

(2) To be eligible to receive state aid under this act, not

later than the twenty-fourth Wednesday after the pupil membership

count day and not later than the twenty-fourth Wednesday after the

supplemental count day, an intermediate district shall submit to

the center, in a form and manner prescribed by the center, the

audited enrollment and attendance data for the pupils of its

constituent districts and of the intermediate district. If an

intermediate district fails to transmit the audited data as

required under this subsection, state aid due to be distributed

under this act shall be withheld from the defaulting intermediate

district immediately, beginning with the next payment after the

failure and continuing with each payment until the intermediate

district complies with this subsection. If an intermediate district

does not comply with this subsection by the end of the fiscal year,

the intermediate district forfeits the amount withheld.

(3) All of the following apply to the provision of pupil

instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours of pupil instruction.

Except as otherwise provided in this act, a district failing to

comply with the required minimum hours of pupil instruction under

this subsection shall forfeit from its total state aid allocation

an amount determined by applying a ratio of the number of hours the

district was in noncompliance in relation to the required minimum

number of hours under this subsection. Not later than August 1, the

board of each district shall certify to the department the number

of hours of pupil instruction in the previous school year. If the

district did not provide at least the required minimum number of

hours of pupil instruction under this subsection, the deduction of

state aid shall be made in the following fiscal year from the first

payment of state school aid. A district is not subject to

forfeiture of funds under this subsection for a fiscal year in

which a forfeiture was already imposed under subsection (6). Hours

lost because of strikes or teachers' conferences shall not be

counted as days or hours of pupil instruction.

(b) Except as otherwise provided in subdivision (c), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

operates a department-approved alternative education program and

that does not provide instruction for pupils in all of grades K to

12, the superintendent shall grant a waiver for a period of 3

school years from the requirements of subdivision (b) in order to

conduct a pilot study. The waiver shall indicate that an eligible

district is subject to the proration provisions of subdivision (b)

only if the district does not have at least 50% of the district’s

membership in attendance on any day of pupil instruction. Not later

than 2008-2009, the department shall report on the impact of this

waiver on the academic achievement of pupils in these districts to

the state budget director and the senate and house appropriations

subcommittees on state school aid. In order to be eligible for this

waiver, a district must maintain records to substantiate its

compliance with the following requirements during the pilot study:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil’s individual education plan.

(d) The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

30 hours for which pupil instruction is not provided because of

conditions not within the control of school authorities, such as

severe storms, fires, epidemics, utility power unavailability,

water or sewer failure, or health conditions as defined by the

city, county, or state health authorities, shall be counted as

hours of pupil instruction. Beginning in 2003-2004, with the

approval of the superintendent of public instruction, the

department shall count as hours of pupil instruction for a fiscal

year not more than 30 additional hours for which pupil instruction

is not provided in a district after April 1 of the applicable

school year due to unusual and extenuating occurrences resulting

from conditions not within the control of school authorities such

as those conditions described in this subsection. Subsequent such

hours shall not be counted as hours of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) Not later than April 15 of each fiscal year, the board of

each district shall certify to the department the planned number of

hours of pupil instruction in the district for the school year

ending in the fiscal year. In addition to any other penalty or

forfeiture under this section, if at any time the department

determines that 1 or more of the following has occurred in a

district, the district shall forfeit in the current fiscal year

beginning in the next payment to be calculated by the department a

proportion of the funds due to the district under this act that is

equal to the proportion below the required minimum number of hours

of pupil instruction under subsection (3), as specified in the

following:

(a) The district fails to operate its schools for at least the

required minimum number of hours of pupil instruction under

subsection (3) in a school year, including hours counted under

subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours of pupil instruction under subsection (3) in a school year,

including hours counted under subsection (4).

(7) In providing the minimum number of hours of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) The department shall apply the guidelines under subsection

(7) in calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours of pupil instruction requirement of subsection (3)

for a department-approved alternative education program. If a

district applies for and receives a waiver under this subsection

and complies with the terms of the waiver, for the fiscal year

covered by the waiver the district is not subject to forfeiture

under this section for the specific program covered by the waiver.

If the district does not comply with the terms of the waiver, the

amount of the forfeiture shall be calculated based upon a

comparison of the number of hours of pupil instruction actually

provided to the minimum number of hours of pupil instruction

required under subsection (3).

(10) A district may count up to 51 38 hours of qualifying

professional development for teachers, including the 5 hours of

online professional development provided by the Michigan virtual

university under section 98, as hours of pupil instruction.

However, if a collective bargaining agreement that provides more

than 38 but not more than 51 hours of professional development for

teachers is in effect for employees of a district as of the

effective date of the 2006 amendatory act that amended this

subsection, then until the fiscal year that begins after the

expiration of that collective bargaining agreement a district may

count up to 51 hours of qualifying professional development for

teachers, including the 5 hours of online professional development

provided by the Michigan virtual university under section 98, as

hours of pupil instruction. A district that elects to use this

exception shall notify the department of its election. As used in

this subsection, "qualifying professional development" means

professional development that is focused on 1 or more of the

following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Maintaining teacher certification.

Sec. 104. (1) From the state school aid fund money

appropriated in section 11, there is allocated for 2006-2007 an

amount not to exceed $19,500,000.00 for reimbursement to districts

of costs associated with complying with sections 104a and 104b,

sections 1279 and 1280b of the revised school code, MCL 380.1279

and 380.1280b, and 1970 PA 38, MCL 388.1081 to 388.1086. In

addition, from the federal funds appropriated in section 11, there

is allocated for 2006-2007 an amount estimated at $8,425,164.00,

funded from DED-OESE, title VI, state assessments funds for the

purposes of complying with the federal no child left behind act of

2001, Public Law 107-110.

(2) The results of each test administered as part of the

Michigan educational assessment program, including tests

administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

Sec. 105. (1) In order to avoid a penalty under this section,

and in order to count a nonresident pupil residing within the same

intermediate district in membership without the approval of the

pupil's district of residence, a district shall comply with this

section.

(2) Except as otherwise provided in this section, a district

shall determine whether or not it will accept applications for

enrollment by nonresident applicants residing within the same

intermediate district for the next school year. If the district

determines to accept applications for enrollment of a number of

nonresidents, beyond those entitled to preference under this

section, the district shall use the following procedures for

accepting applications from and enrolling nonresidents:

(a) The district shall publish the grades, schools, and

special programs, if any, for which enrollment may be available to,

and for which applications will be accepted from, nonresident

applicants residing within the same intermediate district.

(b) If the district has a limited number of positions

available for nonresidents residing within the same intermediate

district in a grade, school, or program, all of the following apply

to accepting applications for and enrollment of nonresidents in

that grade, school, or program:

(i) The district shall do all of the following not later than

the second Friday in August:

(A) Provide notice to the general public that applications

will be taken for a 15-day period from nonresidents residing within

the same intermediate district for enrollment in that grade,

school, or program. The notice shall identify the 15-day period and

the place and manner for submitting applications.

(B) During the application period under sub-subparagraph (A),

accept applications from nonresidents residing within the same

intermediate district for enrollment in that grade, school, or

program.

under sub-subparagraph (A), using the procedures and preferences

required under this section, determine which nonresident applicants

will be allowed to enroll in that grade, school, or program, using

the random draw system required under subsection ~~(13)~~ (14) as

necessary, and notify the parent or legal guardian of each

nonresident applicant of whether or not the applicant may enroll in

the district. The notification to parents or legal guardians of

nonresident applicants accepted for enrollment shall contain

notification of the date by which the applicant must enroll in the

district and procedures for enrollment.

(ii) Beginning on the third Monday in August and not later than

the end of the first week of school, if any positions become

available in a grade, school, or program due to accepted applicants

failing to enroll or to more positions being added, the district

may enroll nonresident applicants from the waiting list maintained

under subsection ~~(13)~~ (14), offering enrollment in the order that

applicants appear on the waiting list. If there are still positions

available after enrolling all applicants from the waiting list who

desire to enroll, the district may not fill those positions until

the second semester enrollment under subsection (3), as provided

under that subsection, or until the next school year.

number of positions available for nonresidents residing within the

same intermediate district, all of the following apply to

enrollment of nonresidents in that grade, school, or program:

(i) The district may accept applications for enrollment in that

grade, school, or program, and may enroll nonresidents residing

within the same intermediate district in that grade, school, or

program, until the end of the first week of school. The district

shall provide notice to the general public of the place and manner

for submitting applications and, if the district has a limited

application period, the notice shall include the dates of the

application period. The application period shall be at least a 15-

day period.

(ii) Not later than the end of the first week of school, the

district shall notify the parent or legal guardian of each

nonresident applicant who is accepted for enrollment that the

applicant has been accepted for enrollment in the grade, school, or

program and of the date by which the applicant must enroll in the

district and the procedures for enrollment.

(3) If a district determines during the first semester of a

school year that it has positions available for enrollment of a

number of nonresidents residing within the same intermediate

district, beyond those entitled to preference under this section,

for the second semester of the school year, the district may accept

applications from and enroll nonresidents residing within the same

intermediate district for the second semester using the following

procedures:

(a) Not later than 2 weeks before the end of the first

semester, the district shall publish the grades, schools, and

special programs, if any, for which enrollment for the second

semester may be available to, and for which applications will be

accepted from, nonresident applicants residing within the same

intermediate district.

(b) During the last 2 weeks of the first semester, the

district shall accept applications from nonresidents residing

within the same intermediate district for enrollment for the second

semester in the available grades, schools, and programs.

procedures and preferences required under this section, the

district shall determine which nonresident applicants will be

allowed to enroll in the district for the second semester and

notify the parent or legal guardian of each nonresident applicant

residing within the same intermediate district of whether or not

the applicant may enroll in the district. The notification to

parents or legal guardians of nonresident applicants accepted for

enrollment shall contain notification of the date by which the

applicant must enroll in the district and procedures for

enrollment.

(4) If deadlines similar to those described in subsection (2)

or (3) have been established in an intermediate district, and if

those deadlines are not later than the deadlines under subsection

(2) or (3), the districts within the intermediate district may use

those deadlines.

(5) A district offering to enroll nonresident applicants

residing within the same intermediate district may limit the number

of nonresident pupils it accepts in a grade, school, or program, at

its discretion, and may use that limit as the reason for refusal to

enroll an applicant.

(6) A nonresident applicant residing within the same

intermediate district shall not be granted or refused enrollment

based on intellectual, academic, artistic, or other ability,

talent, or accomplishment, or lack thereof, or based on a mental or

physical disability, except that a district may refuse to admit a

nonresident applicant if the applicant does not meet the same

criteria, other than residence, that an applicant who is a resident

of the district must meet to be accepted for enrollment in a grade

or a specialized, magnet, or intra-district choice school or

program to which the applicant applies.

(7) A nonresident applicant residing within the same

intermediate district shall not be granted or refused enrollment

based on age, except that a district may refuse to admit a

nonresident applicant applying for a program that is not

appropriate for the age of the applicant.

(8) A nonresident applicant residing within the same

intermediate district shall not be granted or refused enrollment

based upon religion, race, color, national origin, sex, height,

weight, marital status, or athletic ability, or, generally, in

violation of any state or federal law prohibiting discrimination.

(9) A Subject to subsection (10), a district may refuse to

enroll a nonresident applicant if any of the following are met:

(a) The applicant is, or has been within the preceding 2

years, suspended from another school.

(b) The applicant, ~~has~~ at any time before enrolling under

this section, has been expelled from another school.

this section, has been convicted of a felony.

(10) If a district has counted a pupil in membership on either

the pupil membership count day or the supplemental count day, the

district shall not refuse to enroll or refuse to continue to enroll

that pupil for a reason specified in subsection (9). This

subsection does not prohibit a district from expelling a pupil

described in this subsection for disciplinary reasons.

(11) ~~(10)~~ A district shall continue to allow a pupil who was

enrolled in and attended the district under this section in the

school year or semester immediately preceding the school year or

semester in question to enroll in the district until the pupil

graduates from high school. This subsection does not prohibit a

district from expelling a pupil described in this subsection for

disciplinary reasons.

(12) ~~(11)~~ A district shall give preference for enrollment

under this section over all other nonresident applicants residing

within the same intermediate district to other school-age children

who reside in the same household as a pupil described in subsection

~~(10)~~ (11).

(13) ~~(12)~~ If a nonresident pupil was enrolled in and

attending school in a district as a nonresident pupil in the 1995-

96 school year and continues to be enrolled continuously each

school year in that district, the district shall allow that

nonresident pupil to continue to enroll in and attend school in the

district until high school graduation, without requiring the

nonresident pupil to apply for enrollment under this section. This

subsection does not prohibit a district from expelling a pupil

described in this subsection for disciplinary reasons.

(14) ~~(13)~~ If the number of qualified nonresident applicants

eligible for acceptance in a school, grade, or program does not

exceed the positions available for nonresident pupils in the

school, grade, or program, the school district shall accept for

enrollment all of the qualified nonresident applicants eligible for

acceptance. If the number of qualified nonresident applicants

residing within the same intermediate district eligible for

acceptance exceeds the positions available in a grade, school, or

program in a district for nonresident pupils, the district shall

use a random draw system, subject to the need to abide by state and

federal antidiscrimination laws and court orders and subject to

preferences allowed by this section. The district shall develop and

maintain a waiting list based on the order in which nonresident

applicants were drawn under this random draw system.

(15) ~~(14)~~ If a district, or the nonresident applicant,

requests the district in which a nonresident applicant resides to

supply information needed by the district for evaluating the

applicant's application for enrollment or for enrolling the

applicant, the district of residence shall provide that information

on a timely basis.

(16) ~~(15)~~ If a district is subject to a court-ordered

desegregation plan, and if the court issues an order prohibiting

pupils residing in that district from enrolling in another district

or prohibiting pupils residing in another district from enrolling

in that district, this section is subject to the court order.

(17) ~~(16)~~ This section does not require a district to

provide transportation for a nonresident pupil enrolled in the

district under this section or for a resident pupil enrolled in

another district under this section. However, at the time a

nonresident pupil enrolls in the district, a district shall provide

to the pupil's parent or legal guardian information on available

transportation to and from the school in which the pupil enrolls.

(18) ~~(17)~~ A district may participate in a cooperative

education program with 1 or more other districts or intermediate

districts whether or not the district enrolls any nonresidents

pursuant to this section.

(19) ~~(18)~~ A district that, pursuant to this section, enrolls

a nonresident pupil who is eligible for special education programs

and services according to statute or rule, or who is a child with

disabilities, as defined under the individuals with disabilities

education act, ~~title VI of Public Law 91-230, 20 USC 1400 to 1420,~~

~~1431 to 1461, and 1471 to 1487~~ Public Law 108-446, shall be

considered to be the resident district of the pupil for the purpose

of providing the pupil with a free appropriate public education.

Consistent with state and federal law, that district is responsible

for developing and implementing an individualized education plan

annually for a nonresident pupil described in this subsection.

(20) ~~(19)~~ If a district does not comply with this section,

the district forfeits 5% of the total state school aid allocation

to the district under this act.

(21) ~~(20)~~ Upon application by a district, the superintendent

may grant a waiver for the district from a specific requirement

under this section for not more than 1 year.

Sec. 105c. (1) In order to avoid a penalty under this section,

and in order to count a nonresident pupil residing in a district

located in a contiguous intermediate district in membership without

the approval of the pupil's district of residence, a district shall

comply with this section.

(2) Except as otherwise provided in this section, a district

shall determine whether or not it will accept applications for

enrollment by nonresident applicants residing in a district located

in a contiguous intermediate district for the next school year. If

the district determines to accept applications for enrollment of a

number of nonresidents under this section, beyond those entitled to

preference under this section, the district shall use the following

procedures for accepting applications from and enrolling

nonresidents under this section:

(a) The district shall publish the grades, schools, and

special programs, if any, for which enrollment may be available to,

and for which applications will be accepted from, nonresident

applicants residing in a district located in a contiguous

intermediate district.

(b) If the district has a limited number of positions

available for nonresidents residing in a district located in a

contiguous intermediate district in a grade, school, or program,

all of the following apply to accepting applications for and

enrollment of nonresidents under this section in that grade,

school, or program:

(i) The district shall do all of the following not later than

the second Friday in August:

(A) Provide notice to the general public that applications

will be taken for a 15-day period from nonresidents residing in a

district located in a contiguous intermediate district for

enrollment in that grade, school, or program. The notice shall

identify the 15-day period and the place and manner for submitting

applications.

(B) During the application period under sub-subparagraph (A),

accept applications from nonresidents residing in a district

located in a contiguous intermediate district for enrollment in

that grade, school, or program.

under sub-subparagraph (A), using the procedures and preferences

required under this section, determine which nonresident applicants

will be allowed to enroll under this section in that grade, school,

or program, using the random draw system required under subsection

~~(13)~~ (14) as necessary, and notify the parent or legal guardian of

each nonresident applicant of whether or not the applicant may

enroll in the district. The notification to parents or legal

guardians of nonresident applicants accepted for enrollment under

this section shall contain notification of the date by which the