HB-5531, As Passed House, March 18, 2008
SUBSTITUTE FOR
HOUSE BILL NO. 5531
(As amended March 18, 2008)
[A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 11j, 22a, 22b, 22d, 32b, 32c, 51a, 51c, 99c,
and 104 (MCL 388.1611, 388.1611j, 388.1622a, 388.1622b, 388.1622d,
388.1632b, 388.1632c, 388.1651a, 388.1651c, 388.1699c, and 388.1704), as
amended by 2007 PA 137, and by adding sections 31h, 32e, 54c, 99h,
99m, 99n, and 99p.]
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2008,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,493,064,200.00
[$11,391,191,600.00] from
the state school aid
fund established by section 11 of article IX of the state
constitution of 1963 and the sum of $34,909,600.00 from the general
fund. In addition, available federal funds are appropriated for the
fiscal year ending September 30, 2008.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
and 56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act that are not expended by the end of
the state fiscal year are transferred to the school aid
stabilization fund created under section 11a.
Sec. 11j. From the appropriation in section 11, there is
allocated
an amount not to exceed $1,900,000.00 $3,900,000.00 for
2007-2008 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. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $6,012,000,000.00
$5,951,000,000.00 for 2007-2008 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, the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672, or the corridor improvement authority act, 2005 PA
280, MCL 125.2871 to 125.2899, 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, the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2672, or the corridor improvement
authority act, 2005 PA 280, MCL 125.2871 to 125.2899, 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 $3,722,000,000.00
$3,683,275,000.00 for 2007-2008 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 do all of the following:
(a) Administer in each grade level that it operates in grades
1 to 5 a standardized assessment approved by the department of
grade-appropriate basic educational skills. A district may use the
Michigan literacy progress profile to satisfy this requirement for
grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner
specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL
380.1230g.
(4) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources,
and other business function software that is compatible with that
of the intermediate district in which the district is located and
with other districts located within that intermediate district.
(5) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state associated with lawsuits filed by 1 or more districts or
intermediate districts against this state. If the allocation under
this section is insufficient to fully fund all payments required
under this section, the payments under this subsection shall be
made in full before any proration of remaining payments under this
section.
(6) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, and 51c. If a claim is made by an
entity receiving funds under this act that challenges the
legislative determination of the adequacy of this funding or
alleges that there exists an unfunded constitutional requirement,
the state budget director may escrow or allocate from the
discretionary funds for nonmandated payments under this section the
amount as may be necessary to satisfy the claim before making any
payments to districts under subsection (2). If funds are escrowed,
the escrowed funds are a work project appropriation and the funds
are carried forward into the following fiscal year. The purpose of
the work project is to provide for any payments that may be awarded
to districts as a result of litigation. The work project shall be
completed upon resolution of the litigation.
(7) If the local claims review board or a court of competent
jurisdiction makes a final determination that this state is in
violation of section 29 of article IX of the state constitution of
1963 regarding state payments to districts, the state budget
director shall use work project funds under subsection (6) or
allocate from the discretionary funds for nonmandated payments
under this section the amount as may be necessary to satisfy the
amount owed to districts before making any payments to districts
under subsection (2).
(8) If a claim is made in court that challenges the
legislative determination of the adequacy of funding for this
state's constitutional obligations or alleges that there exists an
unfunded constitutional requirement, any interested party may seek
an expedited review of the claim by the local claims review board.
If the claim exceeds $10,000,000.00, this state may remove the
action to the court of appeals, and the court of appeals shall have
and shall exercise jurisdiction over the claim.
(9) If payments resulting from a final determination by the
local claims review board or a court of competent jurisdiction that
there has been a violation of section 29 of article IX of the state
constitution of 1963 exceed the amount allocated for discretionary
nonmandated payments under this section, the legislature shall
provide for adequate funding for this state's constitutional
obligations at its next legislative session.
(10) If a lawsuit challenging payments made to districts
related to costs reimbursed by federal title XIX medicaid funds is
filed against this state, then, for the purpose of addressing
potential liability under such a lawsuit, the state budget director
may place funds allocated under this section in escrow or allocate
money from the funds otherwise allocated under this section, up to
a maximum of 50% of the amount allocated in subsection (1). If
funds are placed in escrow under this subsection, those funds are a
work project appropriation and the funds are carried forward into
the following fiscal year. The purpose of the work project is to
provide for any payments that may be awarded to districts as a
result of the litigation. The work project shall be completed upon
resolution of the litigation. In addition, this state reserves the
right to terminate future federal title XIX medicaid reimbursement
payments to districts if the amount or allocation of reimbursed
funds is challenged in the lawsuit. As used in this subsection,
"title XIX" means title XIX of the social security act, 42 USC 1396
to 1396v.
(11) From the allocation in subsection (1), there is allocated
for 2007-2008 only an amount not to exceed $40,000.00 for payment
to a district that meets all of the following:
(a) Had a membership of less than 900 pupils for 2006-2007.
(b) Is located in an intermediate district that had a taxable
value per membership pupil, as defined in section 22a, of greater
than $290,000.00 for 2006-2007.
(c) The school electors of the district voted in the
affirmative on May 8, 2007 to restore a millage reduction required
under section 31 of article IX of the state constitution of 1963,
but the district was later found to have an incorrect millage
reduction fraction as defined in section 34d of the general
property tax act, 1893 PA 206, MCL 211.34d.
Sec. 22d. (1) From the amount allocated under section 22b, an
amount
not to exceed $750,000.00 $2,025,000.00
is allocated for
2007-2008 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 From the
allocation under subsection (1), there
is allocated for 2007-2008 an amount not to exceed $750,000.00 for
payments under this subsection to districts that meet all of the
following:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at
least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from
any other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible
district
under this section subsection
(2) shall be determined
under a spending plan developed as provided in this subsection and
approved by the superintendent of public instruction. The spending
plan shall be developed cooperatively by the intermediate
superintendents of each intermediate district in which an eligible
district is located. The intermediate superintendents shall review
the financial situation of each eligible district, determine the
minimum essential financial needs of each eligible district, and
develop and agree on a spending plan that distributes the available
funding
under this section subsection
(2) to the eligible districts
House Bill No. 5531 (H-1) as amended March 18, 2008
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
subsection (2) and shall be paid to the eligible districts in the
same manner as payments under section 22b.
(4) Subject to subsection (6), from the allocation in
subsection (1), there is allocated for 2007-2008 an amount not to
exceed $1,275,000.00 for payments under this subsection to
districts that meet all of the following:
(a) The district has 5.0 or fewer pupils per square mile as
determined by the department.
(b) The district has a total square mileage greater than 200.0
or is 1 of 2 districts that have consolidated transportation
services and have a combined total square mileage greater than
200.0 [or is 1 of 2 districts that have consolidated transportation
services and have a combined total square mileage greater than 200.0].
(5) The funds allocated under subsection (4) shall be
allocated on an equal per pupil basis.
(6) A district receiving funds allocated under subsection (2)
is not eligible for funding allocated under subsection (4).
Sec. 31h. From the appropriation in section 11, there is
allocated for 2007-2008 an amount not to exceed $100,000.00 for
payment to an intermediate district that includes a district that
is a school district of the first class under the revised school
code to support after-school tutoring for at-risk girls in grades 1
to 8. Funds allocated under this section may be used to contract
with an agency other than a district for a program or services
described in this section.
Sec. 32b. (1) From the funds appropriated under section 11,
there
is allocated an amount not to exceed $1,750,000.00
$2,500,000.00 for 2007-2008 for competitive grants to intermediate
districts for the creation and continuance of great start
communities or other community purposes as identified by the early
childhood investment corporation. These dollars may not be expended
until both of the following conditions have been met:
(a) The early childhood investment corporation has identified
matching dollars of at least an equal amount.
(b) The membership of the executive committee includes 1
member appointed by the senate majority leader, 1 member appointed
by the senate minority leader, 1 member appointed by the speaker of
the house of representatives, and 1 member appointed by the
minority leader of the house of representatives. Not later than 60
days after the convening of each legislative session in each odd
numbered year, each legislative leader shall appoint a member of
the executive committee. A member appointed in this manner shall
continue to serve on the executive committee through the next
regular legislative session unless he or she voluntarily resigns or
is otherwise unable to serve. When a vacancy occurs as a result of
a voluntary resignation or inability to serve, the legislative
leader who had appointed the member shall make an appointment to
fill that vacancy not later than 60 days after the date the vacancy
occurs.
(2) The early childhood investment corporation shall award
grants to eligible intermediate districts in an amount to be
determined by the corporation.
(3) In order to receive funding, each intermediate district
applicant shall agree to convene local great start collaboratives
to address the availability of the 6 components of a great start
system in its communities: physical health, social-emotional
health, family supports, basic needs, economic stability and
safety, and parenting education and early education and care, to
ensure that every child in the community is ready for kindergarten.
Specifically, each grant will fund the following:
(a) A community needs assessment and strategic plan for the
development of a comprehensive system of early childhood services
and supports, accessible to all children from birth to kindergarten
and their families.
(b) Identification of local resources and services for
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.
(4) Not later than December 1, 2007 for the 2006-2007 fiscal
year grants under this section, and not later than December 1, 2008
for the 2007-2008 grants under this section, the department shall
provide to the house and senate appropriations subcommittees on
state school aid, the state budget director, and the house and
senate fiscal agencies a report detailing the amounts of grants
awarded under this section, the grant recipients, the activities
funded by each grant under this section, and an analysis of each
grant recipient's success in addressing the development of a
comprehensive system of early childhood services and supports.
(5) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
Sec. 32c. (1) From the general fund appropriation in section
11,
there is allocated an amount not to exceed $2,125,000.00
$2,500,000.00 for 2007-2008 to the department for grants for
community-based collaborative prevention services designed to
foster positive parenting skills; improve parent/child interaction,
especially for children 0-3 years of age; promote access to needed
community services; increase local capacity to serve families at
risk; improve school readiness; and support healthy family
environments that discourage alcohol, tobacco, and other drug use.
The allocation under this section is to fund secondary prevention
programs as defined by the children's trust fund for the prevention
of child abuse and neglect.
(2) The funds allocated under subsection (1) shall be
distributed through a joint request for proposals process
established by the department in conjunction with the children's
trust fund and the interagency director's workgroup. Projects
funded with grants awarded under this section shall meet all of the
following:
(a) Be secondary prevention initiatives and voluntary to
consumers. This appropriation is not intended to serve the needs of
children for whom and families in which neglect or abuse has been
substantiated.
(b) Demonstrate that the planned services are part of a
community's integrated comprehensive family support strategy
endorsed by the community collaborative.
(c) Provide a 25% local match, of which not more than 10% may
be in-kind services, unless this requirement is waived by the
interagency director's workgroup.
(3) Notwithstanding section 17b, payments under this section
may be made pursuant to an agreement with the department.
(4) Not later than January 30 of the next fiscal year, the
department shall prepare and submit to the governor and the
legislature an annual report of outcomes achieved by the providers
of the community-based collaborative prevention services funded
under this section for a fiscal year.
Sec. 32e. From the state school aid fund money appropriated
under section 11, there is allocated an amount not to exceed
$4,700,000.00 for 2007-2008 to districts eligible to receive
funding under section 32d. The funding under this section shall be
distributed among districts in decreasing order of concentration of
eligible children as determined by section 38. The amount
distributed to each district under this section shall be an amount
equal to the number of children the district served under section
32d in 2006-2007 or the number of children the district indicates
it will be able to serve under section 37(2)(c) in 2007-2008,
whichever is less, minus the number of children for which the
district has previously received funding in 2007-2008
as determined by the department, multiplied by $3,400.00. However,
a district is not required to return previously allocated funding
to the school aid fund in 2007-2008 as a result of this
calculation.
Sec. 51a. (1) From the appropriation in section 11, there is
allocated
for 2007-2008 an amount not to exceed $1,006,483,000.00
$990,483,000.00 from state sources and all available federal
funding under sections 611 to 619 of part B of the individuals with
disabilities education act, 20 USC 1411 to 1419, estimated at
$350,700,000.00, plus any carryover federal funds from previous
year appropriations. The allocations under this subsection are for
the purpose of reimbursing districts and intermediate districts for
special education programs, services, and special education
personnel as prescribed in article 3 of the revised school code,
MCL 380.1701 to 380.1766; net tuition payments made by intermediate
districts to the Michigan schools for the deaf and blind; and
special education programs and services for pupils who are eligible
for special education programs and services according to statute or
rule. For meeting the costs of special education programs and
services not reimbursed under this article, a district or
intermediate district may use money in general funds or special
education funds, not otherwise restricted, or contributions from
districts to intermediate districts, tuition payments, gifts and
contributions from individuals, or federal funds that may be
available for this purpose, as determined by the intermediate
district plan prepared pursuant to article 3 of the revised school
code, MCL 380.1701 to 380.1766. All federal funds allocated under
this section in excess of those allocated under this section for
2002-2003 may be distributed in accordance with the flexible
funding provisions of the individuals with disabilities education
act, Public Law 108-446, including, but not limited to, 34 CFR
300.206 and 300.208. Notwithstanding section 17b, payments of
federal funds to districts, intermediate districts, and other
eligible entities under this section shall be paid on a schedule
determined by the department.
(2) From the funds allocated under subsection (1), there is
allocated
for 2007-2008 the amount necessary, estimated at
$215,900,000.00
$216,500,000.00, for payments toward reimbursing
districts and intermediate districts for 28.6138% of total approved
costs of special education, excluding costs reimbursed under
section 53a, and 70.4165% of total approved costs of special
education transportation. Allocations under this subsection shall
be made as follows:
(a) The initial amount allocated to a district under this
subsection toward fulfilling the specified percentages shall be
calculated by multiplying the district's special education pupil
membership, excluding pupils described in subsection (12), times
the sum of the foundation allowance under section 20 of the pupil's
district of residence plus the amount of the district's per pupil
allocation under section 20j(2), not to exceed the basic foundation
allowance under section 20 for the current fiscal year, or, for a
special education pupil in membership in a district that is a
public school academy or university school, times an amount equal
to the amount per membership pupil calculated under section 20(6).
For an intermediate district, the amount allocated under this
subdivision toward fulfilling the specified percentages shall be an
amount per special education membership pupil, excluding pupils
described in subsection (12), and shall be calculated in the same
manner as for a district, using the foundation allowance under
section 20 of the pupil's district of residence, not to exceed the
basic foundation allowance under section 20 for the current fiscal
year, and that district's per pupil allocation under section
20j(2).
(b) After the allocations under subdivision (a), districts and
intermediate districts for which the payments under subdivision (a)
do not fulfill the specified percentages shall be paid the amount
necessary to achieve the specified percentages for the district or
intermediate district.
(3) From the funds allocated under subsection (1), there is
allocated for 2007-2008 the amount necessary, estimated at
$1,500,000.00, 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 for 2007-2008 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 for 2007-2008 to
reimburse 100% of the net increase in necessary costs incurred by a
district or intermediate district in implementing the revisions in
the administrative rules for special education that became
effective on July 1, 1987. As used in this subsection, "net
increase in necessary costs" means the necessary additional costs
incurred solely because of new or revised requirements in the
administrative rules minus cost savings permitted in implementing
the revised rules. Net increase in necessary costs shall be
determined in a manner specified by the department.
(7) For purposes of this article, all of the following apply:
(a) "Total approved costs of special education" shall be
determined in a manner specified by the department and may include
indirect costs, but shall not exceed 115% of approved direct costs
for section 52 and section 53a programs. The total approved costs
include salary and other compensation for all approved special
education personnel for the program, including payments for social
security and medicare and public school employee retirement system
contributions. The total approved costs do not include salaries or
other compensation paid to administrative personnel who are not
special education personnel as defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other
than those federal funds included in the allocation made under this
article, are not included. Special education approved personnel not
utilized full time in the evaluation of students or in the delivery
of special education programs, ancillary, and other related
services shall be reimbursed under this section only for that
portion of time actually spent providing these programs and
services, with the exception of special education programs and
services provided to youth placed in child caring institutions or
juvenile detention programs approved by the department to provide
an on-grounds education program.
(b) Beginning with the 2004-2005 fiscal year, a district or
intermediate district that employed special education support
services staff to provide special education support services in
2003-2004 or in a subsequent fiscal year and that in a fiscal year
after 2003-2004 receives the same type of support services from
another district or intermediate district shall report the cost of
those support services for special education reimbursement purposes
under this act. This subdivision does not prohibit the transfer of
special education classroom teachers and special education
classroom aides if the pupils counted in membership associated with
those special education classroom teachers and special education
classroom aides are transferred and counted in membership in the
other district or intermediate district in conjunction with the
transfer of those teachers and aides.
(c) If the department determines before bookclosing for 2006-
2007 that the amounts allocated for 2006-2007 under subsections
(2), (3), (6), (8), and (12) and sections 53a, 54, and 56 will
exceed expenditures for 2006-2007 under subsections (2), (3), (6),
(8), and (12) and sections 53a, 54, and 56, then for 2006-2007
only, for a district or intermediate district whose reimbursement
for 2006-2007 would otherwise be affected by subdivision (b),
subdivision (b) does not apply to the calculation of the
reimbursement for that district or intermediate district and
reimbursement for that district or intermediate district shall be
calculated in the same manner as it was for 2003-2004. If the
amount of the excess allocations under subsections (2), (3), (6),
(8), and (12) and sections 53a, 54, and 56 is not sufficient to
fully fund the calculation of reimbursement to those districts and
intermediate districts under this subdivision, then the
calculations and resulting reimbursement under this subdivision
shall be prorated on an equal percentage basis.
(d) Reimbursement for ancillary and other related services, as
defined by R 340.1701c of the Michigan administrative code, shall
not be provided when those services are covered by and available
through private group health insurance carriers or federal
reimbursed program sources unless the department and district or
intermediate district agree otherwise and that agreement is
approved by the state budget director. Expenses, other than the
incidental expense of filing, shall not be borne by the parent. In
addition, the filing of claims shall not delay the education of a
pupil. A district or intermediate district shall be responsible for
payment of a deductible amount and for an advance payment required
until the time a claim is paid.
(e) Beginning with calculations for 2004-2005, if an
intermediate district purchases a special education pupil
transportation service from a constituent district that was
previously purchased from a private entity; if the purchase from
the constituent district is at a lower cost, adjusted for changes
in fuel costs; and if the cost shift from the intermediate district
to the constituent does not result in any net change in the revenue
the constituent district receives from payments under sections 22b
and 51c, then upon application by the intermediate district, the
department shall direct the intermediate district to continue to
report the cost associated with the specific identified special
education pupil transportation service and shall adjust the costs
reported by the constituent district to remove the cost associated
with that specific service.
(8) From the allocation in subsection (1), there is allocated
for 2007-2008 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
for 2007-2008 the amount necessary, estimated at
$6,600,000.00
$7,600,000.00, 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 the basic foundation allowance under
section 20 for the current fiscal year, 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 the basic foundation allowance under
section 20 for the current fiscal year, 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
House Bill No. 5531 (H-1) as amended March 18, 2008 (1 of 2)
is
allocated for 2007-2008 the amount necessary, estimated at
$713,600,000.00
$696,000,000.00, 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. 54c. From the general fund appropriation in section 11,
there is allocated to the department an amount not to exceed
$80,000.00 for the department to make Newsline available
electronically on a statewide basis for persons who are visually
impaired.
[Sec. 99c. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to exceed $0.00
$1,000,000.00 for 2007-2008 for payments to districts under this
section for the middle school mathematics initiative pilot programs designed to achieve the middle school mathematics
standards and benchmarks for
algebra adopted by the state
board.
(2) The amount of the payment to each district for
2006-2007 shall be an equal amount per pupil for each pupil actually enrolled
and attending school in the district in grades 6 to 8. Payments to a district
under this section for subsequent fiscal years shall be as described in
subsection (4). The
department shall award grants for pilot programs under this section to
districts on a first come first serve basis. The amount of a grant shall not
exceed $250,000.00. To be eligible for a grant, a district shall meet all of
the following:
(A) Shall provide local funding for the pilot program in an amount at least equal to 1/3 of the amount of the grant. A district may count the value of in-kind services toward meeting this local match requirement.
(B) The pilot program shall be conducted in cooperation with at least 1 other entity, which may include, but not limited to, another district, an intermediate district, a community college, a state university, or a mathematics and science center.
(3) The pilot programs shall target middle school mathematics initiatives aimed at middle school students identified to be behind or needing additional assistance in algebra as defined in the standards and benchmarks adopted by the state board. The programs shall be summer programs and shall include online courses.
(4) Grant funds awarded under this section are intended to be for the first year of 3 years of funding.
(5) Notwithstanding section 17b, payments under this section may be made pursuant to an agreement with the department.
(6) (3) A district shall use funds received under this section before 2007-2008 for activities and efforts designed to
improve pupil performance in mathematics. However, if a district has carried
forward unexpended funds received under this section into 2007-2008, the
district may use those unexpended funds for any purpose.]
Sec. 99h. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $300,000.00 for 2007-2008 for
competitive grants to districts that provide pupils in high school
with expanded opportunities 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) A district applying for a grant shall submit an
application to the department in a form and manner determined by
the department. To be eligible for a grant, a district shall
demonstrate in its application that the district has established a
partnership for the purposes of the program with at least 1
sponsor, business entity, higher education institution, or
technical school.
(3) Each grant recipient shall provide a local match from
private or local funds for the funds received under this section.
The amount of the local match shall be at least equal to 50% of the
costs of participating in an event.
(4) Grant awards shall be made in a manner determined by the
department. However, the department shall set maximum grant amounts
in a manner that maximizes the number of high schools that will be
able 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 at first
robotics competitions.
(6) Notwithstanding section 17b, payments to eligible
districts under this section shall be paid on a schedule determined
by the department.
Sec. 99m. From the appropriation in section 11, there is
allocated an amount not to exceed $100,000.00 for 2007-2008 to
Wayne state university for the science, engineering, mathematics,
aerospace academy (SEMAA) program. The university shall make this
program available at no cost to all pupils in kindergarten to grade
12.
Sec. 99n. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $1,000,000.00 for 2007-2008 for
competitive grants to districts or intermediate districts that
enter into cooperative arrangements with a community college to
establish programs to allow pupils to complete community college
courses and earn community college credit while enrolled in middle
school or high school.
(2) A district or intermediate district applying for a grant
shall submit an application to the department in a form and manner
determined by the department. To be eligible for a grant, a
district or intermediate district shall demonstrate in its
application that the district or intermediate district has entered
into a cooperative arrangement with a community college to
establish a program to allow pupils to complete, at no cost to the
pupils, community college courses and earn community college credit
while enrolled in middle school or high school. A program may
include, but is not limited to, arrangements for pupils to complete
courses at the community college, at the district during regular
school hours, or at the district outside regular school hours.
(3) Except as otherwise provided in subsection (4), grant
awards shall be made in a manner determined by the department.
However, the amount of a grant to a district or intermediate
district shall not exceed $250,000.00 and the department may set
grant amounts in a manner that maximizes the number of districts
and intermediate districts that will be able to effectively
participate. The department shall award grants based on the
program's potential to benefit the most pupils.
(4) From the money allocated under this section, the
department shall award a grant of $250,000.00 to a district that
formerly operated a community college program and that ceased to
operate that program after 1995.
(5) Funds received under this section may be used for program
development, tuition costs, or other expenses associated with the
delivery and completion of community college courses.
(6) Notwithstanding section 17b, payments to eligible
districts under this section shall be paid on a schedule determined
by the department.
Sec. 99p. (1) From the appropriation in section 11, there is
allocated an amount not to exceed $800,000.00 for 2007-2008 for
competitive grants to districts for programs that provide pupils
with access to cultural, art, or music resources and experiences
that are available in the community and that may promote reading,
literacy, and communications skills among pupils.
(2) A district applying for a grant shall submit an
application to the department in a form and manner determined by
the department. To be eligible for a grant, a district shall
demonstrate in its application that at least 50% of the pupils in
membership in the district 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.
(3) Grant awards shall be made in a manner determined by the
department. However, the department may set maximum grant amounts
in a manner that maximizes the number of pupils that will be able
to participate.
(4) Notwithstanding section 17b, payments to eligible
districts under this section shall be paid on a schedule determined
by the department.
Sec. 104. (1) From the state school aid fund money
appropriated in section 11, there is allocated for 2007-2008 an
amount
not to exceed $25,400,000.00 $29,322,400.00
for payments on
behalf of districts for costs associated with complying with
sections 104a and 104b, sections 1279, 1279g, and 1280b of the
revised school code, MCL 380.1279, 380.1279g, and 380.1280b, and
1970 PA 38, MCL 388.1081 to 388.1086. In addition, from the federal
funds appropriated in section 11, there is allocated for 2007-2008
an
amount estimated at $8,800,000.00 $5,477,600.00, funded from
DED-OESE, title VI, state assessments funds and DED-OSERS, section
504 of part B of the individuals with disabilities education
act, Public Law 94-142, plus any carryover federal funds from
previous year appropriations, for the purposes of complying with
the federal no child left behind act of 2001, Public Law 107-110.
(2) The results of each test administered as part of the
Michigan educational assessment program, including tests
administered to high school students, shall include an item
analysis that lists all items that are counted for individual pupil
scores and the percentage of pupils choosing each possible
response.
(3) All federal funds allocated under this section shall be
distributed in accordance with federal law and with flexibility
provisions outlined in Public Law 107-116, and in the education
flexibility partnership act of 1999, Public Law 106-25.
(4) Notwithstanding section 17b, payments on behalf of
House Bill No. 5531 (H-1) as amended March 18, 2008
districts, intermediate districts, and other eligible entities
under this section shall be paid on a schedule determined by the
department.
Enacting section 1. In accordance with section 30 of article
IX of the state constitution of 1963, total state spending in this
amendatory act and in 2007 PA 137 from state sources for fiscal
year 2007-2008 is estimated at [$11,426,101,200.00] and state
appropriations to be paid to local units of government for fiscal
year 2007-2008 are estimated at [$11,318,601,200.00].