HOUSE BILL No. 5735

 

 

EXECUTIVE BUDGET BILL

 

 

February 21, 2006, Introduced by Rep. Brown and referred to the Committee on Appropriations.

 

     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, 19, 20, 20d, 20j, 22a, 22b, 22d, 24, 25a, 26a, 26b,

 

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

 

54, 54a, 56, 57, 61a, 62, 74, 81, 94a, 98, 98b, 99, 101, 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, 388.1619, 388.1620, 388.1620d,

 


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, 388.1632l, 388.1639a, 388.1641, 388.1641a,

 

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

 

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

 

388.1694a, 388.1698, 388.1698b, 388.1699, 388.1701, 388.1707,

 

388.1721, 388.1747, 388.1761a, and 388.1767), sections 3, 6, 11,

 

11a, 11f, 11g, 11j, 15, 18, 19, 20, 20j, 22a, 22b, 22d, 24, 26a,

 

31a, 31d, 32c, 32d, 32j, 39a, 41, 41a, 51a, 51c, 51d, 53a, 54, 56,

 

57, 61a, 62, 74, 81, 94a, 98, 98b, 99, 101, 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, section 20d

 

as amended by 1997 PA 93, sections 25a and 161a as added by 1998 PA

 

553, and section 121 as amended by 1995 PA 130, and by adding

 

sections 22e, 24a, 24c, 29, 32, 32b, 34, 35, 64, 65, 66, 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)

 

(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 SECTION 107 and 107b,

 

means the department of education.

 

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

 

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

 

sections 6(4), 6(6), 13, 20, 22a, 23, 29, 31a, 105, and 105c, a

 

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

 

29, 105, and 105c, district also includes a university school.

 

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

 

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

 

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

 

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

 

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

 

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

 

shall be considered to be the district or intermediate district in

 

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

 

pupil under court jurisdiction who is placed outside the district

 

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

 

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

 

be the educating district or educating intermediate district.

 

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

 

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

 

the chief administrator of a university school.

 


     Sec. 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.

 

     (c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

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

 

program of a juvenile detention facility, a child caring

 

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

 

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

 

or intermediate district approved by the department to operate the

 

program.

 

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

 

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

 

district of residence.

 

     (f) A pupil enrolled in a vocational education program

 

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

 

district or in an area vocational-technical education program

 

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

 

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

 

residence.

 


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

 

in membership in the university school.

 

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

 

counted in membership in the public school academy.

 

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

 

academy beginning its operation after December 31, 1994, membership

 

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

 

determined as

 

follows:

 

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

 

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

 

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

 

daily attendance on the pupil membership count day for the current

 

school year and on the supplemental count day for the current

 

school year, as determined by the department and calculated by

 

adding the number of pupils registered for attendance on the pupil

 

membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent,

 

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

 

audited count from the supplemental count day for the current

 

school year, and dividing that sum by 2.

 

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

 

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

 

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

 

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

 

enrolled and in regular daily attendance on the supplemental count

 

day for the current school year.

 


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

 

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

 

in membership on the pupil membership count day in the public

 

school academy, the determination of the district's membership

 

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

 

preceding supplemental count day any pupils who are counted in the

 

public school academy on that first pupil membership count day who

 

were also counted in the district on the immediately preceding

 

supplemental count day.

 

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

 

or intermediate district operating an extended school year program

 

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

 

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

 

shall be counted.

 

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

 

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

 

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

 

is enrolled and receiving instruction in a special education

 

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

 

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

 

of the current school year shall be counted in membership.

 

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

 

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

 

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

 

counted in membership. An individual participating in a job

 

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

 

funded under former section 107b, administered by the Michigan

 


strategic fund or the department of 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.

 

     (c) A pupil enrolled in a public school academy or university

 

school.

 

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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 


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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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

 

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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

 

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

 

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

 

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

 

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

 


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

 

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

 

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

 

     (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. FOLLOWING LABOR DAY EACH

 

SCHOOL YEAR OR, FOR A DISTRICT OR BUILDING THAT IS NOT IN SESSION

 

ON THAT DAY, WITH THE APPROVAL OF THE STATE SUPERINTENDENT OF

 

PUBLIC INSTRUCTION, THE IMMEDIATELY FOLLOWING DAY ON WHICH THE

 

DISTRICT OR BUILDING IS IN SESSION.

 

     (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. FOLLOWING 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 $11,247,363,200.00 from the state school aid

 

fund established by section 11 of article IX of the state

 

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

 

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

 

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

 

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

 

public schools of this state and certain other state purposes

 

relating to education the sum of $11,671,277,800.00 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.

 

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

 

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

 

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

 

districts by reducing payments to intermediate districts. This

 

reduction shall be made by reducing the payments to each

 

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

 

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

 

basis.

 

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

 

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

 

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

 

than districts and intermediate districts by reducing payments to

 

these entities. This reduction shall be made by reducing the

 

payments to each of these entities, other than payments under

 

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

 

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

 

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

 

the state fiscal year are transferred to the school aid

 

stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 


fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

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

 


stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

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

 

equal to the remainder of the projected shortfall shall be prorated

 

in the manner provided under section 11(4).

 

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

 

FOR 2006-2007, there is transferred APPROPRIATED from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this act.

 

     Sec. 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.

 


     (c) Third, for deposit into a sinking fund established by the

 

district or intermediate district under the revised school code.

 

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

 

district or intermediate district to pay debt service on debt

 

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

 

the district or intermediate district may make a corresponding

 

reduction in the number of mills levied for debt service.

 

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

 

payments under this section as security for bonds issued under

 

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

 

under this section.   

 

     Sec. 11j. From the appropriation in section 11 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 $48,000,000.00 for 2005-2006, 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 AND 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. 14. If the returns DATA from an intermediate district or

 

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

 

paid are DEEMED 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 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 of board adoption of the annual operating

 

budget for the following school fiscal year, and any subsequent

 

revisions to that budget adopted by the board, each district and

 

intermediate district shall make the budget and subsequent budget

 

revisions available on its website in a form and manner prescribed

 

by the department. In the event a district does not have a website,

 

the district shall ensure the information described in this

 

subsection is available on the intermediate district’s website.

 

     (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 THE PUPIL ACCOUNTING AND PUPIL AUDITING

 

MANUALS those 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. 19. (1) A district shall comply with any requirements of

 

sections 1204a, 1277, 1278, and 1280 of the revised school code,

 

MCL 380.1204a, 380.1277, 380.1278, and 380.1280, commonly referred

 

to as "public act 25 of 1990" that are not also required by the no

 

child left behind act of 2001, Public Law 107-110, as determined by

 

the department.

 

     (2) Each district and intermediate district shall provide MAKE

 

AVAILABLE to the department, in a form and manner prescribed by the

 

department, information necessary for the development of an annual

 

progress report on the required implementation of sections 1204a,

 

1277, 1278, and 1280 of the revised school code, MCL 380.1204a,

 

380.1277, 380.1278, and 380.1280, commonly referred to as "public

 

act 25 of 1990".

 

     (3) A district or intermediate district shall comply with all

 

applicable reporting requirements specified in state and federal

 

law. Data provided to the center, in a form and manner prescribed

 

by the center, shall be aggregated and disaggregated as required by

 

state and federal law.

 

     (4) Each district shall furnish to the center not later than 7

 


weeks after the pupil membership count day, in a manner prescribed

 

by the center, the information necessary for the preparation of the

 

district and high school graduation report. The center shall

 

calculate an annual graduation and pupil dropout rate for each high

 

school, each district, and this state, in compliance with

 

nationally recognized standards for these calculations. The center

 

shall report all graduation and dropout rates to the senate and

 

house education committees and appropriations committees, the state

 

budget director, and the department not later than 30 days after

 

the publication of the list described in subsection (8).

 

     (5) By the first business day in December and by June 30 of

 

each year, a district shall furnish to the center, in a manner

 

prescribed by the center, information related to educational

 

personnel as necessary for reporting required by state and federal

 

law.

 

     (6) By June 30 of each year, a district shall furnish to the

 

center, in a manner prescribed by the center, information related

 

to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.

 

     (7) If a district or intermediate district fails to meet the

 

requirements of subsection (2), (3), (4), (5), or (6), the

 

department shall withhold 5% of the total funds for which the

 

district or intermediate district qualifies under this act until

 

the district or intermediate district complies with all of those

 

subsections. If the district or intermediate district does not

 

comply with all of those subsections by the end of the fiscal year,

 

the department shall place the amount withheld in an escrow account

 


until the district or intermediate district complies with all of

 

those subsections.

 

     (8) Before publishing a list of schools or districts

 

determined to have failed to make adequate yearly progress as

 

required by the federal no child left behind act of 2001, Public

 

Law 107-110, the department shall allow a school or district to

 

appeal that determination. The department shall consider and act

 

upon the appeal within 30 days after it is submitted and shall not

 

publish the list until after all appeals have been considered and

 

decided.

 

     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 $7,075.00 PER MEMBERSHIP PUPIL.

 

     (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.

 

     (c) For a district that has a foundation allowance that is not

 

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

 

rounded up to the nearest whole dollar.

 

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

 

section 22c 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.

 

     (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) (17), the allocation calculated under this section

 

shall not include the adjustment described in subsection (19) (17).

 

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.

 


     (c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. However, for

 

2005-2006, 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.

 

     (14) (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.

 


     (15) (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.

 

     (16) (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.

 

     (17) (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

 

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.

 

     (18) For a district that levied mills in 1993 to finance the

 

payment of principal or interest on notes or bonds issued to fund

 

an operating deficit pursuant to section 1356 of the revised school

 

code, mcl 380.1356, 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.

 

     (19) (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.

 

     (20) (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

 

foundation allowance or per pupil payment calculation under this

 

section may be reduced.

 

     (21) (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.

 

     (c) "Current state fiscal year" means the state fiscal year

 

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. 20d. In making the final determination required under

 

former section 20a of a district's combined state and local revenue

 

per membership pupil in 1993-94 and in making calculations under

 

section 20 FOR 2006-2007, the department and the department of

 

treasury shall comply with all of the following:

 

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

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

state school aid received by or paid on behalf of the district

 

pursuant to this act in 1993-94 shall exclude payments made under

 

former section 146 and under section 147 on behalf of the

 


district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school

 

code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs

 

operated by the district under article 5, if nonresident pupils

 

attending the center programs were included in the district's

 

membership for purposes of calculating the combined state and local

 

revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district

 

that an adjustment under this subdivision shall be made, the

 

foundation allowances for 1995-96 and 1996-97 of all districts that

 

had pupils attending the intermediate district center program

 

operated by the district that had the adjustment shall be

 

calculated as if their combined state and local revenue per

 

membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center

 

program.

 

     Sec. 20j. (1) Foundation allowance supplemental payments for

 


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.

 

     (c) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil.

 

     (d) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 


by which the exemption from the levy of school operating taxes on a

 

homestead and qualified agricultural property could be reduced as

 

provided in section 1211(1) of the revised school code, MCL

 

380.1211, and the number of mills of school operating taxes that

 

could be levied on all property as provided in section 1211(2) of

 

the revised school code, MCL 380.1211, as certified by the

 

department of treasury for the 1994 tax year.

 

     (e) "Homestead" means that term as defined in section 1211 of

 

the revised school code, MCL 380.1211.

 

     (f) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (g) "Qualified agricultural property" means that term as

 

defined in section 1211 of the revised school code, MCL 380.1211.

 

     (h) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (i) "Qualifying university school" means a university school

 

that was in operation in the 1994-95 school year and is in

 

operation in the current fiscal year.

 

     (j) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes.

 

     (k) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead and qualified

 


agricultural property may be reduced as provided in section 1211(1)

 

of the revised school code, MCL 380.1211, the taxable value of

 

homestead and qualified agricultural property for the calendar year

 

ending in the current state fiscal year.

 

     (ii) For the number of mills of school operating taxes that may

 

be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year.

 

     Sec. 22b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $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 $3,577,000,000.00 FOR 2006-

 

2007 for discretionary nonmandated payments to districts under this

 

section. Funds allocated under this section that are not expended

 

in the state fiscal year for which they were allocated, as

 

determined by the department, may be used to supplement the

 

allocations under sections 22a and 51c in order to fully fund those

 

calculated allocations for the same fiscal year.

 

     (2) Subject to subsection (3) and section 11, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 20j, 51a(2),

 

51a(3), and 51a(12), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

     (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. 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.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 


     (3) The amount of the additional funding to each eligible

 

district under 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. (1) from the appropriation in section 11 for

 

2005-2006, there is allocated an amount not to exceed

 

$41,500,000.00 for 2005-2006 for payments to districts under

 

this section.

 

     (2) The amount of the payment to each district under this

 

section shall be an amount equal to $25.00 per 2005-2006

 

membership pupil of the district. this amount shall be in

 

addition to the foundation allowance calculated under section 20

 

AND SHALL BE CONSIDERED discretionary nonmandated payments in

 

addition to those allocated under section 22B.

 


     (3) The per pupil allocation under this section shall be

 

considered foundation allowance dollars for the purposes of the

 

calculation under section 51a(2).

 

     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 SCHOOL 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

 

APPROPRIATED UNDER THIS SECTION IS UTILIZED BY THE 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.

 

     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 SCHOOL 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. school districts receiving

 

payments under this section shall contract with the Department of

 

Military and Veteran's Affairs to ensure that all funding

 

appropriated under this section is utilized by the department OF

 

MILITARY AND VETERAN’S AFFAIRS for the YOUTH CHALLENGE PROGRAM.

 

     Sec. 25a. If a pupil described in section 6(6)(g) (F) enrolls

 

pursuant to section 6(6)(g) (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

 

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 appropriation in section

 

11, there is allocated an amount not to exceed $45,000,000.00

 

$37,650,000.00 for 2005-2006 2006-2007 AND FROM THE GENERAL FUND

 

APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT TO

 

EXCEED $12,550,000.00 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

 

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 $50,000,000.00 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 is greater than

 

the district’s pupil membership for the current fiscal year as

 

calculated under section 6.

 

     (c) The district is not eligible to receive funding under

 

sectionS 6(4)(y) or 22d of this act.

 

     (3) Payments to each eligible district shall be equal to the

 

difference between the district’s average pupil membership and the

 

district’s pupil membership as calculated under section 6 for the

 

current fiscal year multiplied by the district’s foundation

 

allowance as calculated under section 20. If the total amount of

 

the payments calculated under this subsection exceeds the

 

allocation for this section, the payment to each district shall be

 

prorated on an equal percentage basis.

 

     (4) For the purposes of this section, "average pupil

 

membership" means the average of the district’s membership for the

 

3-fiscal-year period ending with the current fiscal year,

 

calculated by adding the district’s actual membership for each of

 

those 3 fiscal years, as otherwise calculated under section 6, and

 

dividing the sum of those 3 membership figures by 3.

 

     Sec. 31a. (1) From the money appropriated APPROPRIATION in

 

section 11, there is allocated for 2005-2006 2006-2007 an amount

 

not to exceed $314,200,000.00 $319,350,000.00 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 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, and reported to the department by

 

October 31 of the immediately preceding fiscal year and adjusted

 

not later than December 31 of the immediately preceding fiscal

 

year. However, for a public school academy that began operations as

 

a public school academy after the pupil membership count day of the

 

immediately preceding school year, the basis for the additional

 

allowance under this section shall be the number of actual pupils

 

in membership in the public school academy who met the income

 

eligibility criteria for free breakfast, lunch, or milk in the

 

current state fiscal year, as determined under the Richard B.

 

Russell national school lunch act.

 

     (2) To be eligible to receive funding under this section,

 

other than funding under subsection (6) OR (7), a district or

 

public school academy that has not been previously determined to be

 

eligible shall apply to the department, in a form and manner

 

prescribed by the department, and a district or public school

 

academy must meet all of the following:

 

     (a) The sum of the district's or public school academy's

 

combined state and local revenue per membership pupil in the

 

current state fiscal year, as calculated under section 20, plus the

 

amount of the district's per pupil allocation under section 20j(2),

 

is less than or equal to $6,500.00 adjusted by the dollar amount of

 

the difference between the basic foundation allowance under section

 

20 for the current state fiscal year and $5,000.00, minus $200.00.

 

     (b) The district or public school academy agrees to use the

 


funding only for purposes allowed under this section and to comply

 

with the program and accountability requirements under this

 

section.

 

     (3) Except as otherwise provided in this subsection, an

 

eligible district or eligible public school academy shall receive

 

under this section for each membership pupil in the district or

 

public school academy who met the income eligibility criteria for

 

free breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department

 

by October 31 of the immediately preceding fiscal year and adjusted

 

not later than December 31 of the immediately preceding fiscal

 

year, an amount per pupil equal to 11.5% of the sum of the

 

district's foundation allowance or public school academy's per

 

pupil amount calculated under section 20, plus the amount of the

 

district's per pupil allocation under section 20j(2), not to exceed

 

$6,500.00 adjusted by the dollar amount of the difference between

 

the basic foundation allowance under section 20 for the current

 

state fiscal year and $5,000.00, minus $200.00, or of the public

 

school academy's per membership pupil amount calculated under

 

section 20 for the current state fiscal year. A public school

 

academy that began operations as a public school academy after the

 

pupil membership count day of the immediately preceding school year

 

shall receive under this section for each membership pupil in the

 

public school academy who met the income eligibility criteria for

 

free breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department

 

by October 31 of the current fiscal year and adjusted not later

 


than December 31 of the current fiscal year, an amount per pupil

 

equal to 11.5% of the public school academy's per membership pupil

 

amount calculated under section 20 for the current state fiscal

 

year.

 

     (4) Except as otherwise provided in this section, a district

 

or public school academy receiving funding under this section shall

 

use that money only to provide instructional programs and direct

 

noninstructional services, including, but not limited to, medical

 

or counseling services, for at-risk pupils; for school health

 

clinics; and for the purposes of subsection (5), 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

 

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 to support teen health centers. These grants shall be

 

awarded for 3 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 period after the noncompliance.

 

Beginning in 2004-2005, to continue to receive funding for a teen

 


health center under this section a grant recipient shall ensure

 

that the teen 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 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. 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

 

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.

 

     (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

 

disallowances found in the audit.

 

     (10) (9) Subject to subsections (5), (6), (7) and (11) (12),

 

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 (11) (12), 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

 

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

 

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

 

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. 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 $9,625,000.00 for 2004-2005

 

2006-2007 for the purpose of making payments to districts to

 

reimburse for the cost of providing breakfast. The 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 specified in subdivision (a).

 

     (c) The payment for a district 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 $112,400,000.00 FROM THE

 

STATE SCHOOL AID FUND AND AN AMOUNT NOT TO EXCEED $12,700,000.00

 

FROM THE GENERAL FUND TO FUND THE GREAT START EARLY CHILDHOOD

 

PROGRAMS, AS PROVIDED UNDER SECTIONS 32B, 32C, 32D, 32J AND 32L.

 


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 $1,000,000.00 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 six components of a great start

 

system in their communities: physical health, social-emotional

 

health, family supports, basic needs, economic stability and

 

safety, parenting education and early education and care to ensure

 

every child in the community is ready for kindergarten.

 

Specifically, each grant will fund:

 

     (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

 

children with disabilities, developmental delays or special needs

 

and their families.

 

     (c) Coordination and expansion of high quality early childhood

 

and childcare programs.

 

     (d) Evaluation of local programs.

 

     Sec. 32c. (1) From the general fund appropriation in section

 

11, ALLOCATION UNDER SECTION 32, there is allocated an amount not

 

to exceed $250,000.00 for 2005-2006 2006-2007 to the department for

 

grants for community-based collaborative prevention services

 

designed to promote marriage FAMILIES 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 workgroup

 

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.

 

     (c) Provide a 25% local match, of which not more than 10% may

 

be in-kind services, unless this requirement is waived by the

 

interagency systems reform workgroup INTERAGENCY DIRECTOR’S

 

WORKGROUP.

 

     (3) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (4) Not later than January 30 of the next fiscal year, the

 

department shall prepare and submit to the governor and the

 

legislature an annual report of outcomes achieved by the providers

 

of the community-based collaborative prevention services funded

 

under this section for a fiscal year.

 

     Sec. 32d. (1) From the state school aid fund money

 

appropriated ALLOCATION under section 11, SECTION 32, there is

 

allocated an amount not to exceed $72,600,000.00 $101,400,000.00

 

for 2005-2006 2006-2007 for GREAT START 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, comprehensive

 

compensatory programs designed to do 1 or both of the following:

 

     (a) Improve 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, SECTION 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, STATE

 

SCHOOL AID ALLOCATION 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 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.

 

     (c) Providing parents with examples of learning opportunities

 

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. FAMILIES.

 

     (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.

 

     (c) Provide a projected budget for the program to be funded.

 

The intermediate district shall provide at least a 20% local match

 

from local public or private resources for the funds received under

 

this section. Not more than 1/2 of this matching requirement, up to

 

a total of 10% of the total project budget, may be satisfied

 

through in-kind services provided by participating providers of

 

programs or services. In addition, not more than 10% of the grant

 

may be used for program administration.

 

     (4) Each intermediate district receiving a grant under this

 

section shall agree to include a data collection system approved by

 

the department. The data collection system shall provide a report

 

by October 15 of each year on the number of children in families

 

with income below 200% of the federal poverty level that received

 

services under this program and the total number of children who

 

received services under this program.

 

     (5) The department or superintendent, as applicable, shall do

 

all of the following:

 

     (a) The superintendent shall approve or disapprove the plans

 

and notify the intermediate district of that decision not later

 


than November 15, 2005 2006. The amount allocated by each

 

intermediate district shall be at least an amount equal to 3.5%

 

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).

 

     (c) The department shall submit a report to the state budget

 

director and the senate and house fiscal agencies summarizing the

 

data collection reports described in subsection (4) by December 1

 

of each year.

 

     (6) An intermediate district receiving funds under this

 

section shall use the funds only for the program funded under this

 

section. An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section to subsequent fiscal years and may expend those unused

 

funds in subsequent fiscal years.

 

     Sec. 32l. (1) From the general fund money appropriated in

 

section 11, ALLOCATED 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.

 

     (c) The department shall establish a diverse interagency

 

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. 34. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $10,000,000.00 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 applications for a maximum of five

 

elementary school buildings per application.  The department shall

 

give priority to those applications that meet the following

 

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 two out of the last

 

three 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.

 

     (c) Include continuous assessment of pupils and individualized

 

education plans for pupils.

 


     (d) Be part of a local board-approved 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 one half 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.

 

     (d) Districts receiving a grant under this section must agree

 

to set aside one AND ONE HALF percent 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 $15,000,000.00 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 five

 

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 percent or

 

higher poverty rate as determined by the most recent U.S. census

 

data.

 

     (b) School buildings with 30 percent 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 two out of the last three school years due

 


to student proficiency in MATHEMATICS or science.

 

     (d) School buildings that are in consortium with at least one

 

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 three hours each day after regularly

 

scheduled school days, five 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 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 described in subdivision

 

(b), eligible middle school afterschool programs must provide

 

career pathway and postsecondary education guidance and counseling.

 

     (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) 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 multi-

 

purpose collaborative body is one 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 one and one-half percent 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 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.

 

     (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. 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 PUPILS 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.

 

     (c) An amount estimated at $106,249,200.00 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

     (d) An amount estimated at $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

 

PUPIL 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.

 

     (c) An amount estimated at $1,000,000.00 for refugee children

 

school impact grants, funded from HHS-ACF, refugee children school

 

impact funds.

 

     (d) An amount estimated at $1,445,600.00 for serve America

 

grants, funded from the corporation for national and community

 

service funds.

 

     (e) An amount estimated at $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.

 

     (c) A cognitive development program that is a research-based,

 

validated educational service program focused on assessing and

 

building essential cognitive and perceptual learning abilities to

 

strengthen pupil concentration and learning.

 

     (d) A structured mentoring-tutorial reading program for pupils

 

in preschool to grade 4 that is a research-based, validated program

 

that develops individualized educational plans based on each

 

pupil's age, assessed needs, reading level, interests, and learning

 

style.

 

     (4) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (5) As used in this section:

 

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

 

     (b) "DED-OESE" means the DED office of elementary and

 

secondary education.

 

     (c) "DED-OVAE" means the DED office of vocational and adult

 

education.

 

     (d) "HHS" means the United States department of health and

 

human services.

 

     (e) "HHS-ACF" means the HHS administration for children and

 


families.

 

     Sec. 41. From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,800,000.00 for 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 2005-2006 an amount not to exceed

 

$896,383,000.00 $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 $329,850,000.00 $345,850,000.00 plus any

 

carryover federal funds from previous year appropriations. From the

 


appropriation in section 11, there is allocated for 2005-2006 2006-

 

2007 an amount not to exceed $955,883,000.00 $991,683,000.00 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,

 

$350,700,000.00 plus any carryover federal funds from previous year

 

appropriations. The allocations under this subsection are for the

 

purpose of reimbursing districts and intermediate districts for

 

special education programs, services, and special education

 

personnel as prescribed in article 3 of the revised school code,

 

MCL 380.1701 to 380.1766; net tuition payments made by intermediate

 

districts to the Michigan schools for the deaf and blind; and

 

special education programs and services for pupils who are eligible

 

for special education programs and services according to statute or

 

rule. For meeting the costs of special education programs and

 

services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special

 

education funds, not otherwise restricted, or contributions from

 

districts to intermediate districts, tuition payments, gifts and

 

contributions from individuals, or federal funds that may be

 

available for this purpose, as determined by the intermediate

 

district plan prepared pursuant to article 3 of the revised school

 

code, MCL 380.1701 to 380.1766. All federal funds allocated under

 

this section in excess of those allocated under this section for

 

2002-2003 may be distributed in accordance with the flexible

 

funding provisions of the individuals with disabilities education

 

act, title VI of Public Law 91-230 108-446, 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

 

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

 

$207,300,000.00 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

 

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

 

$1,900,000.00 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 PUPILS 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.

 

     (C) (d) Reimbursement for ancillary and other related

 

services, as defined by R 340.1701c of the Michigan administrative

 

code, shall not be provided when those services are covered by and

 

available through private group health insurance carriers or

 

federal reimbursed program sources unless the department and

 

district or intermediate district agree otherwise and that

 

agreement is approved by the state budget director. Expenses, other

 

than the incidental expense of filing, shall not be borne by the

 


parent. In addition, the filing of claims shall not delay the

 

education of a pupil. A district or intermediate district shall be

 

responsible for payment of a deductible amount and for an advance

 

payment required until the time a claim is paid.

 

     (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

 

$6,800,000.00 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.

 

     (c) Emotionally impaired pupils counted in membership by an

 

intermediate district and provided educational services by the

 

department of community health.

 

     (13) After payments under subsections (2) and (12) and section

 

51c, the remaining expenditures from the allocation in subsection

 

(1) shall be made in the following order:

 

     (a) 100% of the reimbursement required under section 53a.

 

     (b) 100% of the reimbursement required under subsection (6).

 

     (c) 100% of the payment required under section 54.

 

     (d) 100% of the payment required under subsection (3).

 

     (e) 100% of the payment required under subsection (8).

 

     (f) 100% of the payments under section 56.

 

     (14) The allocations under subsection (2), subsection (3), and

 

subsection (12) shall be allocations to intermediate districts only

 

and shall not be allocations to districts, but instead shall be

 

calculations used only to determine the state payments under

 

section 22b.

 

     Sec. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated each fiscal year for 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

 

$706,800,000.00 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.

 


     (c) An amount estimated at $36,000,000.00 $45,000,000.00 for

 

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.

 

     (c) Pupils who are former residents of department of community

 

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 SHALL also

 

should 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.

 

     (c) "Taxable value" means the total taxable value of the

 

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 FOR EACH FISCAL YEAR an amount not to exceed

 

$36,881,100.00 for 2005-2006 AND 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 PUPILS.

 

     (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 PUPILS 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.

 

     (c) "Taxable value" means the total taxable value of the

 


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

 

FOR EACH FISCAL YEAR an amount not to exceed $9,000,000.00 for

 

2005-2006 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 $5,000,000.00 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.

 

     (c) Curriculum that includes entry-level college courses.

 

     (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 $680,100.00 for 2006-2007 FOR

 

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) The department of labor and economic growth shall give

 

preference in awarding the grants allocated in subsection (1) to

 

eligible existing precollege programs in engineering and sciences

 

that received funds appropriated in the department of labor and

 

economic growth budget for such purposes in 2005-2006.

 

     (3) The department of labor and economic growth shall submit a

 

report to the subcommittees and the 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 math-based fields for students enrolled

 

in the programs awarded funds under this section. 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 $1,000,000.00 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). PUPIL TRANSPORTATION SAFETY PROGRAMS.

 

     (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

 

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 $80,455,500.00, 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% 102.9% 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 core

 

content standards and credit requirements.

 

     (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.

 

     (c) Establish procedures to ensure the validity and

 

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; 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.

 

     (c) One representative from the office of the state budget

 

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.

 

     (c) Recommending timelines for the implementation and ongoing

 

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 $4,500,000.00

 

for 2005-2006 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) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (6), An

 

THERE IS ALLOCATED FOR 2006-2007 AN AMOUNT NOT TO EXCEED

 

$2,500,000.00 amount not to exceed $1,500,000.00 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.

 

     (C) (d) "State education agency" means the department.

 

     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 $2,750,000.00 for 2005-2006 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.

 


     (c) Provide pupils with opportunities to develop skills and

 

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.

 

     (c) Courses and dual enrollment opportunities.

 

     (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.

 

     (c) Coordinate the activities of eligible partnerships that

 

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 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.

 

     (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 PUPILS 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 PUPIL achievement.

 

     (v) (e) Develop, support, and maintain the technology

 

infrastructure and related software required to deliver online

 

courses and instructional services to students PUPILS 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 ALLOCATION IN SUBSECTION (1), AN

 

AMOUNT NOT TO EXCEED $525,000.00 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

 

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.

 

     (c) "State education agency" means the department.

 

     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.

 

     (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.

 

     (c) Garner new public and private resources for school

 

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.

 

     (c) Will opt to participate in the statewide partnership

 


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.

 

     (c) The district shall submit a plan describing the uses of

 

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.

 


     (c) Will seek to expand its existing wireless technology

 

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) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (17) 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.

 

     (18) 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 $3,416,000.00 for 2005-2006 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 CORE 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 APPROPRIATION IN SECTION 11, THERE IS

 

ALLOCATED AN AMOUNT NOT TO EXCEED $2,000,000.00 FOR 2006-2007 FOR

 

COMPETITIVE GRANTS TO DISTRICTS THAT PROVIDE PUPILS IN HIGH SCHOOL

 

WITH EXPANDED OPPORTUNITES TO IMPROVE MATHEMATICS, SCIENCE, AND

 

TECHNOLOGY SKILLS BY PARTICIPATING IN EVENTS HOSTED BY A SCIENCE

 

AND TECHNOLOGY DEVELOPMENT PROGRAM KNOWN AS FIRST (FOR INSPIRATION

 

AND RECOGNITION OF SCIENCE AND TECHNOLOGY) ROBOTICS COMPETITION.

 

     (2) applications for grants shall be submitted in a form and

 

manner determined by the department. eligible APPLICATIONS must

 

HAVE ESTABLISHED A PARTNERSHIP WITH AT LEAST ONE SPONSOR, BUSINESS

 

ENTITY, HIGHER EDUCATION INSTITUTION, OR TECHNICAL SCHOOL.

 

     (3) each grant recipient shall provide at least a 50% match of

 

the costs of participating in AN event from other private or local

 


funds for the funds received in this section.

 

     (4) AWARDS SHALL BE MADE IN A MANNER DETERMINED BY THE

 

DEPARTMENT in collaboration with the department of labor and

 

economic growth; HOWEVER, THE DEPARTMENT SHALL SET MAXIMUM GRANT

 

AMOUNTS IN A MANNER THAT PROVIDES FOR THE HIGHEST NUMBER OF HIGH

 

SCHOOLS TO PARTICIPATE.

 

     (5) funds received under THIS section MAY BE USED FOR EVENT

 

REGISTRATIONS, MATERIALS, TRAVEL COSTS, AND OTHER EXPENSES

 

ASSOCIATED WITH THE PREPARATION FOR AND ATTENDANCE OF FIRST

 

ROBOTICS COMPETITIONS.

 

     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.

 

     (c) Beginning in 2005-2006, at the request of a district that

 

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.

 

     (c) Except as otherwise provided in this subdivision, a pupil

 

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 ACTUALLY PROVIDED TO THE MINIMUM

 

INSTRUCTIONAL HOUR REQUIREMENT SPECIFIED IN (3).

 

     (10) 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.

 

     (c) Achieving highly qualified teacher status as defined under

 

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 OF COSTS

 

ASSOCIATED WITH COMPLYING WITH SECTIONS 104A AND 104B OF THIS ACT,

 

SECTIONS 1279 AND 1280B OF THE REVISED SCHOOL CODE, MCL. 380.1279

 

AND MCL 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

 

student scores and the percentage of students 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. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $21,000,000.00 $25,000,000.00 for

 

2005-2006 2006-2007 for adult education programs authorized under

 

this section.

 

     (2) To be eligible to be a participant funded under this

 

section, a person shall be enrolled in an adult basic education

 

program, an adult English as a second language program, a general

 

educational development (G.E.D.) test preparation program, a job or

 

employment related program, or a high school completion program,

 

that meets the requirements of this section, and shall meet either

 


of the following, as applicable:

 

     (a) If the individual has obtained a high school diploma or a

 

general educational development (G.E.D.) certificate, the

 

individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the state technical institute and

 

rehabilitation center.

 

     (ii) Is less than 20 years of age on September 1 of the school

 

year, is not attending an institution of higher education, and is

 

enrolled in a job or employment-related program through a referral

 

by an employer.

 

     (iii) Is enrolled in an English as a second language program.

 

     (iv) Is enrolled in a high school completion program.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.

 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (3) Except as otherwise provided in subsection (4), the amount

 

allocated under subsection (1) shall be distributed as follows:

 

     (a) For districts and consortia that received payments for

 

2003-2004 2005-2006 under this section, the amount allocated to

 

each for 2005-2006 2006-2007 shall be based on the number of

 


participants served by the district or consortium for 2005-2006

 

2006-2007, using the amount allocated per full-time equated

 

participant under subsection (5), up to a maximum total allocation

 

under this section in an amount equal to 125.0% OF the amount the

 

district or consortium received for 2003-2004 2005-2006 under this

 

section before any reallocations made for 2003-2004 2005-2006 under

 

subsection (4).

 

     (b) A district or consortium that received funding in 2003-

 

2004 2005-2006 under this section may operate independently of a

 

consortium or join or form a consortium for 2005-2006 2006-2007. In

 

addition, a district that had a declaration of financial emergency

 

in place under the local government fiscal responsibility act, 1990

 

PA 72, MCL 141.1201 to 141.1291, and for which that declaration was

 

revoked during 2005 may operate a program under this section

 

independently of a consortium or may join or form a consortium to

 

operate a program under this section. The allocation for 2005-2006

 

2006-2007 to the district or the newly formed consortium under this

 

subsection shall be determined by the department of labor and

 

economic growth and shall be based on the proportion of the amounts

 

that are attributable to the district or consortium that received

 

funding in 2003-2004 or, for a district for which a declaration of

 

financial emergency was revoked during 2005, based on the amount

 

the district received under this section using a 3-year average of

 

the 3 most recent fiscal years the district received funding under

 

this section. 2005-2006. A district or consortium described in this

 

subdivision shall notify the department of labor and economic

 

growth of its intention with regard to 2005-2006 2006-2007 by

 


October 1, 2005 2006.

 

     (4) A district that operated an adult education program in

 

2004-2005 2005-2006 and does not intend to operate a program in

 

2005-2006 2006-2007 shall notify the department of labor and

 

economic growth by October 1, 2005 2006 of its intention. The funds

 

intended to be allocated under this section to a district that does

 

not operate a program in 2005-2006 2006-2007 and the unspent funds

 

originally allocated under this section to a district or consortium

 

that subsequently operates a program at less than the level of

 

funding allocated under subsection (3) shall instead be

 

proportionately reallocated to the other districts described in

 

subsection (3)(a) that are operating an adult education program in

 

2005-2006 2006-2007 under this section.

 

     (5) The amount allocated under this section per full-time

 

equated participant is $2,850.00 for a 450-hour program. The amount

 

shall be proportionately reduced for a program offering less than

 

450 hours of instruction.

 

     (6) An adult basic education program or an adult English as a

 

second language program operated on a year-round or school year

 

basis may be funded under this section, subject to all of the

 

following:

 

     (a) The program enrolls adults who are determined by an

 

appropriate assessment to be below ninth grade level in reading or

 

mathematics, or both, or to lack basic English proficiency.

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and tests participants to

 

determine progress after every 90 hours of attendance, using

 


assessment instruments approved by the department of labor and

 

economic growth.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed at or above the ninth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (d) A funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (10) until the participant meets 1 of the following:

 

     (i) The participant is assessed as having attained basic

 

English proficiency.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction. The department of labor and economic growth shall

 

provide information to a funding recipient regarding appropriate

 

assessment instruments for this program.

 

     (7) A general educational development (G.E.D.) test

 

preparation program operated on a year-round or school year basis

 

may be funded under this section, subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program shall administer a G.E.D. pre-test approved by

 

the department of labor and economic growth before enrolling an

 

individual to determine the individual's potential for success on

 


the G.E.D. test, and shall administer other tests after every 90

 

hours of attendance to determine a participant's readiness to take

 

the G.E.D. test.

 

     (c) A funding recipient shall receive funding according to

 

subsection (10) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant passes the G.E.D. test.

 

     (ii) The participant fails to show progress on 2 successive

 

tests used to determine readiness to take the G.E.D. test after

 

having completed at least 450 hours of instruction.

 

     (8) A high school completion program operated on a year-round

 

or school year basis may be funded under this section, subject to

 

all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) A funding recipient shall receive funding according to

 

subsection (10) for a participant in a course offered under this

 

subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (9) A job or employment-related adult education program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults referred by their employer who

 


are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (10)

 

until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by appropriate assessment instruments administered at least after

 

every 90 hours of attendance.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction. The department of labor and economic growth shall

 

provide information to a funding recipient regarding appropriate

 

assessment instruments for this program.

 

     (10) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Ninety SEVENTY-FIVE percent for enrollment of eligible

 

participants.

 

     (b) Ten TWENTY-FIVE percent for completion of the adult basic

 

education objectives by achieving an increase of at least 1 grade

 

level of proficiency in reading or mathematics; for achieving basic

 

English proficiency; for passage of the G.E.D. test; for passage of

 

a course required for a participant to attain a high school

 

diploma; or for completion of the course and demonstrated

 

proficiency in the academic skills to be learned in the course, as

 

applicable.

 


     (11) As used in this section, "participant" means the sum of

 

the number of full-time equated individuals enrolled in and

 

attending a department-approved adult education program under this

 

section, using quarterly participant count days on the schedule

 

described in section 6(7)(b).

 

     (12) A person who is not eligible to be a participant funded

 

under this section may receive adult education services upon the

 

payment of tuition. In addition, a person who is not eligible to be

 

served in a program under this section due to the program

 

limitations specified in subsection (6), (7), (8), or (9) may

 

continue to receive adult education services in that program upon

 

the payment of tuition. The tuition level shall be determined by

 

the local or intermediate district conducting the program.

 

     (13) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (14) A district shall not commingle money received under this

 

section or from another source for adult education purposes with

 

any other funds of the district. A district receiving adult

 

education funds shall establish a separate ledger account for those

 

funds. This subsection does not prohibit a district from using

 

general funds of the district to support an adult education or

 

community education program.

 

     (15) A district or intermediate district receiving funds under

 

this section may establish a sliding scale of tuition rates based

 

upon a participant's family income. A district or intermediate

 

district may charge a participant tuition to receive adult

 

education services under this section from that sliding scale of

 


tuition rates on a uniform basis. The amount of tuition charged per

 

participant shall not exceed the actual operating cost per

 

participant minus any funds received under this section per

 

participant. A district or intermediate district may not charge a

 

participant tuition under this section if the participant's income

 

is at or below 200% of the federal poverty guidelines published by

 

the United States department of health and human services.

 

     Sec. 121. (1) The valuation of a whole or fractional district

 

shall be the total taxable value of the property contained in the

 

whole or fractional district as last determined by the state tax

 

commission and placed on the ad valorem tax roll. For purposes of

 

computations made under this act, except as provided in section 26,

 

the taxable value of a district or intermediate district shall

 

include the value of property used to calculate the tax imposed on

 

lessees or users of tax-exempt property under Act No. 189 of the

 

Public Acts of 1953, being sections 211.181 to 211.182 of the

 

Michigan Compiled Laws, . AND THE VALUE OF PROPERTY USED TO

 

CALCULATE THE STATE PAYMENT IN LIEU OF TAX ON STATE PURCHASED

 

PROPERTY UNDER SECTION 2153 OF THE NATURAL RESOURCES AND

 

ENVIRONMENTAL PROTECTION ACT, 1994 PA 451, MCL 324.2153. 

 

Adjustments to this taxable value shall be made for all of the

 

following:

 

     (a) State tax tribunal decisions.

 

     (b) Court decisions.

 

     (c) Local board of review adjustments made after the state tax

 

commission determination.

 

     (d) Lands deeded to the state for jurisdictions without

 


delinquent tax revolving funds or for jurisdictions that have

 

required repayment to the delinquent tax revolving funds.

 

     (e) The requirements of this act.

 

     (2) Adjustments under subsection (1) shall not be made for

 

more than the 6 state fiscal years immediately preceding the state

 

fiscal year in which the adjustment is made, except that an

 

adjustment pursuant to a state tax tribunal decision or court

 

decision shall be made for the tax years involved in the decision

 

and any subsequent years affected by the

 

decision.

 

     Sec. 147. (1) The allocation for 2005-2006 2006-2007 for the

 

public school employees' retirement system pursuant to the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1408, shall be made using the entry age normal cost actuarial

 

method and risk assumptions adopted by the public school employees

 

retirement board and the department of management and budget. The

 

annual level percentage of payroll contribution rate is estimated

 

at 16.34% 17.74% for the 2005-2006 2006-2007 state fiscal year. The

 

portion of the contribution rate assigned to districts and

 

intermediate districts for each fiscal year is all of the total

 

percentage points. This contribution rate reflects an amortization

 

period of 31 30 years for 2005-2006 2006-2007. The public school

 

employees' retirement system board shall notify each district and

 

intermediate district by February 28 of each fiscal year of the

 

estimated contribution rate for the next fiscal year.

 

     (2) It is the intent of the legislature that the amortization

 

period described in section 41(2) of the public school employees

 


retirement act of 1979, 1980 PA 300, MCL 38.1341, be reduced to 30

 

years by the end of the 2005-2006 state fiscal year by reducing the

 

amortization period by not more than 1 year each fiscal year.

 

     Sec. 161a. If a court determines that a person intentionally

 

violated section 411a of the Michigan penal code, 1931 PA 328, MCL

 

750.411a, by making a false report of the commission of a crime

 

described in section 6(6)(g) (F) knowing the report to be false for

 

the purpose of having a pupil counted in membership in a district

 

under section 6(6)(g) (F), as part of the restitution ordered under

 

section 30 of chapter XIIA of 1939 PA 288, MCL 712A.30, section 16,

 

44, or 76 of the crime victim's rights act, 1985 PA 87, MCL

 

780.766, 780.794, and 780.826, or section 1a of chapter IX of the

 

code of criminal procedure, 1927 PA 175, MCL 769.1a, the court may

 

order the person to pay the pupil's district of residence an amount

 

that is not more than the state school aid that district would have

 

received attributable to the pupil if the pupil had been counted in

 

membership in his or her district of residence.

 

     Sec. 167. (1) The department in cooperation with the

 

department of community health shall develop plans to assist

 

districts and intermediate districts and local county health

 

departments to comply with section 1177 of the revised school code,

 

MCL 380.1177, and section 9209 of the public health code, 1978 PA

 

368, MCL 333.9209, for each school year.

 

     (2) Each district or intermediate district shall report to the

 

local health department in which it is located by November 1 of

 

each fiscal year, in a manner prescribed by the department of

 

community health, the immunization status of each pupil in grades K

 


through 12 who enrolled in the district or intermediate district

 

for the first time or, beginning in 2002-2003, who enrolled in

 

grade 6 in the district or intermediate district for the first

 

time, between January 1 and September 30 of the immediately

 

preceding fiscal year. Not later than December 31 of each fiscal

 

year, the department of community health shall notify the

 

department by district or intermediate district of the percentage

 

of entering pupils and, beginning in 2002-2003, of pupils who

 

enrolled in grade 6 for the first time who do not have a completed,

 

waived, or provisional immunization record in accordance with

 

section 1177 of the revised school code, MCL 380.1177. If a

 

district or intermediate district does not have a completed,

 

waived, or provisional immunization record in accordance with

 

section 1177 of the revised school code, MCL 380.1177, for at least

 

90% of the district's or intermediate district's entering pupils,

 

as recorded in the November 1 reports required under this

 

subsection, the district or intermediate district is subject to

 

subsection (4) until the district or intermediate district has such

 

an immunization record for at least 90% of its pupils who enrolled

 

in the district or intermediate district for the first time.

 

     (3) Each district or intermediate district shall again report

 

to the local health department in which it is located by February 1

 

of each fiscal year, in a manner prescribed by the department of

 

community health, the immunization status of each pupil in grades K

 

through 12 who enrolled in the district or intermediate district

 

for the first time or, beginning in 2002-2003, who enrolled in

 

grade 6 in the district or intermediate district for the first

 


time, between January 1 of the immediately preceding fiscal year

 

and December 31 of the current fiscal year. Not later than March 31

 

of each fiscal year, the department of community health shall

 

notify the department by district or intermediate district of the

 

percentage of entering pupils and, beginning in 2002-2003, of

 

pupils who enrolled in grade 6 for the first time who do not have a

 

completed, waived, or provisional immunization record in accordance

 

with section 1177 of the revised school code, MCL 380.1177. If a

 

district or intermediate district does not have a completed,

 

waived, or provisional immunization record in accordance with

 

section 1177 of the revised school code, MCL 380.1177, for at least

 

95% of the district's or intermediate district's entering pupils,

 

as recorded in the February 1 reports required under this

 

subsection, the district or intermediate district is subject to

 

subsection (4) until the district or intermediate district has such

 

an immunization record for at least 95% of its pupils who enrolled

 

in the district or intermediate district for the first time. If the

 

department of community health is not able to report to the

 

department by March 31 because a district or intermediate district

 

fails to submit a report as required in this subsection, or submits

 

an incomplete, inaccurate, or late report, the district or

 

intermediate district is subject to subsection (4) until the report

 

is submitted in a complete and accurate form.

 

     (4) If a district or intermediate district does not comply

 

with this section, the department shall withhold 5% of the total

 

funds due to the district or intermediate district under this act

 

after the date the department of community health reports a

 


district's or intermediate district's noncompliance with this

 

section to the department until the district or intermediate

 

district complies with this section. If the district or

 

intermediate district does not comply with this section by the end

 

of the fiscal year, the district or intermediate district forfeits

 

the total amount withheld.

 

     (5) For 2005-2006 only, if a pupil has been evacuated from

 

another state and relocated in this state due to a natural disaster

 

and is being educated in a district, if the pupil's immunization

 

record has not yet been received or confirmed, and if the district

 

is making a good faith effort to obtain immunization information

 

concerning the pupil, the district may exclude the pupil from the

 

calculation of the specified percentages in subsections (2) and

 

(3).

 

     Enacting section 1.  In accordance with section 30 of article

 

I of the state constitution of 1963, total state spending in this

 

amendatory act from state sources for fiscal year 2006-2007 is

 

estimated $11,706,277,800.00 and state appropriations to be paid

 

to local units of government for fiscal year 2006-2007 are

 

estimated at $11,582,641,800.00.

 

     Enacting section 2. Sections 8a, 31b, 32k, 33, 99b, 105a and

 

166 of the state school aid act of 1979, 1979 PA 94, MCL 388.1608a,

 

MCL 388.1631b, MCL 388.1632k, MCL 388.1633, MCL 388.1699b,

 

MCL.1705a and MCL 388.1766, are repealed effective October 1, 2006.

 

     Enacting section 3.  (1) Except as otherwise specified

 

in subsection (2), this act shall take effect October 1, 2006.

 

     (2) Sections 11, 15, 22a, 22b, 22e, 34, 35, 51a, 51c, 56 and

 


62 as amended by this amendatory act, take effect upon enactment of

 

this amendatory act.