SB-1107, As Passed House, June 10, 2008

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 1107

 

 

 

 

 

 

 

 

 

 

 

 

 

†††† A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 4, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18b,

 

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

 

29, 31a, 31d, 31f, 32b, 32c, 32d, 32j, 32l, 37, 38, 39, 39a, 41,

 

51a, 51c, 51d, 53a, 54, 54a, 54c, 56, 57, 61a, 62, 64, 65, 74, 81,

 

94a, 98, 99, 99c, 99e, 99i, 99j, 99k, 99n, 99p, 104, 104b, 105,

 

105c, 107, 147, 151, 164c, 166b, and 166e (MCL 388.1603, 388.1604,

 

388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k,

 

388.1611m, 388.1615, 388.1618b, 388.1619, 388.1620, 388.1620d,

 

388.1620j, 388.1622a, 388.1622b, 388.1622d, 388.1624, 388.1624a,

 

388.1624c, 388.1625b, 388.1625c, 388.1626a, 388.1626b, 388.1629,

 

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


 

388.1632j, 388.1632l, 388.1637, 388.1638, 388.1639, 388.1639a,

 

388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654,

 

388.1654a, 388.1654c, 388.1656, 388.1657, 388.1661a, 388.1662,

 

388.1664, 388.1665, 388.1674, 388.1681, 388.1694a, 388.1698,

 

388.1699, 388.1699c, 388.1699e, 388.1699i, 388.1699j, 388.1699k,

 

388.1699n, 388.1699p, 388.1704, 388.1704b, 388.1705, 388.1705c,

 

388.1707, 388.1747, 388.1751, 388.1764c, 388.1766b, and 388.1766e),

 

sections 3, 6, 11a, 11g, 11k, 11m, 15, 19, 20, 20j, 24, 24a, 24c,

 

26a, 26b, 29, 31a, 31d, 31f, 32b, 32c, 32d, 32j, 32l, 37, 39, 39a,

 

41, 51d, 53a, 54, 54a, 57, 61a, 64, 65, 74, 81, 94a, 98, 99, 99c,

 

99e, 107, and 151 as amended and sections 99i, 99j, and 99k as

 

added by 2007 PA 137, sections 4 and 164c as amended by 2005 PA

 

155, sections 11, 11j, 22a, 22b, 22d, 51a, 51c, 56, 62, and 104 as

 

amended and sections 54c, 99n, and 99p as added by 2008 PA 112,

 

section 18b as added by 2000 PA 297, section 20d as amended and

 

section 166e as added by 1997 PA 93, section 25b as amended and

 

section 25c as added by 2001 PA 121, section 38 as amended by 2003

 

PA 158, section 104b as added by 2004 PA 593, sections 105 and 105c

 

as amended by 2006 PA 342, section 147 as amended by 2007 PA 92,

 

and section 166b as amended by 1999 PA 119, and by adding sections

 

11n, 22e, 31h, 32g, 32h, 98d, 99h, 99m, 99o, 99q, and 99r; 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, means 92% of the pupils counted in

 

membership on the pupil membership count day, as defined in section

 

6(7).


 

†††† (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 section 107, means the department

 

of education.

 

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

 

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

 

sections 6(4), 6(6), 11n, 13, 20, 22a, 23, 29, 31a, 99j, 99k,

 

51a(15), 105, and 105c, a public school academy. Except in sections

 

6(4), 6(6), 11n, 13, 20, 22a, 29, 99j, 99k, 51a(15), 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. 4. (1) "Elementary pupil" means a pupil in membership in

 

grades K to 8 in a district not maintaining classes above the

 

eighth grade or in grades K to 6 in a district maintaining classes

 

above the eighth grade. For the purposes of calculating universal

 

service fund (e-rate) discounts, "elementary pupil" includes

 

children enrolled in a preschool program operated by a district in

 

its facilities.

 

†††† (2) "Extended school year" means an educational program

 

conducted by a district in which pupils must be enrolled but not

 

necessarily in attendance on the pupil membership count day in an

 

extended year program. The mandatory clock hours shall be completed

 

by each pupil not more than 365 calendar days after the pupil's

 

first day of classes for the school year prescribed. The department

 

shall prescribe pupil, personnel, and other reporting requirements

 

for the educational program.

 

†††† (3) "Fiscal year" means the state fiscal year that commences

 

October 1 and continues through September 30.

 

†††† (4) "General educational development testing preparation

 

program" means a program that has high school level courses in

 

English language arts, social studies, science, and mathematics and


 

that prepares a person to successfully complete the general

 

educational development (GED) test.

 

†††† (5) "High school pupil" means a pupil in membership in grades

 

7 to 12, except in a district not maintaining grades above the

 

eighth grade.

 

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

 

district or intermediate district for special education pupils from

 

several districts in programs for pupils with autism spectrum

 

disorder, pupils with severe cognitive impairment, pupils with

 

moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

district or shall serve several districts with less than 50% of the

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

disabilities education act, 20 USC 1412, may be considered center

 

program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.


 

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

 

report of the number of pupils, excluding adult 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. Beginning in 2009-2010, 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 the number used for determining

 

full-time equated memberships for pupils in grades 1 to 12.

 

†††† (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. For the first year in which a pupil is counted in

 

membership on the pupil membership count day in a middle college

 

program described in section 64, the membership is the average of

 

the full-time equated membership on the pupil membership count day

 

and on the supplemental count day for the current school year, as

 

determined by the department. If a pupil was counted by the

 

operating district on the immediately preceding supplemental count

 

day, the pupil shall be excluded from the district's immediately

 

preceding supplemental count for purposes of determining the

 

district's membership.

 

†††† (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, beginning in 2007-2008,

 

if the district does not receive funding under section 22d 22d(2),

 

the district's membership shall be considered to be the membership

 

figure calculated under this subdivision. If a district educates

 

and counts in its membership pupils in grades 9 to 12 who reside in

 

a contiguous district that does not operate grades 9 to 12 and if 1

 

or both of the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

number of pupils per square mile for each of the districts for the

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

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

 

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

 

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

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

†††† (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) 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) A pupil of a district that begins its school year after

 

Labor day who is enrolled in an intermediate district program that

 

begins before Labor day shall not be considered to be less than a

 

full-time pupil solely due to instructional time scheduled but not

 

attended by the pupil before Labor day.

 

†††† (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.

 

†††† (v) The pupil is enrolled in an alternative or disciplinary

 

education program described in section 25.


 

†††† (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.

 

†††† (k) An expelled pupil who has been denied reinstatement by the

 

expelling district and is reinstated by another school board under

 

section 1311 or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a.

 

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

 

district of residence in a program described in section 64 if the

 

pupil's district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic education

 

center.

 

†††† However, if a district that is not a district of the first

 

class district educates pupils who reside in a district of the

 

first class district and if the primary instructional site for

 

those pupils is located within the boundaries of the district of

 

the first class, district, the educating district must have the

 

approval of the district 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 after Labor day each school year or, for a district or

 

building in which school is not in session on that Wednesday due to

 

conditions not within the control of school authorities, with the

 

approval of the superintendent, the immediately following day on

 

which school is in session in the district or building.

 

†††† (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

†††† (i) Fourth Wednesday in July.

 

†††† (ii) Fourth Wednesday after Labor day.

 

†††† (iii) Second Wednesday in February.

 

†††† (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or


 

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

 

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

 

attendance in a district, intermediate district, or public school

 

academy before the pupil membership count day or supplemental count

 

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

 

membership count day or supplemental count day shall only be

 

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

 

attendance in the district, intermediate district, or public school

 

academy within 45 days after the pupil membership count day or

 

supplemental count day of that particular year. Pupils not counted

 

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

 

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

 

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

 

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

 

qualified substitute teacher are together and instruction is taking

 

place.

 

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

 

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

 

24.328.

 

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

 

380.1852.

 

†††† (11) "School district of the first class", "first class school

 

district", and "district of the first class" mean the district that

 

had the most pupils in membership for the immediately preceding

 

fiscal year among all districts.

 

†††† (12) (11) "School fiscal year" means a fiscal year that

 

commences July 1 and continues through June 30.


 

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

 

†††† (14) (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.

 

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

 

supplemental pupil count is conducted under section 6a.

 

†††† (16) (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 (k) (6)(c) to (m). A pupil's

 

district of residence shall not require a high school tuition

 

pupil, as provided under section 111, to attend another school

 

district after the pupil has been assigned to a school district.

 

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

 

fund established in section 11 of article IX of the state

 

constitution of 1963.

 

†††† (18) (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.

 

†††† (19) (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.


 

†††† (20) (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.

 

†††† (21) (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, 2008,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,386,866,600.00 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. For the fiscal year

 

ending September 30, 2009, there is appropriated for the public

 

schools of this state and certain other state purposes relating to

 

education the sum of $11,810,371,000.00 from the state school aid

 

fund established by section 11 of article IX of the state

 

constitution of 1963 and the sum of $43,000,300.00 from the general

 

fund. In addition, available federal funds are appropriated for the

 

fiscal year ending September 30, 2008 and for the fiscal year

 

ending September 30, 2009.

 

†††† (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, 11n, 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, 11n, 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,

 

11n, 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) For 2007-2008 2008-2009, there is appropriated from the

 

school aid stabilization fund to the state school aid fund the

 

amount necessary to fully fund the allocations under this act.

 

†††† Sec. 11g. (1) From the appropriation in section 11, there is

 

allocated for this section an amount not to exceed $141,000.00 for

 

the fiscal year ending September 30, 2008, and an amount not to

 

exceed $42,000,000.00 for the fiscal year ending September 30, 2009

 

and for each succeeding fiscal year through the fiscal year ending

 

September 30, 2015, after which these payments will cease. 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 1 of the

 

following:

 

†††† (a) If the district or intermediate district does not borrow

 

money and issue bonds under section 11i, 1/30 of the total amount

 

listed in section 11h for the district or intermediate district

 

through the fiscal year ending September 30, 2013.

 

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

 

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

 

calculated by the department of treasury that is equal to the debt

 

service amount in that fiscal year on 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, there is

 

allocated an amount not to exceed $3,900,000.00 for 2007-2008 and

 

an amount not to exceed $39,000,000.00 for 2008-2009 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 2007-2008 2008-2009, there is appropriated from

 

the general fund to the school loan revolving fund an amount equal

 

to the amount of school bond loans assigned to the Michigan

 

municipal bond authority, not to exceed the total amount of school

 

bond loans held in reserve as long-term assets. As used in this

 

section, "school loan revolving fund" means that fund created in

 

section 16c of the shared credit rating act, 1985 PA 227, MCL

 

141.1066c.

 

†††† Sec. 11m. From the appropriations in section 11, there is

 

allocated for 2007-2008 2008-2009 an amount not to exceed

 

$22,800,000.00 $30,800,000.00 for fiscal year cash-flow borrowing

 

costs solely related to the state school aid fund established by

 

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

 

†††† Sec. 11n. (1) From the appropriation in section 11, there is

 

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

 

2009 and for each succeeding fiscal year through the fiscal year

 

ending September 30, 2028, after which these allocations will

 

cease. These allocations shall be deposited in the 21st century


 

schools fund on November 15 of the applicable fiscal year or on the

 

next business day following that date and shall be distributed in

 

each fiscal year as follows:

 

†††† (a) To each district or intermediate district that borrows

 

money and issues bonds under subsection (7), an amount in each

 

fiscal year calculated by the department of treasury that is equal

 

to the debt service amount in that fiscal year on the bonds issued

 

by that district or intermediate district under subsection (7). The

 

amounts paid under this subdivision shall be paid on the dates that

 

the corresponding debt service payments are required to be made. A

 

district or intermediate district that receives funds under this

 

subdivision shall use these funds only to pay debt service on bonds

 

issued under subsection (7) and for no other purpose.

 

†††† (b) Amounts not needed to make payments under subdivision (a),

 

determined by the superintendent, may be used to fund awards made

 

under subsections (5) and (6) in each fiscal year.

 

†††† (2) The 21st century schools fund is established in the

 

department of treasury. Money in the 21st century schools fund at

 

the end of each fiscal year shall remain in the 21st century

 

schools fund and shall not lapse to the school aid fund or the

 

general fund.

 

†††† (3) Money in the 21st century schools fund is appropriated for

 

the creation of small high schools that provide contextual learning

 

environments designed to support student academic achievement that

 

prepares students for postsecondary education and employment, and

 

for the payment of debt service on bonds issued pursuant to

 

subsection (7).


 

†††† (4) An eligible district or intermediate district may apply to

 

the superintendent for start-up grants. An eligible district may

 

apply to the superintendent for facility grants. Applications for

 

start-up grants and facility grants shall be made in a manner and

 

form as determined by the superintendent.

 

†††† (5) The superintendent may award start-up grants of up to

 

$2,000,000.00 in total to eligible districts and intermediate

 

districts for each small high school for which the district or

 

intermediate district is applying. Total start-up grants shall be

 

distributed to each eligible district or intermediate district in

 

declining amounts over 4 years, as determined by the

 

superintendent, beginning in the school year prior to the first

 

year of operations. If a small high school does not begin or ceases

 

operations for which a district or intermediate district received

 

any portion of start-up grants funding, that district or

 

intermediate district shall repay all of the funds received to the

 

department of treasury for deposit into the 21st century schools

 

fund, in a manner determined by the superintendent. Start-up grants

 

shall be used for all of the following purposes:

 

†††† (a) Planning and implementation of site-based management for

 

each proposed small high school for which the eligible district or

 

intermediate district receives an award. Implementation of site-

 

based management may include the authorization of a public school

 

academy or contract school by the eligible district or intermediate

 

district.

 

†††† (b) Planning and implementation of high school curricula

 

consistent with the credit requirements contained in sections 1278a


 

and 1278b of the revised school code, MCL 380.1278a and 380.1278b,

 

and organized in accordance with career clusters that prepare

 

students for postsecondary education and employment.

 

†††† (c) Planning and implementation of early postsecondary

 

opportunities for high school students that provide college or

 

college equivalent coursework, including, but not limited to, dual

 

enrollment, advanced placement, and early or middle college.

 

†††† (d) Planning and implementation of teacher and administrative

 

professional development that will lead to successful student

 

achievement in small high school contextual learning environments.

 

†††† (e) Planning and implementation of a digital learning

 

environment using innovative digital access, creation, and content

 

distribution tools.

 

†††† (6) An eligible district may apply for a facility grant to

 

renovate or replace existing high school buildings in order to

 

create small high schools that improve educational opportunities

 

for students being educated in high-priority high school buildings.

 

Facility grants shall not be used for land purchases or building a

 

new facility on currently vacant land. A facility grant for an

 

approved small high school may be awarded by the superintendent

 

under either of the following subdivisions, but not both:

 

†††† (a) Eligible districts may apply to the superintendent for

 

grants of up to $8,000,000.00 to be matched by private revenues on

 

at least a 1-to-1 basis for the total costs of renovating or

 

replacing an existing high school.

 

†††† (b) Eligible districts may also apply for annual millage

 

equalization grants not to exceed a total of 20 annual payments.


 

The superintendent shall award the annual millage equalization

 

grants to an eligible district so that funds generated by millages

 

approved by the voters and actually levied plus the millage

 

equalization grant awarded to the eligible district for each small

 

high school equals the state average taxable value behind each

 

membership pupil for 2006-2007. Local revenues from the levied

 

millage plus state millage equalization grants shall not exceed

 

more than $16,000,000.00 for each small high school over the life

 

of the millage authorization.

 

†††† (7) In addition to any other authority granted under law, an

 

eligible district or eligible intermediate district may borrow, to

 

the extent permitted by the award, from the Michigan municipal bond

 

authority created under the shared credit rating act, 1985 PA 227,

 

MCL 141.1051 to 141.1076, an amount not greater than the amount

 

awarded to the district or intermediate district under subsections

 

(5) and (6), in anticipation of the receipt of the payments

 

appropriated under subsection (1), and may authorize by resolution

 

of its governing body and issue its bonds to evidence its

 

obligations to the Michigan municipal bond authority on the terms

 

and with those provisions as are provided by resolution of the

 

board of the district or intermediate district and as are

 

acceptable to the Michigan municipal bond authority. A district or

 

intermediate district may pledge and assign to the Michigan

 

municipal bond authority, as security for the bonds, all of the

 

payments appropriated to it under subsection (1)(a) but may not

 

otherwise pledge or assign those payments. Bonds issued under this

 

subsection are not subject to the revised municipal finance act,


 

2001 PA 34, MCL 141.2101 to 141.2821, or the agency financing

 

reporting act, 2002 PA 470, MCL 129.171 to 129.177. This subsection

 

shall be construed as cumulative authority for the exercise of the

 

powers granted in this subsection and shall not be construed to

 

repeal any existing law. The purpose of this subsection is to

 

create full and complete additional and alternate methods for the

 

exercise of existing powers, and the powers conferred by this

 

section are not affected or limited by any other statute or by any

 

charter or incorporating document.

 

†††† (8) Proceeds of bonds issued under subsection (7) shall be

 

made available to districts and intermediate districts on or after

 

October 1, 2008. Each district and intermediate district shall use

 

proceeds of bonds issued by it under subsection (7) only for a

 

purpose for which awards are made under subsections (5) and (6),

 

including reimbursement of advances from the 21st century schools

 

fund.

 

†††† (9) Bonds issued under subsection (7) do not constitute a

 

general obligation or debt of a district or intermediate district

 

within the meaning of any constitutional or statutory debt

 

limitation.

 

†††† (10) A pledge made by a district or intermediate district

 

under subsection (7) is valid and binding from the time the pledge

 

is made. The revenue or other money pledged under subsection (7)

 

and thereafter received by a district or intermediate district is

 

immediately subject to the lien of the pledge without physical

 

delivery of the revenue or money or any further act. The lien of

 

such a pledge is valid and binding against a party having a claim


 

of any kind in tort, contract, or otherwise against the district or

 

intermediate district, irrespective of whether that party has

 

notice of the pledge. The resolution or any other instrument by

 

which a pledge is created is not required to be filed or recorded

 

in order to establish and perfect a lien or security interest in

 

the property pledged.

 

†††† (11) Bonds issued under subsection (7) are not in any way a

 

debt or liability of this state; do not create or constitute any

 

indebtedness, liability, or obligation of this state; are not and

 

do not constitute a pledge of the faith and credit of this state;

 

and shall contain on their face a statement to that effect.

 

†††† (12) As used in this section:

 

†††† (a) "Career cluster" means a broad grouping of careers that

 

share similar competency requirements, as defined by the

 

department.

 

†††† (b) "Eligible district" means a district containing at least 1

 

high school building that has not made adequate yearly progress for

 

at least 2 years as determined by the department. In addition, for

 

a district applying for a facility grant, eligible district means a

 

district that is otherwise an eligible district and that has at

 

least 800 pupils in membership in grades 9 to 12 in 2007-2008,

 

including those pupils attending alternative education.

 

†††† (c) "Eligible intermediate district" means an intermediate

 

district that applies for start-up funding under subsection (5) for

 

the purpose of establishing regional small high schools that

 

primarily serve students who would have attended high schools not

 

achieving adequate yearly progress. The regional small high schools


 

shall provide early postsecondary opportunities for high school

 

students that lead to postsecondary degrees or certifications and

 

employment. Intermediate districts are not eligible to apply for

 

facility grants under subsection (6).

 

†††† (d) "High-priority high school building" means a high school

 

building that has not achieved adequate yearly progress for at

 

least 2 years and is in a sanction phase, as determined by the

 

department.

 

†††† (e) "Small high school" means a school educating a maximum

 

average of 450 pupils per high school building for any combination

 

of grades 9 to 12.

 

†††† 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 when the adjustment is

 

finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship,

 

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

 

adjustment 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 for 2007-2008 2008-


 

2009 for obligations in excess of applicable appropriations , an

 

amount equal to the collection of overpayments, but not to exceed

 

amounts available from overpayments.

 

†††† Sec. 18b. (1) Property of a public school academy that was

 

acquired substantially with funds appropriated under this act shall

 

be transferred to this state by the public school academy

 

corporation if any of the following occur:

 

†††† (a) The public school academy has been ineligible to receive

 

funding under this act for 18 consecutive months.

 

†††† (b) The public school academy's contract has been revoked or

 

terminated for any reason.

 

†††† (c) The public school academy's contract has not been reissued

 

by the authorizing body.

 

†††† (2) Property required to be transferred to this state under

 

this section includes title to all real and personal property,

 

interests in real or personal property, and other assets owned by

 

the public school academy corporation that were substantially

 

acquired with funds appropriated under this act.

 

†††† (3) The state treasurer, or his or her designee, is authorized

 

to dispose of property transferred to this state under this

 

section. Except as otherwise provided in this section, the state

 

treasurer shall deposit in the state school aid fund any money

 

included in that property and the net proceeds from the sale of the

 

property or interests in property, after payment by the state

 

treasurer of any public school academy debt secured by the property

 

or interest in property.

 

†††† (4) This section does not impose any liability on this state,


 

any agency of this state, or an authorizing body for any debt

 

incurred by a public school academy.

 

†††† (5) As used in this section and section 18c, "authorizing

 

body" means an authorizing body defined under section 501 or 1311b

 

of the revised school code, MCL 380.501 and 380.1311b.

 

†††† 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 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

 

5 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. This


 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. 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 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 2006-2007, the basic foundation allowance is

 

$7,085.00. For 2007-2008, the basic foundation allowance is

 

$8,433.00. For 2008-2009, the basic foundation allowance is

 

$8,488.00.

 

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

 

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

 

allowance in the amount specified in subsection (1).

 

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

 

of a district's foundation allowance shall be calculated as

 

follows, using in all calculations the total amount of the

 

district's foundation allowance as calculated before any proration:

 

†††† (a) For 2007-2008, for a district that had a foundation

 

allowance for 2006-2007, including any adjustment under subdivision

 

(f), that was at least equal to $7,108.00 but less than $8,385.00,

 

the district shall receive a foundation allowance in an amount

 

equal to the sum of the district's foundation allowance for 2006-

 

2007 plus the difference between $96.00 and [($48.00 minus $20.00)

 

times (the difference between the district's foundation allowance

 

for 2006-2007, including any adjustment under subdivision (f), and


 

$7,108.00) divided by $1,325.00]. Beginning in 2008-2009, for a

 

district that had a foundation allowance for the immediately

 

preceding state fiscal year that was at least equal to the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from

 

2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts, but less than 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 difference

 

between twice the dollar amount of the adjustment from the

 

immediately preceding state fiscal year to the current state fiscal

 

year made in the basic foundation allowance and [(the dollar amount

 

of the adjustment from the immediately preceding state fiscal year

 

to the current state fiscal year made in the basic foundation

 

allowance minus $50.00 $20.00) times (the difference between the

 

district's foundation allowance for the immediately preceding state

 

fiscal year and the sum of $7,108.00 plus the total dollar amount

 

of all adjustments made from 2006-2007 to the immediately preceding

 

state fiscal year in the lowest foundation allowance among all

 

districts) divided by the difference between the basic foundation

 

allowance for the current state fiscal year and the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from

 

2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts]. However, the

 

foundation allowance for a district that had less than the basic

 

foundation allowance for the immediately preceding state fiscal


 

year shall not exceed the basic foundation allowance for the

 

current state fiscal year.

 

†††† (b) Except as otherwise provided in this subsection, beginning

 

in 2008-2009, 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.

 

†††† (c) 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. For 2007-2008, 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 district's foundation allowance

 

for the immediately preceding state fiscal year plus $48.00.

 

†††† (d) For a district that has a foundation allowance that is not

 

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

 

rounded up to the nearest whole dollar.

 

†††† (e) For a district that received a payment under section 22c

 

as that section was in effect for 2001-2002, the district's 2001-

 

2002 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2001-2002

 

foundation allowance as otherwise calculated under this section

 

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

 

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

 

2002.

 

†††† (f) Beginning in 2007-2008, for For a district that received a

 

payment under section 22c as that section was in effect for 2006-

 

2007, the district's 2006-2007 foundation allowance shall be


 

considered to have been an amount equal to the sum of the

 

district's actual 2006-2007 foundation allowance as otherwise

 

calculated under this section plus the per pupil amount of the

 

district's equity payment for 2006-2007 under section 22c as that

 

section was in effect for 2006-2007.

 

†††† (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 the basic foundation

 

allowance for the current state fiscal year, whichever is less,

 

minus the difference between the sum of the product of the taxable

 

value per membership pupil of all property in the district that is

 

not a principal residence or qualified agricultural nonexempt

 

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

 

school operating taxes levied by the district in 1993-94 district's

 

certified mills and, for a district with certified mills exceeding

 

12, the product of the taxable value per membership pupil of

 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under 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, tax increment financing acts divided

 

by the district's membership excluding special education pupils.

 

For a district described in subsection (3)(c), 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 sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is not a principal residence or qualified

 

agricultural nonexempt property times the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94 district's certified mills and, for a district with

 

certified mills exceeding 12, the product of the taxable value per

 

membership pupil of property in the district that is commercial

 

personal property times the certified mills minus 12 mills and the

 

quotient of the ad valorem property tax revenue of the district

 

captured under 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, tax increment

 

financing acts 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.

 

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

 

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


 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

allocation calculated under this section shall be based on the

 

foundation allowance of the educating district if the educating

 

district's foundation allowance is greater than the foundation

 

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

 

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

 

pupil allocation under section 20j(2).

 

†††† (6) For 2007-2008, 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 $7,475.00, whichever is less. Beginning in

 

2008-2009, 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 state

 

maximum public school academy allocation, 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

 

sum of the product of the taxable value per membership pupil of all

 

property in the district that is not a principal residence or

 

qualified agricultural nonexempt property times the lesser of 18

 

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

 

the district in 1993-94 district's certified mills and, for a

 

district with certified mills exceeding 12, the product of the

 

taxable value per membership pupil of property in the district that

 

is commercial personal property times the certified mills minus 12

 

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

 

the district captured under 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, tax increment

 

financing acts 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, qualified

 

forest property, industrial personal property, and commercial

 

personal property under section 1211(1) 1211 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, the district's certified

 

mills on property that is not a principal residence or qualified

 

agricultural nonexempt 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, qualified

 

forest property, industrial personal property, and commercial

 

personal property are exempt and not to levy school operating taxes

 

on a principal residence, and qualified agricultural property,

 

qualified forest property, industrial personal property, and


 

commercial personal property as provided in section 1211(1) 1211 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, qualified forest property, industrial

 

personal property, and commercial personal property at the rate

 

authorized for the district under section 1211(1) 1211 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, the district's certified mills on property

 

that is not a principal residence or qualified agricultural

 

nonexempt 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 district's certified mills.

 

†††† (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

 

2007-2008, 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 lowest foundation allowance among all districts for the

 

subsequent state fiscal year shall be at least the amount of that

 

consensus index multiplied by the basic lowest foundation allowance

 

specified in subsection (1) among all districts for the immediately

 

preceding state fiscal year.

 

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

 

estimated that pupil membership, excluding intermediate district

 

membership, for the subsequent state fiscal year will be greater

 

than 101% of the pupil membership, excluding intermediate district

 

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

 

intent of the legislature that the executive budget proposal for

 

the school aid budget for the subsequent state fiscal year include

 

a general fund/general purpose allocation sufficient to support the

 

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

 

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

 

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

 

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

 

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

 

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

 

number of mills of school operating taxes authorized for the

 

district under section 1211 of the revised school code, MCL


 

380.1211, a minimum amount of combined state and local revenue

 

shall be calculated for the district as provided under this

 

subsection. The minimum amount of combined state and local revenue

 

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

 

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

 

districts as determined and allowed by the department. The minimum

 

amount of combined state and local revenue under this subsection,

 

before adding the additional expenses, shall increase each fiscal

 

year by the same percentage increase as the percentage increase in

 

the basic foundation allowance from the immediately preceding

 

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

 

minimum amount of combined state and local revenue under this

 

subsection shall be calculated by subtracting from the minimum

 

amount of combined state and local revenue under this subsection

 

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

 

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

 

district's foundation allowance plus the amount calculated under

 

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

 

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

 

tuition or fees, not to exceed the basic foundation allowance for

 

the current state fiscal year, plus a room and board stipend not to

 

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

 

educated in another district, as approved by the department.

 

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

 

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

 

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

 

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


 

membership pupil shall be recalculated as if that millage reduction

 

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

 

calculated as if its 1994-95 foundation allowance had been

 

calculated using that recalculated 1993-94 combined state and local

 

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

 

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

 

to this subsection.

 

†††† (18) For a district in which an industrial facilities

 

exemption certificate that abated taxes on property with a state

 

equalized valuation greater than the total state equalized

 

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

 

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

 

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

 

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

 

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

 

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

 

calculated under this section, plus $250.00.

 

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

 

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

 

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

 

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

 

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

 

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

 

under former section 32e divided by the number of pupils in the

 

district's membership for 2001-2002 who were residents of and

 

enrolled in the district. Except as otherwise provided in this

 

subsection, a district qualifying for a foundation allowance


 

adjustment under this subsection shall use the funds resulting from

 

this adjustment for at least 1 of grades K to 3 for purposes

 

allowable under former section 32e as in effect for 2001-2002, and

 

may also use these funds for an early intervening program described

 

in subsection (20). 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) An early intervening program that uses funds resulting


 

from the adjustment under subsection (19) shall meet either or both

 

of the following:

 

†††† (a) Shall monitor individual pupil learning for pupils in

 

grades K to 3 and provide specific support or learning strategies

 

to pupils in grades K to 3 as early as possible in order to reduce

 

the need for special education placement. The program shall include

 

literacy and numeracy supports, sensory motor skill development,

 

behavior supports, instructional consultation for teachers, and the

 

development of a parent/school learning plan. Specific support or

 

learning strategies may include support in or out of the general

 

classroom in areas including reading, writing, math, visual memory,

 

motor skill development, behavior, or language development. These

 

would be provided based on an understanding of the individual

 

child's learning needs.

 

†††† (b) Shall provide early intervening strategies for pupils in

 

grades K to 3 using schoolwide systems of academic and behavioral

 

supports and shall be scientifically research-based. The strategies

 

to be provided shall include at least pupil performance indicators

 

based upon response to intervention, instructional consultation for

 

teachers, and ongoing progress monitoring. A schoolwide system of

 

academic and behavioral support should be based on a support team

 

available to the classroom teachers. The members of this team could

 

include the principal, special education staff, reading teachers,

 

and other appropriate personnel who would be available to

 

systematically study the needs of the individual child and work

 

with the teacher to match instruction to the needs of the

 

individual child.


 

†††† (21) For a district that levied 1.9 mills in 1993 to finance

 

an operating deficit, the district's foundation allowance shall be

 

calculated as if those mills were included as operating mills in

 

the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal

 

years before 2006-2007 due to this subsection. A district receiving

 

an adjustment under this subsection shall not receive more than

 

$800,000.00 for a fiscal year as a result of this adjustment.

 

†††† (22) For a district that levied 2.23 mills in 1993 to finance

 

an operating deficit, the district's foundation allowance shall be

 

calculated as if those mills were included as operating mills in

 

the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal

 

years before 2006-2007 due to this subsection. A district receiving

 

an adjustment under this subsection shall not receive more than

 

$500,000.00 for a fiscal year as a result of this adjustment.

 

†††† (23) 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. A district or public

 

school academy may use foundation allowance or per pupil amount

 

payments as calculated under this section for programs that prepare

 

children from birth to 5 years of age for success in school.

 

†††† (24) 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.

 

†††† (25) As used in this section:

 

†††† (a) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

†††† (b) (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.

 

†††† (c) (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.

 

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

 

year for which a particular calculation is made.

 

†††† (e) (d) "Immediately preceding state fiscal year" means the

 

state fiscal year immediately preceding the current state fiscal

 

year.

 

†††† (f) (e) "Local school operating revenue" means school

 

operating taxes levied under section 1211 of the revised school

 

code, MCL 380.1211.

 

†††† (g) (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.

 

†††† (h) (g) "Maximum public school academy allocation" means the

 

maximum per-pupil allocation as calculated by adding the highest

 

per-pupil allocation among all public school academies for the


 

immediately preceding state fiscal year plus the difference between

 

twice the dollar amount of the adjustment from the immediately

 

preceding state fiscal year to the current state fiscal year made

 

in the basic foundation allowance and [(the dollar amount of the

 

adjustment from the immediately preceding state fiscal year to the

 

current state fiscal year made in the basic foundation allowance

 

minus $50.00) times (the difference between the highest per-pupil

 

allocation among all public school academies for the immediately

 

preceding state fiscal year and the sum of $7,108.00 plus the total

 

dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest per-pupil

 

allocation among all public school academies) divided by the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the sum of $7,108.00 plus the total dollar

 

amount of all adjustments made from 2006-2007 to the immediately

 

preceding state fiscal year in the lowest per-pupil allocation

 

among all public school academies].

 

†††† (i) (h) "Membership" means the definition of that term under

 

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

 

particular calculation is made.

 

†††† (j) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, industrial personal property, or commercial

 

personal property.

 

†††† (k) (i) "Principal residence", and "qualified agricultural

 

property", "qualified forest property", "industrial personal

 

property", and "commercial personal property" mean those terms as


 

defined in section 7dd of the general property tax act, 1893 PA

 

206, MCL 211.7dd, and section 1211 of the revised school code, MCL

 

380.1211.

 

†††† (l) (j) "School operating purposes" means the purposes included

 

in the operation costs of the district as prescribed in sections 7

 

and 18.

 

†††† (m) (k) "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.

 

†††† (n) "Tax increment financing acts" means 1975 PA 197, MCL

 

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

 

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

 

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

 

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

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

†††† (o) (l) "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 2008-2009, 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

 

2007-2008 2008-2009 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 basic foundation

 

allowance for the 1998-99 state fiscal year and $7,108.00 $7,204.00

 

less $223.00 minus the dollar amount of the adjustment from the

 

1998-99 state fiscal year to 2006-2007 2007-2008 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 $5,951,000,000.00 for 2007-2008

 

and an amount not to exceed $6,092,000,000.00 for 2008-2009 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 sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is not a homestead or qualified agricultural

 

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

 

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

 

district's certified mills and, for a district with certified mills

 

exceeding 12, the product of the taxable value per membership pupil

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under 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, tax increment financing acts divided

 

by the district's membership. For a district that has a millage

 

reduction required under section 31 of article IX of the state


 

constitution of 1963, the state portion of the district's

 

foundation allowance shall be calculated as if that reduction did

 

not occur.

 

†††† (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, tax increment

 

financing acts 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) "Certified mills" means the lesser of 18 mills or the

 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

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

 

year for which a particular calculation is made.

 

†††† (d) (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.

 

†††† (e) (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,

 

qualified forest property, industrial personal property, and

 

commercial personal property could be reduced as provided in

 

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

 

the number of mills of school operating taxes that could be levied

 

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

 

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

 

treasury for the 1994 tax year.

 

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

 

of the revised school code, MCL 380.1211.

 

†††† (g) (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.

 

†††† (h) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, industrial personal property, or commercial

 

personal property.

 

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

 

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

 

†††† (j) (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.

 

†††† (k) (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.

 

†††† (l) (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.

 

†††† (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

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

 

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

 

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

 

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

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

†††† (n) (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, qualified forest property, industrial

 

personal property, and commercial personal property may be reduced

 

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

 

380.1211, the taxable value of homestead, and qualified

 

agricultural property, qualified forest property, industrial

 

personal property, and commercial personal 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 $3,683,275,000.00 for 2007-2008

 

and an amount not to exceed $3,799,025,000.00 for 2008-2009 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 $2,025,000.00 is allocated for 2007-2008 2008-

 

2009 for additional payments to small, geographically isolated

 

districts under this section.

 

†††† (2) From the allocation under subsection (1), there is

 

allocated for 2007-2008 2008-2009 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 subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

†††† (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2007-2008 2008-2009 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.

 

†††† (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. 22e. (1) Beginning in 2008-2009, an amount will be

 

allocated each fiscal year from the amount allocated under section

 

22b for additional payments under this section to districts that

 

meet the eligibility requirements under subsection (2). For 2008-

 

2009, there is allocated for this purpose from the amount allocated

 

under section 22b an amount not to exceed $1,300,000.00.

 

†††† (2) To be eligible for a payment under this section, a

 

district must be determined by the department and the department of

 

treasury to meet all of the following:

 

†††† (a) The district levies 1 of the following operating millage

 

amounts:

 

†††† (i) All of the operating millage it is authorized to levy under

 

section 1211 of the revised school code, MCL 380.1211.

 

†††† (ii) The amount of operating millage is authorized to levy

 

after a voluntary reduction of its operating millage rate adopted

 

by the board of the district.


 

†††† (iii) The amount of operating millage it is authorized to levy

 

after a millage reduction required under the limitation of section

 

31 of article IX of the state constitution of 1963, if a ballot

 

question asking for approval to levy millage in excess of the

 

limitation has been rejected in the district.

 

†††† (b) The district receives a reduced amount of local school

 

operating revenue under section 1211 of the revised school code,

 

MCL 380.1211, as a result of the exemptions of industrial personal

 

property and commercial personal property that were enacted in 2007

 

PA 37.

 

†††† (c) The district does not receive any state portion of its

 

foundation allowance, as calculated under section 20(4).

 

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

 

district under this section is the sum of the following and shall

 

be paid to the eligible districts in the same manner as payments

 

under section 22b:

 

†††† (a) The product of the taxable value of the district's

 

industrial personal property for the calendar year ending in the

 

fiscal year multiplied by the total number of mills the district

 

levies on nonexempt property under section 1211 of the revised

 

school code, MCL 380.1211, for that calendar year.

 

†††† (b) The product of the taxable value of the district's

 

commercial personal property for the calendar year ending in the

 

fiscal year multiplied by the lesser of 12 mills or the total

 

number of mills the district levies on nonexempt property under

 

section 1211 of the revised school code, MCL 380.1211, for that

 

calendar year


 

†††† Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2007-2008 2008-2009 an amount not to exceed

 

$8,000,000.00 for payments to the educating district or

 

intermediate district for educating pupils assigned by a court or

 

the department of 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 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

 

districtís or intermediate districtís added cost or the

 

departmentís 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 districtís or

 

intermediate districtís added cost. Beginning with allocations for

 

2008-2009, 100% of the 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 $3,103,400.00 $2,828,500.00 for

 

2007-2008 2008-2009 for payments to intermediate districts for

 

pupils who are placed in juvenile justice service facilities

 

operated by the department of human services. Each intermediate

 

district shall receive an amount equal to the state share of those

 

costs that are clearly and directly attributable to the educational

 

programs for pupils placed in facilities described in this section

 

that are located within the intermediate district's boundaries. The

 

intermediate districts receiving payments under this section shall

 

cooperate with the department of human services to ensure that all

 

funding allocated under this section is utilized by the

 

intermediate district and department of human services for

 

educational programs for pupils described in this section. Pupils

 

described in this section are not eligible to be funded under

 

section 24. However, a program responsibility or other fiscal

 

responsibility associated with these pupils shall not be

 

transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district

 

consents to the transfer.

 

†††† Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,283,900.00 $1,284,600.00 for

 

2007-2008 2008-2009 for payments to districts for pupils who are

 

enrolled in a nationally administered community-based education and

 

youth mentoring program, known as the youth challenge program, that


 

is located within the district and is administered by the

 

department of military and veterans affairs. A district receiving

 

payments under this section shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.

 

†††† Sec. 25b. (1) Beginning in 2000-2001, this This section

 

applies to an educating district's enrollment of a pupil if the

 

educating district is not a school district of the first class

 

under the revised school code and if all of the following apply:

 

†††† (a) The pupil transfers from 1 of 3 other districts specified

 

by the educating district and enrolls in the educating district

 

after the pupil membership count day.

 

†††† (b) Due to the pupil's enrollment status as of the pupil

 

membership count day, the pupil was counted in membership in the

 

district from which he or she transfers.

 

†††† (c) The pupil was a resident of the educating district on the

 

pupil membership count day or met other eligibility criteria under

 

section 6(4) or (6) to be counted in membership in the educating

 

district if the pupil had been enrolled in the educating district

 

on the pupil membership count day.

 

†††† (d) The total number of pupils enrolled in the district who

 

are described in subdivisions (a), (b), and (c) and who transfer

 

from 1 of the 3 other districts specified by the educating district

 

is at least equal to the greater of 25 or 1% of the educating

 

district's membership.

 

†††† (2) If the conditions specified in subsection (1) are met, and


 

a pupil transfers from 1 of the 3 other specified districts

 

described in subsection (1)(d) and enrolls during a school year in

 

the educating district, 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

 

or per pupil payment as calculated under section 20 for 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. The foundation allowance

 

or per pupil payment shall be adjusted by the pupil's full-time

 

equated status as affected by the membership definition under

 

section 6(4). 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.

 

†††† (3) In determining the total amount a district owes to the

 

educating district under this section, regardless of whether that


 

district is otherwise eligible for payment from the educating

 

district under this section, the district may calculate and

 

subtract from the amount owed, using the calculation described in

 

subsection (1), any amount applicable to pupils who transfer to

 

that district from the educating district and meet the requirements

 

of subsection (1)(a) to (c).

 

†††† (4) As used in this section, "educating district" means the

 

district in which a pupil enrolls after the pupil membership count

 

day as described in subsection (1).

 

†††† Sec. 25c. (1) Beginning in 2000-2001, this This section

 

applies to an educating district's enrollment of a pupil if the

 

educating district is a school district of the first class under

 

the revised school code and if all of the following apply:

 

†††† (a) The pupil transfers from another district and enrolls in

 

the educating district after the pupil membership count day.

 

†††† (b) Due to the pupil's enrollment status as of the pupil

 

membership count day, the pupil was counted in membership in the

 

district from which he or she transfers.

 

†††† (c) The pupil was a resident of the educating district on the

 

pupil membership count day or met other eligibility criteria under

 

section 6(4) or (6) to be counted in membership in the educating

 

district if the pupil had been enrolled in the educating district

 

on the pupil membership count day.

 

†††† (d) The total number of pupils enrolled in the district who

 

are described in subdivisions (a), (b), and (c) is at least equal

 

to 25.

 

†††† (2) If the conditions specified in subsection (1) are met, and


 

a pupil transfers from another district and enrolls during a school

 

year in the educating district, 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

 

or per pupil payment as calculated under section 20 for 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. The foundation allowance

 

or per pupil payment shall be adjusted by the pupil's full-time

 

equated status as affected by the membership definition under

 

section 6(4). 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.

 

†††† (3) In determining the total amount a district owes to the

 

educating district under this section, regardless of whether that

 

district is otherwise eligible for payment from the educating


 

district under this section, the district may calculate and

 

subtract from the amount owed, using the calculation described in

 

subsection (1), any amount applicable to pupils who transfer to

 

that district from the educating district and meet the requirements

 

of subsection (1)(a) to (c).

 

†††† (4) As used in this section, "educating district" means the

 

district in which a pupil enrolls after the pupil membership count

 

day as described in subsection (1).

 

†††† Sec. 26a. From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$36,000,000.00 $41,400,000.00 for 2007-2008 2008-2009, and from the

 

general fund appropriation in section 11, there is allocated an

 

amount not to exceed $14,000,000.00 $16,100,000.00 for 2007-2008

 

2008-2009 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 2007 2008. The allocations shall be made not later than 60 days

 

after the department of treasury certifies to the department and to

 

the state budget director that the department of treasury has

 

received all necessary information to properly determine the

 

amounts due to each eligible recipient.

 

†††† Sec. 26b. (1) From the appropriation in section 11, there is

 

allocated for 2007-2008 2008-2009 an amount not to exceed

 

$3,400,000.00 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 $20,000,000.00 each fiscal year

 

for 2007-2008 and for 2008-2009 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 section 6(4)(y) or 22d 22d(2).

 

†††† (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 state school aid fund money

 

appropriated in section 11, there is allocated for 2007-2008 2008-

 

2009 an amount not to exceed $319,350,000.00 $321,350,000.00 for

 

payments to eligible districts and eligible public school academies

 

under this section. Subject to subsection (14), the amount of the

 

additional allowance under this section, other than funding under

 

subsection (6) or (7), shall be based on the number of actual

 

pupils in membership in the district or public school academy who

 

met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined

 

under the Richard B. Russell national school lunch act, 42 USC 1751

 

to 1769i, 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 the basic foundation allowance under

 

section 20 for the current state fiscal year.

 

†††† (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

 

the basic foundation allowance under section 20 for the current

 

state fiscal year, 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), (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 (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 pay for costs

 

associated with the operation of the school breakfast program.

 

†††† (6) From the funds allocated under subsection (1), there is

 

allocated for 2007-2008 2008-2009 an amount not to exceed

 

$3,743,000.00 $5,743,000.00 to support child and adolescent health

 

centers. These grants shall be awarded for 5 consecutive years

 

beginning with 2003-2004 in a form and manner approved jointly by

 

the department and the department of community health. Each grant

 

recipient shall remain in compliance with the terms of the grant

 

award or shall forfeit the grant award for the duration of the 5-

 

year period after the noncompliance. Beginning in 2004-2005, to

 

continue to receive funding for a child and adolescent health

 

center under this section a grant recipient shall ensure that the

 

child and adolescent health center has an advisory committee and

 

that at least one-third of the members of the advisory committee

 

are parents or legal guardians of school-aged children. A child and

 

adolescent health center program shall recognize the role of a

 

child's parents or legal guardian in the physical and emotional

 

well-being of the child. Funding under this subsection shall be

 

used to support child and adolescent health center services

 

provided to children up to age 21. If any funds allocated under

 

this subsection are not used for the purposes of this subsection


 

for the fiscal year in which they are allocated, those unused funds

 

shall be used that fiscal year to avoid or minimize any proration

 

that would otherwise be required under subsection (14) for that

 

fiscal year.

 

†††† (7) From the funds allocated under subsection (1), there is

 

allocated for 2007-2008 2008-2009 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. Funds shall be awarded in a form and manner

 

approved jointly by the department and the department of community

 

health. Notwithstanding section 17b, payments to eligible entities

 

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

 

department.

 

†††† (8) 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) 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) Subject to subsections (5), (6), (7), (12), and (13), 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), (12), and (13), 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) 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) 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) A district or public school academy that receives funds

 

under this section may use funds it receives under this section to

 

implement and operate an early intervening program for pupils in

 

grades K to 3 that meets either or both of the following:

 

†††† (a) Monitors individual pupil learning and provides specific

 

support or learning strategies to pupils as early as possible in

 

order to reduce the need for special education placement. The

 

program shall include literacy and numeracy supports, sensory motor

 

skill development, behavior supports, instructional consultation

 

for teachers, and the development of a parent/school learning plan.

 

Specific support or learning strategies may include support in or

 

out of the general classroom in areas including reading, writing,

 

math, visual memory, motor skill development, behavior, or language

 

development. These would be provided based on an understanding of

 

the individual child's learning needs.

 

†††† (b) Provides early intervening strategies using school-wide

 

systems of academic and behavioral supports and is scientifically

 

research-based. The strategies to be provided shall include at

 

least pupil performance indicators based upon response to

 

intervention, instructional consultation for teachers, and ongoing

 

progress monitoring. A school-wide system of academic and

 

behavioral support should be based on a support team available to

 

the classroom teachers. The members of this team could include the


 

principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically

 

study the needs of the individual child and work with the teacher

 

to match instruction to the needs of the individual child.

 

†††† (14) 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).

 

†††† (15) 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.

 

†††† (16) 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 the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

†††† (17) A district that does not meet the eligibility requirement

 

under subsection (2)(a) is eligible for funding under this section

 

if at least 75% of the pupils in membership in the district met the

 

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

 

the immediately preceding state fiscal year, as determined and

 

reported as described in subsection (1), the district receives an

 

adjustment under section 20(19), and the district does not receive

 

any state portion of its foundation allowance as calculated under


 

section 20. A district 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 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 under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

†††† (18) (17) 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 2007-2008

 

2008-2009 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 2007-2008 2008-2009 all available federal funding,

 

estimated at $330,000,000.00, 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 $9,625,000.00 for 2007-2008 2008-

 

2009 for the purpose of making payments to districts to reimburse

 

for the cost of providing breakfast.

 

†††† (2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

†††† (a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

†††† (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

†††† (3) The payment for a district under this section is at a per


 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, by an

 

efficiently operated breakfast program as determined and approved

 

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 The statewide average cost

 

shall be determined by the department using costs as reported in a

 

manner approved by the department for the preceding school year.

 

†††† (4) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

†††† Sec. 31h. From the appropriation in section 11, there is

 

allocated for 2008-2009 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 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

 

$6,750,000.00 for 2007-2008 2008-2009 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 equal to the amount of


 

the matching dollars for 2006-2007.

 

†††† (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. shall consist of 4 members appointed by

 

the governor. The governor shall appoint 1 member from among

 

nominees submitted by the senate majority leader, 1 member from

 

among nominees submitted by the senate minority leader, 1 member

 

from among nominees submitted by the speaker of the house of

 

representatives, and 1 member from among nominees submitted by the

 

minority leader of the house or representatives. The governor shall

 

appoint these members not later than 60 days after the convening of

 

the legislative session in each odd-numbered year. A member

 

appointed in this manner shall continue to shall serve on the

 

executive committee through the next that 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 governor shall make an appointment to fill

 

that vacancy in the same manner as the original appointment 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 The completion of a community needs assessment and

 

strategic plan for the development creation 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 of each fiscal

 

year, for the grants awarded under this section for the immediately

 

preceding fiscal year, 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 amount of each grant 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) An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

†††† (6) (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

 

$4,625,000.00 for 2007-2008 2008-2009 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 and, where there is a great

 

start collaborative, demonstrate that the planned services are part

 

of the community's great start strategic plan.

 

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

 

appropriated under section 11, there is allocated an amount not to

 

exceed $80,900,000.00 $105,926,900.00 for 2007-2008 2008-2009 for

 

school great start 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 to the district and its community,

 

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 9852, part-day or full-

 

day comprehensive compensatory programs designed to do 1 or both of

 

the following:

 

†††† (a) Improve the readiness and subsequent achievement of

 

educationally disadvantaged children as defined by the department

 

who will be at least 4, but less than 5 years of age, as of

 

December 1 of the school year in which the programs are offered,

 

and who show evidence of 2 or more risk factors as defined in the

 

state board report entitled "children at risk" that was adopted by

 

the state board on April 5, 1988.

 

†††† (b) Provide preschool and parenting education programs similar

 

to those under former section 32b as in effect for 2001-2002.

 

Beginning in 2007-2008, funds spent by a district for programs

 

described in this subdivision shall not exceed the lesser of the

 

amount spent by the district under this subdivision for 2006-2007

 

or the amount spent under this subdivision in any subsequent fiscal

 

year.

 

†††† (2) A comprehensive free compensatory program funded under

 

this section 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

 

and developmental screening as described in the early childhood

 

standards of quality for prekindergarten 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 appropriated under section 11, there is

 

allocated an amount not to exceed $279,100.00 for 2007-2008 2008-

 

2009 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in the Michigan school great

 

start readiness program.

 

†††† (4) A district receiving a grant under this section may

 

contract with for-profit or nonprofit preschool center providers

 

that meet all provisions of the early childhood standards of

 

quality for prekindergarten children adopted by the state board 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 district 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 districts 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. 32g. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $2,000,000.00 for 2008-2009

 

for grants to eligible districts that provide a great start

 

readiness program that receives funding under section 32d to

 

implement new foreign language immersion programs as part of the

 

great start readiness program curricula.

 

†††† (2) The department shall award grants to districts on a first-

 

come, first-served basis to districts that provide a great start

 

readiness program that receives funding under section 32d, that

 

apply to the department in the form and manner prescribed by the

 

department, and that the department determines are able to operate

 

a new foreign language immersion program in 2008-2009.

 

†††† (3) The amount distributed to each district under this section

 

shall be an amount equal to the number of children the district

 

serves under section 32d for 2008-2009 multiplied by $500.00.

 

†††† (4) Notwithstanding section 17b, payments to eligible

 

districts under this section shall be paid on a schedule determined

 

by the department.


 

†††† Sec. 32h. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,500,000.00 for 2008-2009 for

 

great start innovation grants to intermediate districts for the

 

purpose of identifying evidence-based practices that provide

 

children from birth to age 5 with quality early learning

 

experiences that promote school readiness.

 

†††† (2) The early childhood investment corporation shall award

 

grants under this section to eligible intermediate districts in an

 

amount to be determined by the early childhood investment

 

corporation.

 

†††† (3) In order to receive funding, an intermediate district

 

applicant must demonstrate it is a member of an established local

 

great start collaborative and that the funds will be used in

 

support of the community's great start strategic plan.

 

†††† (4) Great start innovation grants under this section shall be

 

used to develop model programs that can be implemented statewide

 

for 1 or more of the following purposes:

 

†††† (a) To provide professional development for child care

 

providers that identify early learning opportunities for children

 

at risk of not being prepared to succeed in school.

 

†††† (b) To create a child care quality rating improvement system

 

that identifies quality early learning environments and makes that

 

information available to parents.

 

†††† (c) To expand early learning opportunities for at-risk

 

children using creative community-based approaches.

 

†††† (d) To implement an early developmental inventory that

 

assesses a broad range of competencies, including physical health


 

and well-being, social competence, emotional maturity, and language

 

and cognitive development, and uses that inventory tool to target

 

community resources toward improving academic outcomes for at-risk

 

children.

 

†††† (5) Notwithstanding section 17b, payments under this section

 

may be paid on a schedule made pursuant to an agreement with the

 

department.

 

†††† Sec. 32j. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2007-2008 2008-

 

2009 for great parents, great start grants to intermediate

 

districts to provide programs for parents with preschool young

 

children. The purpose of these programs is to encourage early

 

mathematics and reading literacy, improve school readiness, reduce

 

the need for special education services, and foster the maintenance

 

of stable families by encouraging positive parenting skills.

 

†††† (2) To qualify for funding under this section, a program shall

 

provide services to all families with children age 5 or younger

 

residing within the intermediate district who choose to

 

participate, including at least all of the following services:

 

†††† (a) Providing parents with information on child development

 

from birth to age 5.

 

†††† (b) Providing parents with methods to enhance parent-child

 

interaction that promote social and emotional development for

 

infants and toddlers and age-appropriate language, mathematics, and

 

early reading skills for young children; 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 young children, 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.

 

†††† (3) To receive a grant under this section, an intermediate

 

district shall submit a plan to the department not later than

 

October 1, 2007 15, 2008 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 targets resources based on family

 

need and 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 and, where there is a great start collaborative,

 

demonstrate that the planned services are part of the community's

 

great start strategic plan.

 

†††† (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, 2007 2008. The amount allocated to each

 

intermediate district shall be at least an amount equal to 100% of

 

the intermediate district's 2006-2007 2007-2008 payment under this

 

section.

 

†††† (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 into the next fiscal year and may expend those unused funds

 

in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

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

 

section 11, there is allocated for 2007-2008 2008-2009 an amount

 

not to exceed $12,650,000.00 $15,081,000.00 for competitive school

 

great start readiness program grants for the purposes of preparing

 

children for success in school, including through comprehensive

 

part-day or full-day programs that include language, early

 

literacy, and early mathematics, nutritional services, and health

 

and developmental screening, as described in the early childhood

 

standards of quality for prekindergarten for participating

 

children; a plan for parent and legal guardian involvement; and

 

provision of referral services for families eligible for community

 

social services. 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 local grantee for the federal head start


 

program operating under the head start act, 42 USC 9831 to 9852.

 

†††† (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 (CDA), or the

 

equivalent from another state, or a bachelor's degree in child

 

development with a specialization in preschool teaching. However,

 

both of the following apply to this subparagraph:

 

†††† (A) If an applicant demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, the superintendent may still give

 

priority to the applicant if the applicant will employ teachers who

 

have significant but incomplete training in early childhood

 

education or child development if the applicant provides to the


 

department, and the department approves, a plan for each teacher to

 

come into compliance with the standards in this subparagraph. A

 

teacher's compliance plan must be completed within 4 years of the

 

date of employment. Progress toward completion of the compliance

 

plan shall consist of at least 2 courses per calendar year.

 

†††† (B) For a subcontracted program, the department shall consider

 

a teacher with 90 credit hours and at least 4 years' teaching

 

experience in a qualified preschool program to meet the

 

requirements under this subparagraph.

 

†††† (iv) 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. If an applicant

 

demonstrates to the department that it is unable to fully comply

 

with this subparagraph, after making reasonable efforts to comply,

 

the superintendent of public instruction may still give priority to

 

an applicant if the applicant will employ paraprofessionals who

 

have completed at least 1 course in early childhood education or

 

child development if the applicant provides to the department, and

 

the department approves, a plan for each paraprofessional to come

 

into compliance with the standards in this subparagraph. A

 

paraprofessional's compliance plan must be completed within 2 years

 

of the date of employment. Progress toward completion of the

 

compliance plan shall consist of at least 2 courses or 60 clock

 

hours of training per calendar year.

 

†††† (v) Evidence of collaboration with the community of child


 

development programs, including, but not limited to, Michigan

 

school great start readiness and head start providers, including

 

documentation of the total number of children in the community who

 

would meet the criteria established in subparagraph (vii), 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.

 

†††† (vi) The extent to which these funds will supplement other

 

federal, state, local, or private funds.

 

†††† (vii) 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" risk factors as defined in the

 

state board report entitled "children at risk" that was adopted by

 

the state board on April 5, 1988.

 

†††† (viii) The program offers or contracts with another nonprofit

 

early childhood program to provide supplementary day care and

 

thereby offers full-day programs as part of its early childhood

 

development program.

 

†††† (ix) 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 great start 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.

 

†††† (vii) Review the agency's participation in a collaborative

 

recruitment and enrollment process with, at a minimum, all other

 

funded preschool programs that may serve children in the same

 

geographic area, including school district part-day programs

 

described under section 32d and head start programs, to assure that


 

each child is enrolled in the program most appropriate to his or

 

her needs and to maximize the use of federal, state, and local

 

funds. The collaborative recruitment and enrollment process should

 

be established to reflect the geographic service areas of the

 

collaborative partners. An effective process includes opportunities

 

for families to meet with and learn about each program for which

 

their child is eligible. A child who is income-eligible for head

 

start must be referred to head start. If, after referral to head

 

start, a family chooses to enroll a head-start-eligible child in

 

the great start readiness program, a waiver indicating that the

 

family has been informed of the child's eligibility to attend head

 

start must be completed by the family in a form and manner

 

determined by the department and submitted to the great start

 

readiness program before the child may be enrolled in the great

 

start readiness program. The great start readiness program shall

 

retain the waiver in the child's enrollment file.

 

†††† (2) To be eligible for a grant under this section, the agency

 

must demonstrate participation in a collaborative recruitment and

 

enrollment process with all other funded preschool programs serving

 

children in the same geographic area to assure that each child is

 

enrolled in the program most appropriate to his or her needs.

 

†††† (3) (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% 300% of the federal

 

poverty level.

 

†††† (4) (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 $3,400.00 $3,500.00 per participating child or the cost of

 

the program, whichever is less.

 

†††† (5) (4) For a grant recipient that enrolls pupils in a full-

 

day program funded under this section, each child enrolled in the

 

full-day program shall be counted as 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

full-day program. As used in this subsection, "full-day program"

 

means a program that operates for at least the same length of day

 

as a district's first grade program for a minimum of 4 days per

 

week, 30 weeks per year. A classroom that offers a full-day program

 

must enroll all children for the full day to be considered a full-

 

day program.

 

†††† (6) (5) Except as otherwise provided in this subsection, an

 

applicant that received a new grant under this section for 2006-

 

2007 2007-2008 shall also receive priority for funding under this

 

section for 2007-2008 and 2008-2009 and 2009-2010. 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.

 

†††† (7) (6) 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. 37. (1) A district is eligible for an allocation under

 

section 32d if the district meets all of the requirements in

 

subsections (2), (3), and (4).

 

†††† (2) The district shall submit a preapplication, in a manner

 

and on forms prescribed by the department, by a date specified by

 

the department in the immediately preceding state fiscal year. The

 

preapplication shall include a comprehensive needs assessment and

 

community collaboration plan that includes, but is not limited to,

 

Michigan school great start readiness program and head start

 

providers, and shall identify all of the following:

 

†††† (a) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

†††† (b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

†††† (c) The number of children the district will be able to serve

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 

†††† (d) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the district and


 

community early childhood programs have met their funded

 

enrollments. The school district shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

†††† (3) The district shall submit a final application for

 

approval, in a manner and on forms prescribed by the department, by

 

a date specified by the department. The final application shall

 

indicate all of the following that apply:

 

†††† (a) The district complies with the state board approved early

 

childhood standards of quality for prekindergarten.

 

†††† (b) The district provides for the active and continuous

 

participation of parents or guardians of the children in the

 

program, and describes the district's participation plan as part of

 

the application.

 

†††† (c) The district only employs for this program the following:

 

†††† (i) Teachers possessing proper training. For programs the

 

district manages itself, a valid teaching certificate and an early

 

childhood (ZA) endorsement are required. This provision does not

 

apply to a district that subcontracts with an eligible child

 

development program. In that situation a teacher must have a valid

 

Michigan teaching certificate with an early childhood (ZA)

 

endorsement, a valid Michigan teaching certificate with a child

 

development associate credential, or a bachelorís degree in child

 

development with specialization in preschool teaching. However,

 

both of the following apply to this subparagraph:

 

†††† (A) If a district demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making


 

reasonable efforts to comply, teachers who have significant but

 

incomplete training in early childhood education or child

 

development may be employed by the district if the district

 

provides to the department, and the department approves, a plan for

 

each teacher to come into compliance with the standards in this

 

subparagraph. A teacher's compliance plan must be completed within

 

4 years of the date of employment. Progress toward completion of

 

the compliance plan shall consist of at least 2 courses per

 

calendar year.

 

†††† (B) For a subcontracted program, the department shall consider

 

a teacher with 90 credit hours and at least 4 years' teaching

 

experience in a qualified preschool program to meet the

 

requirements under this subparagraph.

 

†††† (ii) Paraprofessionals possessing proper training in early

 

childhood development, including an associateís 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. However, if a district demonstrates to

 

the department that it is unable to fully comply with this

 

subparagraph after making reasonable efforts to comply, the

 

district may employ paraprofessionals who have completed at least 1

 

course in early childhood education or child development if the

 

district provides to the department, and the department approves, a

 

plan for each paraprofessional to come into compliance with the

 

standards in this subparagraph. A paraprofessional's compliance

 

plan must be completed within 2 years of the date of employment.

 

Progress toward completion of the compliance plan shall consist of


 

at least 2 courses or 60 clock hours of training per calendar year.

 

†††† (d) The district has submitted for approval a program budget

 

that includes only those costs not reimbursed or reimbursable by

 

federal funding, that are clearly and directly attributable to the

 

early childhood great start readiness program, and that would not

 

be incurred if the program were not being offered. If children

 

other than those determined to be educationally disadvantaged

 

participate in the program, state reimbursement under section 32d

 

shall be limited to the portion of approved costs attributable to

 

educationally disadvantaged children.

 

†††† (e) The district has established a, or has joined a

 

multidistrict, multiagency, school readiness advisory committee

 

consisting of, at a minimum, classroom teachers for

 

prekindergarten, kindergarten, and first grade; parents or

 

guardians of program participants; representatives from appropriate

 

community agencies and organizations; the district curriculum

 

director or equivalent administrator; and, if feasible, a school

 

psychologist, school social worker, or school counselor. In

 

addition, there shall be on the committee at least 1 parent or

 

guardian of a program participant for every 18 children enrolled in

 

the program, with a minimum of 2 parent or guardian

 

representatives. The committee shall do all of the following:

 

†††† (i) Ensure the ongoing articulation of the early childhood,

 

kindergarten, and first grade programs offered by the district or

 

districts.

 

†††† (ii) Review the mechanisms and criteria used to determine

 

participation in the early childhood program.


 

†††† (iii) Review the health screening program for all participants.

 

†††† (iv) Review the nutritional services provided to program

 

participants.

 

†††† (v) Review the mechanisms in place for the referral of

 

families to community social service agencies, as appropriate.

 

†††† (vi) Review the collaboration with and the involvement of

 

appropriate community, volunteer, and social service agencies and

 

organizations in addressing all aspects of educational

 

disadvantage. The district must participate in a collaborative

 

recruitment and enrollment process with, at a minimum, all other

 

funded preschool programs that may serve children in the same

 

geographic area, including the competitive programs described under

 

section 32l and head start programs, to assure that each child is

 

enrolled in the program most appropriate to his or her needs and to

 

maximize the use of federal, state, and local funds. The

 

collaborative recruitment and enrollment process should be

 

established to reflect the geographic service areas of the

 

collaborative partners. An effective process includes opportunities

 

for families to meet with and learn about each program for which

 

their child is eligible. A child who is income-eligible for head

 

start must be referred to head start. If, after referral to head

 

start, a family chooses to enroll a head-start-eligible child in

 

the great start readiness program, a waiver indicating that the

 

family has been informed of the child's eligibility to attend head

 

start must be completed by the family in a form and manner

 

determined by the department and submitted to the great start

 

readiness program before the child may be enrolled in the great


 

start readiness program. The great start readiness program shall

 

retain the waiver in the child's enrollment file.

 

†††† (vii) Review, evaluate, and make recommendations to a local

 

school readiness program or programs for changes to the school

 

great start readiness program.

 

†††† (f) The district has submitted for departmental approval a

 

plan to conduct and report annual school great start 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.

 

†††† (g) More than 50% of the children participating in the program

 

live with families with a household income that is equal to or less

 

than 250% 300% of the federal poverty level.

 

†††† (h) The district must demonstrate participation in a

 

collaborative recruitment and enrollment process with all other

 

funded preschool programs serving children in the same geographic

 

area to assure that each child is enrolled in the program most

 

appropriate to his or her needs.

 

†††† (4) A consortium of 2 or more districts shall be eligible for

 

an allocation under section 32d if the districts designate a single

 

fiscal agent for the allocation. A district or intermediate

 

district may administer a consortium described in this subsection.

 

A consortium shall submit a single preapplication and application

 

for the children to be served, regardless of the number of

 

districts participating in the consortium. The consortium may


 

decide, with approval of all consortium members, to serve numbers

 

of children based on the allocation to each district or based on

 

the allocation to the entire consortium, allowing children residing

 

in any district in the consortium to be served by the consortium at

 

any location.

 

†††† (5) If an intermediate district administers and acts as the

 

fiscal agent for a consortium described in subsection (4)

 

consisting of all of its constituent districts, the intermediate

 

district is eligible for additional funding from the funds

 

allocated under section 32d in an amount equal to 5% of the total

 

allocation for which the consortium is otherwise eligible under

 

section 32d. An intermediate district may use funds received under

 

this subsection for program administration and professional

 

development. An intermediate district that receives funds under

 

this subsection shall hire an early childhood specialist whose

 

responsibilities shall include, but not be limited to, the

 

following:

 

†††† (a) To provide supervision and monitoring of the program.

 

†††† (b) To provide training and professional development for

 

program staff.

 

†††† (c) To increase local collaboration.

 

†††† (d) To increase access to high-quality programs for at-risk

 

children.

 

†††† (e) To evaluate child outcomes measured by approved child

 

assessment tools.

 

†††† (f) To work with the department to ensure that great start

 

readiness programs meet the early childhood standards of quality


 

for prekindergarten.

 

†††† (6) (5) With the final application, an applicant district

 

shall submit to the department a resolution adopted by its board

 

certifying the number of 4-year-old children who show evidence of

 

risk factors as described in section 32d who live with families

 

with a household income that is less than or equal to 250% 300% of

 

the federal poverty level.

 

†††† Sec. 38. The maximum number of prekindergarten children

 

construed to be in need of special readiness assistance under

 

section 32d shall be calculated for each district in the following

 

manner: one-half of the percentage of the district's pupils in

 

grades 1-5 who are eligible for free lunch, as determined by the

 

district's October count in the school year 2 years before the

 

fiscal year for which the calculation is made under the Richard B.

 

Russell national school lunch act, chapter 281, 60 Stat. 230, 42

 

U.S.C. USC 1751 to 1753, 1755 to 1761, 1762a, 1765 to 1766a, 1769,

 

1769b to 1769c, and 1769f to 1769h, as reported to the department

 

not later than December 31 of the fiscal year 2 years before the

 

fiscal year for which the calculation is made, shall be multiplied

 

by the average kindergarten enrollment of the district on the pupil

 

membership count day of the 2 immediately preceding years.

 

†††† Sec. 39. (1) The tentative Beginning in 2008-2009, the initial

 

allocation for each fiscal year to each eligible district under

 

section 32d shall be determined by multiplying the number of

 

children determined in section 38 or the number of children the

 

district indicates it will be able to serve under section 37(2)(c),

 

whichever is less, by $3,400.00 $3,500.00 and shall be distributed


 

among districts in decreasing order of concentration of eligible

 

children as determined by section 38. until the money allocated in

 

section 32d is distributed. If the number of children a district

 

indicates it will be able to serve under section 37(2)(c) includes

 

children able to be served in a full-day program, then the number

 

able to be served in a full-day program shall be doubled for the

 

purposes of making this calculation of the lesser of the number of

 

children determined in section 38 and the number of children the

 

district indicates it will be able to serve under section 37(2)(c)

 

and determining the amount of the tentative initial allocation to

 

the district under section 32d. A district may contract with a head

 

start agency to serve children enrolled in head start with a full-

 

day program by blending head start funds with a part-day great

 

start readiness program allocation. All head start and great start

 

readiness program policies and regulations apply to the blended

 

program.

 

†††† (2) If funds appropriated in section 32d remain after the

 

initial allocation under subsection (1), the allocation under this

 

subsection shall be distributed to each eligible district under

 

section 32d in decreasing order of concentration of eligible

 

children as determined by section 38. The allocation shall be

 

determined by multiplying the number of children each eligible

 

district served in the immediately preceding fiscal year or the

 

number of children the district indicates it will be able to serve

 

under section 37(2)(c), whichever is less, minus the number of

 

children for which the district received funding in subsection (1)

 

by $3,500.00.


 

†††† (3) If funds appropriated in section 32d remain after the

 

allocations under subsections (1) and (2), remaining funds shall be

 

distributed to each eligible district under section 32d in

 

decreasing order of concentration of eligible children as

 

determined by section 38. If the number of children the district

 

indicates it will be able to serve under section 37(2)(c) exceeds

 

the number of children for which funds have been received under

 

subsections (1) and (2), the allocation under this subsection shall

 

be determined by multiplying the number of children the district

 

indicates it will be able to serve under section 37(2)(c) less the

 

number of children for which funds have been received under

 

subsections (1) and (2) by $3,500.00 until the funds allocated in

 

section 32d are distributed.

 

†††† (4) If a district is participating in a program under section

 

32d for the first year, the maximum allocation under this section

 

is 32 multiplied by $3,500.00.

 

†††† (5) (2) A district that received funds under this section in

 

at least 1 of the 2 immediately preceding fiscal years shall

 

receive priority in funding over other eligible districts. However,

 

funding beyond 3 state fiscal years is contingent upon the

 

availability of funds and documented evidence satisfactory to the

 

department of compliance with all operational, fiscal,

 

administrative, and other program requirements.

 

†††† (6) (3) A district that offers supplementary day care funded

 

by funds other than those received under this section and therefore

 

offers full-day programs as part of its early childhood development

 

program shall receive priority in the allocation of funds under


 

this section over other eligible districts other than those

 

districts funded under subsection (2) (5).

 

†††† (7) (4) For any district with 315 or more eligible pupils, the

 

number of eligible pupils shall be 65% of the number calculated

 

under section 38. However, none of these districts may have less

 

than 315 pupils for purposes of calculating the tentative

 

allocation under section 32d.

 

†††† (8) (5) If, taking into account the total amount to be

 

allocated to the district as calculated under this section, a

 

district determines that it is able to include additional eligible

 

children in the school great start readiness program without

 

additional funds under this section, the district may include

 

additional eligible children but shall not receive additional

 

funding under this section for those children.

 

†††† (9) (6) For a district that enrolls pupils in a full-day

 

program under section 32d, each child enrolled in the full-day

 

program shall be counted as 2 children served by the program for

 

purposes of determining the number of children to be served and for

 

determining the allocation under section 32d. A districtís

 

allocation shall not be increased solely on the basis of providing

 

a full-day program.

 

†††† (10) (7) As used in this section, "part-day program" means a

 

program that operates at least 4 days per week, 30 weeks per year,

 

with at least 300 hours of teacher-child contact, and "full-day

 

program" means a program that operates for at least the same length

 

of day as the district's first grade program for a minimum of 4

 

days per week, 30 weeks per year. A classroom that offers a full-


 

day program must enroll all children for the full day to be

 

considered a full-day program.

 

†††† Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2007-2008 2008-2009 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $669,660,100.00 $752,987,500.00, 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 $9,625,800.00 $8,033,600.00 to

 

provide students with drug- and violence-prevention programs and to

 

implement strategies to improve school safety, funded from DED-

 

OESE, drug-free schools and communities funds.

 

†††† (b) An amount estimated at $6,405,500.00 $7,461,800.00 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 $109,411,900.00 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 $9,854,300.00 $10,322,300.00 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 $676,000.00 $898,300.00 for rural

 

and low income schools, funded from DED-OESE, rural and low income

 

school funds.

 

†††† (g) An amount estimated at $3,115,900.00 $1,000.00 to help

 

schools develop and implement comprehensive school reform programs,

 

funded from DED-OESE, title I and title X, comprehensive school

 

reform funds.

 

†††† (h) An amount estimated at $456,971,500.00 $517,479,800.00 to

 

provide supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

†††† (i) An amount estimated at $2,531,700.00 $2,152,700.00 for the

 

purpose of providing unified family literacy programs, funded from

 

DED-OESE, title I, even start funds.

 

†††† (j) An amount estimated at $8,186,200.00 $7,797,700.00 for the

 

purpose of identifying and serving migrant children, funded from

 

DED-OESE, title I, migrant education funds.

 

†††† (k) An amount estimated at $24,733,200.00 to promote high-

 

quality school reading instruction for grades K-3, funded from DED-

 

OESE, title I, reading first state grant funds.

 

†††† (l) An amount estimated at $2,849,000.00 for the purpose of

 

implementing innovative strategies for improving student

 

achievement, funded from DED-OESE, title VI, innovative strategies

 

funds.

 

†††† (m) An amount estimated at $29,911,800.00 $35,710,100.00 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, $50,000.00 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.

 

†††† (n) An amount estimated at $17,586,100.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

†††† (2) From the federal funds appropriated in section 11, there

 

is allocated for 2007-2008 2008-2009 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $32,411,000.00 $32,559,700.00, 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 $1,665,400.00 $1,814,100.00 to

 

provide services to homeless children and youth, funded from DED-

 

OVAE, homeless children and youth funds.

 

†††† (c) An amount estimated at $200,000.00 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 $28,500,000.00 for providing career

 

and technical education services to pupi