March 15, 2011, Introduced by Rep. Moss and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 11m, 22a, 22b, 51a, 51c, and 74 (MCL
388.1611, 388.1611m, 388.1622a, 388.1622b, 388.1651a, 388.1651c,
and 388.1674), sections 11, 11m, 22a, and 51a as amended by 2010 PA
217 and sections 22b, 51c, and 74 as amended by 2010 PA 110.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) Subject to subsection (5), 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 $10,937,260,500.00 $10,757,260,500.00
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. In addition, all other available federal funds,
except those otherwise appropriated under section 11p, are
appropriated for the fiscal year ending September 30, 2011.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization
fund created in section 11a. For 2009-2010 only, if
the
department determines before bookclosing for the 2009-2010
state
fiscal year that the maximum amount appropriated under this
section
from the state school aid fund for 2009-2010 exceeds the
amount
necessary to fully fund allocations under this act from the
state
school aid fund for 2009-2010 and that state support for
elementary
and secondary education for 2009-2010 will fall below
the
level of support needed to comply with the maintenance of
effort
provisions under title XIV of the American recovery and
reinvestment
act of 2009, Public Law 111-5, then there is
appropriated
for 2009-2010 from the school aid stabilization fund
an
amount equal to $30,000,000.00 or the amount that the department
determines
is necessary for the state support for elementary and
secondary
education to meet the level of support needed to comply
with
the maintenance of effort provisions under title XIV of the
American
recovery and reinvestment act of 2009, Public Law 111-5,
whichever
is greater. The department shall use any funds
appropriated
under this subsection as follows:
(a)
First, to allocate $10,000,000.00 to provide funding to
each
intermediate district in an amount equal to the product of
14.75%
multiplied by the amount of funding allocated to that
intermediate
district under section 81 for 2009-2010 under 2010 PA
110.
(b)
Second, to allocate the amount necessary, estimated at
$10,000,000.00,
to provide funding under this subdivision to
districts
for which the amount of per-pupil funding calculated and
allocated
under section 11p(2) is less than $154.00. The payment to
a
district under this subdivision is an amount equal to the
difference
between $154.00 and the per-pupil funding amount
calculated
and allocated under section 11p(2) for the district,
multiplied
by the district's 2010-2011 membership used for the
October
2010 payment.
(c)
Third, to allocate any remaining funds to reduce the
amount
of the per-pupil reduction under section 11d(1) for 2009-
2010.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
56, and 152a shall be made in full. In addition, for districts
beginning operations after 1994-95 that qualify for payments under
section 22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, 53a, and 152a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal
percentage basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Any general fund allocations under this act that are not
expended by the end of the state fiscal year are transferred to the
school aid stabilization fund created under section 11a.
Sec. 11m. From the appropriations in section 11, there is
allocated
for 2009-2010 an amount not to exceed $12,000,000.00 and
for
2010-2011 there is allocated an amount not to exceed
$45,000,000.00
$15,000,000.00 for fiscal year cash-flow borrowing
costs solely related to the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,796,241,000.00 for 2009-2010
and
an amount not to exceed $5,764,000,000.00
$5,737,000,000.00 for
2010-2011 for payments to districts, qualifying university schools,
and qualifying public school academies to guarantee each district,
qualifying university school, and qualifying public school academy
an amount equal to its 1994-95 total state and local per pupil
revenue for school operating purposes under section 11 of article
IX of the state constitution of 1963. Pursuant to section 11 of
article IX of the state constitution of 1963, this guarantee does
not apply to a district in a year in which the district levies a
millage rate for school district operating purposes less than it
levied in 1994. However, subsection (2) applies to calculating the
payments under this section. Funds allocated under this section
that are not expended in the state fiscal year for which they were
allocated, as determined by the department, may be used to
supplement the allocations under sections 22b and 51c in order to
fully fund those calculated allocations for the same fiscal year.
(2) To ensure that a district receives an amount equal to the
district's 1994-95 total state and local per pupil revenue for
school operating purposes, there is allocated to each district a
state portion of the district's 1994-95 foundation allowance in an
amount calculated as follows:
(a) Except as otherwise provided in this subsection, the state
portion of a district's 1994-95 foundation allowance is an amount
equal to the district's 1994-95 foundation allowance or $6,500.00,
whichever is less, minus the difference between the sum of the
product of the taxable value per membership pupil of all property
in the district that is nonexempt property times the district's
certified mills and, for a district with certified mills exceeding
12, the product of the taxable value per membership pupil of
property in the district that is commercial personal property times
the certified mills minus 12 mills and the quotient of the ad
valorem property tax revenue of the district captured under tax
increment financing acts divided by the district's membership. For
a district that has a millage reduction required under section 31
of article IX of the state constitution of 1963, the state portion
of the district's foundation allowance shall be calculated as if
that reduction did not occur.
(b) For a district that had a 1994-95 foundation allowance
greater than $6,500.00, the state payment under this subsection
shall be the sum of the amount calculated under subdivision (a)
plus the amount calculated under this subdivision. The amount
calculated under this subdivision shall be equal to the difference
between the district's 1994-95 foundation allowance minus $6,500.00
and the current year hold harmless school operating taxes per
pupil. If the result of the calculation under subdivision (a) is
negative, the negative amount shall be an offset against any state
payment calculated under this subdivision. If the result of a
calculation under this subdivision is negative, there shall not be
a state payment or a deduction under this subdivision. The taxable
values per membership pupil used in the calculations under this
subdivision are as adjusted by ad valorem property tax revenue
captured under tax increment financing acts divided by the
district's membership.
(3) Beginning in 2003-2004, for pupils in membership in a
qualifying public school academy or qualifying university school,
there is allocated under this section to the authorizing body that
is the fiscal agent for the qualifying public school academy for
forwarding to the qualifying public school academy, or to the board
of the public university operating the qualifying university
school, an amount equal to the 1994-95 per pupil payment to the
qualifying public school academy or qualifying university school
under section 20.
(4) A district, qualifying university school, or qualifying
public school academy may use funds allocated under this section in
conjunction with any federal funds for which the district,
qualifying university school, or qualifying public school academy
otherwise would be eligible.
(5) For a district that is formed or reconfigured after June
1, 2000 by consolidation of 2 or more districts or by annexation,
the resulting district's 1994-95 foundation allowance under this
section beginning after the effective date of the consolidation or
annexation shall be the average of the 1994-95 foundation
allowances of each of the original or affected districts,
calculated as provided in this section, weighted as to the
percentage of pupils in total membership in the resulting district
in the state fiscal year in which the consolidation takes place who
reside in the geographic area of each of the original districts. If
an affected district's 1994-95 foundation allowance is less than
the 1994-95 basic foundation allowance, the amount of that
district's 1994-95 foundation allowance shall be considered for the
purpose of calculations under this subsection to be equal to the
amount of the 1994-95 basic foundation allowance.
(6) As used in this section:
(a) "1994-95 foundation allowance" means a district's 1994-95
foundation allowance calculated and certified by the department of
treasury or the superintendent under former section 20a as enacted
in 1993 PA 336 and as amended by 1994 PA 283.
(b) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(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 2009-2010 an amount not to exceed
$3,289,000,000.00
and there is allocated for
2010-2011 an amount
not
to exceed $3,573,500,000.00 $3,558,424,700.00
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 $450,000,000.00 for 2009-
2010
and 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.
(3) Subject to subsection (4) and section 11, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 20j, 51a(2),
51a(3), and 51a(12), minus the sum of the allocations to the
district under sections 22a and 51c.
(4) In order to receive an allocation under subsection (1),
each district shall do all of the following:
(a) Administer in each grade level that it operates in grades
1 to 5 a standardized assessment approved by the department of
grade-appropriate basic educational skills. A district may use the
Michigan literacy progress profile to satisfy this requirement for
grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(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.
(5) Districts are encouraged to use funds allocated under this
section for the purchase and support of payroll, human resources,
and other business function software that is compatible with that
of the intermediate district in which the district is located and
with other districts located within that intermediate district.
(6) From the allocation in subsection (1), the department
shall pay up to $1,000,000.00 in litigation costs incurred by this
state 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.
(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.
(8) It is the intent of the legislature that all
constitutional obligations of this state have been fully funded
under sections 22a, 31d, 51a, and 51c. If a claim is made by an
entity receiving funds under this act that challenges the
legislative determination of the adequacy of this funding or
alleges that there exists an unfunded constitutional requirement,
the state budget director may escrow or allocate from the
discretionary funds for nonmandated payments under this section the
amount as may be necessary to satisfy the claim before making any
payments to districts under subsection (3). If funds are escrowed,
the escrowed funds are a work project appropriation and the funds
are carried forward into the following fiscal year. The purpose of
the work project is to provide for any payments that may be awarded
to districts as a result of litigation. The work project shall be
completed upon resolution of the litigation.
(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) 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).
(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.
(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.
(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.
51a. (1) From the appropriation in section 11, there is
allocated
for 2009-2010 an amount not to exceed $1,016,342,000.00
and
there is allocated for 2010-2011 an
amount not to exceed
$1,057,883,000.00
$947,683,000.00 from state sources and all
available federal funding under sections 611 to 619 of part B of
the individuals with disabilities education act, 20 USC 1411 to
1419,
estimated at $350,700,000.00 for 2009-2010 and estimated at
$385,700,000.00 for 2010-2011, 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 for
2010-2011 the amount necessary,
estimated
at $234,780,000.00 for 2009-2010 and estimated
at
$248,200,000.00
for 2010-2011, $236,300,000.00,
for payments toward
reimbursing districts and intermediate districts for 28.6138% of
total approved costs of special education, excluding costs
reimbursed under section 53a, and 70.4165% of total approved costs
of special education transportation. Allocations under this
subsection shall be made as follows:
(a) The initial amount allocated to a district under this
subsection toward fulfilling the specified percentages shall be
calculated by multiplying the district's special education pupil
membership, excluding pupils described in subsection (12), times
the sum of the foundation allowance under section 20 of the pupil's
district of residence plus the amount of the district's per pupil
allocation under section 20j(2), not to exceed the basic foundation
allowance under section 20 for the current fiscal year, or, for a
special education pupil in membership in a district that is a
public school academy or university school, times an amount equal
to the amount per membership pupil calculated under section 20(6).
For an intermediate district, the amount allocated under this
subdivision toward fulfilling the specified percentages shall be an
amount per special education membership pupil, excluding pupils
described in subsection (12), and shall be calculated in the same
manner as for a district, using the foundation allowance under
section 20 of the pupil's district of residence, not to exceed the
basic foundation allowance under section 20 for the current fiscal
year, and that district's per pupil allocation under section
20j(2).
(b) After the allocations under subdivision (a), districts and
intermediate districts for which the payments 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
each fiscal year for 2009-2010 and for 2010-2011 the
amount
necessary, estimated at $1,329,000.00 for 2009-2010 and
estimated
at $1,400,000.00, for
2010-2011, 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 2009-2010 and
for 2010-2011 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 $1,750,000.00 for 2009-2010 and
an amount not to exceed $2,200,000.00 for 2010-2011 to reimburse
100% of the net increase in necessary costs incurred by a district
or intermediate district in implementing the revisions in the
administrative rules for special education that became effective on
July 1, 1987. As used in this subsection, "net increase in
necessary costs" means the necessary additional costs incurred
solely because of new or revised requirements in the administrative
rules minus cost savings permitted in implementing the revised
rules. Net increase in necessary costs shall be determined in a
manner specified by the department.
(7) For purposes of this article, all of the following apply:
(a) "Total approved costs of special education" shall be
determined in a manner specified by the department and may include
indirect costs, but shall not exceed 115% of approved direct costs
for section 52 and section 53a programs. The total approved costs
include salary and other compensation for all approved special
education personnel for the program, including payments for social
security and medicare and public school employee retirement system
contributions. The total approved costs do not include salaries or
other compensation paid to administrative personnel who are not
special education personnel as defined in section 6 of the revised
school code, MCL 380.6. Costs reimbursed by federal funds, other
than those federal funds included in the allocation made under this
article, are not included. Special education approved personnel not
utilized full time in the evaluation of students or in the delivery
of special education programs, ancillary, and other related
services shall be reimbursed under this section only for that
portion of time actually spent providing these programs and
services, with the exception of special education programs and
services provided to youth placed in child caring institutions or
juvenile detention programs approved by the department to provide
an on-grounds education program.
(b) Beginning with the 2004-2005 fiscal year, a district or
intermediate district that employed special education support
services staff to provide special education support services in
2003-2004 or in a subsequent fiscal year and that in a fiscal year
after 2003-2004 receives the same type of support services from
another district or intermediate district shall report the cost of
those support services for special education reimbursement purposes
under this act. This subdivision does not prohibit the transfer of
special education classroom teachers and special education
classroom aides if the pupils counted in membership associated with
those special education classroom teachers and special education
classroom aides are transferred and counted in membership in the
other district or intermediate district in conjunction with the
transfer of those teachers and aides.
(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) and sections 53a, 54, and
56 will exceed expenditures for that fiscal year under subsections
(2), (3), (6), (8), and (12) 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) 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
each
fiscal year for 2009-2010 and for
2010-2011 an amount not to
exceed $15,313,900.00 to intermediate districts. The payment under
this subsection to each intermediate district shall be equal to the
amount of the 1996-97 allocation to the intermediate district under
subsection (6) of this section as in effect for 1996-97.
(9) A pupil who is enrolled in a full-time special education
program conducted or administered by an intermediate district or a
pupil who is enrolled in the Michigan schools for the deaf and
blind shall not be included in the membership count of a district,
but shall be counted in membership in the intermediate district of
residence.
(10) Special education personnel transferred from 1 district
to another to implement the revised school code shall be entitled
to the rights, benefits, and tenure to which the person would
otherwise be entitled had that person been employed by the
receiving district originally.
(11) If a district or intermediate district uses money
received under this section for a purpose other than the purpose or
purposes for which the money is allocated, the department may
require the district or intermediate district to refund the amount
of money received. Money that is refunded shall be deposited in the
state treasury to the credit of the state school aid fund.
(12) From the funds allocated in subsection (1), there is
allocated
each fiscal year for
2010-2011 the amount necessary,
estimated
at $6,200,000.00 for 2009-2010 and estimated
at
$6,600,000.00
for 2010-2011, $5,000,000.00,
to pay the foundation
allowances for pupils described in this subsection. The allocation
to a district under this subsection shall be calculated by
multiplying the number of pupils described in this subsection who
are counted in membership in the district times the sum of the
foundation allowance under section 20 of the pupil's district of
residence plus the amount of the district's per pupil allocation
under section 20j(2), not to exceed the basic foundation allowance
under section 20 for the current fiscal year, or, for a pupil
described in this subsection who is counted in membership in a
district that is a public school academy or university school,
times an amount equal to the amount per membership pupil under
section 20(6). The allocation to an intermediate district under
this subsection shall be calculated in the same manner as for a
district, using the foundation allowance under section 20 of the
pupil's district of residence, not to exceed the basic foundation
allowance under section 20 for the current fiscal year, and that
district's per pupil allocation under section 20j(2). This
subsection applies to all of the following pupils:
(a) Pupils described in section 53a.
(b) Pupils counted in membership in an intermediate district
who are not special education pupils and are served by the
intermediate district in a juvenile detention or child caring
facility.
(c) Emotionally impaired pupils counted in membership by an
intermediate district and provided educational services by the
department of community health.
(13) If it is determined that funds allocated under subsection
(2) or (12) or under section 51c will not be expended, funds up to
the amount necessary and available may be used to supplement the
allocations under subsection (2) or (12) or under section 51c in
order to fully fund those allocations. After payments under
subsections (2) and (12) and section 51c, the remaining
expenditures from the allocation in subsection (1) shall be made in
the following order:
(a) 100% of the reimbursement required under section 53a.
(b) 100% of the reimbursement required under subsection (6).
(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).
(f) 100% of the payments under section 56.
(14) The allocations under subsections (2), (3), and (12)
shall be allocations to intermediate districts only and shall not
be allocations to districts, but instead shall be calculations used
only to determine the state payments under section 22b.
(15) If a public school academy enrolls pursuant to this
section a pupil who resides outside of the intermediate district in
which the public school academy is located and who is eligible for
special education programs and services according to statute or
rule, or who is a child with disabilities, as defined under the
individuals with disabilities education act, Public Law 108-446,
the provision of special education programs and services and the
payment of the added costs of special education programs and
services for the pupil are the responsibility of the district and
intermediate district in which the pupil resides unless the
enrolling district or intermediate district has a written agreement
with the district or intermediate district in which the pupil
resides or the public school academy for the purpose of providing
the pupil with a free appropriate public education and the written
agreement includes at least an agreement on the responsibility for
the payment of the added costs of special education programs and
services for the pupil.
Sec. 51c. As required by the court in the consolidated cases
known as Durant v State of Michigan, Michigan supreme court docket
no. 104458-104492, from the allocation under section 51a(1), there
is
allocated each fiscal year for 2009-2010 and for 2010-2011 the
amount
necessary, estimated at $702,500,000.00 for 2009-2010 and
estimated
at $732,100,000.00 for 2010-2011, $635,400,000.00,
for
payments to reimburse districts for 28.6138% of total approved
costs of special education excluding costs reimbursed under section
53a, and 70.4165% of total approved costs of special education
transportation. Funds allocated under this section that are not
expended in the state fiscal year for which they were allocated, as
determined by the department, may be used to supplement the
allocations under sections 22a and 22b in order to fully fund those
calculated allocations for the same fiscal year.
Sec.
74. (1) From the amount appropriated in section 11, there
is
allocated an amount not to exceed $3,028,500.00 for 2009-2010
and
there is allocated an amount not to
exceed $2,058,800.00
$2,558,800.00 for 2010-2011 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 act for nonspecial education
auxiliary services transportation.
(4) From the funds allocated in subsection (1), there is
allocated
an amount not to exceed $1,403,500.00 for 2009-2010 and
an
amount not to exceed $433,800.00 $933,800.00 for 2010-2011
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.
Enacting section 1. In accordance with section 30 of article
IX of the state constitution of 1963, total state spending in this
amendatory act and in 2010 PA 217 from state sources for fiscal
year 2010-2011 is estimated at $10,775,902,900.00 and state
appropriations to be paid to local units of government for fiscal
year 2010-2011 are estimated at $10,673,832,600.00.