May 29, 2007, Introduced by Reps. Hoogendyk, Agema, Knollenberg, Sheen, Robertson, Stahl, Ward, Elsenheimer, Meekhof, Stakoe, Huizenga, Steil, Acciavatti, Pavlov, Brandenburg, Rick Jones, Pastor, Schuitmaker and Opsommer and referred to the Committee on Education.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
by amending sections 1215 and 1227 (MCL 380.1215 and 380.1227),
section 1215 as amended by 2002 PA 63 and section 1227 as amended
by 2002 PA 66, and by adding section 1227a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1215. (1) Operating taxes shall be accounted for The
board of a school district shall establish an account for general
operating revenue received under the state school aid act of 1979
and revenue from operating taxes under the title of "general fund".
The
Subject to section 1227a, the
state board may establish other
fund designations to clarify further the expenditure
classifications
for which general fund moneys money
may be used.
(2) Library money shall be accounted for under the title of
"library fund".
(3) Building and site money shall be accounted for under the
title of "building and site fund".
(4) Taxes collected for retiring bonded indebtedness shall be
accounted for as required by the revised municipal finance act,
2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 1227. (1) The board of a school district shall prepare
annual estimates of the amount of taxes necessary for the school
district's needs for the ensuing fiscal year. The estimates shall
specify the amount required for the "general fund", the amount
required for the "capital projects fund", and the amount required
for the "debt retirement fund", in accordance with the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, and
outstanding bonding resolutions.
(2) The school board may include in the "capital projects
fund" an amount not exceeding in 1 year .01% of the school
district's taxable value to establish and maintain a school
district insurance reserve fund from which school buildings or
other school property damaged or destroyed by fire, lightning, or
otherwise may be repaired, rebuilt, or replaced by other buildings
or property to be used in its place. Taxes shall not be levied for
this purpose while the insurance reserve fund exceeds or equals .1%
of the school district's taxable value. The board shall carry the
insurance reserves forward as an encumbered reserve and may add to
the reserve in the manner prescribed in this section. Insurance
reserve funds may be invested in the manner provided in section
1223. Income from the investment shall be considered a part of the
"general fund". If an emergency is declared by a 2/3 vote of the
members elected to and serving on the board, the insurance reserve
funds may be borrowed for the emergency, but the funds shall be
returned to the insurance reserve fund from the collection of taxes
in the next ensuing fiscal year.
(3)
The Subject to section
1227a, the school board shall adopt
a budget in the same manner and form as required for its estimates
and, subject to limitations under law, determine the amount of tax
levy necessary for the budget. The board shall certify the amount
to the city and township before the date required by law.
(4) The proper officials of the city and township shall
apportion the school taxes in the school district in the same
manner as the other taxes of the city or township are apportioned.
Except as otherwise provided under part 26, the amount apportioned
shall be assessed, levied, collected, and returned for each portion
of the school district in the same manner as taxes of the city or
township in which the portion of the school district is located.
Sec. 1227a. (1) Except as otherwise provided in this section,
beginning in the 2007-2008 school fiscal year, the board of a
school district shall ensure that at least 65% of its general
operating budget for the school fiscal year is expended for
instruction.
(2) If a school district is not in compliance with subsection
(1), the board of the school district shall ensure that the
percentage of the school district's general operating budget
expended on instruction is increased by at least 2 percentage
points each school fiscal year until the school district is in
compliance with subsection (1).
(3) To ensure compliance with this section, not later than
June 1 of each year, the board of a school district shall submit
its proposed budget to the superintendent of public instruction,
along with documentation verifying compliance with subsection (1)
or (2).
(4) If the board of a school district determines that the
school district cannot comply with subsection (1) or (2) for a
school fiscal year, the board may request the governor to grant a
waiver from these requirements. To obtain a waiver, the board shall
submit to the superintendent of public instruction a written
request for a waiver from these requirements. A request for waiver
under this subsection shall be submitted to the superintendent of
public instruction not later than June 1 before the beginning of
the school fiscal year and shall be accompanied by a written action
plan detailing the steps the school district will take toward
achieving compliance with subsection (1) or (2). The superintendent
of public instruction promptly shall evaluate the request and the
action plan and make a recommendation to the governor. The
superintendent of public instruction may recommend that the
governor grant a waiver under this subsection if the superintendent
of public instruction is satisfied from the school district's
action plan that the school district is likely to make satisfactory
progress toward compliance with subsection (1) or (2). The governor
shall make the final decision whether to grant or deny the waiver.
The governor shall take action to grant or deny a waiver within 30
days after receipt of a waiver request meeting the requirements of
this subsection. A waiver granted under this subsection is valid
for 1 year and may be renewed upon submission of a new request for
waiver that meets the requirements of this subsection.
(5) As used in this section, "instruction" means that term as
defined by the national center for education statistics, and
includes an activity dealing directly with interaction between
pupils and teachers or other classroom and instructional personnel,
tutors, books, computers, general instruction supplies,
instructional aides, and learning support staff such as librarians,
and also includes school activities such as field trips, athletics,
arts, and multidisciplinary learning.