SECOND CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

House Bill No. 4447, entitled

A bill to amend 1979 PA 94, entitled "The state school aid act of 1979," by amending sections 3, 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 11n, 15, 18, 20, 20d, 20j, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b, 29, 31a, 31d, 31f, 32b, 32c, 32d, 32j, 32l, 32n, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54a, 54c, 56, 57, 61a, 62, 64, 65, 74, 81, 94a, 98, 99, 99a, 99n, 99p, 101, 104, 107, 147, and 164c (MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1611n, 388.1615, 388.1618, 388.1620, 388.1620d, 388.1620j, 388.1622a, 388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1629, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632c, 388.1632d, 388.1632j, 388.1632l, 388.1632n, 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, 388.1699a, 388.1699n, 388.1699p, 388.1701, 388.1704, 388.1707, 388.1747, and 388.1764c), sections 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 20d, 22a, 22b, 22d, 24, 24a, 24c, 26a, 26b, 29, 31a, 31d, 31f, 32c, 32d, 32j, 32l, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54a, 54c, 56, 57, 61a, 62, 64, 65, 74, 81, 94a, 98, 99, 99p, 104, 107, 147, and 164c as amended and sections 11n, 22e, and 99a as added by 2008 PA 268, section 8b as amended by 2007 PA 92, sections 20, 20j, and 32b as amended by 2008 PA 561, section 32n as added by 2007 PA 137, section 99n as added by 2008 PA 112, and section 101 as amended by 2006 PA 342, and by adding sections 22f, 32a, and 98a; and to repeal acts and parts of acts.

Recommends:

First: That the Senate recede from the Substitute of the Senate as passed by the Senate.

Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

(attached)

Third: That the Senate and House agree to the title of the bill to read as follows:

A bill to amend 1979 PA 94, entitled "An act to make appropriations to aid in the support of the public schools and the

intermediate school districts of the state; to make appropriations for certain other purposes relating to education; to provide for the disbursement of the appropriations; to supplement the school aid fund by the levy and collection of certain taxes; to authorize the issuance of certain bonds and provide for the security of those bonds; to prescribe the powers and duties of certain state departments, the state board of education, and certain other boards and officials; to create certain funds and provide for their expenditure; to prescribe penalties; and to repeal acts and parts of acts," by amending sections 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 19, 20, 20d, 20j, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b, 29, 31a, 31d, 31f, 32b, 32c, 32d, 32j, 32l, 32n, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 57, 61a, 62, 64, 65, 74, 81, 94a, 98, 99, 99i, 99p, 101, 104, 107, 147, and 164c (MCL 388.1603, 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620j, 388.1622a, 388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1629, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632c, 388.1632d, 388.1632j, 388.1632l, 388.1632n, 388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662, 388.1664, 388.1665, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1699i, 388.1699p, 388.1701, 388.1704, 388.1707, 388.1747, and 388.1764c), sections 3, 11a, 11g, 11k, 11m, 15, 18, 19, 20d, 22d, 24, 24a, 24c, 26b, 29, 31d, 31f, 32c, 32d, 32j, 32l, 39, 39a, 41, 51d, 54, 56, 57, 61a, 62, 64, 65, 74, 81, 98, 99, 99i, 99p, 104, 107, 147, and 164c as amended and section 22e as added by 2008 PA 268, sections 6, 11, 11j, 20, 22a, 22b, 26a, 31a, 51a, 51c, 53a, and 94a as amended by 2009 PA 73, sections 20j and 32b as amended by 2008 PA 561, section 32n as added by 2007 PA 137, and section 101 as amended by 2006 PA 342, and by adding section 11d; and to repeal acts and parts of acts.

_______________________ ________________________

Terry Brown Ron Jelinek

_______________________ ________________________

George Cushingberry, Jr. Cameron Brown

_______________________ ________________________

Chuck Moss Michael Switalski

Conferees for the House Conferees for the Senate

SUBSTITUTE FOR

HOUSE BILL NO. 4447

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 3, 6, 11, 11a, 11g, 11j, 11k, 11m, 15, 18, 19,

20, 20d, 20j, 22a, 22b, 22d, 22e, 24, 24a, 24c, 26a, 26b, 29, 31a,

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

53a, 54, 56, 57, 61a, 62, 64, 65, 74, 81, 94a, 98, 99, 99i, 99p,

101, 104, 107, 147, and 164c (MCL 388.1603, 388.1606, 388.1611,

388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615,

388.1618, 388.1619, 388.1620, 388.1620d, 388.1620j, 388.1622a,

388.1622b, 388.1622d, 388.1622e, 388.1624, 388.1624a, 388.1624c,

388.1626a, 388.1626b, 388.1629, 388.1631a, 388.1631d, 388.1631f,

388.1632b, 388.1632c, 388.1632d, 388.1632j, 388.1632l, 388.1632n,

388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d,

388.1653a, 388.1654, 388.1656, 388.1657, 388.1661a, 388.1662,

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

388.1699, 388.1699i, 388.1699p, 388.1701, 388.1704, 388.1707,

388.1747, and 388.1764c), sections 3, 11a, 11g, 11k, 11m, 15, 18,

19, 20d, 22d, 24, 24a, 24c, 26b, 29, 31d, 31f, 32c, 32d, 32j, 32l,

39, 39a, 41, 51d, 54, 56, 57, 61a, 62, 64, 65, 74, 81, 98, 99, 99i,

99p, 104, 107, 147, and 164c as amended and section 22e as added by

2008 PA 268, sections 6, 11, 11j, 20, 22a, 22b, 26a, 31a, 51a, 51c,

53a, and 94a as amended by 2009 PA 73, sections 20j and 32b as

amended by 2008 PA 561, section 32n as added by 2007 PA 137, and

section 101 as amended by 2006 PA 342, and by adding section 11d;

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 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. 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.

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 energy, 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) Except as otherwise provided in this subdivision, 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.

(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) ~~For 2007-2008 only, a~~ 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~~ is educating the pupil.

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

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

with its authorizing body is revoked or the public school academy

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

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

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

count day to include the pupil in the count.

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

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

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

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

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

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

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

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

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

as otherwise calculated under this subsection, would be less than

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

mile, as determined by the department, and, beginning in 2007-2008,

if the district does not receive funding under section 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.

(cc) 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.

(dd) A district that educates a pupil who attends a United

States Olympic education center may count the pupil in membership

regardless of whether or not the pupil is a resident of this state.

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

urban high school academy, or strict discipline academy operating

under the revised school code.

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

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

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

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

following:

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

accordance with section 166b.

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

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

school.

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

district of residence under an intermediate district schools of

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

91 if the intermediate district and its constituent districts have

been exempted from section 105.

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

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

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

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

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

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

the official complaint either indicates that the assault occurred

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

pupils enrolled in the school the pupil would otherwise attend in

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

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

crime to law enforcement officials for the purposes of this

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

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

that conduct. As used in this subdivision:

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

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

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

school premises.

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

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

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

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

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

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

pupil membership count day and before the supplemental count day

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

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

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

(h) A pupil enrolled in an alternative education program

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

who meets 1 or more of the following:

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

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

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

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

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

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

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

(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 first class district~~

educates pupils who reside in ~~a first class~~ another district and if

the primary instructional site for those pupils is established by

the educating district after 2009-2010 and is located within the

boundaries of ~~the first class~~ that other district, the educating

district must have the approval of ~~the first class~~ that other

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", except in subsection

(6), mean a district that had at least 60,000 pupils in membership

for the immediately preceding fiscal year.

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

July 1 and continues through June 30.

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

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

supplemental pupil count is conducted under section 6a.

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

established in section 11 of article IX of the state constitution

of 1963.

(18) "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) "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) "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) "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, ~~2009~~

2010, there is appropriated for the public schools of this state

and certain other state purposes relating to education the sum of

~~$11,019,798,200.00~~ $10,793,954,100.00 from the state school aid

fund established by section 11 of article IX of the state

constitution of 1963 and the sum of ~~$78,000,000.00~~ $31,800,000.00

from the general fund. For the fiscal year ending September 30,

~~2009~~ 2010, there is also appropriated the sum of ~~$600,000,000.00~~

$450,000,000.00 from the federal funding awarded to this state

under title XIV of the American recovery and reinvestment act of

2009, Public Law 111-5, to be used solely for the purpose of

funding the primary funding formula calculated under section 20, in

accordance with federal law. In addition, other available federal

funds are appropriated for the fiscal year ending September 30,

~~2009~~ 2010.

(2) The appropriations under this section shall be allocated

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

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

before the expenditure of money appropriated under this section

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

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

exceeds the amount necessary to fully fund allocations under this

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

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

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

stabilization fund created in section 11a.

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

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

a fiscal year exceeds the amount available for expenditure from the

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

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

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

operations after 1994-95 that qualify for payments under section

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

qualifying districts receive the lesser of an amount equal to the

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

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

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

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

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

proration otherwise provided under this subsection and subsection

(4). If proration is necessary, state payments under each of the

other sections of this act from all state funding sources shall be

prorated in the manner prescribed in subsection (4) as necessary to

reflect the amount available for expenditure from the state school

aid fund for the affected fiscal year. However, if the department

of treasury determines that proration will be required under this

subsection, or if the department of treasury determines that

further proration is required under this subsection after an

initial proration has already been made for a fiscal year, the

department of treasury shall notify the state budget director, and

the state budget director shall notify the legislature at least 30

calendar days or 6 legislative session days, whichever is more,

before the department reduces any payments under this act because

of the proration. During the 30 calendar day or 6 legislative

session day period after that notification by the state budget

director, the department shall not reduce any payments under this

act because of proration under this subsection. The legislature may

prevent proration from occurring by, within the 30 calendar day or

6 legislative session day period after that notification by the

state budget director, enacting legislation appropriating

additional funds from the general fund, countercyclical budget and

economic stabilization fund, state school aid fund balance, or

another source to fund the amount of the projected shortfall.

(4) If proration is necessary under subsection (3), the

department shall calculate the proration in district and

intermediate district payments that is required under subsection

(3) as follows:

(a) The department shall calculate the percentage of total

state school aid allocated under this act for the affected fiscal

year for each of the following:

(i) Districts.

(ii) Intermediate districts.

(iii) Entities other than districts or intermediate districts.

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

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

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

reducing payments to districts. This reduction shall be made by

calculating an equal dollar amount per pupil as necessary to

recover this percentage of the proration amount and reducing each

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

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

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

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

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

districts by reducing payments to intermediate districts. This

reduction shall be made by reducing the payments to each

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

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

basis.

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

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

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

than districts and intermediate districts by reducing payments to

these entities. This reduction shall be made by reducing the

payments to each of these entities, other than payments under

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

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

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

the state fiscal year are transferred to the school aid

stabilization fund created under section 11a.

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

a separate account within the state school aid fund established by

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

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

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

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

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

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

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

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

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

money may be expended.

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

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

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

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

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

general fund.

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

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

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

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

the projected shortfall as determined by the department of

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

stabilization fund. If the money in the school aid stabilization

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

shortfall, the state budget director shall notify the legislature

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

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 11(4).

(7) For ~~2008-2009~~ 2009-2010, 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. 11d. (1) For 2009-2010 only, the department shall deduct

an amount equal to $165.00 per membership pupil from the total

state school aid otherwise allocated under this act to each

district, except for money allocated under sections 11g, 22a, 31d,

51a(12), 51c, and 53a. If a district complies with subsection (2),

a district may choose to apply this reduction to funding the

district receives under any provision of this act, other than

sections 11g, 22a, 31d, 51a(12), 51c, and 53a, even if the

reduction chosen by the district results in a program being reduced

or discontinued. If a district does not comply with subsection (2),

the district shall apply this reduction to available funding under

section 22b first, up to the total amount of the reduction, before

reducing other funding the district receives under this act, other

than sections 11g, 22a, 31d, 51a(12), 51c, and 53a.

(2) Not later than February 1, 2010, a district shall enter

into an agreement with the department to develop a service

consolidation plan to reduce school operating costs that is in

compliance with department guidelines. The department guidelines

may identify, but are not limited to, allowable cost-sharing

arrangements for the provision of business services and

instructional services and the creation of joint operating

agreements between and among districts and intermediate districts.

The department shall establish guidelines for service consolidation

plans under this subsection not later than 60 days after the

effective date of this section.

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

allocated for this section an amount not to exceed ~~$42,000,000.00~~

$39,000,000.00 for the fiscal year ending September 30, ~~2009~~ 2010

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 and any other provision of this act 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.

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 $40,000,000.00 for ~~2008-2009~~

2009-2010 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 ~~2008-2009~~ 2009-2010, 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 ~~2008-2009~~ 2009-2010 an amount not to exceed

$45,000,000.00 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. 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 ~~2008-2009~~ 2009-

2010 for obligations in excess of applicable appropriations an

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

amounts available from overpayments.

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

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

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

compensation of teachers and other employees, tuition,

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

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

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

other school operating expenditures defined in section 7. However,

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

article 2 or intermediate district under article 8 may be

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

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

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

section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

act the apportionment otherwise due upon a violation by the

recipient.

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

its annual operating budget for the following school fiscal year,

or after a board or intermediate board adopts a subsequent revision

to that budget, the district or intermediate district shall make

~~the budget and subsequent budget revisions~~ all of the following

available through a link on its website home page, or a district

may make the information available through a link on its

intermediate district's website home page, in a form and manner

prescribed by the department: .

(a) The annual operating budget and subsequent budget

revisions.

(b) Using data that have already been collected and submitted

to the department, a summary of district or intermediate district

expenditures for the most recent fiscal year for which they are

available, expressed in the following 2 pie charts:

(i) A chart of personnel expenditures, broken into the

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all district expenditures, broken into the

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not limited

to, medical, dental, vision, disability, long-term care, or any

other type of benefits that would constitute health care services,

offered to any bargaining unit or employee in the district.

(iii) The audit report of the audit conducted under subsection

(3) for the most recent fiscal year for which it is available.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district or intermediate district and for each employee of

the district or intermediate district whose salary exceeds

$100,000.00.

(e) The annual amount spent on dues paid to associations.

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(3) For the purpose of determining the reasonableness of

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

department shall require that each district and intermediate

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

financial and pupil accounting records conducted at least annually

at the expense of the district or intermediate district, as

applicable, by a certified public accountant or by the intermediate

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

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

accountant, the intermediate superintendent, or the auditor general

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

shall be accompanied by the intermediate district's pupil

accounting procedures report. A district's or intermediate

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

financial and pupil accounting data used as the basis for

distribution of state school aid. The pupil accounting records and

reports, audits, and management letters are subject to requirements

established in the auditing and accounting manuals approved and

published by the department. Except as otherwise provided in this

subsection, a district shall file the annual financial audit

reports with the intermediate district not later than 120 days

after the end of each school fiscal year and the intermediate

district shall forward the annual financial audit reports for its

constituent districts and for the intermediate district, and the

pupil accounting procedures report for the pupil membership count

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

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

pupil accounting procedures reports shall be available to the

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

442, MCL 15.231 to 15.246. Not later than December 31 of each year,

the department shall notify the state budget director and the

legislative appropriations subcommittees responsible for review of

the school aid budget of districts and intermediate districts that

have not filed an annual financial audit and pupil accounting

procedures report required under this section for the school year

ending in the immediately preceding fiscal year.

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

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with accounting manuals and charts of accounts approved

and published by the department. For an intermediate district, the

report shall also contain the website address where the department

can access the report required under section 620 of the revised

school code, MCL 380.620. The department shall ensure that the

prescribed Michigan public school accounting manual chart of

accounts includes standard conventions to distinguish expenditures

by allowable fund function and object. The functions shall include

at minimum categories for instruction, pupil support, instructional

staff support, general administration, school administration,

business administration, transportation, facilities operation and

maintenance, facilities acquisition, and debt service; and shall

include object classifications of salary, benefits, including

categories for active employee health expenditures, purchased

services, supplies, capital outlay, and other. Districts shall

report the required level of detail consistent with the manual as

part of the comprehensive annual financial report. The department

shall make this information available online to districts and

intermediate districts, and shall include per-pupil amounts spent

on instruction and instructional support service functions, and

indicate how much of those costs were attributable to salaries.

Districts and intermediate districts shall include a link on their

websites to the website where the department posts this

information.

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

intermediate district shall file with the department the special

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

the manner prescribed by the department.

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

district shall file with the center the transportation expenditure

report, known as "SE-4094", on a form and in the manner prescribed

by the center.

(7) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this act. ~~As part of its annual~~

~~review process for 2007, not later than December 31, 2007, the~~

~~department shall revise the pupil auditing manual to establish~~

~~standardized procedures and processes for auditing pupil exit~~

~~statuses and other pupil data used in calculating annual graduation~~

~~and pupil dropout rates.~~

(8) If a district that is a public school academy purchases

property using money received under this act, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

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

with subsection (3), (4), (5), or (6), the department shall

withhold all state school aid due to the district or intermediate

district under this act, beginning with the next payment due to the

district or intermediate district, until the district or

intermediate district complies with subsections (3), (4), (5), and

(6). If the district or intermediate district does not comply with

subsections (3), (4), (5), and (6) by the end of the fiscal year,

the district or intermediate district forfeits the amount withheld.

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

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

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

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

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

the department.

(2) Each district and intermediate district shall provide 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. In addition, a district or intermediate

district shall cooperate with all measures taken by the center to

comply with the provisions of the American recovery and

reinvestment act of 2009, Public Law 111-5, requiring the

establishment of a statewide P-20 longitudinal data system.

(4) Each district shall furnish to the center not later than 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 ~~2008-2009~~ 2009-2010, the basic foundation

allowance is $8,489.00.

(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) ~~Beginning in 2008-2009, for~~ 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 $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]. For 2009-2010, 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 district's foundation allowance for the

immediately preceding state fiscal year. 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.

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.

(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) 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

nonexempt property times the 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 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 nonexempt property times the 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 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. For the purposes of state law, federal funding awarded

to this state under title XIV of the American recovery and

reinvestment act of 2009, Public Law 111-5, that is appropriated

under section 11 and allocated under section 22b, is considered to

be part of the state portion of a district's foundation allowance

and is considered to be part of the total state school aid paid to

a public school academy.

(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) ~~Beginning in 2008-2009, subject~~ Subject to subsection (7)

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, 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 nonexempt property times the

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 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, qualified agricultural property, qualified

forest property, industrial personal property, and commercial

personal property under section 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 the

district's certified mills on property that is 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, 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, qualified agricultural property,

qualified forest property, industrial personal property, and

commercial personal property as provided in section 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, qualified agricultural

property, qualified forest property, industrial personal property,

and commercial personal property at the rate authorized for the

district under section 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 the district's certified mills on property

that is nonexempt property, the amount calculated under this

subsection will be reduced by the same percentage as the millage

actually levied compares to the 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 the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

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

membership factor by the revenue adjustment factor. However, for

~~2008-2009~~ 2009-2010, 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

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 lowest foundation allowance 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.

(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) "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.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

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

for which a particular calculation is made.

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

fiscal year immediately preceding the current state fiscal year.

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

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

380.1211.

(g) "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) "Maximum public school academy allocation", except as

otherwise provided in this subdivision, 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 $20.00)

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]. For 2009-2010, maximum public school academy

allocation means $7,580.00.

(i) "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) "Principal residence", "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) "School operating purposes" means the purposes included in

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

18.

(m) "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) "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~~ 2009-2010, 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

~~2008-2009~~ 2009-2010 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 $7,204.00 less

$271.00 minus the dollar amount of the adjustment from the 1998-99

state fiscal year to 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 ~~$6,008,000,000.00~~

$5,882,000,000.00 for ~~2008-2009~~ 2009-2010 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 nonexempt property times the 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 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 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.

for which a particular calculation is made.

(d) "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) "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, qualified agricultural property, qualified forest

property, industrial personal property, and commercial personal

property could be reduced as provided in section 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) "Homestead" means that term as defined in section 1211 of

the revised school code, MCL 380.1211.

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

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

particular calculation is made.

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

principal residence, qualified agricultural property, qualified

forest property, industrial personal property, or commercial

personal property.

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

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

(j) "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) "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) "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) "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, qualified

agricultural property, qualified forest property, industrial

personal property, and commercial personal property may be reduced

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

380.1211, the taxable value of homestead, 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~~ state funds appropriated

in section 11, there is allocated for ~~2008-2009~~ 2009-2010 an amount

not to exceed ~~$3,198,000,000.00~~ $3,323,800,000.00 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) In addition to the funds allocated in subsection (1),

there is allocated an amount estimated at ~~$600,000,000.00~~

$450,000,000.00 from the federal funds awarded to this state under

title XIV of the American recovery and reinvestment act of 2009,

Public Law 111-5. These funds shall be distributed in a form and

manner determined by the department based on an equal dollar amount

per the number of membership pupils used to calculate the ~~May~~

August 20, 2009 state aid payment and shall be expended in a manner

prescribed by federal law.

(3) Subject to subsection (4) 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.

(4) In order to receive an allocation under subsection (1),

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.

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.

(5) 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.

(6) 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.

(7) 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 (3). 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.

(8) 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 (7) 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 (3).

(9) 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.

(10) 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.

(11) 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.

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed $2,025,000.00 is allocated for ~~2008-2009~~ 2009-2010

for additional payments to small, geographically isolated districts

under this section.

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

allocated for ~~2008-2009~~ 2009-2010 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.

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 ~~2008-2009~~ 2009-2010 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 appropriation in section 11 for

additional payments under this section to districts that meet the

eligibility requirements under subsection (2). For ~~2008-2009~~ 2009-

2010, there is allocated for this purpose from the appropriation in

section 11 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 it 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.

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 ~~2008-2009~~ 2009-2010 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) 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 energy, 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 ~~$2,828,500.00 for 2008-2009~~

$2,523,200.00 for 2009-2010 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 ~~$1,284,600.00~~ $642,300.00 for

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

section 11, there is allocated an amount not to exceed

$26,300,000.00 for ~~2008-2009~~ 2009-2010, and from the general fund

appropriation in section 11, there is allocated an amount not to

exceed $9,200,000.00 for ~~2008-2009~~ 2009-2010 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 ~~2008~~ 2009. 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 ~~2008-2009~~ 2009-2010 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 2009-2010 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.

section 6(4)(y) or 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 ~~2008-2009~~ 2009-

2010 an amount not to exceed ~~$320,350,000.00~~ $317,695,500.00 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 a school district of the first class

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 20% 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 pay for costs associated

with the operation of the school breakfast program.

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

allocated for ~~2008-2009~~ 2009-2010 an amount not to exceed

~~$4,743,000.00~~ $3,557,300.00 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~~ 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 ~~2008-2009~~ 2009-2010 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%~~ 8.63% 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) 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 ~~2008-2009~~

2009-2010 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 ~~2008-2009~~ 2009-2010 all available federal funding,

estimated at ~~$330,000,000.00~~ $370,000,000.00, 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 ~~2008-2009~~ 2009-

2010 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, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. 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. 32b. (1) From the funds appropriated under section 11,

there is allocated an amount not to exceed ~~$6,750,000.00~~

$6,000,000.00 for ~~2008-2009~~ 2009-2010 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 amount equal to the amount of the

matching dollars for 2006-2007.

(b) The executive committee of the corporation includes, in

addition to the members of the executive committee provided for by

the interlocal agreement creating the corporation under the urban

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to

124.512, 4 members appointed by the governor as provided in this

subdivision. Not later than 30 days after the convening of a

regular legislative session in an odd-numbered year, the speaker of

the house of representatives, the house minority leader, the senate

majority leader, and the senate minority leader shall each submit

to the governor a list of 3 or more individuals as nominees for

appointment as members of the executive committee of the

corporation. The corporation shall notify each of the legislative

leaders of this requirement to submit a list of nominees not later

than 30 days before the date that the list is due. Within 60 days

of the submission to the governor of nominees by each of the 4

legislative leaders, the governor shall appoint 1 member of the

executive committee from each list of nominees submitted by each of

the 4 legislative leaders. A member appointed under this

subdivision shall serve a term as a member of the executive

committee through the next regular legislative session unless he or

she resigns or is otherwise unable to serve. When a vacancy occurs

other than by expiration of a term, the corporation shall notify

the legislative leader who originally nominated the member of the

vacancy and that legislative leader shall submit to the governor a

list of 3 or more individuals as nominees for appointment to fill

the vacancy within 30 days after being notified by the corporation

of the vacancy. The 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 a local great start ~~collaboratives~~

collaborative 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) The completion of a community needs assessment and

strategic plan for the 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.

high-quality early childhood and childcare programs.

(d) Evaluation of local programs.

(4) Not later than December 1 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 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) 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~~

$1,593,800.00 for ~~2008-2009~~ 2009-2010 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.

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~~ For 2009-2010, from the state school aid

fund ~~money appropriated under~~ appropriation in section 11, there is

allocated an amount not to exceed $88,100,000.00 ~~for 2008-2009~~ to

eligible districts for great start readiness programs and from the

general fund appropriation in section 11, there is allocated an

amount not to exceed $7,575,000.00 for competitive 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,~~ Funds allocated under this section shall be used

to provide part-day or full-day comprehensive free 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 by

the state board. ~~report entitled "children at risk" that was~~

~~adopted by the state board on April 5, 1988. To the extent~~

~~allowable under federal law, a district shall not use funds~~

~~received under this section to supplant any federal funds received~~

~~by the district or its community. For the purposes of this section,~~

~~"supplant" means to serve children eligible for a federally funded~~

~~existing preschool program that has capacity to serve those~~

~~children.~~

(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.~~

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

district shall comply with this section and section 39. To receive

competitive grant payments under this section, an eligible grant

recipient shall comply with this section and section 32l.

(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~~ $300,000.00 for ~~2008-~~

~~2009~~ 2009-2010 for a competitive grant to continue a longitudinal

evaluation of children who have participated in ~~the~~ great start

readiness ~~program~~ programs.

(4) To be eligible for funding under this section, a program

shall prepare children for success in school through comprehensive

part-day or full-day programs that contain all of the following

program components, as determined by the department:

(a) Participation in a collaborative recruitment and

enrollment process. At a minimum, the process shall include all

other funded preschool programs that may serve children in the same

geographic area, 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.

(b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board.

(d) Health screening services for all program participants.

(e) Referral services for families of program participants to

community social service agencies, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

(g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a multidistrict, multiagency, school

readiness advisory committee that provides for the involvement of

classroom teachers, parents or guardians of program participants,

and community, volunteer, and social service agencies and

organizations, as appropriate. The advisory committee shall review

the program components listed in this subsection and make

recommendations for changes to the great start readiness program

for which it is an advisory committee.

(i) For great start readiness programs operated by a district

or consortium of districts, provide for the ongoing articulation of

the early childhood, kindergarten, and first grade programs offered

by the district or districts.

(5) An application for funding under this section shall

provide for the following, in a form and manner determined by the

department:

(a) Ensure compliance with all program components described in

subsection (4).

(b) Ensure that more than 50% of the children participating in

an eligible great start readiness program are children who live

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

300% of the federal poverty level.

for this program, as follows:

(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 bachelor's 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 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. 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) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. The program budget shall indicate the extent to

which these funds will supplement other federal, state, local, or

private funds. Funds received under this section shall not be used

to supplant any federal funds by the applicant to serve children

eligible for a federally funded existing preschool program that has

the capacity to serve those children.

(6) 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.

(7) ~~(4)~~ A district or consortium of districts 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~~ requirements of subsection (4) and retain for

administrative services an amount equal to not more than 5% of the

grant amount. A district or consortium of districts may expend not

more than 10% of the total grant amount for administration of the

program.

(8) Any public or private for-profit or nonprofit legal entity

or agency may apply for a competitive grant under this section.

However, a district or intermediate district may not apply for a

competitive grant under this section unless the district,

intermediate district, or consortium of districts or intermediate

districts is acting as a local grantee for the federal head start

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

(9) ~~(5) A district receiving~~ A recipient of 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)~~

prescribed by the department 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), districts~~ subsection (5)(b), a recipient

shall also report whether or not a parent is available to provide

care based on employment status. For the purposes of this

subsection, "employment status" shall be defined by the department

of human services in a manner consistent with maximizing the amount

of spending that may be claimed for temporary assistance for needy

families maintenance of effort purposes.

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

allocated an amount not to exceed $5,000,000.00 for ~~2008-2009~~ 2009-

2010 for great parents, great start grants to intermediate

districts to provide programs for parents with 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 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.

to promote intellectual, physical, and social growth of 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 15, ~~2008~~ 2009 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.

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, ~~2008~~ 2009. The amount allocated to each

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

the intermediate district's ~~2007-2008~~ 2008-2009 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).

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 2008-2009 an amount not to~~

~~exceed $15,150,000.00 for competitive great start readiness program~~

~~grants for the purposes of preparing children for success in~~

~~school, through comprehensive part-day or full-day programs that~~

~~include language, early literacy, 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 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.~~

(1) ~~(c)~~ The department shall establish a diverse interagency

committee to review the applications for competitive grants under

section 32d. The committee shall be composed of representatives of

the department, appropriate community, volunteer, and social

service agencies and organizations, and parents.

(2) ~~(d)~~ The superintendent shall award the competitive grants

under section 32d to applicants that are in compliance with that

section and shall give priority for awarding the competitive 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, 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 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~~ to programs that offer or

contract with another nonprofit or for-profit 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 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) 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 300% of the federal poverty level.~~

(3) ~~(4)~~ The superintendent may award competitive grants under

~~this~~ section 32d at whatever level the superintendent determines

appropriate. However, the amount of a competitive grant under ~~this~~

that section, when combined with other sources of state revenue for

this program, shall not exceed $3,400.00 per participating child or

the cost of the program, whichever is less.

~~(5) 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.~~

(4) ~~(6) Except as otherwise provided in this subsection, an~~

~~applicant that received a new grant under this section for 2007-~~

~~2008 shall also receive priority for funding under this section for~~

~~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.

(5) ~~(7)~~ Notwithstanding section 17b, competitive grant

payments to eligible entities under ~~this~~ section 32d shall be paid

on a schedule and in a manner determined by the department.

Sec. 32n. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $0.00 for a statewide before-

or after-school program for children and youth. Before-school

programs are limited to school-aged children. This allocation will

be distributed through grants to counties based upon demonstrated

need. A single county shall not receive any more than 20% of the

total allocation. The department shall give priority for

distribution of this funding to programs that have secured

additional governmental and nongovernmental matching funds.

(2) The department shall share the administrative duties of

operating this program with the department of human services,

department of community health, ~~department of history, arts, and~~

~~libraries,~~ and department of energy, labor, and economic growth.

(3) Funding priority in subsection (1) shall be reserved for

programs that use a curriculum focused upon improving academic

performance and healthy behavior, including abstinence from abuse

of alcohol and illegal drugs.

Sec. 39. (1) A district receiving funds under section 32d

shall submit a preapplication, in a form and manner 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, which is endorsed by the local great start

collaborative and is part of the community's great start strategic

plan that includes, but is not limited to, 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.

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.

(2) A district receiving funds under section 32d shall also

submit a final application for approval, in a form and manner

prescribed by the department, by a date specified by the

department, that details how the district complies with the program

components established by the department pursuant to section 32d.

(3) The 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: 1/2 of the

percentage of the district's pupils in grades 1 to 5 who are

eligible for free lunch, as determined using the district's pupil

membership count as of the pupil membership count day in the school

year prior to the fiscal year for which the calculation is made,

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

to 1769i, shall be multiplied by the average kindergarten

enrollment of the district on the pupil membership count day of the

2 immediately preceding fiscal years.

(4) ~~(1)~~ 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~~ by the formula under subsection (3) or the number of

children the district indicates it will be able to serve under

~~section 37(2)(c)~~ subsection (1)(c), whichever is less, by $3,400.00

and shall be distributed among districts in decreasing order of

concentration of eligible children as determined by ~~section 38~~ the

formula under subsection (3). If the number of children a district

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

subsection (1)(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~~ by the

formula under subsection (3) and the number of children the

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

subsection (1)(c) and determining the amount of the 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.

(5) ~~(2)~~ If funds appropriated for eligible districts in

section 32d remain after the initial allocation under subsection

~~(1)~~ (4), 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

formula under subsection (3). 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)~~

subsection (1)(c), whichever is less, minus the number of children

for which the district received funding in subsection ~~(1)~~ (4) by

$3,400.00.

(6) ~~(3)~~ If funds appropriated for eligible districts in

section 32d remain after the allocations under subsections ~~(1) and~~

~~(2)~~ (4) and (5), 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~~ the

formula under subsection (3). If the number of children the

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

subsection (1)(c) exceeds the number of children for which funds

have been received under subsections ~~(1) and (2)~~ (4) and (5), 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)~~ subsection (1)(c) less the number of

children for which funds have been received under subsections ~~(1)~~

~~and (2)~~ (4) and (5) by $3,400.00 until the funds allocated for

eligible districts in section 32d are distributed.

(7) ~~(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 $3,400.00.

~~(5) 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.~~

(8) ~~(6)~~ 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 32d over other eligible districts. ~~other than those~~

~~districts funded under subsection (5).~~

(9) ~~(7)~~ For any district with 315 or more eligible pupils, the

number of eligible pupils shall be 65% of the number calculated

~~under section 38~~ using the formula under subsection (3). However,

none of these districts may have less than 315 pupils for purposes

of calculating the tentative allocation for eligible districts

under section 32d.

(10) ~~(8)~~ 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 great start readiness program without additional

funds under ~~this~~ section 32d, the district may include additional

eligible children but shall not receive additional funding under

~~this~~ section 32d for those children.

~~(9) For a district that enrolls pupils in a full-day program~~

~~under section 32d, each child enrolled in the full-day program~~

~~shall be counted as 2 children served by the program for purposes~~

~~of determining the number of children to be served and for~~

~~determining the allocation under section 32d. A district’s~~

~~allocation shall not be increased solely on the basis of providing~~

~~a full-day program.~~

~~(10) 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.~~

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

an allocation under section 32d if the districts designate a

district or intermediate district to serve as the fiscal agent for

the consortium's allocation. A consortium shall submit a single

application for the total number of children to be served. 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.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2008-2009~~ 2009-2010 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at $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 $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 $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.

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

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

funds.

(d) An amount estimated at $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 $898,300.00 for rural and low

income schools, funded from DED-OESE, rural and low income school

funds.

(g) An amount estimated at $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 $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 $2,152,700.00 for the purpose of

providing unified family literacy programs, funded from DED-OESE,

title I, even start funds.

(j) An amount estimated at $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 $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 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 ~~2008-2009~~ 2009-2010 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at $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 $1,814,100.00 to provide services

to homeless children and youth, funded from DED-OVAE, homeless

children and youth funds.

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

impact funds.

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

grants, funded from the corporation for national and community

service funds.

(e) An amount estimated at $28,500,000.00 for providing career

and technical education services to pupils, funded from DED-OVAE,

basic grants to states.

(3) To the extent allowed under federal law, the funds

allocated under subsection (1)(h), (i), (k), and (n) may be used

for 1 or more reading improvement programs that meet at least 1 of

the following:

(a) A research-based, validated, structured reading program

that aligns learning resources to state standards and includes

continuous assessment of pupils and individualized education plans

for pupils.

(b) A mentoring program that is a research-based, validated

program or a statewide 1-to-1 mentoring program and is designed to

enhance the independence and life quality of pupils who are

mentally impaired by providing opportunities for mentoring and

integrated employment.

validated educational service program focused on assessing and

building essential cognitive and perceptual learning abilities to

strengthen pupil concentration and learning.

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

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

that develops individualized educational plans based on each

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

style.

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

distributed in accordance with federal law and with flexibility

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

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

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

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

department.

(5) As used in this section:

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

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

secondary education.

education.

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

human services.

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

families.

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

allocated an amount not to exceed $2,800,000.00 for ~~2008-2009~~ 2009-

2010 to applicant districts and intermediate districts offering

programs of instruction for pupils of limited English-speaking

ability under section 1153 of the revised school code, MCL

380.1153. Reimbursement shall be on a per pupil basis and shall be

based on the number of pupils of limited English-speaking ability

in membership on the pupil membership count day. Funds allocated

under this section shall be used solely for instruction in

speaking, reading, writing, or comprehension of English. A pupil

shall not be counted under this section or instructed in a program

under this section for more than 3 years.

Sec. 51a. (1) From the appropriation in section 11, there is

allocated for ~~2008-2009~~ 2009-2010 an amount not to exceed

~~$1,016,933,000.00~~ $1,061,283,000.00 from state sources and all

available federal funding under sections 611 to 619 of part B of

the individuals with disabilities education act, 20 USC 1411 to

1419, estimated at $350,700,000.00, plus any carryover federal

funds from previous year appropriations. The allocations under this

subsection are for the purpose of reimbursing districts and

intermediate districts for special education programs, services,

and special education personnel as prescribed in article 3 of the

revised school code, MCL 380.1701 to 380.1766; net tuition payments

made by intermediate districts to the Michigan schools for the deaf

and blind; and special education programs and services for pupils

who are eligible for special education programs and services

according to statute or rule. For meeting the costs of special

education programs and services not reimbursed under this article,

a district or intermediate district may use money in general funds

or special education funds, not otherwise restricted, or

contributions from districts to intermediate districts, tuition

payments, gifts and contributions from individuals, or federal

funds that may be available for this purpose, as determined by the

intermediate district plan prepared pursuant to article 3 of the

revised school code, MCL 380.1701 to 380.1766. All federal funds

allocated under this section in excess of those allocated under

this section for 2002-2003 may be distributed in accordance with

the flexible funding provisions of the individuals with

disabilities education act, Public Law 108-446, including, but not

limited to, 34 CFR 300.206 and 300.208. Notwithstanding section

17b, payments of federal funds to districts, intermediate

districts, and other eligible entities under this section shall be

paid on a schedule determined by the department.

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

allocated the amount necessary, estimated at ~~$228,500,000.00~~

$240,300,000.00 for ~~2008-2009~~ 2009-2010, for payments toward

reimbursing districts and intermediate districts for 28.6138% of

total approved costs of special education, excluding costs

reimbursed under section 53a, and 70.4165% of total approved costs

of special education transportation. Allocations under this

subsection shall be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (12), times

the sum of the foundation allowance under section 20 of the pupil's

district of residence plus the amount of the district's per pupil

allocation under section 20j(2), not to exceed the basic foundation

allowance under section 20 for the current fiscal year, or, for a

special education pupil in membership in a district that is a

public school academy or university school, times an amount equal

to the amount per membership pupil calculated under section 20(6).

For an intermediate district, the amount allocated under this

subdivision toward fulfilling the specified percentages shall be an

amount per special education membership pupil, excluding pupils

described in subsection (12), and shall be calculated in the same

manner as for a district, using the foundation allowance under

section 20 of the pupil's district of residence, not to exceed the

basic foundation allowance under section 20 for the current fiscal

year, and that district's per pupil allocation under section

20j(2).

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments under subdivision (a)

do not fulfill the specified percentages shall be paid the amount

necessary to achieve the specified percentages for the district or

intermediate district.

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

allocated for ~~2008-2009~~ 2009-2010 the amount necessary, estimated

at ~~$1,700,000.00~~ $1,300,000.00, to make payments to districts and

intermediate districts under this subsection. If the amount

allocated to a district or intermediate district for a fiscal year

under subsection (2)(b) is less than the sum of the amounts

allocated to the district or intermediate district for 1996-97

under sections 52 and 58, there is allocated to the district or

intermediate district for the fiscal year an amount equal to that

difference, adjusted by applying the same proration factor that was

used in the distribution of funds under section 52 in 1996-97 as

adjusted to the district's or intermediate district's necessary

costs of special education used in calculations for the fiscal

year. This adjustment is to reflect reductions in special education

program operations or services between 1996-97 and subsequent

fiscal years. Adjustments for reductions in special education

program operations or services shall be made in a manner determined

by the department and shall include adjustments for program or

service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this act for

the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department for ~~2008-2009~~ 2009-2010 to

districts, intermediate districts, or other eligible entities on a

competitive grant basis for programs, equipment, and services that

the department determines to be designed to benefit or improve

special education on a statewide scale.

(6) From the amount allocated in subsection (1), there is

allocated an amount not to exceed $2,200,000.00 for ~~2008-2009~~ 2009-

2010 to reimburse 100% of the net increase in necessary costs

incurred by a district or intermediate district in implementing the

revisions in the administrative rules for special education that

became effective on July 1, 1987. As used in this subsection, "net

increase in necessary costs" means the necessary additional costs

incurred solely because of new or revised requirements in the

administrative rules minus cost savings permitted in implementing

the revised rules. Net increase in necessary costs shall be

determined in a manner specified by the department.

(7) For purposes of this article, all of the following apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this act. This subdivision does not prohibit the transfer of

special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

~~2008~~ 2008-2009 that the amounts allocated for ~~2007-2008~~ 2008-2009

under subsections (2), (3), (6), (8), and (12) and sections 53a,

54, and 56 will exceed expenditures for ~~2007-2008~~ 2008-2009 under

subsections (2), (3), (6), (8), and (12) and sections 53a, 54, and

56, then for ~~2007-2008~~ 2008-2009 only, for a district or

intermediate district whose reimbursement for ~~2007-2008~~ 2008-2009

would otherwise be affected by subdivision (b), subdivision (b)

does not apply to the calculation of the reimbursement for that

district or intermediate district and reimbursement for that

district or intermediate district shall be calculated in the same

manner as it was for 2003-2004. If the amount of the excess

allocations under subsections (2), (3), (6), (8), and (12) and

sections 53a, 54, and 56 is not sufficient to fully fund the

calculation of reimbursement to those districts and intermediate

districts under this subdivision, then the calculations and

resulting reimbursement under this subdivision shall be prorated on

an equal percentage basis.

(d) Reimbursement for ancillary and other related services, as

defined by R 340.1701c of the Michigan administrative code, shall

not be provided when those services are covered by and available

through private group health insurance carriers or federal

reimbursed program sources unless the department and district or

intermediate district agree otherwise and that agreement is

approved by the state budget director. Expenses, other than the

incidental expense of filing, shall not be borne by the parent. In

addition, the filing of claims shall not delay the education of a

pupil. A district or intermediate district shall be responsible for

payment of a deductible amount and for an advance payment required

until the time a claim is paid.

(e) Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) From the allocation in subsection (1), there is allocated

for ~~2008-2009~~ 2009-2010 an amount not to exceed $15,313,900.00 to

intermediate districts. The payment under this subsection to each

intermediate district shall be equal to the amount of the 1996-97

allocation to the intermediate district under subsection (6) of

this section as in effect for 1996-97.

(9) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan schools for the deaf and

blind shall not be included in the membership count of a district,

but shall be counted in membership in the intermediate district of

residence.

(10) Special education personnel transferred from 1 district

to another to implement the revised school code shall be entitled

to the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(11) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

(12) From the funds allocated in subsection (1), there is

allocated the amount necessary, estimated at ~~$8,000,000.00~~

$7,800,000.00 for ~~2008-2009~~ 2009-2010, to pay the foundation

allowances for pupils described in this subsection. The allocation

to a district under this subsection shall be calculated by

multiplying the number of pupils described in this subsection who

are counted in membership in the district times the sum of the

foundation allowance under section 20 of the pupil's district of

residence plus the amount of the district's per pupil allocation

under section 20j(2), not to exceed the basic foundation allowance

under section 20 for the current fiscal year, or, for a pupil

described in this subsection who is counted in membership in a

district that is a public school academy or university school,

times an amount equal to the amount per membership pupil under

section 20(6). The allocation to an intermediate district under

this subsection shall be calculated in the same manner as for a

district, using the foundation allowance under section 20 of the

pupil's district of residence, not to exceed the basic foundation

allowance under section 20 for the current fiscal year, and that

district's per pupil allocation under section 20j(2). This

subsection applies to all of the following pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

intermediate district and provided educational services by the

department of community health.

(13) If it is determined that funds allocated under subsection

(2) or (12) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (12) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (12) and section 51c, the remaining

expenditures from the allocation in subsection (1) shall be made in

the following order:

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

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

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

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

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

(14) The allocations under subsections (2), (3), and (12)

shall be allocations to intermediate districts only and shall not

be allocations to districts, but instead shall be calculations used

only to determine the state payments under section 22b.

(15) If a public school academy enrolls pursuant to this

section a pupil who resides outside of the intermediate district in

which the public school academy is located and who is eligible for

special education programs and services according to statute or

rule, or who is a child with disabilities, as defined under the

individuals with disabilities education act, Public Law 108-446,

the provision of special education programs and services and the

payment of the added costs of special education programs and

services for the pupil are the responsibility of the district and

intermediate district in which the pupil resides unless the

enrolling district or intermediate district has a written agreement

with the district or intermediate district in which the pupil

resides or the public school academy for the purpose of providing

the pupil with a free appropriate public education and the written

agreement includes at least an agreement on the responsibility for

the payment of the added costs of special education programs and

services for the pupil.

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

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

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

is allocated for ~~2008-2009~~ 2009-2010 the amount necessary,

estimated at ~~$709,150,000.00~~ $742,300,000.00, for payments to

reimburse districts for 28.6138% of total approved costs of special

education excluding costs reimbursed under section 53a, and

70.4165% of total approved costs of special education

transportation. Funds allocated under this section that are not

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

determined by the department, may be used to supplement the

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

calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated for ~~2008-2009~~ 2009-2010 all available

federal funding, estimated at $74,000,000.00, for special education

programs that are funded by federal grants. All federal funds

allocated under this section shall be distributed in accordance

with federal law. Notwithstanding section 17b, payments of federal

funds to districts, intermediate districts, and other eligible

entities under this section shall be paid on a schedule determined

by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated for ~~2008-2009~~ 2009-2010:

(a) An amount estimated at $15,000,000.00 for handicapped

infants and toddlers, funded from DED-OSERS, handicapped infants

and toddlers funds.

(b) An amount estimated at $14,000,000.00 for preschool grants

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

incentive funds.

education programs funded by DED-OSERS, handicapped program,

individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States department of education office of special education and

rehabilitative services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766, minus the district's foundation allowance

calculated under section 20, and minus the amount calculated for

the district under section 20j. For intermediate districts,

reimbursement for pupils described in subsection (2) shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and under section 20j.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of community health.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $13,500,000.00 of the allocation for ~~2008-~~

~~2009~~ 2009-2010 in section 51a(1) shall be allocated under this

section.

Sec. 54. Each intermediate district shall receive an amount

per pupil for each pupil in attendance at the Michigan schools for

the deaf and blind. The amount shall be proportionate to the total

instructional cost at each school. Not more than $1,688,000.00 of

the allocation for ~~2008-2009~~ 2009-2010 in section 51a(1) shall be

allocated under this section.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1743, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1743, membership and taxable value

of the district shall not be included in the membership and taxable

value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount not to exceed $36,881,100.00 for ~~2008-2009~~

2009-2010 to reimburse intermediate districts levying millages for

special education pursuant to part 30 of the revised school code,

MCL 380.1711 to 380.1743. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

these millages and governed by the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766. As a condition of receiving funds under this

section, an intermediate district distributing any portion of

special education millage funds to its constituent districts shall

submit for departmental approval and implement a distribution plan.

(3) Reimbursement for those millages levied in ~~2007-2008~~ 2008-

2009 shall be made in ~~2008-2009~~ 2009-2010 at an amount per ~~2007-~~

~~2008~~ 2008-2009 membership pupil computed by subtracting from

~~$172,800.00~~ $179,700.00 the ~~2007-2008~~ 2008-2009 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2007-2008~~ 2008-2009 millage levied.

Sec. 57. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $285,000.00 for ~~2008-2009~~ 2009-

2010 for grants to intermediate districts for advanced and

accelerated students.

(2) To qualify for funding under this section, a grant

recipient shall support part of the cost of summer institutes for

advanced and accelerated students and, to the extent the funding

allows, provide comprehensive programs for advanced and accelerated

pupils.

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

amount of a single grant award under this section shall not exceed

$5,000.00. Intermediate districts may form a consortium, and that

consortium may receive a maximum grant amount of $5,000.00 for each

participant intermediate district. Each intermediate district or

consortium must apply for grant funding by April 1, ~~2009~~ 2010 and

demonstrate compliance with subsection (2).

(4) A district, intermediate district, or consortium that

receives a grant under this section shall provide at least a 25%

match for grant money received under this section from local public

or private resources.

(5) Any unallocated grant funds may be allocated to

intermediate districts and consortia receiving grants under this

section in an equal amount per intermediate district.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$30,000,000.00~~ $27,000,000.00 for

~~2008-2009~~ 2009-2010 to reimburse on an added cost basis districts,

except for a district that served as the fiscal agent for a

vocational education consortium in the 1993-94 school year, and

secondary area vocational-technical education centers for

secondary-level vocational-technical education programs, including

parenthood education programs, according to rules approved by the

superintendent. Applications for participation in the programs

shall be submitted in the form prescribed by the department. The

department shall determine the added cost for each vocational-

technical program area. The allocation of added cost funds shall be

based on the type of vocational-technical programs provided, the

number of pupils enrolled, and the length of the training period

provided, and shall not exceed 75% of the added cost of any

program. With the approval of the department, the board of a

district maintaining a secondary vocational-technical education

program may offer the program for the period from the close of the

school year until September 1. The program shall use existing

facilities and shall be operated as prescribed by rules promulgated

by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

vocational administration, shared time vocational administration,

and career education planning district vocational-technical

administration. The definition of what constitutes administration

and reimbursement shall be pursuant to guidelines adopted by the

superintendent. Not more than $800,000.00 of the allocation in

subsection (1) shall be distributed under this subsection.

(3) From the allocation in subsection (1), there is allocated

an amount not to exceed $388,700.00 for ~~2008-2009~~ 2009-2010 to

intermediate districts with constituent districts that had combined

state and local revenue per membership pupil in the 1994-95 state

fiscal year of $6,500.00 or more, served as a fiscal agent for a

state board designated area vocational education center in the

1993-94 school year, and had an adjustment made to their 1994-95

combined state and local revenue per membership pupil pursuant to

section 20d. The payment under this subsection to the intermediate

district shall equal the amount of the allocation to the

intermediate district for 1996-97 under this subsection.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the operation

of the program that is commensurate with the revenue that would

have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,000,000.00 for ~~2008-2009~~ 2009-2010 to

reimburse intermediate districts and area vocational-technical

education programs established under section 690(3) of the revised

school code, MCL 380.690, levying millages for area vocational-

technical education pursuant to sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690. The purpose, use, and

expenditure of the reimbursement shall be limited as if the funds

were generated by those millages.

(3) Reimbursement for the millages levied in ~~2007-2008~~ 2008-

2009 shall be made in ~~2008-2009~~ 2009-2010 at an amount per ~~2007-~~

~~2008~~ 2008-2009 membership pupil computed by subtracting from

~~$181,900.00~~ $189,600.00 the ~~2007-2008~~ 2008-2009 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2008-2009~~ 2009-2010 millage levied.

Sec. 64. (1) From the appropriation in section 11, there is

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

2010 for grants to intermediate districts or a district of the

first class that are in consortium with a community college or

state public university and a hospital or other appropriate entity

to create and implement a middle college focused on the field of

health sciences or other field approved by the superintendent of

public instruction.

(2) Awards shall be made in a manner and form as determined by

the department; however, at a minimum, eligible consortia funded

under this section shall ensure the middle college provides all of

the following:

(a) Outreach programs to provide information to middle school

and high school students about career opportunities in the health

sciences field or other field approved by the superintendent of

public instruction.

(b) An individualized education plan for each pupil enrolled

in the program.

(d) Clinical rotations that provide opportunities for pupils

to observe careers in the health sciences or other field approved

by the superintendent of public instruction.

(e) Instruction in mathematics, science, and language arts

that is integrated, where appropriate, into the ~~health sciences~~

courses in the approved field.

(3) For the purposes of this section, "middle college" means a

series of courses and other requirements and conditions established

by the consortium that allow a pupil to graduate with a high school

diploma and a certificate or degree from a community college or

state public university.

(4) Beginning in 2006-2007, a district or intermediate

district may receive a grant under this section for up to 4

consecutive fiscal years. For the first 2 fiscal years of the grant

period, the grant amount shall be 100% of the award determined by

the department. For each of the remaining 2 fiscal years of the

grant period, the grant amount shall be an amount equal to 50% of

the recipient's grant amount for the previous fiscal year.

Sec. 65. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed $980,100.00 for ~~2008-2009~~

2009-2010 for grants to districts or intermediate districts, as

determined by the department, for eligible precollege programs in

engineering and the sciences.

(2) From the funds allocated under subsection (1), the

department shall award $680,100.00 for ~~2008-2009~~ 2009-2010 to the 2

eligible existing programs that received funds appropriated for

these purposes in the appropriations act containing the department

of energy, labor, and economic growth budget for 2005-2006.

(3) From the funds allocated under subsection (1), the

department shall award $75,000.00 for ~~2008-2009~~ 2009-2010 to the

Kalamazoo regional education service agency to support an area

program substantially similar to the 2 eligible existing programs

receiving funds under subsection (2).

(4) From the funds allocated under subsection (1), the

department shall award $225,000.00 for ~~2008-2009~~ 2009-2010 to

eligible intermediate districts for programs to train pupils in

alternative energy. The department shall award $75,000.00 to each

eligible intermediate district. The intermediate district shall use

the funds for engineering and sciences programs with industry level

partnerships that are in proximity to renewable energy facilities.

To be eligible for funds under this subsection, an intermediate

district must meet all of the following requirements:

(a) The combined total 2007-2008 pupil membership for all of

its constituent districts was less than 20,000 pupils.

(b) Levied at least .11 but not more than .19 operating mills

in 2007-2008.

(d) At least 28% of the combined total number of pupils in

membership for all of its constituent districts were eligible for

free or reduced-price lunch for 2007-2008.

(e) Is contiguous to at least 1 other intermediate district

that meets the requirements of subdivisions (a) to (d).

(5) The department shall submit a report to the appropriations

subcommittees responsible for this act, to the state budget

director, and to the house and senate fiscal agencies by February

1, ~~2009~~ 2010 regarding dropout rates, grade point averages,

enrollment in science, engineering, and math-based curricula, and

employment in science, engineering, and mathematics-based fields

for pupils who were enrolled in the programs awarded funds under

this section or under preceding legislation. The report shall

continue to evaluate the effectiveness of the precollege programs

in engineering and sciences funded under this section.

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

shall be paid on a schedule and in a manner determined by the

department.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,028,500.00 for 2008-2009~~

$1,625,000.00 for 2009-2010 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for ~~2008-2009~~ 2009-2010 the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

payments shall be in an amount determined by the department not to

exceed 75% of the actual cost of instruction and driver

compensation for each public or nonpublic school bus driver

attending a course of instruction. For the purpose of computing

compensation, the hourly rate allowed each school bus driver shall

not exceed the hourly rate received for driving a school bus.

Reimbursement compensating the driver during the course of

instruction shall be made by the department to the college or

university or intermediate district providing the course of

instruction.

(3) From the allocation in subsection (1), there is allocated

each fiscal year the amount necessary to pay the reasonable costs

of nonspecial education auxiliary services transportation provided

pursuant to section 1323 of the revised school code, MCL 380.1323.

Districts funded under this subsection shall not receive funding

under any other section of this act for nonspecial education

auxiliary services transportation.

~~(4) From the funds allocated in subsection (1), there is~~

~~allocated an amount not to exceed $1,403,500.00 for 2008-2009 for~~

~~reimbursement to districts and intermediate districts for costs~~

~~associated with the inspection of school buses and pupil~~

~~transportation vehicles by the department of state police as~~

~~required under section 715a of the Michigan vehicle code, 1949 PA~~

~~300, MCL 257.715a, and section 39 of the pupil transportation act,~~

~~1990 PA 187, MCL 257.1839. The department of state police shall~~

~~prepare a statement of costs attributable to each district for~~

~~which bus inspections are provided and submit it to the department~~

~~and to each affected district in a time and manner determined~~

~~jointly by the department and the department of state police. The~~

~~department shall reimburse each district and intermediate district~~

~~for costs detailed on the statement within 30 days after receipt of~~

~~the statement. Districts for which services are provided shall make~~

~~payment in the amount specified on the statement to the department~~

~~of state police within 45 days after receipt of the statement. The~~

~~total reimbursement of costs under this subsection shall not exceed~~

~~the amount allocated under this subsection. Notwithstanding section~~

~~17b, payments to eligible entities under this subsection shall be~~

~~paid on a schedule prescribed by the department.~~

Sec. 81. (1) Except as otherwise provided in this section,

from the appropriation in section 11, there is allocated for ~~2008-~~

~~2009~~ 2009-2010 to the intermediate districts the sum necessary, but

not to exceed ~~$81,721,100.00~~ $65,376,800.00, to provide state aid

to intermediate districts under this section. Except as otherwise

provided in this section, there shall be allocated to each

intermediate district for ~~2008-2009~~ 2009-2010 an amount equal to

~~101.0%~~ 80% of the amount appropriated under this subsection for

~~2007-2008~~ 2008-2009. Funding provided under this section shall be

used to comply with requirements of this act and the revised school

code that are applicable to intermediate districts, and for which

funding is not provided elsewhere in this act, and to provide

technical assistance to districts as authorized by the intermediate

school board.

(2) Intermediate districts receiving funds under this section

shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

(3) From the allocation in subsection (1), there is allocated

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(4) During a fiscal year, the department shall not increase an

intermediate district's allocation under subsection (1) because of

an adjustment made by the department during the fiscal year in the

intermediate district's taxable value for a prior year. Instead,

the department shall report the adjustment and the estimated amount

of the increase to the house and senate fiscal agencies and the

state budget director not later than June 1 of the fiscal year, and

the legislature shall appropriate money for the adjustment in the

next succeeding fiscal year.

(5) In order to receive funding under this section, an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil counting procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) 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.

(e) Comply with section 1230g of the revised school code, MCL

380.1230g.

(f) Comply with section 761 of the revised school code, MCL

380.761.

Sec. 94a. (1) There is created within the office of the state

budget director in the department of management and budget the

center for educational performance and information. The center

shall do all of the following:

(a) Coordinate the collection of all data required by state

and federal law from all entities receiving funds under this act.

(b) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities.

reliability of the data and the collection process.

(d) Develop state and model local data collection policies,

including, but not limited to, policies that ensure the privacy of

individual student data. State privacy policies shall ensure that

student social security numbers are not released to the public for

any purpose.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide reports to the citizens of this state to allow

them to assess allocation of resources and the return on their

investment in the education system of this state.

(g) Assist all entities receiving funds under this act in

complying with audits performed according to generally accepted

accounting procedures.

(h) To the extent funding is available, coordinate the

electronic exchange of student records using a unique

identification numbering system among entities receiving funds

under this act and postsecondary institutions for students

participating in public education programs from preschool through

postsecondary education.

(i) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts or intermediate districts as required

under state or federal law shall make arrangements with the center,

and with the districts or intermediate districts, to have the

center collect the information and to provide it to the department,

officer, or agency as necessary. To the extent that it does not

cause financial hardship, the center shall arrange to collect the

information in a manner that allows electronic submission of the

information to the center. Each affected state department, officer,

or agency shall provide the center with any details necessary for

the center to collect information as provided under this

subsection. This subsection does not apply to information collected

by the department of treasury under the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the

school bond qualification, approval, and loan act, 2005 PA 92, MCL

388.1921 to 388.1939; or section 1351a of the revised school code,

MCL 380.1351a.

(3) The state budget director shall appoint a CEPI advisory

committee, consisting of the following members:

(a) One representative from the house fiscal agency.

(b) One representative from the senate fiscal agency.

director.

(d) One representative from the state education agency.

(e) One representative each from the department of energy,

labor, and economic growth and the department of treasury.

(f) Three representatives from intermediate school districts.

(g) One representative from each of the following educational

organizations:

(i) Michigan association of school boards.

(ii) Michigan association of school administrators.

(iii) Michigan school business officials.

(h) One representative representing private sector firms

responsible for auditing school records.

(i) Other representatives as the state budget director

determines are necessary.

(4) The CEPI advisory committee appointed under subsection (3)

shall provide advice to the director of the center regarding the

management of the center's data collection activities, including,

but not limited to:

(a) Determining what data is necessary to collect and maintain

in order to perform the center's functions in the most efficient

manner possible.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

reasonable accuracy of the data.

(f) Establishing and maintaining state and model local

policies related to data collection, including, but not limited to,

privacy policies related to individual student data.

(g) Ensuring the data is made available to state and local

policymakers and citizens of this state in the most useful format

possible.

(h) Other matters as determined by the state budget director

or the director of the center.

(5) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(6) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$3,435,400.00~~ $3,486,100.00

for ~~2008-2009~~ 2009-2010 to the department of management and budget

to support the operations of the center and the development and

implementation of a comprehensive longitudinal data collection

management and reporting system that includes student-level data.

The center shall cooperate with the state education agency to

ensure that this state is in compliance with federal law and is

maximizing opportunities for increased federal funding to improve

education in this state. To the extent that funding under this

section allows, the center shall collect data necessary to maximize

federal funding under the American recovery and reinvestment act of

2009, Public Law 111-5, and other federal statutes, including data

necessary to implement a P-20 longitudinal data system. In

addition, from the federal funds appropriated in section 11 for

~~2008-2009~~ 2009-2010, there is allocated the amount necessary,

estimated at $2,793,200.00, in order to fulfill federal reporting

requirements.

(7) From the federal funds allocated in subsection (6), there

is allocated for ~~2008-2009~~ 2009-2010 an amount not to exceed

$750,000.00 funded from the competitive grants of DED-OESE, title

II, educational technology funds for the purposes of this

subsection. Not later than November 30, 2008, the department shall

award a single grant to an eligible partnership that includes an

intermediate district with at least 1 high-need local school

district and the center.

(8) The center and the department shall work cooperatively to

develop a cost allocation plan that pays for center expenses from

the appropriate federal fund revenues.

(9) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year.

(10) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (6) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(11) As used in this section:

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

office of elementary and secondary education.

(b) "High-need local school district" means a local

educational agency as defined in the enhancing education through

technology part of the no child left behind act of 2001, Public Law

107-110.

Sec. 98. (1) From the ~~state school aid fund money appropriated~~

~~in section 11, there is allocated an amount not to exceed~~

~~$500,000.00 for 2008-2009 and from the~~ general fund money

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

exceed ~~$1,750,000.00~~ $1,687,500.00 for ~~2008-2009~~ 2009-2010 to

provide a grant to the Michigan virtual university for the

development, implementation, and operation of the Michigan virtual

high school; to provide professional development opportunities for

educators; and to fund other purposes described in this section. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2008-2009~~ 2009-2010 an amount estimated at

$2,700,000.00.

(2) The Michigan virtual high school shall have the following

goals:

(a) Significantly expand curricular offerings for high schools

across this state through agreements with districts or licenses

from other recognized providers. ~~The Michigan virtual high school~~

~~shall explore options for providing rigorous civics curricula~~

~~online.~~

(b) Create statewide instructional models using interactive

multimedia tools delivered by electronic means, including, but not

limited to, the internet, digital broadcast, or satellite network,

for distributed learning at the high school level.

competencies through on-line learning.

(d) Grant high school diplomas through a dual enrollment

method with districts.

(e) Act as a broker for college level equivalent courses, as

defined in section 1471 of the revised school code, MCL 380.1471,

and dual enrollment courses from postsecondary education

institutions.

(f) Maintain the accreditation status of the Michigan virtual

high school from recognized national and international accrediting

entities.

(3) The Michigan virtual high school course offerings shall

include, but are not limited to, all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) General education development test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs ~~and services for~~

~~teachers~~ that teach Michigan educators how to develop and deliver

online instructional services.

(4) From the federal funds allocated in subsection (1), there

is allocated for ~~2008-2009~~ 2009-2010 an amount estimated at

$1,700,000.00 from DED-OESE, title II, improving teacher quality

funds for a grant to the Michigan virtual university for the

purpose of this subsection. ~~The state education agency shall sign a~~

~~memorandum of understanding with the Michigan virtual university~~

~~regarding the DED-OESE, title II, improving teacher quality funds~~

~~as provided under this subsection. The memorandum of understanding~~

~~under this subsection shall require that~~ With the approval of the

department, the Michigan virtual university shall coordinate the

following activities related to DED-OESE, title II, improving

teacher quality funds in accordance with federal law:

(a) Develop, and assist districts in the development and use

of, proven, innovative strategies to deliver intensive professional

development programs that are both cost-effective and easily

accessible, such as strategies that involve delivery through the

use of technology, peer networks, and distance learning.

(b) Encourage and support the training of teachers and

administrators to effectively integrate technology into curricula

and instruction.

include higher education institutions for the purposes of providing

professional development activities for teachers,

paraprofessionals, and principals as defined in federal law.

(d) Offer teachers opportunities to learn new skills and

strategies for developing and delivering instructional services.

(e) Provide online professional development opportunities for

educators to update and expand knowledge and skills needed to

support the Michigan merit curriculum core content standards and

credit requirements.

(5) The Michigan virtual university shall offer at least 200

hours of online professional development for classroom teachers

under this section each fiscal year beginning in 2006-2007 without

charge to the teachers or to districts or intermediate districts. A

~~district or intermediate district may require a full-time teacher~~

~~to participate in at least 5 hours of online professional~~

~~development provided by the Michigan virtual university under~~

~~subsection (4). Five hours of this professional development shall~~

~~be considered to be part of the 38 hours allowed to be counted as~~

~~hours of pupil instruction under section 101(10).~~

(6) From the federal funds appropriated in subsection (1),

there is allocated for ~~2008-2009~~ 2009-2010 an amount estimated at

$1,000,000.00 from the DED-OESE, title II, educational technology

grant funds to support e-learning and virtual school initiatives

consistent with the goals contained in the United States national

educational technology plan issued in January 2005. These funds

shall be used to support activities designed to build the capacity

of the Michigan virtual university and shall not be used to

supplant other funding. Not later than November 30, ~~2008~~ 2009, from

the funds allocated in this subsection, the department shall award

a single grant of $1,000,000.00 to a consortium or partnership

established by the Michigan virtual university that meets the

requirements of this subsection. To be eligible for this funding, a

consortium or partnership established by the Michigan virtual

university shall include at least 1 intermediate district and at

least 1 high-need local district. All of the following apply to

this funding:

(a) An eligible consortium or partnership must demonstrate the

following:

(i) Prior success in delivering online courses and

instructional services to K-12 pupils throughout this state.

(ii) Expertise in designing, developing, and evaluating online

K-12 course content.

(iii) Experience in maintaining a statewide help desk service

for pupils, online teachers, and other school personnel.

(iv) Knowledge and experience in providing technical assistance

and support to K-12 schools in the area of online education.

(v) Experience in training and supporting K-12 educators in

this state to teach online courses.

(vi) Demonstrated technical expertise and capacity in managing

complex technology systems.

(vii) Experience promoting twenty-first century learning skills

through the use of online technologies.

(b) The Michigan virtual university, which operates the

Michigan virtual high school, shall perform the following tasks

related to this funding:

(i) Strengthen its capacity by pursuing activities, policies,

and practices that increase the overall number of Michigan virtual

high school course enrollments and course completions by at-risk

students.

(ii) Examine the curricular and specific course content needs

of middle and high school students in the areas of mathematics and

science.

(iii) Design, develop, and acquire online courses and related

supplemental resources aligned to state standards to create a

comprehensive and rigorous statewide catalog of online courses and

instructional services.

(iv) ~~Conduct a demonstration pilot to promote~~ Continue to

evaluate and conduct pilot programs for new and innovative online

tools, resources, and courses. ~~and instructional services.~~

(v) Evaluate existing online teaching and learning practices

and develop continuous improvement strategies to enhance student

achievement.

(vi) Develop, support, and maintain the technology

infrastructure and related software required to deliver online

courses and instructional services to students statewide.

~~(7) From the state school aid fund allocation in subsection~~

~~(1), an amount not to exceed $500,000.00 for 2008-2009 shall be~~

~~awarded as a single grant to an intermediate district working in~~

~~partnership with the Michigan virtual high school for a statewide~~

~~license for "my dream explorer", a career exploration and planning~~

~~tool, to be made available to all pupils at no cost. The Michigan~~

~~virtual high school shall work collaboratively with the department,~~

~~the presidents council of state universities of Michigan, the~~

~~Michigan community college association, the association of~~

~~independent colleges and universities of Michigan, and the~~

~~appropriate K-12 education organizations to develop a comprehensive~~

~~outreach and communications plan that provides parents and students~~

~~with access to online resources designed to increase postsecondary~~

~~enrollments and provide current information related to career~~

~~planning, college selection, financial aid, and dual enrollment~~

~~opportunities.~~

(7) ~~(8)~~ If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan virtual high school, the student may use the services

provided by the Michigan virtual high school to the district

without charge to the student beyond what is charged to a district

pupil using the same services.

(8) ~~(9)~~ Not later than December 1, ~~2008~~ 2009, the Michigan

virtual university shall provide a report to the house and senate

appropriations subcommittees on state school aid, the state budget

director, the house and senate fiscal agencies, and the department

that includes at least all of the following information related to

the Michigan virtual high school for the preceding state fiscal

year:

(a) A list of the Michigan schools served by the Michigan

virtual high school.

(b) A list of online course titles available to Michigan

schools.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(e) A summary of DED-OESE, title IIA, teacher quality grant

and DED-OESE, title IID, education technology grant expenditures.

(f) Identification of unmet educational needs that could be

addressed by the Michigan virtual high school.

~~(g) The total number of active users of "my dream explorer"~~

~~funded under subsection (7).~~

(9) ~~(10)~~ As used in this section:

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

office of elementary and secondary education.

(b) "High-need local district" means a local educational

agency as defined in the enhancing education through technology

part of the no child left behind act of 2001, Public Law 107-110.

Sec. 99. (1) From the state school aid fund money appropriated

in section 11, there is allocated an amount not to exceed

~~$3,390,000.00~~ $2,515,000.00 for ~~2008-2009~~ 2009-2010 and from the

general fund appropriation in section 11, there is allocated an

amount not to exceed $110,000.00 for ~~2008-2009 for implementing the~~

~~comprehensive master plan for~~ 2009-2010 to support the activities

and programs of mathematics and science centers ~~developed by the~~

~~department and approved by the state board,~~ and for other purposes

as described in this section. In addition, from the federal funds

appropriated in section 11, there is allocated for ~~2008-2009~~ 2009-

2010 an amount estimated at $5,249,300.00 from DED-OESE, title II,

mathematics and science partnership grants.

(2) Within a service area designated locally, approved by the

department, and consistent with the comprehensive master plan

~~described in subsection (1)~~ for mathematics and science centers

developed by the department and approved by the state board, an

established mathematics and science center shall ~~address~~ provide 2

or more of the following 6 basic services, as described in the

master plan, to constituent districts and communities: leadership,

pupil services, curriculum support, community involvement,

professional development, and resource clearinghouse services.

(3) The department shall not award a state grant under this

section to more than 1 mathematics and science center located in a

designated region as prescribed in the 2007 master plan unless each

of the grants serves a distinct target population or provides a

service that does not duplicate another program in the designated

region.

(4) As part of the technical assistance process, the

department shall provide minimum standard guidelines that may be

used by the mathematics and science center for providing fair

access for qualified pupils and professional staff as prescribed in

this section.

(5) Allocations under this section to support the activities

and programs of mathematics and science centers shall be continuing

support grants to all 33 established mathematics and science

centers. Each established mathematics and science center that was

funded in ~~2007-2008~~ 2008-2009 shall receive state funding in an

amount equal to ~~100%~~ 75% of the amount it was allocated under this

subsection for ~~2007-2008~~ 2008-2009. If a center declines state

funding or a center closes, the remaining money available under

this section shall be distributed to the remaining centers, as

determined by the department.

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

allocated for ~~2008-2009~~ 2009-2010 an amount not to exceed

~~$1,000,000.00~~ $750,000.00 in a form and manner determined by the

department to those centers able to provide curriculum and

professional development support to assist districts in

implementing the Michigan merit curriculum components for

mathematics and science. Funding under this subsection is in

addition to funding allocated under subsection (5).

(7) In order to receive state or federal funds under this

section, a grant recipient shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives such funds. The grant recipient shall

reimburse the state for all disallowances found in the audit.

(8) Not later than September 30, 2013, the department shall

reevaluate and update the comprehensive master plan described in

subsection (1).

(9) The department shall give preference in awarding the

federal grants allocated in subsection (1) to eligible existing

mathematics and science centers.

(10) In order to receive state funds under this section, a

grant recipient shall provide at least a 10% local match from local

public or private resources for the funds received under this

section.

(11) As used in this section:

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

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

secondary education.

Sec. 99i. (1) From the funds appropriated in section 11, there

is allocated the amount of $300,000.00 for ~~2008-2009~~ 2009-2010 to a

district that meets all of the following requirements:

(a) The district's membership is greater than 9,000 pupils.

(b) At least 60% of the pupils in the district were eligible

for free or reduced lunch for 2005-2006.

than $7,310.00.

(2) Funds allocated to a district under this section shall be

used to expand the school-based crisis intervention project that

received funds in 2005-2006 under section 304 of 2005 PA 147.

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

may be made pursuant to an agreement with the department.

Sec. 99p. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $100,000.00 for ~~2008-2009~~ 2009-

2010 for competitive grants to districts for programs that provide

pupils with access to cultural, art, or music resources and

experiences that are available in the community and that may

promote reading, literacy, and communications skills among pupils.

(2) A district applying for a grant shall submit an

application to the department in a form and manner determined by

the department. To be eligible for a grant, a district shall

demonstrate in its application that at least 50% of the pupils in

membership in the district met the income eligibility criteria for

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

Russell national school lunch act and as reported to the department

by October 31 of the immediately preceding fiscal year and adjusted

not later than December 31 of the immediately preceding fiscal

year.

(3) Grant awards shall be made in a manner determined by the

department. However, the department may set maximum grant amounts

in a manner that maximizes the number of pupils that will be able

to participate.

(4) Notwithstanding section 17b, payments to eligible

districts under this section shall be paid on a schedule determined

by the department.

Sec. 101. (1) To be eligible to receive state aid under this

act, not later than the fifth Wednesday after the pupil membership

count day and not later than the fifth Wednesday after the

supplemental count day, each district superintendent ~~through the~~

~~secretary of the district's board shall file with the intermediate~~

~~superintendent a certified and sworn copy of~~ shall submit to the

center, in the form and manner prescribed by the center, the number

of pupils enrolled and in regular daily attendance in the district

as of the pupil membership count day and as of the supplemental

count day, as applicable, for the current school year. In addition,

a district maintaining school during the entire year, as provided

under section 1561 of the revised school code, MCL 380.1561, shall

~~file with the intermediate superintendent a certified and sworn~~

~~copy of~~ submit to the center, in the form and manner prescribed by

the center, the number of pupils enrolled and in regular daily

attendance in the district for the current school year pursuant to

rules promulgated by the superintendent. Not later than the seventh

Wednesday after the pupil membership count day and not later than

the seventh Wednesday after the supplemental count day, the

~~intermediate district shall transmit to the center revised data, as~~

~~applicable, for each of its constituent districts~~ district shall

certify the data in a form and manner prescribed by the center. If

a district fails to ~~file the sworn and certified copy with the~~

~~intermediate superintendent in a timely manner~~ submit and certify

the attendance data, as required under this subsection, the

~~intermediate district~~ center shall notify the department and state

aid due to be distributed under this act shall be withheld from the

defaulting district immediately, beginning with the next payment

after the failure and continuing with each payment until the

district complies with this subsection. ~~If an intermediate district~~

~~fails to transmit the data in its possession in a timely and~~

~~accurate manner to the center, as required under this subsection,~~

~~state aid due to be distributed under this act shall be withheld~~

~~from the defaulting intermediate district immediately, beginning~~

~~with the next payment after the failure and continuing with each~~

~~payment until the intermediate district complies with this~~

~~subsection.~~ If a district ~~or intermediate district~~ does not comply

with this subsection by the end of the fiscal year, the district or

~~intermediate district~~ forfeits the amount withheld. A person who

willfully falsifies a figure or statement in the certified and

sworn copy of enrollment shall be punished in the manner prescribed

by section 161.

(2) To be eligible to receive state aid under this act, not

later than the twenty-fourth Wednesday after the pupil membership

count day and not later than the twenty-fourth Wednesday after the

supplemental count day, an intermediate district shall submit to

the center, in a form and manner prescribed by the center, the

audited enrollment and attendance data for the pupils of its

constituent districts and of the intermediate district. If an

intermediate district fails to ~~transmit~~ submit the audited data as

required under this subsection, state aid due to be distributed

under this act shall be withheld from the defaulting intermediate

district immediately, beginning with the next payment after the

failure and continuing with each payment until the intermediate

district complies with this subsection. If an intermediate district

does not comply with this subsection by the end of the fiscal year,

the intermediate district forfeits the amount withheld.

(3) All of the following apply to the provision of pupil

instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and, beginning in 2010-

2011, the required minimum number of days of pupil instruction. For

2010-2011 and for 2011-2012, the required minimum number of days of

pupil instruction is 165. Beginning in 2012-2013, the required

minimum number of days of pupil instruction is 170. However,

beginning in 2010-2011, a district shall not provide fewer days of

pupil instruction than the district provided for 2009-2010. Except

as otherwise provided in this act, a district failing to comply

with the required minimum hours and days of pupil instruction under

this subsection shall forfeit from its total state aid allocation

an amount determined by applying a ratio of the number of hours or

days the district was in noncompliance in relation to the required

minimum number of hours and days under this subsection. Not later

than August 1, the board of each district shall certify to the

department the number of hours and, beginning in 2010-2011, days of

pupil instruction in the previous school year. If the district did

not provide at least the required minimum number of hours and days

of pupil instruction under this subsection, the deduction of state

aid shall be made in the following fiscal year from the first

payment of state school aid. A district is not subject to

forfeiture of funds under this subsection for a fiscal year in

which a forfeiture was already imposed under subsection (6). Hours

or days lost because of strikes or teachers' conferences shall not

be counted as ~~days or~~ hours or days of pupil instruction. If a

collective bargaining agreement that provides a complete school

calendar is in effect for employees of a district as of the

effective date of the 2009 amendatory act that amended this

subsection, and if that school calendar is not in compliance with

this subsection, then this subsection does not apply to that

district until after the expiration of that collective bargaining

agreement.

(b) Except as otherwise provided in subdivision (c), a

district not having at least 75% of the district's membership in

attendance on any day of pupil instruction shall receive state aid

in that proportion of 1/180 that the actual percent of attendance

bears to the specified percentage.

operates a department-approved alternative education program and

that does not provide instruction for pupils in all of grades K to

12, the superintendent shall grant a waiver for a period of 3

school years from the requirements of subdivision (b) in order to

conduct a pilot study. The waiver shall indicate that an eligible

district is subject to the proration provisions of subdivision (b)

only if the district does not have at least 50% of the district’s

membership in attendance on any day of pupil instruction. ~~Not later~~

~~than 2008-2009, the department shall report on the impact of this~~

~~waiver on the academic achievement of pupils in these districts to~~

~~the state budget director and the senate and house appropriations~~

~~subcommittees on state school aid.~~ In order to be eligible for this

waiver, a district must maintain records to substantiate its

compliance with the following requirements during the pilot study:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil’s individual education plan.

(d) The superintendent shall promulgate rules for the

implementation of this subsection.

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

30 hours or 6 days for which pupil instruction is not provided

because of conditions not within the control of school authorities,

such as severe storms, fires, epidemics, utility power

unavailability, water or sewer failure, or health conditions as

defined by the city, county, or state health authorities, shall be

counted as hours and days of pupil instruction. ~~Beginning in 2003-~~

~~2004, with~~ With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 30 additional hours or

6 additional days for which pupil instruction is not provided in a

district after April 1 of the applicable school year due to unusual

and extenuating occurrences resulting from conditions not within

the control of school authorities such as those conditions

described in this subsection. Subsequent such hours or days shall

not be counted as hours or days of pupil instruction.

(5) A district shall not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) Not later than April 15 of each fiscal year, the board of

each district shall certify to the department the planned number of

hours and days of pupil instruction in the district for the school

year ending in the fiscal year. In addition to any other penalty or

forfeiture under this section, if at any time the department

determines that 1 or more of the following has occurred in a

district, the district shall forfeit in the current fiscal year

beginning in the next payment to be calculated by the department a

proportion of the funds due to the district under this act that is

equal to the proportion below the required minimum number of hours

and days of pupil instruction under subsection (3), as specified in

the following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

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

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, shall be considered to be pupil instruction time for

the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a junior reserve officer training corps (JROTC) program shall be

considered to be pupil instruction time regardless of whether the

instructor is a certificated teacher if all of the following are

met:

(i) The instructor has met all of the requirements established

by the United States department of defense and the applicable

branch of the armed services for serving as an instructor in the

junior reserve officer training corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) The department shall apply the guidelines under subsection

(7) in calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent may waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department.

If a district applies for and receives a waiver under this

subsection and complies with the terms of the waiver, for the

fiscal year covered by the waiver the district is not subject to

forfeiture under this section for the specific program covered by

the waiver. If the district does not comply with the terms of the

waiver, the amount of the forfeiture shall be calculated based upon

a comparison of the number of hours and days of pupil instruction

actually provided to the minimum number of hours and days of pupil

instruction required under subsection (3).

(10) A If at least 5 of the hours of professional development

are provided online by the Michigan virtual university under

section 98 or by another department-approved intermediate district

provider of online professional development, a district may count

up to 38 hours of qualifying professional development for teachers

~~, including the 5 hours of online professional development provided~~

~~by the Michigan virtual university under section 98,~~ as hours of

pupil instruction. However, if a collective bargaining agreement

that provides more than 38 but not more than 51 hours of

professional development for teachers is in effect for employees of

a district as of ~~the effective date of the 2006 amendatory act that~~

~~amended this subsection~~ October 1, 2006, then until the fiscal year

that begins after the expiration of that collective bargaining

agreement a district may count up to 51 hours of qualifying

professional development for teachers, including the 5 hours of

online professional development, ~~provided by the Michigan virtual~~

~~university under section 98,~~ as hours of pupil instruction. A

district that elects to use this exception shall notify the

department of its election. As used in this subsection, "qualifying

professional development" means professional development that is

focused on 1 or more of the following:

(a) Achieving or improving adequate yearly progress as defined

under the no child left behind act of 2001, Public Law 107-110.

(b) Achieving accreditation or improving a school's

accreditation status under section 1280 of the revised school code,

MCL 380.1280.

the no child left behind act of 2001, Public Law 107-110.

(d) Maintaining teacher certification.

Sec. 104. (1) In order to receive state aid under this act, a

district shall comply with sections 1278a, 1278b, 1279, 1279g, and

1280b of the revised school code, MCL 380.1278a, 380.1278b,

380.1279, 380.1279g, and 380.1280b, and 1970 PA 38, MCL 388.1081 to

388.1086. From the state school aid fund money appropriated in

section 11, there is allocated for ~~2008-2009~~ 2009-2010 an amount

not to exceed ~~$28,872,800.00~~ $26,630,700.00 for payments on behalf

of districts for costs associated with complying with ~~sections 104a~~

~~and 104b, sections 1278a, 1278b, 1279, 1279g, and 1280b of the~~

~~revised school code, MCL 380.1278a, 380.1278b, 380.1279, 380.1279g,~~

~~and 380.1280b, and 1970 PA 38, MCL 388.1081 to 388.1086~~ those

provisions of law. In addition, from the federal funds appropriated

in section 11, there is allocated for ~~2008-2009~~ 2009-2010 an amount

estimated at ~~$8,512,900.00~~ $8,313,700.00, funded from DED-OESE,

title VI, state assessments funds and DED-OSERS, section 504 of

part B of the individuals with disabilities education act, Public

Law 94-142, plus any carryover federal funds from previous year

appropriations, for the purposes of complying with the federal no

child left behind act of 2001, Public Law 107-110.

(2) The department shall determine whether the "Explore" test

is at least as robust as the Michigan educational assessment

program social studies test. If the department determines that the

"Explore" test is at least as robust as the Michigan educational

assessment program social studies test, it is the intent of the

legislature that the department shall replace the Michigan

educational assessment program social studies test with the

"Explore" test. If this replacement of tests requires a waiver

under federal law in order to comply with federal law, then the

department shall apply for that waiver to allow for this

replacement.

(3) ~~(2)~~ The results of each test administered as part of the

Michigan educational assessment program, including tests

administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response.

(4) ~~(3)~~ All federal funds allocated under this section shall

be distributed in accordance with federal law and with flexibility

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

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

(5) ~~(4)~~ Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

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

department.

(6) The department shall meet with the United States

department of education and shall request a waiver to replace the

current Michigan educational assessment program tests used for

grades 3 to 8 with a standardized catalog version norm-referenced

test. Before sending the waiver request to the United States

department of education, the department shall seek input on the

waiver request from the subcommittees of the senate and house of

representatives appropriations committees that have jurisdiction

over this act. The department shall submit the waiver request to

the subcommittees for input not later than January 15, 2010 and

shall submit the waiver request to the United States department of

education not later than February 15, 2010. If the waiver is

granted by the United States department of education, then the

department shall immediately notify the subcommittees of the senate

and house or representatives appropriations committees that have

jurisdiction over this act of the approval.

(7) ~~(5)~~ As used in this section:

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

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

secondary education.

rehabilitative services.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$24,000,000.00~~ $22,000,000.00 for

~~2008-2009~~ 2009-2010 for adult education programs authorized under

this section.

(2) To be eligible for funding under this section, a program

shall employ certificated teachers and qualified administrative

staff and shall offer continuing education opportunities for

teachers to allow them to maintain certification.

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

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

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

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

employment related program, or a high school completion program,

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

of the following, as applicable:

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

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

individual meets 1 of the following:

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

year and is enrolled in the Michigan career and technical

institute.

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

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

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

by an employer.

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

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

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

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

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

year.

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

year, has been permanently expelled from school under section

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

380.1311a, and has no appropriate alternative education program

available through his or her district of residence.

(4) ~~(3)~~ Except as otherwise provided in subsection ~~(4)~~ (5),

from the amount allocated under subsection (1), at least

~~$23,300,000.00~~ $21,800,000.00 shall be distributed as follows:

(a) For districts and consortia that received payments for

~~2007-2008~~ 2008-2009 under this section, the amount allocated to

each for ~~2008-2009~~ 2009-2010 shall be based on the number of

participants served by the district or consortium for ~~2008-2009~~

2009-2010, using the amount allocated per full-time equated

participant under subsection ~~(6)~~ (7), up to a maximum total

allocation under this subsection in an amount equal to 93.5% of the

amount the district or consortium received for ~~2007-2008~~ 2008-2009

under this section before any reallocations made for ~~2007-2008~~

2008-2009 under subsection ~~(4)~~ (5).

(b) A district or consortium that received funding in ~~2007-~~

~~2008~~ 2008-2009 under this section may operate independently of a

consortium or join or form a consortium for ~~2008-2009~~ 2009-2010.

The allocation for ~~2008-2009~~ 2009-2010 to the district or the newly

formed consortium under this subsection shall be determined by the

department and shall be based on the proportion of the amounts that

are attributable to the district or consortium that received

funding in ~~2007-2008~~ 2008-2009. A district or consortium described

in this subdivision shall notify the department of its intention

with regard to ~~2008-2009~~ 2009-2010 by October 1, ~~2008~~ 2009.

place under the local government fiscal responsibility act, 1990 PA

72, MCL 141.1201 to 141.1291, and that declaration was revoked

during 2005, the district may operate a program under this section

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

operate a program under this section. The allocation for ~~2008-2009~~

2009-2010 to the district or the newly formed consortium under this

subsection shall be determined by the department and shall be based

on the proportion of the amounts that are attributable to the

district or consortium that received funding in ~~2007-2008~~ 2008-2009

or, for a district for which a declaration of financial emergency

was revoked during 2005, based on the amount the district received

under this section using a 3-year average of the 3 most recent

fiscal years the district received funding under this section. A

district or consortium described in this subdivision shall notify

the department of its intention with regard to ~~2008-2009~~ 2009-2010

by October 1, ~~2008~~ 2009.

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

~~2007-2008~~ 2008-2009 and does not intend to operate a program in

~~2008-2009~~ 2009-2010 shall notify the department by October 1, ~~2008~~

2009 of its intention. The ~~funds~~ money intended to be allocated

under this section to a district that does not operate a program in

~~2008-2009~~ 2009-2010 and the unspent ~~funds~~ money originally

allocated under this section to a district or consortium that

subsequently operates a program at less than the level of funding

allocated under subsection ~~(3)~~ (4) and any other unallocated money

under this section shall instead be proportionately reallocated to

the other districts described in subsection ~~(3)(a)~~ (4)(a) that are

operating an adult education program in ~~2008-2009~~ 2009-2010 under

this section.

(6) ~~(5)~~ From the amount allocated under subsection (1), up to

a maximum of $200,000.00 shall be allocated for not more than 1

grant not to exceed $200,000.00 for expansion of an existing

innovative community college program that focuses on educating

adults. Grants may be used for program operating expenses such as

staffing, rent, equipment, and other expenses. To be eligible for

this grant funding, a program must meet the following criteria:

(a) Collaborates with local districts and businesses to

determine area academic needs and to promote the learning

opportunities.

(b) Is located off-campus in an urban residential setting with

documented high poverty and low high school graduation rates.

preparation courses and workshops.

(d) Provides developmental courses taught by college faculty

that prepare students to be successful in college-level courses.

(e) Uses learning communities to allow for shared, rather than

isolated, learning experiences.

(f) Provides on-site tutoring.

(g) Provides access to up-to-date technology, including

personal computers.

(h) Partners with a financial institution to provide financial

literacy education.

(i) Assists students in gaining access to financial aid.

(j) Provides on-site academic advising to students.

(k) Provides vouchers for reduced G.E.D. testing costs.

(l) Partners with local agencies to provide referrals for

social services as needed.

(m) Enrolls participants as students of the community college.

(n) Partners with philanthropic and business entities to

provide capital funding.

(7) ~~(6)~~ The amount allocated under this section per full-time

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

shall be proportionately reduced for a program offering less than

450 hours of instruction.

(8) ~~(7)~~ An adult basic education program or an adult English

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

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

following:

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

~~appropriate~~ a department-approved assessment, in a form and manner

prescribed by the department, to be below ninth grade level in

reading or mathematics, or both, or to lack basic English

proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and ~~tests participants to~~

~~determine progress after every 90 hours of attendance, using~~

~~assessment instruments approved by the department of labor and~~

~~economic growth~~ upon completion of the program in compliance with

the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

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

assessed at or above the ninth grade level.

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

assessments after having completed at least 450 hours of

instruction.

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

as a second language program is eligible for funding according to

subsection ~~(11)~~ (12) until the participant meets 1 of the

following:

(i) The participant is assessed as having attained basic

English proficiency as ~~defined by the department~~ determined by a

department-approved assessment.

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

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(9) ~~(8)~~ A general educational development (G.E.D.) test

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

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

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

diploma.

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

the department before enrolling an individual to determine the

individual's potential for success on the G.E.D. test, and shall

administer ~~other tests after every 90 hours of attendance to~~

~~determine a participant's readiness to take the G.E.D. test~~ a post-

test upon completion of the program in compliance with the state-

approved assessment policy.

subsection ~~(11)~~ (12) for a participant, and a participant may be

enrolled in the program until 1 of the following occurs:

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

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

~~tests~~ department-approved assessments used to determine readiness

to take the G.E.D. test after having completed at least 450 hours

of instruction.

(10) ~~(9)~~ A high school completion program operated on a year-

round or school year basis may be funded under this section,

subject to all of the following:

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

diploma.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

subsection ~~(11)~~ (12) for a participant in a course offered under

this subsection until 1 of the following occurs:

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

diploma.

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

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

(11) ~~(10)~~ A job or employment-related adult education program

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

this section, subject to all of the following:

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

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

determined to be in need of remedial mathematics or communication

arts skills and are not attending an institution of higher

education.

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

grant recipient shall receive funding according to subsection ~~(11)~~

(12) until 1 of the following occurs:

(i) The individual achieves the requisite skills as determined

by ~~appropriate~~ department-approved assessment instruments

administered at least after every 90 hours of attendance.

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

assessments after having completed at least 450 hours of

instruction. The department shall provide information to a funding

recipient regarding appropriate assessment instruments for this

program.

(12) ~~(11)~~ A funding recipient shall receive payments under

this section in accordance with the following:

(a) Ninety percent for enrollment of eligible participants.

(b) Ten percent for completion of the adult basic education

objectives by achieving an increase of at least 1 grade level of

proficiency in reading or mathematics; for achieving basic English

proficiency, as defined by the department in the adult education

guidebook; for obtaining a G.E.D. or passage of 1 or more

individual G.E.D. tests; for attainment of a high school diploma or

passage of a course required for a participant to attain a high

school diploma; or for completion of the course and demonstrated

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

applicable.

(13) ~~(12)~~ As used in this section, "participant" means the sum

of the number of full-time equated individuals enrolled in and

attending a department-approved adult education program under this

section, using quarterly participant count days on the schedule

described in section 6(7)(b).

(14) ~~(13)~~ A person who is not eligible to be a participant

funded under this section may receive adult education services upon

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

to be served in a program under this section due to the program

limitations specified in subsection ~~(7), (8), (9), or (10)~~ (8),

(9), (10), or (11) may continue to receive adult education services

in that program upon the payment of tuition. The tuition level

shall be determined by the local or intermediate district

conducting the program.

(15) ~~(14)~~ An individual who is an inmate in a state

correctional facility shall not be counted as a participant under

this section. ~~However, from the amount allocated under subsection~~

~~(1), up to a maximum of $500,000.00 shall be made available as~~

~~competitive grants to districts that enroll adults who do not have~~

~~a high school diploma or G.E.D. and who are incarcerated in a state~~

~~correctional facility in general education development (G.E.D.)~~

~~test preparation courses and workshops or high school completion~~

~~programs. Districts applying for grants under this subsection shall~~

~~do so in a form and manner determined by the department. Districts~~

~~receiving funding under this subsection shall provide G.E.D. and~~

~~high school diploma programs substantially similar to those~~

~~programs as described in this section and shall receive $2,850.00~~

~~per participant enrolled in the programs.~~

(16) ~~(15)~~ A district shall not commingle money received under

this section or from another source for adult education purposes

with any other funds of the district. A district receiving adult

education funds shall establish a separate ledger account for those

funds. This subsection does not prohibit a district from using

general funds of the district to support an adult education or

community education program.

(17) ~~(16)~~ A district or intermediate district receiving funds

under this section may establish a sliding scale of tuition rates

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

intermediate district may charge a participant tuition to receive

adult education services under this section from that sliding scale

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

per participant shall not exceed the actual operating cost per

participant minus any funds received under this section per

participant. A district or intermediate district may not charge a

participant tuition under this section if the participant's income

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

the United States department of health and human services.

(18) ~~(17)~~ In order to receive funds under this section, a

district shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department.

(19) ~~(18)~~ All intermediate district participant audits of

adult education programs shall be performed pursuant to the adult

education participant auditing and accounting manuals published by

the department.

(20) ~~(19)~~ As used in this section, "department" means the

department of energy, labor, and economic growth.

(21) Not later than October 30, 2009, the department shall

create an adult learning planning group. The adult education

advisory board in the department shall work with the state adult

education division to identify members for the adult learning

planning group. Members of the adult learning planning group should

include a balance of rural, urban, and suburban community adult

education program directors throughout the state and advocacy

leaders for adult education, English as a second language, and

adult literacy.

(22) Not later than December 30, 2009, the adult learning

planning group shall do all of the following:

(a) Evaluate the provisions of this section and make

recommendations for updating this section to address the increased

demand for adult education, particularly in underserved areas of

this state, and the need to align adult education with entry-level

requirements for postsecondary education, training, and employment.

(b) Develop program entry and exit requirements to facilitate

participant transition from an adult education program to

employment or a postsecondary education program.

considered under subdivisions (a) and (b) to the department, the

senate and house appropriations subcommittees responsible for this

act, and the senate and house fiscal agencies.

(23) Not later than February 1, 2010, the adult learning

planning group shall do all of the following:

(a) Assess and recommend a comprehensive statewide delivery

system that ensures that all areas of this state are adequately

served. The adult learning planning group shall give consideration

to using intermediate districts or countywide agencies as fiscal

agents to lessen the administrative burden on smaller programs and

service areas and to foster partnerships for creating seamless

transitions between educational levels of attainment, career

preparation, and employment in newly designated service areas. The

adult learning planning group shall obtain local community input

from adult education and training stakeholders, including adult

educators and adult learners, and shall combine that input with

current enrollment, employment, and other relevant data in

developing recommendations, including recommendations concerning

fiscal agents and service delivery locations.

(b) Evaluate the grant recipients in the no worker left behind

program created under 2008 PA 251 to identify lessons learned and

promising practices for consideration in recommendations.

services using flexible year-round scheduling and distance

learning.

(d) Evaluate issues related to staffing of adult education

programs.

(e) Evaluate modes of education delivery for adult learners

and identify current research-based best instructional practices.

(f) Evaluate current assessment tools and the need for ongoing

program evaluation using established performance measures.

(g) Submit its recommendations concerning the matters

considered under subdivisions (a) to (f) to the department, the

senate and house appropriations subcommittees responsible for this

act, and the senate and house fiscal agencies.

Sec. 147. The allocation for ~~2008-2009~~ 2009-2010 for the

public school employees' retirement system pursuant to the public

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

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

method and risk assumptions adopted by the public school employees

retirement board and the department of management and budget. The

annual level percentage of payroll contribution rate is estimated

at ~~16.54%~~ 16.94% for the ~~2008-2009~~ 2009-2010 state fiscal year. The

portion of the contribution rate assigned to districts and

intermediate districts for each fiscal year is all of the total

percentage points. This contribution rate reflects an amortization

period of 29 28 years for ~~2008-2009~~ 2009-2010. The public school

employees' retirement system board shall notify each district and

intermediate district by February 28 of each fiscal year of the

estimated contribution rate for the next fiscal year.

Sec. 164c. A district or intermediate district shall not use

funds appropriated under this act to purchase foreign goods or

services, or both, if American goods or services, or both, are

available and are competitively priced and of comparable quality.

Preference ~~should~~ shall be given to goods or services, or both,

manufactured or provided by Michigan businesses if they are

competitively priced and of comparable quality. In addition,

preference ~~shall~~ should be given to goods or services, or both,

that are manufactured or provided by Michigan businesses owned and

operated by veterans, if they are competitively priced and of

comparable quality.

Enacting section 1. In accordance with section 30 of article I

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

amendatory act from state sources for fiscal year 2009-2010 is

estimated at $10,825,754,100.00 and state appropriations to be paid

to local units of government for fiscal year 2009-2010 are

estimated at $10,718,801,700.00.

Enacting section 2. Sections 11n, 37, 38, 54a, 54c, 99a, 99e,

99j, 99k, 99n, and 104a of the state school aid act of 1979, 1979

PA 94, MCL 388.1611n, 388.1637, 388.1638, 388.1654a, 388.1654c,

388.1699a, 388.1699e, 388.1699j, 388.1699k, 388.1699n, and

388.1704a, are repealed effective October 1, 2009.

Enacting section 3. This amendatory act takes effect October

1, 2009.