April 13, 2010, Introduced by Rep. Bledsoe and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11 and 11a (MCL 388.1611 and 388.1611a),
section 11 as amended by 2009 PA 203 and section 11a as amended by
2009 PA 121.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2010,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$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 $31,800,000.00 from the general fund. For the fiscal year
ending September 30, 2010, there is also appropriated the sum of
$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, any money received by
this state from the federal incentive grant program created under
sections 14005 and 14006 of title XIV of the American recovery and
reinvestment act of 2009, Public Law 111-5, known as the "race to
the top" grant program, and all other available federal funds are
appropriated for the fiscal year ending September 30, 2010.
(2) Beginning with the appropriations process for the 2010-
2011 fiscal year, all of the following apply to appropriations
under this act:
(a) In addition to the economic forecasts required under
section 367b of the management and budget act, 1984 PA 431, MCL
18.1367b, each consensus revenue estimating conference shall
forecast revenues available to the state school aid fund for the
next 2 fiscal years after the date of the conference.
(b) Based on the revenue forecasts under subdivision (a), the
legislature shall appropriate money from the state school aid fund
for the purposes of this act as follows:
(i) During the appropriations process for the 2010-2011 fiscal
year, the legislature shall appropriate money from the state school
aid fund for both the 2010-2011 fiscal year and the 2011-2012
fiscal year.
(ii) During the appropriations process for the 2011-2012 fiscal
year, the legislature shall appropriate money from the state school
aid fund for the 2012-2013 fiscal year. During the appropriations
process for each subsequent fiscal year, the legislature shall
appropriate money from the state school aid fund for the fiscal
year that begins on the October 1 of the year after that
appropriations process.
(c) In each bill making appropriations for this act for a
fiscal year, the legislature shall appropriate the entire amount of
the revenue that was forecast to be available to the state school
aid fund for that fiscal year under subdivision (a) at the May
revenue estimating conference that occurs during that year's
appropriations process.
(d) If the amount appropriated under this section from the
state school aid fund and the school aid stabilization fund created
in section 11a for a fiscal year exceeds the amount available for
expenditure from the state school aid fund for a fiscal year, the
amount of the difference between the amount appropriated from those
sources and the amount available for expenditure from the state
school aid fund is automatically appropriated from the general fund
for the purposes of this act.
(e) If the 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) (2)
The appropriations under this
section shall be
allocated as provided in this act. Money appropriated under this
section from the general fund shall be expended to fund the
purposes of this act before the expenditure of money appropriated
under
this section from the state school aid fund. If the maximum
amount
appropriated under this section from the state school aid
fund
for a fiscal year exceeds the amount necessary to fully fund
allocations
under this act from the state school aid fund, that
excess
amount shall not be expended in that state fiscal year and
shall
not lapse to the general fund, but instead shall be deposited
into
the school aid stabilization fund created in section 11a.
(3)
If the maximum amount appropriated under this section from
the
state school aid fund and the school aid stabilization fund for
a
fiscal year exceeds the amount available for expenditure from the
state
school aid fund for that fiscal year, payments under sections
11f,
11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
and
56 shall be made in full. In addition, for districts beginning
operations
after 1994-95 that qualify for payments under section
22b,
payments under section 22b shall be made so that the
qualifying
districts receive the lesser of an amount equal to the
1994-95
foundation allowance of the district in which the district
beginning
operations after 1994-95 is located or $5,500.00. The
amount
of the payment to be made under section 22b for these
qualifying
districts shall be as calculated under section 22a, with
the
balance of the payment under section 22b being subject to the
proration
otherwise provided under this subsection and subsection
(4).
If proration is necessary, state payments under each of the
other
sections of this act from all state funding sources shall be
prorated
in the manner prescribed in subsection (4) as necessary to
reflect
the amount available for expenditure from the state school
aid
fund for the affected fiscal year. However, if the department
of
treasury determines that proration will be required under this
subsection,
or if the department of treasury determines that
further
proration is required under this subsection after an
initial
proration has already been made for a fiscal year, the
department
of treasury shall notify the state budget director, and
the
state budget director shall notify the legislature at least 30
calendar
days or 6 legislative session days, whichever is more,
before
the department reduces any payments under this act because
of
the proration. During the 30 calendar day or 6 legislative
session
day period after that notification by the state budget
director,
the department shall not reduce any payments under this
act
because of proration under this subsection. The legislature may
prevent
proration from occurring by, within the 30 calendar day or
6
legislative session day period after that notification by the
state
budget director, enacting legislation appropriating
additional
funds from the general fund, countercyclical budget and
economic
stabilization fund, state school aid fund balance, or
another
source to fund the amount of the projected shortfall.
(4)
If proration is necessary under subsection (3), the
department
shall calculate the proration in district and
intermediate
district payments that is required under subsection
(3)
as follows:
(a)
The department shall calculate the percentage of total
state
school aid allocated under this act for the affected fiscal
year
for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate
districts.
(b)
The department shall recover a percentage of the proration
amount
required under subsection (3) that is equal to the
percentage
calculated under subdivision (a)(i) for districts by
reducing
payments to districts. This reduction shall be made by
calculating
an equal dollar amount per pupil as necessary to
recover
this percentage of the proration amount and reducing each
district's
total state school aid from state sources, other than
payments
under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2),
51a(12), 51c, and 53a, by that amount.
(c)
The department shall recover a percentage of the proration
amount
required under subsection (3) that is equal to the
percentage
calculated under subdivision (a)(ii) for intermediate
districts
by reducing payments to intermediate districts. This
reduction
shall be made by reducing the payments to each
intermediate
district, other than payments under sections 11f, 11g,
26a,
26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d)
The department shall recover a percentage of the proration
amount
required under subsection (3) that is equal to the
percentage
calculated under subdivision (a)(iii) for entities other
than
districts and intermediate districts by reducing payments to
these
entities. This reduction shall be made by reducing the
payments
to each of these entities, other than payments under
sections
11j, 26a, and 26b, on an equal percentage basis.
(4) (5)
Except for the allocation under
section 26a, any
general fund allocations under this act that are not expended by
the end of the state fiscal year are transferred to the school aid
stabilization fund created under section 11a.
Sec. 11a. (1) The school aid stabilization fund is created as
a separate account within the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school aid stabilization fund. The
state treasurer shall deposit into the school aid stabilization
fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of
the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid
stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school
aid stabilization fund. Money in the school aid stabilization fund
shall be expended only for purposes for which state school aid fund
money may be expended.
(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to
the school aid stabilization fund interest and earnings from fund
investments.
(5) Money in the school aid stabilization fund at the close of
a fiscal year shall remain in the school aid stabilization fund and
shall not lapse to the unreserved school aid fund balance or the
general fund.
(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount
available for expenditure from the state school aid fund for that
fiscal year, there is appropriated from the school aid
stabilization fund to the state school aid fund an amount equal to
the projected shortfall as determined by the department of
treasury, but not to exceed available money in the school aid
stabilization
fund. If the money in the school aid stabilization
fund
is insufficient to fully fund an amount equal to the projected
shortfall,
the state budget director shall notify the legislature
as
required under section 11(3) and state payments in an amount
equal
to the remainder of the projected shortfall shall be prorated
in
the manner provided under section 11(4).
(7) For 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.