HB-4445, As Passed House, February 23, 2012

HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4445

     A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 11, 11m, 22a, 22b, 24a, 24c, 26b, 51a, 51c,

74, 94a, and 104 (MCL 388.1606, 388.1611, 388.1611m, 388.1622a,

388.1622b, 388.1624a, 388.1624c, 388.1626b, 388.1651a, 388.1651c,

388.1674, 388.1694a, and 388.1704), sections 6, 24a, 24c, 26b, 74,

94a, and 104 as amended by 2011 PA 62 and sections 11, 11m, 22a,

22b, 51a, and 51c as amended by 2011 PA 299, and by adding sections

11q, 22h, and 32g.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

district or by an 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

article, means for a district, public school academy, university

school, or intermediate district the sum of the product of .90

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 .10 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. For the purposes of this section and

section 6a, for a school of excellence that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, a pupil's participation in the cyber school's educational

program is considered regular daily attendance. The amount of the

foundation allowance for a pupil in membership is determined under

section 20. In making the calculation of membership, all of the

following, as applicable, apply to determining the membership of a

district, public school academy, university school, or intermediate

district:

     (a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An individual pupil

shall not be counted for more than a total of 1.0 full-time equated

membership.

     (b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

     (c) A special education pupil educated by the intermediate

district shall be counted in membership in the intermediate

district.

     (d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

     (e) A pupil enrolled in the Michigan schools for the deaf and

blind shall be counted in membership in the pupil's intermediate

district of residence.

     (f) A pupil enrolled in a career and technical 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 as follows:

     (i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year shall be counted in membership.

     (ii) A pupil who is determined by the department to meet all of

the following may be counted in membership:

     (A) Is enrolled in a public school academy or an alternative

education high school diploma program, that is primarily focused on

educating homeless pupils and that is located in a city with a

population of more than 500,000.

     (B) Had dropped out of school for more than 1 year and has re-

entered school.

     (C) Is less than 22 years of age as of September 1 of the

current school year.

     (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 unless the individual is a student with a

disability as defined in R 340.1702 of the Michigan administrative

code. 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

workforce development agency, or participating in any successor of

either of those 2 programs, shall not be counted in membership.

     (n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil shall be counted

in membership only in the public school academy unless a written

agreement signed by all parties designates the party or parties in

which the pupil shall be counted in membership, and the

instructional time scheduled for the pupil in the district or

intermediate district shall be included in the full-time equated

membership determination under subdivision (q). However, for pupils

receiving instruction in both a public school academy and in a

district or intermediate district but not as a part of a

cooperative education program, the following apply:

     (i) If the public school academy provides instruction for at

least 1/2 of the class hours specified in subdivision (q), the

public school academy shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy provides divided by the number of hours specified in

subdivision (q) for full-time equivalency, and the remainder of the

full-time membership for each of those pupils shall be allocated to

the district or intermediate district providing the remainder of

the hours of instruction.

     (ii) If the public school academy provides instruction for less

than 1/2 of the class hours specified in subdivision (q), the

district or intermediate district providing the remainder of the

hours of instruction shall receive as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours specified in subdivision (q) for full-time equivalency, and

the remainder of the full-time membership for each of those pupils

shall be allocated to the public school academy.

     (o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

     (p) The department shall give a uniform interpretation of

full-time and part-time memberships.

     (q) The number of class hours used to calculate full-time

equated memberships shall be consistent with section 101(3). In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

considered to be less than a full-time equated pupil solely because

of the effect of his or her postsecondary enrollment, including

necessary travel time, on the number of class hours provided by the

district to the pupil.

     (r) Full-time equated memberships for pupils in kindergarten

shall be determined by dividing the number of class hours scheduled

and provided per year per kindergarten pupil by a number equal to

1/2 the number used for determining full-time equated memberships

for pupils in grades 1 to 12. However, beginning in 2012-2013,

full-time equated memberships for pupils in kindergarten shall be

determined by dividing the number of class hours scheduled and

provided per year per kindergarten pupil by the same number used

for determining full-time equated memberships for pupils in grades

1 to 12.

     (s) For a district, university school, or public school

academy that has pupils enrolled in a grade level that was not

offered by the district, university school, or public school

academy in the immediately preceding school year, the number of

pupils enrolled in that grade level to be counted in membership is

the average of the number of those pupils enrolled and in regular

daily attendance on the pupil membership count day and the

supplemental count day of the current school year, as determined by

the department. Membership shall be calculated by adding the number

of pupils registered for attendance in that grade level on the

pupil membership count day plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by subsequent department audit,

plus the final audited count from the supplemental count day for

the current school year, and dividing that sum by 2.

     (t) A pupil enrolled in a cooperative education program may be

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

     (u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours specified in subdivision (q) for full-time equivalency. For

the purposes of this subdivision, a district shall be considered to

be providing appropriate instruction if all of the following are

met:

     (i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

     (ii) The district provides instructional materials, resources,

and supplies, except computers, that are comparable to those

otherwise provided in the district's alternative education program.

     (iii) Course content is comparable to that in the district's

alternative education program.

     (iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

     (v) A pupil enrolled in an alternative or disciplinary

education program described in section 25 shall be counted in

membership in the district or public school academy that 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 .90 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 .10 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 early

childhood special education 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, 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.

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

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district.

     (5) "Public school academy" means that term as defined in the

revised school code.

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

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

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

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

following:

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

accordance with section 166b.

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

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

     (c) A pupil enrolled in a public school academy or university

school.

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

district of residence under an intermediate district schools of

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

91 if the intermediate district and its constituent districts have

been exempted from section 105.

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

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

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

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

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

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

the official complaint either indicates that the assault occurred

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

pupils enrolled in the school the pupil would otherwise attend in

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

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

crime to law enforcement officials for the purposes of this

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

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

that conduct. As used in this subdivision:

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

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

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

school premises.

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

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

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

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

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

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

pupil membership count day and before the supplemental count day

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

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

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

     (h) A pupil enrolled in an alternative education program

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

who meets 1 or more of the following:

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

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

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

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

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

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

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

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

education program described in section 25.

     (i) A pupil enrolled in the Michigan virtual high school, for

the pupil's enrollment in the Michigan virtual high school.

     (j) A pupil who is the child of a person who works at the

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. 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 middle college program 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.

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

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

     (o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110.

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

district of residence as a qualifying pupil under section 22h(2).

     However, if a district educates pupils who reside in 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 that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

     (7) "Pupil membership count day" of a district or intermediate

district means:

     (a) Except as provided in subdivision (b), the first Wednesday

in October 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) First Wednesday in October.

     (iii) Second Wednesday in February.

     (iv) Fourth Wednesday in April.

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

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

receiving instruction in all classes for which they are enrolled on

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

applicable. Except as otherwise provided in this subsection, a

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

enrolled on the pupil membership count day or supplemental count

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

consecutive school days immediately following the pupil membership

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

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

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

pupil membership count day or supplemental count day and who fails

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

30 calendar days after the pupil membership count day or

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

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

attendance in a district, intermediate district, or public school

academy before the pupil membership count day or supplemental count

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

membership count day or supplemental count day shall only be

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

attendance in the district, intermediate district, or public school

academy within 45 days after the pupil membership count day or

supplemental count day of that particular year. Pupils not counted

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

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

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

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

qualified substitute teacher are together and instruction is taking

place.

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

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

24.328.

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

380.1852.

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

district", and "district of the first class" mean 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 (o). 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, electronic book, or other

instructional print or electronic resource 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

article.

     (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) Subject to subsection (3), for the fiscal year

ending September 30, 2011, there is appropriated for the public

schools of this state and certain other state purposes relating to

education the sum of $10,784,760,500.00 from the state school aid

fund and the sum of $18,642,400.00 from the general fund. For the

fiscal year ending September 30, 2011, there is also appropriated

the remaining balance of the federal funding awarded to this state

under title XIV of the American recovery and reinvestment act of

2009, Public Law 111-5, estimated at $184,256,600.00, to be used

solely for the purpose of funding the primary funding formula

calculated under section 20, in accordance with federal law.

Subject to subsection (3), for the fiscal year ending September 30,

2012, there is appropriated for the public schools of this state

and certain other state purposes relating to education the sum of

$10,887,098,700.00 $10,967,333,600.00 from the state school aid

fund and the sum of $118,642,400.00 from the general fund. In

addition, all other available federal funds, except those otherwise

appropriated under section 11p, are appropriated for the fiscal

year ending September 30, 2011 and for the fiscal year ending

September 30, 2012.

     (2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

from the general fund shall be expended to fund the purposes of

this article before the expenditure of money appropriated under

this section from the state school aid fund.

     (3) Any general fund allocations under this article 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 2011-2012, in addition to the appropriations in

section 11, 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 article.

     (8) Effective on the effective date of this subsection, in

addition to any amounts otherwise deposited into the school aid

stabilization fund, there is transferred from the state school aid

fund to the school aid stabilization fund an amount equal to

$100,000,000.00.

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

allocated for 2010-2011 an amount not to exceed $6,847,000.00 and

there is allocated for 2011-2012 an amount not to exceed

$20,000,000.00 $8,500,000.00 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. 11q. (1) From the federal funds appropriated under

section 11, there is allocated an amount estimated at $4,700,000.00

for 2011-2012, which represents additional federal education jobs

funding that was redistributed subsequent to the initial award to

this state under section 101 of title I of Public Law 111-226 in

2010-2011. This money is allocated solely for the purposes

identified in that section of federal law as that section was in

effect in 2011.

     (2) Funds under this section shall be allocated based on the

eligible district's or public school academy's relative proportion

of the funding received under former section 11p as that section

was in effect for 2010-2011.

     (3) A recipient of funding under this section shall meet all

eligibility and reporting requirements specified under former

section 11p as that section was in effect for 2010-2011.

     Sec. 22a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $5,831,273,900.00 for 2010-2011

and an amount not to exceed $5,691,000,000.00 $5,769,000,000.00 for

2011-2012 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) Subject to conditions set forth in this subsection, from

the allocation in subsection (1), there is allocated for 2011-2012

only an amount not to exceed $6,000,000.00 for payments to

districts that meet the eligibility requirements under this

subsection, for the reduction in school operating revenues

resulting from a settlement or other disposition of appeals

described in subdivision (a). A payment may only be made under this

subsection if a settlement agreement is signed by all applicable

parties. Payments made under this subsection shall be in accordance

with the settlement agreement. All of the following apply to

payments under this subsection:

     (a) To be eligible for a payment under this subsection, a

district shall be determined by the department and the department

of treasury to meet all of the following:

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

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

     (ii) Before January 1, 2011, the owner of a natural-gas-powered

power plant located in a renaissance zone within the district's

geographic boundaries for 2009 and 2010 appealed to the Michigan

tax tribunal an order of the state tax commission for tax years

2009 and 2010 pursuant to section 154 of the general property tax

act, 1893 PA 206, MCL 211.154, and appealed to the state tax

commission the 2011 classification and valuation of the power

plant.

     (iii) The district received a reduced amount of local school

operating revenue for tax years 2009, 2010, and 2011 as a result of

the exemptions of industrial personal property and commercial

personal property under section 1211 of the revised school code,

MCL 380.1211.

     (iv) A settlement agreement has been signed to resolve the

Michigan tax tribunal appeal described in subparagraph (ii) and a

memorandum of understanding that stipulates terms of the settlement

has been executed by the parties.

     (b) A payment made under this subsection shall be in addition

to renaissance zone reimbursement amounts paid in the 2009-2010 and

2010-2011 state fiscal years under section 26a to districts

eligible for payment under this subsection. The 2009-2010 and 2010-

2011 state fiscal year payments under section 26a to a district

receiving a payment under this subsection shall not be reduced as a

result of the reduction to the district's 2009 and 2010 taxable

value of real property under the appeals described in subdivision

(a)(ii).

(7) (6) As used in this section:

     (a) "1994-95 foundation allowance" means a district's 1994-95

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

in 1993 PA 336 and as amended by 1994 PA 283.

     (b) "Certified mills" means the lesser of 18 mills or the

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

1993-94.

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

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, supportive housing 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", "qualified agricultural property", "qualified

forest property", "supportive housing property", "industrial

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

terms 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, supportive housing property, industrial personal

property, or commercial personal property.

     (i) "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.

     (j) "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.

     (k) "School operating taxes" means local ad valorem property

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

380.1211, and retained for school operating purposes.

     (l) "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.

     (m) "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, supportive

housing 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,

supportive housing 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 state funds appropriated in section 11,

there is allocated for 2010-2011 an amount not to exceed

$3,551,097,700.00 and there is allocated for 2011-2012 an amount

not to exceed $3,032,300,000.00 $3,052,000,000.00 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 $184,256,600.00 for 2010-

2011 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 final state

aid payment of the immediately preceding fiscal year and shall be

expended in a manner prescribed by federal law.

(2) (3) Subject to subsection (4) (3) and section 11, 296, the

allocation to a district under this section shall be an amount

equal to the sum of the amounts calculated under sections 20,

51a(2), 51a(3), and 51a(12), 51a(11), minus the sum of the

allocations to the district under sections 22a and 51c.

(3) (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.

     (c) Furnish data and other information required by state and

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

     (d) Comply with section 1230g of the revised school code, MCL

380.1230g.

(4) (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.

(5) (6) From the allocation in subsection (1), the department

shall pay up to $1,000,000.00 in litigation costs incurred by this

state related to commercial or industrial property tax appeals,

including, but not limited to, appeals of classification, that

impact revenues dedicated to the state school aid fund.

(6) (7) 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) (8) It is the intent of the legislature that all

constitutional obligations of this state have been fully funded

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

an entity receiving funds under this article 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). (2). If funds are

escrowed, the escrowed funds are a work project appropriation and

the funds are carried forward into the following fiscal year. The

purpose of the work project is to provide for any payments that may

be awarded to districts as a result of litigation. The work project

shall be completed upon resolution of the litigation.

(8) (9) 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

(8) (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).(2).

(9) (10) 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) (11) 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) (12) 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. 22h. (1) From the state school aid fund money

appropriated in section 11, there is allocated for 2011-2012 only

an amount not to exceed $4,000,000.00 for distressed district

student transition grants under this section. The department shall

pay these grants to districts that qualify under subsection (2) or

a district or intermediate district that qualifies under subsection

(3). The amount of a distressed district student transition grant

is an amount equal to $4,000.00 per qualifying pupil, adjusted by

the pupil's full-time equated status as affected by the membership

definition under section 6(4).

     (2) A district qualifies for a distressed district student

transition grant under this subsection if the district enrolls 1 or

more qualifying pupils in the district. All of the following apply

to a grant to a district that qualifies under this subsection:

     (a) In order to be eligible for a grant, the district shall

allow enrollment of qualifying pupils in the district beginning by

not later than March 5, 2012.

     (b) The total amount of the district's grant is the per pupil

amount described in subsection (1) multiplied by the number of

full-time equated qualifying pupils who are actually enrolled and

in regular daily attendance in the district in grades K to 12 on

March 22, 2012, as reported to the center for educational

performance and information by not later than May 2, 2012. All

pupil counts used in this subsection are as determined by the

department and calculated by adding the number of pupils registered

for attendance as defined by rules promulgated by the

superintendent, and as corrected by a subsequent department audit.

     (c) The district is not required to have the approval of the

distressed district to enroll a qualifying pupil and receive a

grant for the pupil under this subsection.

     (d) The district offering to enroll qualifying pupils under

this subsection may limit the number of qualifying pupils it

accepts in a grade, school, or program, at its discretion, and may

use that limit as the reason for refusal to enroll a qualifying

pupil.

     (e) A qualifying pupil shall not be granted or refused

enrollment based on intellectual, academic, artistic, or other

ability, talent, or accomplishment, or lack thereof, or based on a

mental or physical disability, except that a district may refuse to

admit a qualifying pupil if the applicant does not meet the same

criteria, other than residence, that an applicant who is a resident

of the district must meet to be accepted for enrollment in a grade

or a specialized, magnet, or intradistrict choice school or program

to which the applicant applies.

     (f) A qualifying pupil shall not be granted or refused

enrollment based on age, except that a district may refuse to admit

a qualifying pupil applying for a program that is not appropriate

for the age of the applicant.

     (g) A qualifying pupil shall not be granted or refused

enrollment based upon religion, race, color, national origin, sex,

height, weight, marital status, or athletic ability, or, generally,

in violation of any state or federal law prohibiting

discrimination.

     (h) A district may refuse to enroll a qualifying pupil if any

of the following are met:

     (i) The qualifying pupil is, or has been within the preceding 2

years, suspended from another school.

     (ii) The qualifying pupil, at any time before enrolling under

this section, has been expelled from another school.

     (iii) The qualifying pupil, at any time before enrolling under

this section, has been convicted of a felony.

     (3) A district or intermediate district qualifies for a

distressed district student transition grant under this subsection

if the district or intermediate district is a party to a memorandum

of agreement with a distressed district that has an emergency

manager appointed for the distressed district under the local

government and school district fiscal accountability act, 2011 PA

4, MCL 141.1501 to 141.1531, and the memorandum of agreement makes

the other district or intermediate district the managing district

for the distressed district and meets the other requirements under

this subsection. All of the following apply to a grant under this

subsection:

     (a) The memorandum of agreement must meet all of the following

requirements:

     (i) Transfers the functions of managing the distressed district

to the managing district and specifies the powers, duties, rights,

obligations, functions, and responsibilities that are transferred

to the managing district and the services to be provided by the

managing district.

     (ii) Ensures payment for the personnel of the distressed

district as necessary for the education of the pupils who are

counted in the distressed district under subdivision (b) for the

remainder of the 2011-2012 school year.

     (iii) Both the identity of the managing district and the content

of the memorandum of agreement are approved by the state treasurer.

     (iv) If the memorandum of agreement makes an intermediate

district the managing district for the distressed district, the

distressed district is located within that intermediate district.

     (b) The total amount of the managing district's grant under

this subsection is the per pupil amount described in subsection (1)

multiplied by the number of full-time equated qualifying pupils who

remain enrolled in the distressed district and who are actually

enrolled and in regular daily attendance in the distressed district

in grades K to 12 on March 22, 2012, as reported by the managing

district to the center for educational performance and information

by not later than May 2, 2012. All pupil counts used in this

subsection are as determined by the department and calculated by

adding the number of pupils registered for attendance as defined by

rules promulgated by the superintendent, and as corrected by a

subsequent department audit.

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

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

the department.

     (5) As used in this section:

     (a) "Distressed district" means a district that meets all of

the following:

     (i) Is located in a county with a population in excess of

800,000 as of the most recent decennial census.

     (ii) Has received a deferred adjustment under section 15(2).

     (iii) Levies a sinking fund tax under section 1212 of the

revised school code, MCL 380.1212, of more than 4.5 mills.

     (b) "Qualifying pupil" means a pupil who was counted in

membership in a distressed district on the 2012 supplemental count

day.

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

allocated an amount not to exceed $1,197,500.00 $2,114,800.00 for

2011-2012 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 $742,300.00 $765,600.00 for 2011-

2012 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. Both of the following apply to a

district receiving payments under this section:

     (a) The district 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.

     (b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

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

allocated for 2011-2012 an amount not to exceed $2,890,000.00

$1,838,000.00 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. 32g. (1) From the general fund money appropriated in

section 11, there is allocated for 2011-2012 only an amount not to

exceed $12,500,000.00 for the purposes described in this section.

     (2) From the money allocated under subsection (1), an amount

not to exceed $3,250,000.00 for 2011-2012 is allocated to the

department for the implementation of a kindergarten entry status

assessment. Funds allocated under this subsection shall be used for

the following purposes:

     (a) Professional development for trainers, schools, and

kindergarten teachers.

     (b) Purchasing the license for the assessment tool and the

online system for entering assessment findings, and other

integration costs with the existing P-20 longitudinal data system.

     (c) Outreach and education for parents and families.

     (d) Project implementation and management.

     (3) From the money allocated under subsection (1), an amount

not to exceed $9,250,000.00 for 2011-2012 is allocated to the

department for the provision of services to early childhood

providers in meeting additional criteria to strive for higher

quality ratings under the office of great start tiered quality

rating and improvement system. Funds allocated under this

subsection shall be used for the following purposes:

     (a) Hiring and training of raters and quality improvement

specialists.

     (b) Alignment of state licensing, Michigan early learning

standards, and the state professional registry.

     (c) Comprehensive assessment of settings across multiple

quality indicators, including early childhood educator

qualifications, quality improvement planning, and support, for at

least 1/3 of early learning settings.

     (d) Purchase of educational rating tools.

     (e) Creation of a data system tracking the supply of high-

quality early learning settings that links high-need children with

quality settings.

     (f) Family and parent education.

     (g) Evaluation.

     (h) Quality improvement funds.

     (4) Not later than June 1, 2013, the department shall report

to the house and senate appropriations subcommittees on state

school aid the status of implementing the kindergarten assessment

tool described under subsection (2) and the efforts to improve

quality ratings of early childhood providers described under

subsection (3). In addition, the department shall report on its

planned activities for statewide implementation and quality

improvement for the next fiscal year.

     (5) The funds allocated under this section are a work project

appropriation, and the funds are carried forward into the following

fiscal year. The purpose of the work project is to continue to

implement and expand the projects described under subsections (2)

and (3). The estimated completion date of the work project is

September 30, 2015.

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

allocated for 2010-2011 an amount not to exceed $909,087,100.00 and

there is allocated for 2011-2012 an amount not to exceed

$977,469,100.00 $954,769,100.00 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 $385,700,000.00 for 2010-2011, and estimated at

$363,400,000.00 for 2011-2012, 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 each fiscal year the amount necessary, estimated at

$233,199,100.00 for 2010-2011 and estimated at $245,500,000.00

$247,000,000.00 for 2011-2012, 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), (11),

times 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, 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), (11), 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.

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

intermediate districts for which the payments calculated 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 2010-2011 only the amount necessary, estimated at

$1,734,000.00 for 2010-2011, to make payments to districts and

intermediate districts under this subsection. From the funds

allocated under subsection (1), there is allocated for 2011-2012 an

amount not to exceed $1,000,000.00 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 each fiscal year for 2010-2011 and

for 2011-2012 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 $1,700,000.00 for 2010-2011 and

an amount not to exceed $2,200,000.00 for 2011-2012 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 sections 51a to 58, 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 article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

     (c) If the department determines before bookclosing for a

fiscal year that the amounts allocated for that fiscal year under

subsections (2), (3), (6), (8), and (12) (11) and sections 53a, 54,

and 56 will exceed expenditures for that fiscal year under

subsections (2), (3), (6), (8), and (12) (11) and sections 53a, 54,

and 56, then for a district or intermediate district whose

reimbursement for that fiscal year 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) (11) 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 2010-2011 only 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.

(8) (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.

(9) (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.

(10) (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.

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

allocated each fiscal year the amount necessary, estimated at

$5,000,000.00 for 2010-2011, and estimated at $6,800,000.00 for

2011-2012, 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 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, 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. This

subsection applies to all of the following pupils:

     (a) Pupils described in section 53a.

     (b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

     (c) Pupils with an emotional impairment counted in membership

by an intermediate district and provided educational services by

the department of community health.

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

subsection (2) or (12) (11) 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)

(11) or under section 51c in order to fully fund those allocations.

After payments under subsections (2) and (12) (11) and section 51c,

the remaining expenditures from the allocation in subsection (1)

shall be made in the following order:

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

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

     (c) 100% of the payment required under section 54.

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

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

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

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

(11) 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.

(14) (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 each fiscal year for 2010-2011 and for 2011-2012 the

amount necessary, estimated at $601,271,000.00 for 2010-2011 and

estimated at $669,900,000.00 $647,500,000.00 for 2011-2012, 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. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed $2,558,800.00 for 2010-2011

and an amount not to exceed $3,154,600.00 $3,233,900.00 for 2011-

2012 for the purposes of this section.

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

for each fiscal year 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 article for nonspecial education

auxiliary services transportation.

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

allocated an amount not to exceed $933,800.00 for 2010-2011 and an

amount not to exceed $1,529,600.00 $1,608,900.00 for 2011-2012 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. 94a. (1) There is created within the state budget office

in the department of technology, 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 districts, intermediate districts, and

postsecondary institutions.

     (b) Create, maintain, and enhance this state's statewide

longitudinal data system and ensure that it meets the requirements

of subsection (4).

     (c) Collect data in the most efficient manner possible in

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

     (d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

     (i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

     (ii) Data access or, if practical, data sets, provided for

regional data warehouses that, in combination with local data, can

improve teaching and learning in the classroom.

     (iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

     (e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

     (f) Provide public 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) Other functions as assigned by the state budget director.

     (2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). 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 center may enter into any interlocal agreements

necessary to fulfill its functions.

     (4) The center shall ensure that the statewide longitudinal

data system required under subsection (1)(b) meets all of the

following:

     (a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

     (b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

     (c) Enables the matching of individual teacher and student

records so that an individual student may be matched with those

teachers providing instruction to that student.

     (d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

     (e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

     (f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

     (g) Provides this state with the ability to meet federal and

state reporting requirements.

     (h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

     (i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

     (ii) Contains student-level enrollment, demographic, and

program participation information.

     (iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

     (iv) Has the capacity to communicate with higher education data

systems.

     (i) For data elements related to preschool through grade 12

only, meets all of the following:

     (i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

     (ii) Contains student-level transcript information, including

information on courses completed and grades earned.

     (iii) Contains student-level college readiness test scores.

     (j) For data elements related to postsecondary education only:

     (i) Contains data that provide information regarding the extent

to which individual students transition successfully from secondary

school to postsecondary education, including, but not limited to,

all of the following:

     (A) Enrollment in remedial coursework.

     (B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

     (ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

     (5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed $5,501,700.00 $5,768,700.00

for 2011-2012 to the department of technology, management, and

budget to support the operations of the center. In addition, from

the federal funds appropriated in section 11 there is allocated for

2011-2012 the amount necessary, estimated at $2,893,200.00, to

support the operations of the center and to establish a

longitudinal data system as provided under this section in

compliance with the assurance provided to the United States

department of education in order to receive state fiscal

stabilization funds. 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.

     (6) From the federal funds allocated in subsection (5), there

is allocated for 2011-2012 an amount not to exceed $850,000.00

funded from the competitive grants of DED-OESE, title II,

educational technology funds for the purposes of this subsection.

Not later than November 30 of each fiscal year, 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.

     (7) From the federal funds allocated in subsection (5), there

is allocated for 2011-2012 an amount not to exceed $242,000.00 to

support the efforts of postsecondary institutions to comply with

the requirements of this state's statewide longitudinal data

system. The funds shall be distributed to postsecondary

institutions in an amount and manner determined by 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 and state restricted 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 and are appropriated for the

purposes for which the funds were originally allocated.

     (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 (5) 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.

     (c) "State education agency" means the department.

     Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for 2011-2012 an amount not to exceed $35,194,400.00

for payments on behalf of districts for costs associated with

complying with those provisions of law. In addition, from the

federal funds appropriated in section 11, there is allocated for

2011-2012 an amount estimated at $8,250,000.00, funded from DED-

OESE, title VI, state assessment funds, DED-OSERS, section 504 of

part B of the individuals with disabilities education act, Public

Law 94-142, plus any carryover federal funds from previous year

appropriations, for the purposes of complying with the federal no

child left behind act of 2001, Public Law 107-110.

     (2) The results of each test administered as part of the

Michigan educational assessment program, including tests

administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response.

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

distributed in accordance with federal law and with flexibility

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

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

     (4) Notwithstanding section 17b, payments on behalf of

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.

(c) (b) "DED-OSERS" means the DED office of special education

and rehabilitative services.

     Enacting section 1. In accordance with section 30 of article

IX of the state constitution of 1963, total state spending on

school aid under article I of the state school aid act of 1979,

1979 PA 94, MCL 388.1601 to 388.1772, in this amendatory act, in

2011 PA 299, and in 2011 PA 62 from state sources for fiscal year

2011-2012 is estimated at $11,085,976,000.00 and state

appropriations to be paid to local units of government for fiscal

year 2011-2012 are estimated at $10,963,019,500.00.