SENATE BILL No. 200

 

 

February 24, 2011, Introduced by Senator KAHN 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 1, 3, 6, 11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 22a, 22b, 24, 24a,

 

24c, 26a, 26b, 31a, 31d, 31f, 32b, 32d, 32j, 39, 39a, 40, 51a, 51c, 51d, 53a, 54, 56, 61a,

 

62, 74, 81, 94a, 98, 99, 101, 104, 107, 109, 147, and 152a(MCL 388.1601, 388.1603,

 

388.1606, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m, 388.1615, 388.1618,

 

388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1624, 388.1624a, 388.1624c, 388.1626a,

 

388.1626b, 388.1631a, 388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632j, 388.1639,

 

388.1639a, 388.1640, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656,

 

388.1661a, 388.1662, 388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701, 388.1704,

 

388.1707, 388.1709, 388.1747, and 388.1752a), sections 11m, 22a, 51a, and 56 as amended by

 

2010 PA 217, sections 11j, 24c, 26a, 39a, 81, 94a, and 104 as amended by 2010 PA 204,

 

sections 3, 6, 11a, 11g, 11k, 15, 18, 20, 20d, 22b, 24, 24a, 26b, 31a, 31d, 31f, 32b, 32d,

 

 

 

 

 

 

 

 

 


32j, 39, 51c, 51d, 53a, 54, 61a, 62, 74, 98, 99, 101, 107, and 147 as amended by 2010 PA

 

110, section 40 as amended by 2000 PA 297, section 109 as amended by 1994 PA 283, section

 

152a as added by 2010 PA 217, and section 1 as added by 1979 PA 94; and by adding sections

 

173a, 173b, 173c, 174a, 174b, 175a, 175b, 176a, 176b, 176c, 176d, 176e, 176f, 176g, 181a,

 

181b, 181c, 181d, 181e, 182a, 182b, 182c, 182d, 182e, 183a, 183b, 183c, 183d, 183e, 183f,

 

183g, 184a, 184b, 184c, 184d, 184e, 184f, 184g, 185a, 185b, 185c, 186a, 186b, 191, 192,

 

193, 194, and 195; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

       Sec. 1. The act shall be known and may be cited as "the state school aid EDUCATION

 

FUNDING act of 1979".

 

       Sec. 3. (1) "Average daily attendance", for the purposes of complying with federal

 

law, means 92% of the pupils counted in membership on the pupil membership count day, as

 

defined in section 6(7).

 

       (2) "Board" means the governing body of a district or public school academy.

 

       (3) "Center" means the center for educational performance and information created in

 

section 94a.

 

       (4) "Cooperative education program" means a written voluntary agreement between and

 

among districts to provide certain educational programs for pupils in certain groups of

 

districts. The written agreement shall be approved by all affected districts at least

 

annually and shall specify the educational programs to be provided and the estimated number

 

of pupils from each district who will participate in the educational programs.

 

       (5) "Department", except in section 107, means the department of education.

 

       (6) "District" means a local school district established under the revised school

 

code or, except in sections 6(4), 6(6), 13, 20, 22a, 23, 29, 31a, 51a(15), 105, 105c, and

 

166b, a public school academy. Except in sections 6(4), 6(6), 13, 20, 22a, 29, 51a(15),

 

105, 105c, and 166b, district also includes a university school.

 

       (7) "District of residence", except as otherwise provided in this subsection, means

 


the district in which a pupil's custodial parent or parents or legal guardian resides. For

 

a pupil described in section 24b, the pupil's district of residence is the district in

 

which the pupil enrolls under that section. For a pupil described in section 6(4)(d), the

 

pupil's district of residence shall be considered to be the district or intermediate

 

district in which the pupil is counted in membership under that section. For a pupil under

 

court jurisdiction who is placed outside the district in which the pupil's custodial parent

 

or parents or legal guardian resides, the pupil's district of residence shall be considered

 

to be the educating district or educating intermediate district.

 

       (8) "District superintendent" means the superintendent of a district, the chief

 

administrator of a public school academy, or the chief administrator of a university

 

school.

 

       Sec. 6. (1) "Center program" means a program operated by a district or 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 1412(A)(5) of the individuals with disabilities

 

education act, 20 USC 1412, may be considered center program pupils for pupil accounting

 

purposes for the time scheduled in either a center program or a noncenter program.

 

       (2) "District and high school graduation rate" means the annual completion and pupil

 

dropout rate that is calculated by the center pursuant to nationally recognized standards.

 


       (3) "District and high school graduation report" means a report of the number of

 

pupils, excluding adult participants, in the district for the immediately preceding school

 

year, adjusted for those pupils who have transferred into or out of the district or high

 

school, who leave high school with a diploma or other credential of equal status.

 

       (4) "Membership", except as otherwise provided in this act, means for a district,

 

public school academy, university school, or intermediate district the sum of the product

 

of .75 times the number of full-time equated pupils in grades K to 12 actually enrolled and

 

in regular daily attendance on the pupil membership count day for the current school year,

 

plus the product of .25 times the final audited count from the supplemental count day for

 

the immediately preceding school year. All pupil counts used in this subsection are as

 

determined by the department and calculated by adding the number of pupils registered for

 

attendance plus pupils received by transfer and minus pupils lost as defined by rules

 

promulgated by the superintendent, and as corrected by a subsequent department audit. 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 750,000.

 

       (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

 

department of energy, labor, and economic growth, or participating in any successor of

 

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

 

       (n) If a pupil counted in membership in a public school academy is also educated by a

 

district or intermediate district as part of a cooperative education program, the pupil

 

shall be counted in membership only in the public school academy unless a written agreement

 

signed by all parties designates the party or parties in which the pupil shall be counted

 

in membership, and the instructional time scheduled for the pupil in the district or

 

intermediate district shall be included in the full-time equated membership determination

 

under subdivision (q). However, for pupils receiving instruction in both a public school

 

academy and in a district or intermediate district but not as a part of a cooperative

 

education program, the following apply:

 

       (i) If the public school academy provides instruction for at least 1/2 of the class

 

hours specified in subdivision (q), the public school academy shall receive as its prorated

 


share of the full-time equated membership for each of those pupils an amount equal to 1

 

times the product of the hours of instruction the public school academy provides divided by

 

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

 

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

 

district or intermediate district providing the remainder of the hours of instruction.

 

       (ii) If the public school academy provides instruction for less than 1/2 of the class

 

hours specified in subdivision (q), the district or intermediate district providing the

 

remainder of the hours of instruction shall receive as its prorated share of the full-time

 

equated membership for each of those pupils an amount equal to 1 times the product of the

 

hours of instruction the district or intermediate district provides divided by the number

 

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

 

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

 

academy.

 

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

 

year who is being educated in an alternative education program shall not be counted in

 

membership if there are also adult education participants being educated in the same

 

program or classroom.

 

       (p) The department shall give a uniform interpretation of full-time and part-time

 

memberships.

 

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

 

be consistent with section 101(3). In determining full-time equated memberships for pupils

 

who are enrolled in a postsecondary institution, a pupil shall not be considered to be less

 

than a full-time equated pupil solely because of the effect of his or her postsecondary

 

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

 

district to the pupil.

 

       (r) Except as otherwise provided in this subdivision, full-time equated memberships

 

for pupils in kindergarten shall be determined by dividing the number of class hours

 


scheduled and provided per year per kindergarten pupil by a number equal to 1/2 the number

 

used for determining full-time equated memberships for pupils in grades 1 to 12.

 

       (s) For a district, university school, or public school academy that has pupils

 

enrolled in a grade level that was not offered by the district, university school, or

 

public school academy in the immediately preceding school year, the number of pupils

 

enrolled in that grade level to be counted in membership is the average of the number of

 

those pupils enrolled and in regular daily attendance on the pupil membership count day and

 

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

 

Membership shall be calculated by adding the number of pupils registered for attendance in

 

that grade level on the pupil membership count day plus pupils received by transfer and

 

minus pupils lost as defined by rules promulgated by the superintendent, and as corrected

 

by subsequent department audit, plus the final audited count from the supplemental count

 

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

 

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

 

in the pupil's district of residence with the written approval of all parties to the

 

cooperative agreement.

 

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

 

district's alternative or disciplinary education program that the best instructional

 

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

 

population, if that placement is authorized in writing by the district superintendent and

 

district alternative or disciplinary education supervisor, and if the district provides

 

appropriate instruction as described in this subdivision to the pupil at the pupil's home

 

or otherwise apart from the general school population, the district may count the pupil in

 

membership on a pro rata basis, with the proration based on the number of hours of

 

instruction the district actually provides to the pupil divided by the number of hours

 

specified in subdivision (q) for full-time equivalency. For the purposes of this

 

subdivision, a district shall be considered to be providing appropriate instruction if all

 


of the following are met:

 

       (i) The district provides at least 2 nonconsecutive hours of instruction per week to

 

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

 

the supervision of a certificated teacher.

 

       (ii) The district provides instructional materials, resources, and supplies, except

 

computers, that are comparable to those otherwise provided in the district's alternative

 

education program.

 

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

 

program.

 

       (iv) Credit earned is awarded to the pupil and placed on the pupil's transcript.

 

       (v) 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 .75 times the number of full-time equated pupils in grades K to

 

12 actually enrolled and in regular daily attendance on the first pupil membership count

 

day or supplemental count day, whichever is first, occurring after operations resume, plus

 

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

 

count day or supplemental count day that occurred before suspending operations, as

 

determined by the superintendent.

 


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

 

under this subsection, would be less than 1,550 pupils and the district has 4.5 or fewer

 

pupils per square mile, as determined by the department, and, beginning in 2007-2008, if

 

the district does not receive funding under section 22d(2), the district's membership shall

 

be considered to be the membership figure calculated under this subdivision. If a district

 

educates and counts in its membership pupils in grades 9 to 12 who reside in a contiguous

 

district that does not operate grades 9 to 12 and if 1 or both of the affected districts

 

request the department to use the determination allowed under this sentence, the department

 

shall include the square mileage of both districts in determining the number of pupils per

 

square mile for each of the districts for the purposes of this subdivision. The membership

 

figure calculated under this subdivision is the greater of the following:

 

       (i) The average of the district's membership for the 3-fiscal-year period ending with

 

that fiscal year, calculated by adding the district's actual membership for each of those 3

 

fiscal years, as otherwise calculated under this subsection, and dividing the sum of those

 

3 membership figures by 3.

 

       (ii) The district's actual membership for that fiscal year as otherwise calculated

 

under this subsection.

 

       (Y) (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.

 

       (Z) (aa) Full-time equated memberships for preprimary-aged special education pupils

 

who are not enrolled in kindergarten but are enrolled in a classroom program under R

 

340.1754 of the Michigan administrative code shall be determined by dividing the number of

 


class hours scheduled and provided per year by 450. Full-time equated memberships for

 

preprimary-aged special education pupils who are not enrolled in kindergarten but are

 

receiving nonclassroom 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.

 

       (AA) (bb) A pupil of a district that begins its school year after Labor day who is

 

enrolled in an intermediate district program that begins before Labor day shall not be

 

considered to be less than a full-time pupil solely due to instructional time scheduled but

 

not attended by the pupil before Labor day.

 

       (cc) For the first year in which a pupil is counted in membership on the pupil

 

membership count day in a middle college program described in section 64, the membership is

 

the average of the full-time equated membership on the pupil membership count day and on

 

the supplemental count day for the current school year, as determined by the department. If

 

a pupil was counted by the operating district on the immediately preceding supplemental

 

count day, the pupil shall be excluded from the district's immediately preceding

 

supplemental count for purposes of determining the district's membership.

 

       (BB) (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.

 

       (CC) (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

 

program described in section 64 if the pupil's district of residence and the enrolling

 

district are both constituent districts of the same intermediate district.

 

       (L) (m) A pupil enrolled in a district other than the pupil's district of residence

 


who attends a United States Olympic education center.

 

       (M) (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.

 

       (N) (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.

 

       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 fourth FIRST Wednesday after Labor day

 

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) Fourth FIRST Wednesday after Labor day 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)(N). 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 act.

 

       (21) "University school" means an instructional program operated by a public

 

university under section 23 that meets the requirements of section 23.

 

       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 11 191 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) 195(2) 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) 195(3).

 

       (7) For 2010-2011, IN ADDITION TO THE APPROPRIATIONS IN SECTION 191, there is

 

appropriated FOR 2011-2012 from the school aid stabilization fund to the state school aid

 

fund the amount necessary to fully fund the allocations under this act.

 

       Sec. 11g. (1) From the appropriation in section 11 192(6) FOR DEBT SERVICE AND OTHER

 

REQUIRED PAYMENTS, there is allocated for this section an amount not to exceed

 

$39,000,000.00 for the CURRENT fiscal year ending September 30, 2011 and for each

 

succeeding fiscal year through the fiscal year ending September 30, 2015, after which these

 

payments will cease. These allocations are for paying the amounts described in subsection

 

(3) to districts and intermediate districts, other than those receiving a lump-sum payment

 

under section 11f(2), that were not plaintiffs in the consolidated cases known as Durant v

 

State of Michigan, Michigan supreme court docket no. 104458-104492 and that, on or before

 

March 2, 1998, submitted to the state treasurer a waiver resolution described in section

 

11f. The amounts paid under this section represent offers of settlement and compromise of

 

any claim or claims that were or could have been asserted by these districts and

 

intermediate districts, as described in this section.

 

       (2) This section does not create any obligation or liability of this state to any

 

district or intermediate district that does not submit a waiver resolution described in

 

section 11f. This section and any other provision of this act are not intended to admit

 

liability or waive any defense that is or would be available to this state or its agencies,

 

employees, or agents in any litigation or future litigation with a district or intermediate

 

district regarding these claims or potential claims.

 

       (3) The amount paid each fiscal year to each district or intermediate district under

 

this section shall be 1 of the following:

 

       (a) If the district or intermediate district does not borrow money and issue bonds

 

under section 11i, 1/30 of the total amount listed in section 11h for the district or

 

intermediate district through the fiscal year ending September 30, 2013.

 


       (b) If the district or intermediate district borrows money and issues bonds under

 

section 11i, an amount in each fiscal year calculated by the department of treasury that is

 

equal to the debt service amount in that fiscal year on the bonds issued by that district

 

or intermediate district under section 11i and that will result in the total payments made

 

to all districts and intermediate districts in each fiscal year under this section being no

 

more than the amount appropriated under this section in each fiscal year.

 

       (4) The entire amount of each payment under this section each fiscal year shall be

 

paid on May 15 of the applicable fiscal year or on the next business day following that

 

date. If a district or intermediate district borrows money and issues bonds under section

 

11i, the district or intermediate district shall use funds received under this section to

 

pay debt service on bonds issued under section 11i. If a district or intermediate district

 

does not borrow money and issue bonds under section 11i, the district or intermediate

 

district shall use funds received under this section only for the following purposes, in

 

the following order of priority:

 

       (a) First, to pay debt service on voter-approved bonds issued by the district or

 

intermediate district before the effective date of this section.

 

       (b) Second, to pay debt service on other limited tax obligations.

 

       (c) Third, for deposit into a sinking fund established by the district or

 

intermediate district under the revised school code.

 

       (5) To the extent payments under this section are used by a district or intermediate

 

district to pay debt service on debt payable from millage revenues, and to the extent

 

permitted by law, the district or intermediate district may make a corresponding reduction

 

in the number of mills levied for debt service.

 

       (6) A district or intermediate district may pledge or assign payments under this

 

section as security for bonds issued under section 11i, but shall not otherwise pledge or

 

assign payments under this section.

 

       Sec. 11j. From the appropriation in section 11 192(6) FOR DEBT SERVICE AND OTHER

 


REQUIRED PAYMENTS, there is allocated an amount not to exceed $5,167,800.00 for 2010-2011

 

for payments to the school loan bond redemption fund in the department of treasury on

 

behalf of districts and intermediate districts. Notwithstanding section 11 195 or any other

 

provision of this act, funds allocated under this section are not subject to proration and

 

shall be paid in full.

 

       Sec. 11k. For 2010-2011, IN ADDITION TO THE APPROPRIATIONS IN SECTION 192, there is

 

appropriated FOR 2011-2012 from the general fund to the school loan revolving fund an

 

amount equal to the amount of school bond loans assigned to the Michigan finance authority,

 

not to exceed the total amount of school bond loans held in reserve as long-term assets. As

 

used in this section, "school loan revolving fund" means that fund created in section 16c

 

of the shared credit rating act, 1985 PA 227, MCL 141.1066c.

 

       Sec. 11m. From the appropriations APPROPRIATION in section 11 192(6) FOR DEBT SERVICE

 

AND OTHER REQUIRED PAYMENTS, 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

 

for fiscal year cash-flow borrowing costs solely related to the state school aid fund

 

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

 

       Sec. 15. (1) If a district or intermediate district fails to receive its proper

 

apportionment, the department, upon satisfactory proof that the district or intermediate

 

district was entitled justly, shall apportion the deficiency in the next apportionment.

 

Subject to subsections (2) and (3), if a district or intermediate district has received

 

more than its proper apportionment, the department, upon satisfactory proof, shall deduct

 

the excess in the next apportionment. Notwithstanding any other provision in this act,

 

state aid overpayments to a district, other than overpayments in payments for special

 

education or special education transportation, may be recovered from any payment made under

 

this act other than a special education or special education transportation payment. State

 

aid overpayments made in special education or special education transportation payments may

 

be recovered from subsequent special education or special education transportation

 


payments.

 

       (2) If the result of an audit conducted by or for the department affects the current

 

fiscal year membership, affected payments shall be adjusted in the current fiscal year. A

 

deduction due to an adjustment made as a result of an audit conducted by or for the

 

department, or as a result of information obtained by the department from the district, an

 

intermediate district, the department of treasury, or the office of auditor general, shall

 

be deducted from the district's apportionments when the adjustment is finalized. At the

 

request of the district and upon the district presenting evidence satisfactory to the

 

department of the hardship, the department may grant up to an additional 4 years for the

 

adjustment if the district would otherwise experience a significant hardship.

 

       (3) If, because of the receipt of new or updated data, the department determines

 

during a fiscal year that the amount paid to a district or intermediate district under this

 

act for a prior fiscal year was incorrect under the law in effect for that year, the

 

department may make the appropriate deduction or payment in the district's or intermediate

 

district's allocation for the fiscal year in which the determination is made. The deduction

 

or payment shall be calculated according to the law in effect in the fiscal year in which

 

the improper amount was paid.

 

       (4) Expenditures made by the department under this act that are caused by the write-

 

off of prior year accruals may be funded by revenue from the write-off of prior year

 

accruals.

 

       (5) In addition to funds appropriated in section 11 192 for all programs and

 

services, there is appropriated for 2010-2011 2011-2012 for obligations in excess of

 

applicable appropriations an amount equal to the collection of overpayments, but not to

 

exceed amounts available from overpayments.

 

       Sec. 18. (1) Except as provided in another section of this act, each district or

 

other entity shall apply the money received by the district or entity under this act to

 

salaries and other compensation of teachers and other employees, tuition, transportation,

 


lighting, heating, ventilation, water service, the purchase of textbooks which are

 

designated by the board to be used in the schools under the board's charge, other supplies,

 

and any other school operating expenditures defined in section 7. However, not more than

 

20% of the total amount received by a district under article 2 or intermediate district

 

under article 8 may be transferred by the board to either the capital projects fund or to

 

the debt retirement fund for debt service. The money shall not be applied or taken for a

 

purpose other than as provided in this section. The department shall determine the

 

reasonableness of expenditures and may withhold from a recipient of funds under this act

 

the apportionment otherwise due upon a violation by the recipient.

 

       (2) Within 30 days after a board adopts its annual operating budget for the following

 

school fiscal year, or after a board adopts a subsequent revision to that budget, the

 

district shall make all of the following available through a link on its website home page,

 

or may make the information available through a link on its intermediate district's website

 

home page, in a form and manner prescribed by the department:

 

       (a) The annual operating budget and subsequent budget revisions.

 

       (b) Using data that have already been collected and submitted to the department, a

 

summary of district expenditures for the most recent fiscal year for which they are

 

available, expressed in the following 2 pie charts:

 

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

 

       (A) Salaries and wages.

 

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

 

life, disability, and long-term care benefits.

 

       (C) Retirement benefit costs.

 

       (D) All other personnel costs.

 

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

 

       (A) Instruction.

 

       (B) Support services.

 


       (C) Business and administration.

 

       (D) Operations and maintenance.

 

       (c) Links to all of the following:

 

       (i) The current collective bargaining agreement for each bargaining unit.

 

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

 

vision, disability, long-term care, or any other type of benefits that would constitute

 

health care services, offered to any bargaining unit or employee in the district.

 

       (iii) The audit report of the audit conducted under subsection (4) for the most

 

recent fiscal year for which it is available.

 

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

 

the compensation package for the superintendent of the district and for each employee of

 

the district whose salary exceeds $100,000.00.

 

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

 

       (f) The annual amount spent on lobbying or lobbying services. As used in this

 

subdivision, "lobbying" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

 

       (3) For the information required under subsection (2)(a), (2)(b)(i), and (2)(c), an

 

intermediate district shall provide the same information in the same manner as required for

 

a district under subsection (2).

 

       (4) For the purpose of determining the reasonableness of expenditures and whether a

 

violation of this act has occurred, all of the following apply:

 

       (a) The department shall require that each district and intermediate district have an

 

audit of the district's or intermediate district's financial and pupil accounting records

 

conducted at least annually at the expense of the district or intermediate district, as

 

applicable, by a certified public accountant or by the intermediate district

 

superintendent, as may be required by the department, or in the case of a district of the

 

first class by a certified public accountant, the intermediate superintendent, or the

 

auditor general of the city.

 


       (b) If a district operates in a single building with fewer than 700 full-time equated

 

pupils, if the district has stable membership, and if the error rate of the immediately

 

preceding 2 pupil accounting field audits of the district is less than 2%, the district may

 

have a pupil accounting field audit conducted biennially but must continue to have desk

 

audits for each pupil count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable membership" means that the

 

district's membership for the current fiscal year varies from the district's membership for

 

the immediately preceding fiscal year by less than 5%.

 

       (c) An intermediate district's annual financial audit shall be accompanied by the

 

intermediate district's pupil accounting procedures report.

 

       (C) (d) A district's or intermediate district's annual financial audit shall include

 

an analysis of the financial and pupil accounting data used as the basis for distribution

 

of state school aid.

 

       (D) (e) The pupil AND FINANCIAL accounting records and reports, audits, and

 

management letters are subject to requirements established in the auditing and accounting

 

manuals approved and published by the department.

 

       (E) (f) Except as otherwise provided in this subsection, a district shall file the

 

annual financial audit reports with the intermediate district not later than 120 days after

 

the end of each school fiscal year and the DEPARTMENT NOT LATER THAN NOVEMBER 15 OF EACH

 

YEAR. THE INTERMEDIATE DISTRICT SHALL FILE THE ANNUAL FINANCIAL AUDIT REPORTS FOR THE

 

INTERMEDIATE DISTRICT WITH THE DEPARTMENT NOT LATER THAN NOVEMBER 15 OF EACH YEAR. THE

 

intermediate district shall forward the annual financial ENTER THE PUPIL MEMBERSHIP audit

 

reports for its constituent districts and for the intermediate district, and the pupil

 

accounting procedures report for the pupil membership count day and supplemental count day,

 

to the department IN THE MICHIGAN STUDENT DATA SYSTEM not later than November 15 of each

 

year.

 

       (F) (g) The annual financial audit reports and pupil accounting procedures reports

 


shall be available to the public in compliance with the freedom of information act, 1976 PA

 

442, MCL 15.231 to 15.246.

 

       (G) (h) Not later than December JANUARY 31 of each year, the department shall notify

 

the state budget director and the legislative appropriations subcommittees responsible for

 

review of the school aid budget of districts and intermediate districts that have not filed

 

an annual financial audit and pupil accounting procedures report required under this

 

section for the school year ending in the immediately preceding fiscal year.

 

       (5) By November 15 of each year, each district and intermediate district shall submit

 

to the center, in a manner prescribed by the center, annual comprehensive financial data

 

consistent with accounting manuals and charts of accounts approved and published by the

 

department. For an intermediate district, the report shall also contain the website address

 

where the department can access the report required under section 620 of the revised school

 

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

 

accounting manual chart of accounts includes standard conventions to distinguish

 

expenditures by allowable fund function and object. The functions shall include at minimum

 

categories for instruction, pupil support, instructional staff support, general

 

administration, school administration, business administration, transportation, facilities

 

operation and maintenance, facilities acquisition, and debt service; and shall include

 

object classifications of salary, benefits, including categories for active employee health

 

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

 

report the required level of detail consistent with the manual as part of the comprehensive

 

annual financial report. The department shall make this information available online to

 

districts and intermediate districts, and shall include per-pupil amounts spent on

 

instruction and instructional support service functions, and indicate how much of those

 

costs were attributable to salaries. Districts and intermediate districts shall include a

 

link on their websites to the website where the department posts this information.

 

       (6) By September 30 of each year, each district and intermediate district shall file

 


with the department the special education actual cost report, known as "SE-4096", on a form

 

and in the manner prescribed by the department.

 

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

 

with the center the transportation expenditure report, known as "SE-4094", on a form and in

 

the manner prescribed by the center.

 

       (8) The department shall review its pupil accounting and pupil auditing manuals at

 

least annually and shall periodically update those manuals to reflect changes in this act.

 

       (9) If a district that is a public school academy purchases property using money

 

received under this act, the public school academy shall retain ownership of the property

 

unless the public school academy sells the property at fair market value.

 

       (10) If a district or intermediate district does not comply with subsections (4),

 

(5), (6), and (7), the department shall withhold all state school aid due to the district

 

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

 

district or intermediate district, until the district or intermediate district complies

 

with subsections (4), (5), (6), and (7). If the district or intermediate district does not

 

comply with subsections (4), (5), (6), and (7) by the end of the fiscal year, the district

 

or intermediate district forfeits the amount withheld.

 

       Sec. 20. (1) For 2009-2010 2011-2012 and for 2010-2011 2012-2013, the basic

 

foundation allowance is $8,489.00 $8,019.00.

 

       (2) The amount of each district's foundation allowance shall be calculated as

 

provided in this section, using a basic foundation allowance in the amount specified in

 

subsection (1).

 

       (3) Except as otherwise provided in this section, the amount of a district's

 

foundation allowance shall be calculated as follows, using in all calculations the total

 

amount of the district's foundation allowance as calculated before any proration:

 

       (a) For a district that had a foundation allowance for the immediately preceding

 

state fiscal year that was at least equal to the sum of $7,108.00 plus the total dollar

 


amount of all adjustments made from 2006-2007 to the immediately preceding state fiscal

 

year in the lowest foundation allowance among all districts, but less than the basic

 

foundation allowance for the immediately preceding state fiscal year, the district shall

 

receive a foundation allowance in an amount equal to the sum of the district's foundation

 

allowance for the immediately preceding state fiscal year plus the difference between twice

 

the dollar amount of the adjustment from the immediately preceding state fiscal year to the

 

current state fiscal year made in the basic foundation allowance and [(the dollar amount of

 

the adjustment from the immediately preceding state fiscal year to the current state fiscal

 

year made in the basic foundation allowance minus $20.00) times (the difference between the

 

district's foundation allowance for the immediately preceding state fiscal year and the sum

 

of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest foundation allowance among all

 

districts) divided by the difference between the basic foundation allowance for the current

 

state fiscal year and the sum of $7,108.00 plus the total dollar amount of all adjustments

 

made from 2006-2007 to the immediately preceding state fiscal year in the lowest foundation

 

allowance among all districts]. For 2009-2010 2011-2012 and for 2010-2011 2012-2013, for a

 

district that had a foundation allowance for the immediately preceding state fiscal year

 

that was at least equal to the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts, but less than the basic foundation

 

allowance for the immediately preceding state fiscal year, the district shall receive a

 

foundation allowance in an amount equal to the district's foundation allowance for the

 

immediately preceding state fiscal year 2010-2011 MINUS $470.00. However, the foundation

 

allowance for a district that had less than the basic foundation allowance for the

 

immediately preceding state fiscal year shall not exceed the basic foundation allowance for

 

the current state fiscal year.

 

       (b) Except as otherwise provided in this subsection, for a district that in the

 


immediately preceding state fiscal year had a foundation allowance in an amount at least

 

equal to the amount of the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance in an amount equal to the

 

sum of the district's foundation allowance for the immediately preceding state fiscal year

 

plus the dollar amount of the adjustment from the immediately preceding state fiscal year

 

to the current state fiscal year in the basic foundation allowance FISCAL YEAR 2010-2011

 

MINUS $470.00.

 

       (c) Except as otherwise provided in subdivision (d), for a district that in the 1994-

 

95 state fiscal year had a foundation allowance greater than $6,500.00, the district's

 

foundation allowance is an amount equal to the sum of the district's foundation allowance

 

for the immediately preceding state fiscal year plus the lesser of the increase in the

 

basic foundation allowance for the current state fiscal year, as compared to the

 

immediately preceding state fiscal year, or the product of the district's foundation

 

allowance for the immediately preceding state fiscal year times the percentage increase in

 

the United States consumer price index in the calendar year ending in the immediately

 

preceding fiscal year as reported by the May revenue estimating conference conducted under

 

section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b. EXCEPT AS

 

OTHERWISE PROVIDED IN SUBDIVISION (D), FOR 2011-2012 AND FOR 2012-2013, FOR A DISTRICT THAT

 

IN THE 1994-1995 STATE FISCAL YEAR HAD A FOUNDATION ALLOWANCE GREATER THAN $6,500.00, THE

 

DISTRICT’S FOUNDATION ALLOWANCE IS AN AMOUNT EQUAL TO THE SUM OF THE DISTRICT’S FOUNDATION

 

ALLOWANCE FOR THE 2010-2011 FISCAL YEAR MINUS $470.00.

 

       (d) If House Bill No. 6212 of the 95th Legislature is enacted into law, then

 

beginning BEGINNING in 2011-2012, for a district that in the 1994-95 state fiscal year had

 

a foundation allowance greater than $6,500.00 and that had a foundation allowance for the

 

2009-2010 state fiscal year, as otherwise calculated under this section, that was less than

 

the basic foundation allowance, the district's foundation allowance for 2011-2012 and each

 

succeeding fiscal year shall be considered to be an amount equal to the basic foundation

 


allowance.

 

       (e) For a district that has a foundation allowance that is not a whole dollar amount,

 

the district's foundation allowance shall be rounded up to the nearest whole dollar.

 

       (f) For a district that received a payment under section 22c as that section was in

 

effect for 2001-2002, the district's 2001-2002 foundation allowance shall be considered to

 

have been an amount equal to the sum of the district's actual 2001-2002 foundation

 

allowance as otherwise calculated under this section plus the per pupil amount of the

 

district's equity payment for 2001-2002 under section 22c as that section was in effect for

 

2001-2002.

 

       (g) For a district that received a payment under section 22c as that section was in

 

effect for 2006-2007, the district's 2006-2007 foundation allowance shall be considered to

 

have been an amount equal to the sum of the district's actual 2006-2007 foundation

 

allowance as otherwise calculated under this section plus the per pupil amount of the

 

district's equity payment for 2006-2007 under section 22c as that section was in effect for

 

2006-2007.

 

       (4) Except as otherwise provided in this subsection, the state portion of a

 

district's foundation allowance is an amount equal to the district's foundation allowance

 

or the basic foundation allowance for the current state fiscal year, whichever is less,

 

minus the difference between the sum of the product of the taxable value per membership

 

pupil of all property in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding 12, the product of the

 

taxable value per membership pupil of property in the district that is commercial personal

 

property times the certified mills minus 12 mills and the quotient of the ad valorem

 

property tax revenue of the district captured under tax increment financing acts divided by

 

the district's membership excluding special education pupils. For a district described in

 

subsection (3)(c), the state portion of the district's foundation allowance is an amount

 

equal to $6,962.00 plus the difference between the district's foundation allowance for the

 


current state fiscal year and the district's foundation allowance for 1998-99, minus the

 

difference between the sum of the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the district's certified mills

 

and, for a district with certified mills exceeding 12, the product of the taxable value per

 

membership pupil of property in the district that is commercial personal property times the

 

certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of

 

the district captured under tax increment financing acts divided by the district's

 

membership excluding special education pupils. For a district that has a millage reduction

 

required under section 31 of article IX of the state constitution of 1963, the state

 

portion of the district's foundation allowance shall be calculated as if that reduction did

 

not occur. For the purposes of state law, federal funding awarded to this state under title

 

XIV of the American recovery and reinvestment act of 2009, Public Law 111-5, that is

 

appropriated under section 11 and allocated under section 22b, is considered to be part of

 

the state portion of a district's foundation allowance and is considered to be part of the

 

total state school aid paid to a public school academy.

 

       (5) The allocation calculated under this section for a pupil shall be based on the

 

foundation allowance of the pupil's district of residence. However, for a pupil enrolled in

 

a district other than the pupil's district of residence, if the foundation allowance of the

 

pupil's district of residence has been adjusted pursuant to subsection (19), the allocation

 

calculated under this section shall not include the adjustment described in subsection

 

(19). For a pupil enrolled pursuant to section 105 or 105c in a district other than the

 

pupil's district of residence, the allocation calculated under this section shall be based

 

on the lesser of the foundation allowance of the pupil's district of residence or the

 

foundation allowance of the educating district. For a pupil in membership in a K-5, K-6, or

 

K-8 district who is enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section shall be based on the

 

foundation allowance of the educating district if the educating district's foundation

 


allowance is greater than the foundation allowance of the pupil's district of residence.

 

The calculation under this subsection shall take into account a district's per pupil

 

allocation under section 20j(2).

 

       (6) Subject to subsection (7) and except as otherwise provided in this subsection,

 

for pupils in membership, other than special education pupils, in a public school academy

 

or a university school, the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils in the public school academy or

 

university school equal to the foundation allowance of the district in which the public

 

school academy or university school is located or the state maximum public school academy

 

allocation, whichever is less. However, a public school academy or university school that

 

had an allocation under this subsection before 2009-2010 that was equal to the sum of the

 

local school operating revenue per membership pupil other than special education pupils for

 

the district in which the public school academy or university school is located and the

 

state portion of that district's foundation allowance shall not have that allocation

 

reduced as a result of the 2010 amendment to this subsection. Notwithstanding section 101,

 

for a public school academy that begins operations after the pupil membership count day,

 

the amount per membership pupil calculated under this subsection shall be adjusted by

 

multiplying that amount per membership pupil by the number of hours of pupil instruction

 

provided by the public school academy after it begins operations, as determined by the

 

department, divided by the minimum number of hours of pupil instruction required under

 

section 101(3). The result of this calculation shall not exceed the amount per membership

 

pupil otherwise calculated under this subsection.

 

       (7) If more than 25% of the pupils residing within a district are in membership in 1

 

or more public school academies located in the district, then the amount per membership

 

pupil calculated under this section for a public school academy located in the district

 

shall be reduced by an amount equal to the difference between the sum of the product of the

 

taxable value per membership pupil of all property in the district that is nonexempt

 


property times the district's certified mills and, for a district with certified mills

 

exceeding 12, the product of the taxable value per membership pupil of property in the

 

district that is commercial personal property times the certified mills minus 12 mills and

 

the quotient of the ad valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership excluding special education

 

pupils, in the school fiscal year ending in the current state fiscal year, calculated as if

 

the resident pupils in membership in 1 or more public school academies located in the

 

district were in membership in the district. In order to receive state school aid under

 

this act, a district described in this subsection shall pay to the authorizing body that is

 

the fiscal agent for a public school academy located in the district for forwarding to the

 

public school academy an amount equal to that local school operating revenue per membership

 

pupil for each resident pupil in membership other than special education pupils in the

 

public school academy, as determined by the department.

 

       (8) If a district does not receive an amount calculated under subsection (9); if the

 

number of mills the district may levy on a principal residence, qualified agricultural

 

property, qualified forest property, supportive housing property, industrial personal

 

property, and commercial personal property under section 1211 of the revised school code,

 

MCL 380.1211, is 0.5 mills or less; and if the district elects not to levy those mills, the

 

district instead shall receive a separate supplemental amount calculated under this

 

subsection in an amount equal to the amount the district would have received had it levied

 

those mills, as determined by the department of treasury. A district shall not receive a

 

separate supplemental amount calculated under this subsection for a fiscal year unless in

 

the calendar year ending in the fiscal year the district levies the district's certified

 

mills on property that is nonexempt property.

 

       (9) For a district that had combined state and local revenue per membership pupil in

 

the 1993-94 state fiscal year of more than $6,500.00 and that had fewer than 350 pupils in

 

membership, if the district elects not to reduce the number of mills from which a principal

 


residence, qualified agricultural property, qualified forest property, supportive housing

 

property, industrial personal property, and commercial personal property are exempt and not

 

to levy school operating taxes on a principal residence, qualified agricultural property,

 

qualified forest property, supportive housing property, industrial personal property, and

 

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

 

380.1211, and not to levy school operating taxes on all property as provided in section

 

1211(2) of the revised school code, MCL 380.1211, there is calculated under this subsection

 

for 1994-95 and each succeeding fiscal year a separate supplemental amount in an amount

 

equal to the amount the district would have received per membership pupil had it levied

 

school operating taxes on a principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal property, and commercial

 

personal property at the rate authorized for the district under section 1211 of the revised

 

school code, MCL 380.1211, and levied school operating taxes on all property at the rate

 

authorized for the district under section 1211(2) of the revised school code, MCL 380.1211,

 

as determined by the department of treasury. If in the calendar year ending in the fiscal

 

year a district does not levy the district's certified mills on property that is nonexempt

 

property, the amount calculated under this subsection will be reduced by the same

 

percentage as the millage actually levied compares to the district's certified mills.

 

       (8) (10) Subject to subsection (4), for a district that is formed or reconfigured

 

after June 1, 2002 by consolidation of 2 or more districts or by annexation, the resulting

 

district's foundation allowance under this section beginning after the effective date of

 

the consolidation or annexation shall be the average of the foundation allowances of each

 

of the original or affected districts, calculated as provided in this section, weighted as

 

to the percentage of pupils in total membership in the resulting district who reside in the

 

geographic area of each of the original or affected districts. The calculation under this

 

subsection shall take into account a district's per pupil allocation under section 20j(2).

 

       (9) (11) Each fraction used in making calculations under this section shall be

 


rounded to the fourth decimal place and the dollar amount of an increase in the basic

 

foundation allowance shall be rounded to the nearest whole dollar.

 

       (10) (12) State payments related to payment of the foundation allowance for a special

 

education pupil are not calculated under this section but are instead calculated under

 

section 51a.

 

       (11) (13) To assist the legislature in determining the basic foundation allowance for

 

the subsequent state fiscal year, each revenue estimating conference conducted under

 

section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a

 

pupil membership factor, a revenue adjustment factor, and an index as follows:

 

       (a) The pupil membership factor shall be computed by dividing the estimated

 

membership in the school year ending in the current state fiscal year, excluding

 

intermediate district membership, by the estimated membership for the school year ending in

 

the subsequent state fiscal year, excluding intermediate district membership. If a

 

consensus membership factor is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their estimates to the house

 

and senate subcommittees responsible for school aid appropriations not later than 7 days

 

after the conclusion of the revenue conference.

 

       (b) The revenue adjustment factor shall be computed by dividing the sum of the

 

estimated total state school aid fund revenue for the subsequent state fiscal year plus the

 

estimated total state school aid fund revenue for the current state fiscal year, adjusted

 

for any change in the rate or base of a tax the proceeds of which are deposited in that

 

fund and excluding money transferred into that fund from the countercyclical budget and

 

economic stabilization fund under the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594, by the sum of the estimated total school aid fund revenue for the current state

 

fiscal year plus the estimated total state school aid fund revenue for the immediately

 

preceding state fiscal year, adjusted for any change in the rate or base of a tax the

 

proceeds of which are deposited in that fund. If a consensus revenue factor is not

 


determined at the revenue estimating conference, the principals of the revenue estimating

 

conference shall report their estimates to the house and senate subcommittees responsible

 

for school aid appropriations not later than 7 days after the conclusion of the revenue

 

conference.

 

       (c) The index shall be calculated by multiplying the pupil membership factor by the

 

revenue adjustment factor. However, for 2009-2010 and for 2010-2011 2011-2012, THE INDEX

 

SHALL BE .93575 AND FOR 2012-2013, the index shall be 1.00. If a consensus index is not

 

determined at the revenue estimating conference, the principals of the revenue estimating

 

conference shall report their estimates to the house and senate subcommittees responsible

 

for school aid appropriations not later than 7 days after the conclusion of the revenue

 

conference.

 

       (12) (14) If the principals at the revenue estimating conference reach a consensus on

 

the index described in subsection (13)(11)(c), the lowest foundation allowance among all

 

districts for the subsequent state fiscal year shall be at least the amount of that

 

consensus index multiplied by the lowest foundation allowance among all districts for the

 

immediately preceding state fiscal year.

 

       (15) If at the January revenue estimating conference it is estimated that pupil

 

membership, excluding intermediate district membership, for the subsequent state fiscal

 

year will be greater than 101% of the pupil membership, excluding intermediate district

 

membership, for the current state fiscal year, then it is the intent of the legislature

 

that the executive budget proposal for the school aid budget for the subsequent state

 

fiscal year include a general fund/general purpose allocation sufficient to support the

 

membership in excess of 101% of the current year pupil membership.

 

       (16) For a district that had combined state and local revenue per membership pupil in

 

the 1993-94 state fiscal year of more than $6,500.00, that had fewer than 7 pupils in

 

membership in the 1993-94 state fiscal year, that has at least 1 child educated in the

 

district in the current state fiscal year, and that levies the number of mills of school

 


operating taxes authorized for the district under section 1211 of the revised school code,

 

MCL 380.1211, a minimum amount of combined state and local revenue shall be calculated for

 

the district as provided under this subsection. The minimum amount of combined state and

 

local revenue for 1999-2000 shall be $67,000.00 plus the district's additional expenses to

 

educate pupils in grades 9 to 12 educated in other districts as determined and allowed by

 

the department. The minimum amount of combined state and local revenue under this

 

subsection, before adding the additional expenses, shall increase each fiscal year by the

 

same percentage increase as the percentage increase in the basic foundation allowance from

 

the immediately preceding fiscal year to the current fiscal year. The state portion of the

 

minimum amount of combined state and local revenue under this subsection shall be

 

calculated by subtracting from the minimum amount of combined state and local revenue under

 

this subsection the sum of the district's local school operating revenue and an amount

 

equal to the product of the sum of the state portion of the district's foundation allowance

 

plus the amount calculated under section 20j times the district's membership. As used in

 

this subsection, "additional expenses" means the district's expenses for tuition or fees,

 

not to exceed the basic foundation allowance for the current state fiscal year, plus a room

 

and board stipend not to exceed $10.00 per school day for each pupil in grades 9 to 12

 

educated in another district, as approved by the department.

 

       (17) For a district in which 7.75 mills levied in 1992 for school operating purposes

 

in the 1992-93 school year were not renewed in 1993 for school operating purposes in the

 

1993-94 school year, the district's combined state and local revenue per membership pupil

 

shall be recalculated as if that millage reduction did not occur and the district's

 

foundation allowance shall be calculated as if its 1994-95 foundation allowance had been

 

calculated using that recalculated 1993-94 combined state and local revenue per membership

 

pupil as a base. A district is not entitled to any retroactive payments for fiscal years

 

before 2000-2001 due to this subsection.

 

       (18) For a district in which an industrial facilities exemption certificate that

 


abated taxes on property with a state equalized valuation greater than the total state

 

equalized valuation of the district at the time the certificate was issued or

 

$700,000,000.00, whichever is greater, was issued under 1974 PA 198, MCL 207.551 to

 

207.572, before the calculation of the district's 1994-95 foundation allowance, the

 

district's foundation allowance for 2002-2003 is an amount equal to the sum of the

 

district's foundation allowance for 2002-2003, as otherwise calculated under this section,

 

plus $250.00.

 

       (19) For a district that received a grant under former section 32e for 2001-2002, the

 

district's foundation allowance for 2002-2003 and each succeeding fiscal year shall be

 

adjusted to be an amount equal to the sum of the district's foundation allowance, as

 

otherwise calculated under this section, plus the quotient of 100% of the amount of the

 

grant award to the district for 2001-2002 under former section 32e divided by the number of

 

pupils in the district's membership for 2001-2002 who were residents of and enrolled in the

 

district. Except as otherwise provided in this subsection, a district qualifying for a

 

foundation allowance adjustment under this subsection shall use the funds resulting from

 

this adjustment for at least 1 of grades K to 3 for purposes allowable under former section

 

32e as in effect for 2001-2002, and may also use these funds for an early intervening

 

program described in subsection (20). For an individual school or schools operated by a

 

district qualifying for a foundation allowance under this subsection that have been

 

determined by the department to meet the adequate yearly progress standards of the federal

 

no child left behind act of 2001, Public Law 107-110, in both mathematics and English

 

language arts at all applicable grade levels for all applicable subgroups, the district may

 

submit to the department an application for flexibility in using the funds resulting from

 

this adjustment that are attributable to the pupils in the school or schools. The

 

application shall identify the affected school or schools and the affected funds and shall

 

contain a plan for using the funds for specific purposes identified by the district that

 

are designed to reduce class size, but that may be different from the purposes otherwise

 


allowable under this subsection. The department shall approve the application if the

 

department determines that the purposes identified in the plan are reasonably designed to

 

reduce class size. If the department does not act to approve or disapprove an application

 

within 30 days after it is submitted to the department, the application is considered to be

 

approved. If an application for flexibility in using the funds is approved, the district

 

may use the funds identified in the application for any purpose identified in the plan.

 

       (20) An early intervening program that uses funds resulting from the adjustment under

 

subsection (19) shall meet either or both of the following:

 

       (a) Shall monitor individual pupil learning for pupils in grades K to 3 and provide

 

specific support or learning strategies to pupils in grades K to 3 as early as possible in

 

order to reduce the need for special education placement. The program shall include

 

literacy and numeracy supports, sensory motor skill development, behavior supports,

 

instructional consultation for teachers, and the development of a parent/school learning

 

plan. Specific support or learning strategies may include support in or out of the general

 

classroom in areas including reading, writing, math, visual memory, motor skill

 

development, behavior, or language development. These would be provided based on an

 

understanding of the individual child's learning needs.

 

       (b) Shall provide early intervening strategies for pupils in grades K to 3 using

 

schoolwide systems of academic and behavioral supports and shall be scientifically

 

research-based. The strategies to be provided shall include at least pupil performance

 

indicators based upon response to intervention, instructional consultation for teachers,

 

and ongoing progress monitoring. A schoolwide system of academic and behavioral support

 

should be based on a support team available to the classroom teachers. The members of this

 

team could include the principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically study the needs of the

 

individual child and work with the teacher to match instruction to the needs of the

 

individual child.

 


       (21) For a district that levied 1.9 mills in 1993 to finance an operating deficit,

 

the district's foundation allowance shall be calculated as if those mills were included as

 

operating mills in the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal years before 2006-2007 due

 

to this subsection. A district receiving an adjustment under this subsection shall not

 

receive more than $800,000.00 for a fiscal year as a result of this adjustment.

 

       (22) For a district that levied 2.23 mills in 1993 to finance an operating deficit,

 

the district's foundation allowance shall be calculated as if those mills were included as

 

operating mills in the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal years before 2006-2007 due

 

to this subsection. A district receiving an adjustment under this subsection shall not

 

receive more than $500,000.00 for a fiscal year as a result of this adjustment.

 

       (13) (23) Payments to districts, university schools, or public school academies shall

 

not be made under this section. Rather, the calculations under this section shall be used

 

to determine the amount of state payments under section 22b.

 

       (14) (24) If an amendment to section 2 of article VIII of the state constitution of

 

1963 allowing state aid to some or all nonpublic schools is approved by the voters of this

 

state, each foundation allowance or per pupil payment calculation under this section may be

 

reduced.

 

       (15) (26) As used in this section:

 

       (a) "Certified mills" means the lesser of 18 mills or the number of mills of school

 

operating taxes levied by the district in 1993-94.

 

       (b) "Combined state and local revenue" means the aggregate of the district's state

 

school aid received by or paid on behalf of the district under this section and the

 

district's local school operating revenue.

 

       (c) "Combined state and local revenue per membership pupil" means the district's

 

combined state and local revenue divided by the district's membership excluding special

 


education pupils.

 

       (d) "Current state fiscal year" means the state fiscal year for which a particular

 

calculation is made.

 

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

 

preceding the current state fiscal year.

 

       (f) "Local school operating revenue" means school operating taxes levied under

 

section 1211 of the revised school code, MCL 380.1211.

 

       (g) "Local school operating revenue per membership pupil" means a district's local

 

school operating revenue divided by the district's membership excluding special education

 

pupils.

 

       (h) "Maximum public school academy allocation", except as otherwise provided in this

 

subdivision, means the maximum per-pupil allocation as calculated by adding the highest

 

per-pupil allocation among all public school academies for the immediately preceding state

 

fiscal year plus the difference between twice the dollar amount of the adjustment from the

 

immediately preceding state fiscal year to the current state fiscal year made in the basic

 

foundation allowance and [(the dollar amount of the adjustment from the immediately

 

preceding state fiscal year to the current state fiscal year made in the basic foundation

 

allowance minus $20.00) times (the difference between the highest per-pupil allocation

 

among all public school academies for the immediately preceding state fiscal year and the

 

sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest per-pupil allocation among all public

 

school academies) divided by the difference between the basic foundation allowance for the

 

current state fiscal year and the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state fiscal year in the

 

lowest per-pupil allocation among all public school academies]. For 2009-2010 2011-2012 and

 

2010-2011 2012-2013, maximum public school academy allocation means $7,580.00 $7,110.00.

 

       (i) "Membership" means the definition of that term under section 6 as in effect for

 


the particular fiscal year for which a particular calculation is made.

 

       (j) "Nonexempt property" means property that is not a principal residence, qualified

 

agricultural property, qualified forest property, supportive housing property, industrial

 

personal property, or commercial personal property.

 

       (k) "Principal residence", "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.

 

       (l) "School operating purposes" means the purposes included in the operation costs of

 

the district as prescribed in sections 7 and 18.

 

       (m) "School operating taxes" means local ad valorem property taxes levied under

 

section 1211 of the revised school code, MCL 380.1211, and retained for school operating

 

purposes.

 

       (n) "Tax increment financing acts" means 1975 PA 197, MCL 125.1651 to 125.1681, the

 

tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local

 

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor

 

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.

 

       (o) "Taxable value per membership pupil" means taxable value, as certified by the

 

department of treasury, for the calendar year ending in the current state fiscal year

 

divided by the district's membership excluding special education pupils for the school year

 

ending in the current state fiscal year.

 

       Sec. 20d. In making the final determination required under former section 20a of a

 

district's combined state and local revenue per membership pupil in 1993-94 and in making

 

calculations under section 20 for 2010-2011 2011-2012, the department and the department of

 

treasury shall comply with all of the following:

 

       (a) For a district that had combined state and local revenue per membership pupil in

 


the 1994-95 state fiscal year of $6,500.00 or more and served as a fiscal agent for a state

 

board designated area vocational education center in the 1993-94 school year, total state

 

school aid received by or paid on behalf of the district pursuant to this act in 1993-94

 

shall exclude payments made under former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area vocational education center.

 

Not later than June 30, 1996, the department shall make an adjustment under this

 

subdivision to the district's combined state and local revenue per membership pupil in the

 

1994-95 state fiscal year and the department of treasury shall make a final certification

 

of the number of mills that may be levied by the district under section 1211 of the revised

 

school code, MCL 380.1211, as a result of the adjustment under this subdivision.

 

       (b) If a district had an adjustment made to its 1993-94 total state school aid that

 

excluded payments made under former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services for intermediate district center programs

 

operated by the district under article 5, if nonresident pupils attending the center

 

programs were included in the district's membership for purposes of calculating the

 

combined state and local revenue per membership pupil for 1993-94, and if there is a signed

 

agreement by all constituent districts of the intermediate district that an adjustment

 

under this subdivision shall be made, the foundation allowances for 1995-96 and 1996-97 of

 

all districts that had pupils attending the intermediate district center program operated

 

by the district that had the adjustment shall be calculated as if their combined state and

 

local revenue per membership pupil for 1993-94 included resident pupils attending the

 

center program and excluded nonresident pupils attending the center program.

 

       Sec. 22a. (1) From the appropriation in section 11 192(2) FOR BASIC OPERATIONS, 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 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 APPROPRIATION in section 11 192(2)

 

FOR BASIC OPERATIONS, 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 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.

 

       (2) (3) Subject to subsection (4) (3) and section 11 192, 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)(9), 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, and 51c, AND 152A. 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)

 

(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.

 

       (12) Beginning in 2012-2013, from the allocation in subsection (1), there is

 

allocated $300,000,000.00 to be paid on a per pupil basis to those districts that are

 

eligible as established by law. At a minimum, those districts whose employees receive a

 

health care benefit plan, including, but not limited to, medical, dental, vision,

 

disability, long-term care, or any other type of benefit that would constitute health care

 

services, as part of their total compensation package and whose employees are contributing

 

at least the same percentage of the costs of those services as state employees shall be

 

eligible for a payment from this subsection.

 

       Sec. 24. (1) From the appropriation in section 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated for 2010-2011 an amount not to exceed $8,000,000.00 for

 

payments to the educating district or intermediate district for educating pupils assigned

 

by a court or the department of human services to reside in or to attend a juvenile

 

detention facility or child caring institution licensed by the department of human services

 

and approved by the department to provide an on-grounds education program. The amount of

 


the payment under this section to a district or intermediate district shall be calculated

 

as prescribed under subsection (2).

 

       (2) The total amount allocated under this section shall be allocated by paying to the

 

educating district or intermediate district an amount equal to the lesser of the district's

 

or intermediate district's added cost or the department's approved per pupil allocation for

 

the district or intermediate district. For the purposes of this subsection:

 

       (a) "Added cost" means 100% of the added cost each fiscal year for educating all

 

pupils assigned by a court or the department of human services to reside in or to attend a

 

juvenile detention facility or child caring institution licensed by the department of human

 

services or the department of energy, labor, and economic growth and approved by the

 

department to provide an on-grounds education program. Added cost shall be computed by

 

deducting all other revenue received under this act for pupils described in this section

 

from total costs, as approved by the department, in whole or in part, for educating those

 

pupils in the on-grounds education program or in a program approved by the department that

 

is located on property adjacent to a juvenile detention facility or child caring

 

institution. Costs reimbursed by federal funds are not included.

 

       (b) "Department's approved per pupil allocation" for a district or intermediate

 

district shall be determined by dividing the total amount allocated under this section for

 

a fiscal year by the full-time equated membership total for all pupils approved by the

 

department to be funded under this section for that fiscal year for the district or

 

intermediate district.

 

       (3) A district or intermediate district educating pupils described in this section at

 

a residential child caring institution may operate, and receive funding under this section

 

for, a department-approved on-grounds educational program for those pupils that is longer

 

than 181 days, but not longer than 233 days, if the child caring institution was licensed

 

as a child caring institution and offered in 1991-92 an on-grounds educational program that

 

was longer than 181 days but not longer than 233 days and that was operated by a district

 


or intermediate district.

 

       (4) Special education pupils funded under section 53a shall not be funded under this

 

section.

 

       Sec. 24a. From the appropriation in section 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated an amount not to exceed $1,751,300.00 for 2009-2010 and there

 

is allocated an amount not to exceed $1,440,000.00 for 2010-2011 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 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated an amount not to exceed $742,300.00 for 2010-2011 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. 26a. From the state school aid fund appropriation in section 11 192(6) FOR DEBT

 

SERVICE AND OTHER REQUIRED PAYMENTS, there is allocated an amount not to exceed

 

$26,300,000.00 for 2010-2011 FOR 2011-2012 to reimburse districts and intermediate

 

districts pursuant to section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL

 

125.2692, for taxes levied in 2010 2011. The allocations shall be made not later than 60

 

days after the department of treasury certifies to the department and to the state budget

 

director that the department of treasury has received all necessary information to properly

 

determine the amounts due to each eligible recipient.

 

       Sec. 26b. (1) From the appropriation in section 11 192(6) FOR DEBT SERVICE AND OTHER

 

REQUIRED PAYMENTS, there is allocated for 2010-2011 an amount not to exceed $3,400,000.00

 

for payments to districts, intermediate districts, and community college districts for the

 

portion of the payment in lieu of taxes obligation that is attributable to districts,

 

intermediate districts, and community college districts pursuant to section 2154 of the

 

natural resources and environmental protection act, 1994 PA 451, MCL 324.2154.

 

       (2) If the amount appropriated ALLOCATED 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. 31a. (1) From the state school aid fund money appropriated APPROPRIATION in

 

section 11 192(4) FOR STUDENT SUPPLEMENTAL SERVICES, there is allocated for 2010-2011 an

 

amount not to exceed $317,695,500.00 for payments to eligible districts and eligible public

 

school academies under this section. Subject to subsection (14), the amount of the

 

additional allowance under this section, other than funding under subsection (6) or (7),

 

shall be based on the number of actual pupils in membership in the district or public

 

school academy who met the income eligibility criteria for free breakfast, lunch, or milk

 


in the immediately preceding state fiscal year, as determined under the Richard B. Russell

 

national school lunch act, 42 USC 1751 to 1769i, and reported to the department by October

 

31 NOT LATER THAN THE FIFTH WEDNESDAY AFTER THE FALL PUPIL MEMBERSHIP COUNT DAY of the

 

immediately preceding fiscal year and adjusted not later than December 31 of the

 

immediately preceding fiscal year IN THE FORM AND MANNER PRESCRIBED BY THE CENTER. However,

 

for a public school academy that began operations as a public school academy after the

 

pupil membership count day of the immediately preceding school year, the basis for the

 

additional allowance under this section shall be the number of actual pupils in membership

 

in the public school academy who met the income eligibility criteria for free breakfast,

 

lunch, or milk in the current state fiscal year, as determined under the Richard B. Russell

 

national school lunch act AND REPORTED TO THE DEPARTMENT NOT LATER THAN THE FIFTH WEDNESDAY

 

AFTER THE FALL PUPIL MEMBERSHIP COUNT DAY.

 

       (2) To be eligible to receive funding under this section, other than funding under

 

subsection (6) or (7), a district or public school academy that has not been previously

 

determined to be eligible shall apply to the department, in a form and manner prescribed by

 

the department, and a district or public school academy must meet all of the following:

 

       (a) The sum of the district's or public school academy's combined state and local

 

revenue per membership pupil in the current state fiscal year, as calculated under section

 

20, plus the amount of the district's per pupil allocation under section 20j(2), is less

 

than or equal to the basic foundation allowance under section 20 for the current state

 

fiscal year.

 

       (b) The district or public school academy agrees to use the funding only for purposes

 

allowed under this section and to comply with the program and accountability requirements

 

under this section.

 

       (3) Except as otherwise provided in this subsection, an eligible district or eligible

 

public school academy shall receive under this section for each membership pupil in the

 

district or public school academy who met the income eligibility criteria for free

 


breakfast, lunch, or milk, as determined under the Richard B. Russell national school lunch

 

act and as reported to the department by October 31 NOT LATER THAN THE FIFTH WEDNESDAY

 

AFTER THE FALL PUPIL MEMBERSHIP COUNT DAY of the immediately preceding fiscal year and

 

adjusted not later than December 31 of the immediately preceding fiscal year, an amount per

 

pupil equal to 11.5% of the sum of the district's foundation allowance or public school

 

academy's per pupil amount calculated under section 20, plus the amount of the district's

 

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

 

under section 20 for the current state fiscal year, or of the public school academy's per

 

membership pupil amount calculated under section 20 for the current state fiscal year. A

 

public school academy that began operations as a public school academy after the pupil

 

membership count day of the immediately preceding school year shall receive under this

 

section for each membership pupil in the public school academy who met the income

 

eligibility criteria for free breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department by October 31 NOT LATER

 

THAN THE FIFTH WEDNESDAY AFTER THE FALL PUPIL MEMBERSHIP COUNT DAY of the current fiscal

 

year and adjusted not later than December 31 of the current fiscal year, an amount per

 

pupil equal to 11.5% of the public school academy's per membership pupil amount calculated

 

under section 20 for the current state fiscal year.

 

       (4) Except as otherwise provided in this section, a district or public school academy

 

receiving funding under this section shall use that money only to provide instructional

 

programs and direct noninstructional services, including, but not limited to, medical or

 

counseling services, for at-risk pupils; for school health clinics; and for the purposes of

 

subsection (5), (6), or (7). In addition, a district that is a school district of the first

 

class or a district or public school academy in which at least 50% of the pupils in

 

membership met the income eligibility criteria for free breakfast, lunch, or milk in the

 

immediately preceding state fiscal year, as determined and reported as described in

 

subsection (1), may use not more than 20% of the funds it receives under this section for

 


school security. A district or public school academy shall not use any of that money for

 

administrative costs or to supplant another program or other funds, except for funds

 

allocated to the district or public school academy under this section in the immediately

 

preceding year and already being used by the district or public school academy for at-risk

 

pupils. The instruction or direct noninstructional services provided under this section may

 

be conducted before or after regular school hours or by adding extra school days to the

 

school year and may include, but are not limited to, tutorial services, early childhood

 

programs to serve children age 0 to 5, and reading programs as described in former section

 

32f as in effect for 2001-2002. A tutorial method may be conducted with paraprofessionals

 

working under the supervision of a certificated teacher. The ratio of pupils to

 

paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated teacher is required

 

to supervise instruction using a tutorial method. As used in this subsection, "to supplant

 

another program" means to take the place of a previously existing instructional program or

 

direct noninstructional services funded from a funding source other than funding under this

 

section.

 

       (5) Except as otherwise provided in subsection (12), a district or public school

 

academy that receives funds under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a, shall use from the funds

 

received under this section an amount, not to exceed $10.00 per pupil for whom the district

 

or public school academy receives funds under this section, necessary to pay for costs

 

associated with the operation of the school breakfast program.

 

       (6) From the funds allocated under subsection (1), there is allocated for 2010-2011

 

an amount not to exceed $3,557,300.00 to support child and adolescent health centers. These

 

grants shall be awarded for 5 consecutive years beginning with 2003-2004 in a form and

 

manner approved jointly by the department and the department of community health. Each

 

grant recipient shall remain in compliance with the terms of the grant award or shall

 

forfeit the grant award for the duration of the 5-year period after the noncompliance. To

 


continue to receive funding for a child and adolescent health center under this section a

 

grant recipient shall ensure that the child and adolescent health center has an advisory

 

committee and that at least one-third of the members of the advisory committee are parents

 

or legal guardians of school-aged children. A child and adolescent health center program

 

shall recognize the role of a child's parents or legal guardian in the physical and

 

emotional well-being of the child. Funding under this subsection shall be used to support

 

child and adolescent health center services provided to children up to age 21. If any funds

 

allocated under this subsection are not used for the purposes of this subsection for the

 

fiscal year in which they are allocated, those unused funds shall be used that fiscal year

 

to avoid or minimize any proration that would otherwise be required under subsection (14)

 

for that fiscal year.

 

       (7) From the funds allocated under subsection (1), there is allocated for 2010-2011

 

an amount not to exceed $5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code, 1978 PA 368, MCL

 

333.9301. A local public health department shall pay at least 50% of the total cost of the

 

screenings. The frequency of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan administrative code. Funds shall be

 

awarded in a form and manner approved jointly by the department and the department of

 

community health. Notwithstanding section 17b, payments to eligible entities under this

 

subsection shall be paid on a schedule determined by the department.

 

       (8) Each district or public school academy receiving funds under this section shall

 

submit to the department by July 15 of each fiscal year a report, not to exceed 10 pages,

 

on the usage by the district or public school academy of funds under this section, which

 

report shall include at least a brief description of each program conducted by the district

 

or public school academy using funds under this section, the amount of funds under this

 

section allocated to each of those programs, the number of at-risk pupils eligible for free

 

or reduced price school lunch who were served by each of those programs, and the total

 


number of at-risk pupils served by each of those programs. If a district or public school

 

academy does not comply with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or public school academy

 

complies with this subsection. If the district or public school academy does not comply

 

with this subsection by the end of the state fiscal year, the withheld funds shall be

 

forfeited to the school aid fund.

 

       (9) In order to receive funds under this section, a district or public school academy

 

shall allow access for the department or the department's designee to audit all records

 

related to the program for which it receives those funds. The district or public school

 

academy shall reimburse the state for all disallowances found in the audit.

 

       (10) Subject to subsections (5), (6), (7), (12), and (13), any district may use up to

 

100% of the funds it receives under this section to reduce the ratio of pupils to teachers

 

in grades K-6, or any combination of those grades, in school buildings in which the

 

percentage of pupils described in subsection (1) exceeds the district's aggregate

 

percentage of those pupils. Subject to subsections (5), (6), (7), (12), and (13), if a

 

district obtains a waiver from the department, the district may use up to 100% of the funds

 

it receives under this section to reduce the ratio of pupils to teachers in grades K-6, or

 

any combination of those grades, in school buildings in which the percentage of pupils

 

described in subsection (1) is at least 60% of the district's aggregate percentage of those

 

pupils and at least 30% of the total number of pupils enrolled in the school building. To

 

obtain a waiver, a district must apply to the department and demonstrate to the

 

satisfaction of the department that the class size reductions would be in the best

 

interests of the district's at-risk pupils.

 

       (11) A district or public school academy may use funds received under this section

 

for adult high school completion, general educational development (G.E.D.) test

 

preparation, adult English as a second language, or adult basic education programs

 

described in section 107.

 


       (12) For an individual school or schools operated by a district or public school

 

academy receiving funds under this section that have been determined by the department to

 

meet the adequate yearly progress standards of the no child left behind act of 2001, Public

 

Law 107-110, in both mathematics and English language arts at all applicable grade levels

 

for all applicable subgroups, the district or public school academy may submit to the

 

department an application for flexibility in using the funds received under this section

 

that are attributable to the pupils in the school or schools. The application shall

 

identify the affected school or schools and the affected funds and shall contain a plan for

 

using the funds for specific purposes identified by the district that are designed to

 

benefit at-risk pupils in the school, but that may be different from the purposes otherwise

 

allowable under this section. The department shall approve the application if the

 

department determines that the purposes identified in the plan are reasonably designed to

 

benefit at-risk pupils in the school. If the department does not act to approve or

 

disapprove an application within 30 days after it is submitted to the department, the

 

application is considered to be approved. If an application for flexibility in using the

 

funds is approved, the district may use the funds identified in the application for any

 

purpose identified in the plan.

 

       (13) A district or public school academy that receives funds under this section may

 

use funds it receives under this section to implement and operate an early intervening

 

program for pupils in grades K to 3 that meets either or both of the following:

 

       (a) Monitors individual pupil learning and provides specific support or learning

 

strategies to pupils as early as possible in order to reduce the need for special education

 

placement. The program shall include literacy and numeracy supports, sensory motor skill

 

development, behavior supports, instructional consultation for teachers, and the

 

development of a parent/school learning plan. Specific support or learning strategies may

 

include support in or out of the general classroom in areas including reading, writing,

 

math, visual memory, motor skill development, behavior, or language development. These

 


would be provided based on an understanding of the individual child's learning needs.

 

       (b) Provides early intervening strategies using school-wide systems of academic and

 

behavioral supports and is scientifically research-based. The strategies to be provided

 

shall include at least pupil performance indicators based upon response to intervention,

 

instructional consultation for teachers, and ongoing progress monitoring. A school-wide

 

system of academic and behavioral support should be based on a support team available to

 

the classroom teachers. The members of this team could include the principal, special

 

education staff, reading teachers, and other appropriate personnel who would be available

 

to systematically study the needs of the individual child and work with the teacher to

 

match instruction to the needs of the individual child.

 

       (14) If necessary, and before any proration required under section 11 195, the

 

department shall prorate payments under this section by reducing the amount of the per

 

pupil payment under this section by a dollar amount calculated by determining the amount by

 

which the amount necessary to fully fund the requirements of this section exceeds the

 

maximum amount allocated under this section and then dividing that amount by the total

 

statewide number of pupils who met the income eligibility criteria for free breakfast,

 

lunch, or milk in the immediately preceding fiscal year, as described in subsection (1).

 

       (15) If a district is formed by consolidation after June 1, 1995, and if 1 or more of

 

the original districts was not eligible before the consolidation for an additional

 

allowance under this section, the amount of the additional allowance under this section for

 

the consolidated district shall be based on the number of pupils described in subsection

 

(1) enrolled in the consolidated district who reside in the territory of an original

 

district that was eligible before the consolidation for an additional allowance under this

 

section.

 

       (16) Except as otherwise provided in subsection (18), a district or public school

 

academy that does not meet the eligibility requirement under subsection (2)(a) is eligible

 

for funding under this section if at least 1/4 of the pupils in membership in the district

 


or public school academy met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined and reported as

 

described in subsection (1), and at least 4,500 of the pupils in membership in the district

 

or public school academy met the income eligibility criteria for free breakfast, lunch, or

 

milk in the immediately preceding state fiscal year, as determined and reported as

 

described in subsection (1). A district or public school academy that is eligible for

 

funding under this section because the district meets the requirements of this subsection

 

shall receive under this section for each membership pupil in the district or public school

 

academy who met the income eligibility criteria for free breakfast, lunch, or milk in the

 

immediately preceding fiscal year, as determined and reported as described in subsection

 

(1), an amount per pupil equal to 11.5% of the sum of the district's foundation allowance

 

or public school academy's per pupil allocation under section 20, plus the amount of the

 

district's per pupil allocation under section 20j(2), not to exceed the basic foundation

 

allowance under section 20 for the current state fiscal year.

 

       (17) A district that does not meet the eligibility requirement under subsection

 

(2)(a) is eligible for funding under this section if at least 75% of the pupils in

 

membership in the district met the income eligibility criteria for free breakfast, lunch,

 

or milk in the immediately preceding state fiscal year, as determined and reported as

 

described in subsection (1), the district receives an adjustment under section 20(19), and

 

the district does not receive any state portion of its foundation allowance as calculated

 

under section 20. A district that is eligible for funding under this section because the

 

district meets the requirements of this subsection shall receive under this section for

 

each membership pupil in the district who met the income eligibility criteria for free

 

breakfast, lunch, or milk in the immediately preceding fiscal year, as determined and

 

reported as described in subsection (1), an amount per pupil equal to 11.5% of the sum of

 

the district's foundation allowance under section 20, not to exceed the basic foundation

 

allowance under section 20 for the current state fiscal year.

 


       (18) For a district described in subsection (16), the total allocation to the

 

district otherwise due under this section, after any reduction under subsection (14), shall

 

be further reduced by 25%.

 

       (16) (19) As used in this section, "at-risk pupil" means a pupil for whom the

 

district has documentation that the pupil meets at least 2 of the following criteria: is a

 

victim of child abuse or neglect; is below grade level in English language and

 

communication skills or mathematics; is a pregnant teenager or teenage parent; is eligible

 

for a federal free or reduced-price lunch subsidy; has atypical behavior or attendance

 

patterns; or has a family history of school failure, incarceration, or substance abuse. For

 

pupils for whom the results of at least the applicable Michigan education assessment

 

program (MEAP) test have been received, at-risk pupil also includes a pupil who does not

 

meet the other criteria under this subsection but who did not achieve at least a score of

 

level 2 on the most recent MEAP English language arts, mathematics, or science test for

 

which results for the pupil have been received. For pupils for whom the results of the

 

Michigan merit examination have been received, at-risk pupil also includes a pupil who does

 

not meet the other criteria under this subsection but who did not achieve proficiency on

 

the reading component of the most recent Michigan merit examination for which results for

 

the pupil have been received, did not achieve proficiency on the mathematics component of

 

the most recent Michigan merit examination for which results for the pupil have been

 

received, or did not achieve basic competency on the science component of the most recent

 

Michigan merit examination for which results for the pupil have been received. For pupils

 

in grades K-3, at-risk pupil also includes a pupil who is at risk of not meeting the

 

district's core academic curricular objectives in English language arts or mathematics.

 

       Sec. 31d. (1) From the appropriations APPROPRIATION in section 11 192(5) FOR SCHOOL

 

MEAL PROGRAMS, there is allocated an amount not to exceed $22,495,100.00 for 2010-2011 for

 

the purpose of making payments to districts and other eligible entities under this section.

 

       (2) The amounts allocated from state sources under this section shall be used to pay

 


the amount necessary to reimburse districts for 6.0127% of the necessary costs of the state

 

mandated portion of the school lunch programs provided by those districts. The amount due

 

to each district under this section shall be computed by the department using the methods

 

of calculation adopted by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no. 104458-104492.

 

       (3) The payments made under this section include all state payments made to districts

 

so that each district receives at least 6.0127% of the necessary costs of operating the

 

state mandated portion of the school lunch program in a fiscal year.

 

       (4) The payments made under this section to districts and other eligible entities

 

that are not required under section 1272a of the revised school code, MCL 380.1272a, to

 

provide a school lunch program shall be in an amount not to exceed $10.00 per eligible

 

pupil plus 5 cents for each free lunch and 2 cents for each reduced price lunch provided,

 

as determined by the department.

 

       (5) From the federal funds appropriated in section 11 192(5) FOR SCHOOL MEAL

 

PROGRAMS, there is allocated for 2010-2011 all available federal funding, estimated at

 

$400,000,000.00, for the national school lunch program and all available federal funding,

 

estimated at $2,506,000.00, for the emergency food assistance program.

 

       (6) Notwithstanding section 17b, payments to eligible entities other than districts

 

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

 

       (7) In purchasing food for a school lunch program funded under this section,

 

preference shall be given to food that is grown or produced by Michigan businesses if it is

 

competitively priced and of comparable quality.

 

       Sec. 31f. (1) From the appropriations APPROPRIATION in section 11 192(5) FOR SCHOOL

 

MEAL PROGRAMS, there is allocated an amount not to exceed $9,625,000.00 for 2010-2011 for

 

the purpose of making payments to districts to reimburse for the cost of providing

 

breakfast.

 

       (2) The funds allocated under this section for school breakfast programs shall be

 


made available to all eligible applicant districts that meet all of the following criteria:

 

       (a) The district participates in the federal school breakfast program and meets all

 

standards as prescribed by 7 CFR parts 220 and 245.

 

       (b) Each breakfast eligible for payment meets the federal standards described in

 

subdivision (a).

 

       (3) The payment for a district under this section is at a per meal rate equal to the

 

lesser of the district's actual cost or 100% of the statewide average cost of a breakfast

 

served, as determined and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide average cost shall be

 

determined by the department using costs as reported in a manner approved by the department

 

for the preceding school year.

 

       (4) Notwithstanding section 17b, payments under this section may be made pursuant to

 

an agreement with the department.

 

       (5) In purchasing food for a school breakfast program funded under this section,

 

preference shall be given to food that is grown or produced by Michigan businesses if it is

 

competitively priced and of comparable quality.

 

       Sec. 32b. (1) From the funds appropriated under APPROPRIATION IN section 11 192(7)

 

FOR EARLY CHILDHOOD EDUCATION, there is allocated an amount not to exceed $6,000,000.00 for

 

2010-2011 for competitive grants to intermediate districts for the creation and continuance

 

of great start communities or other community purposes as identified by the early childhood

 

investment corporation. These dollars may not be expended until both of the following

 

conditions have been met:

 

       (a) The early childhood investment corporation has identified matching dollars of at

 

least an amount equal to the amount of the matching dollars for 2006-2007.

 

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

 

of the executive committee provided for by the interlocal agreement creating the

 

corporation under the urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.510 to

 


124.512, 4 members appointed by the governor as provided in this subdivision. Not later

 

than 30 days after the convening of a regular legislative session in an odd-numbered year,

 

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

 

leader, and the senate minority leader shall each submit to the governor a list of 3 or

 

more individuals as nominees for appointment as members of the executive committee of the

 

corporation. The corporation shall notify each of the legislative leaders of this

 

requirement to submit a list of nominees not later than 30 days before the date that the

 

list is due. Within 60 days of the submission to the governor of nominees by each of the 4

 

legislative leaders, the governor shall appoint 1 member of the executive committee from

 

each list of nominees submitted by each of the 4 legislative leaders. A member appointed

 

under this subdivision shall serve a term as a member of the executive committee through

 

the next regular legislative session unless he or she resigns or is otherwise unable to

 

serve. When a vacancy occurs other than by expiration of a term, the corporation shall

 

notify the legislative leader who originally nominated the member of the vacancy and that

 

legislative leader shall submit to the governor a list of 3 or more individuals as nominees

 

for appointment to fill the vacancy within 30 days after being notified by the corporation

 

of the vacancy. The governor shall make an appointment to fill that vacancy in the same

 

manner as the original appointment not later than 60 days after the date the vacancy

 

occurs.

 

       (2) The early childhood investment corporation shall award grants to eligible

 

intermediate districts in an amount to be determined by the corporation.

 

       (3) In order to receive funding, each intermediate district applicant shall agree to

 

convene a local great start collaborative to address the availability of the 6 components

 

of a great start system in its communities: physical health, social-emotional health,

 

family supports, basic needs, economic stability and safety, and parenting education and

 

early education and care, to ensure that every child in the community is ready for

 

kindergarten. Specifically, each grant will fund the following:

 


       (a) The completion of a community needs assessment and strategic plan for the

 

creation of a comprehensive system of early childhood services and supports, accessible to

 

all children from birth to kindergarten and their families.

 

       (b) Identification of local resources and services for children with disabilities,

 

developmental delays, or special needs and their families.

 

       (c) Coordination and expansion of infrastructure to support high-quality early

 

childhood and childcare programs.

 

       (d) Evaluation of local programs.

 

       (4) Not later than December 1 of each fiscal year, for the grants awarded under this

 

section for the immediately preceding fiscal year, the department shall provide to the

 

house and senate appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a report detailing the amount of each

 

grant awarded under this section, the grant recipients, the activities funded by each grant

 

under this section, and an analysis of each grant recipient's success in addressing the

 

development of a comprehensive system of early childhood services and supports.

 

       (4) (5) An intermediate district receiving funds under this section may carry over

 

any unexpended funds received under this section into the next fiscal year and may expend

 

those unused funds in the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed by the department not

 

later than September 30 of the next fiscal year after the fiscal year in which the funds

 

are received.

 

       (5) (6) Notwithstanding section 17b, payments under this section may be made pursuant

 

to an agreement with the department.

 

       Sec. 32d. (1) For 2010-2011 FROM THE APPROPRIATION IN SECTION 192(7) FOR EARLY

 

CHILDHOOD EDUCATION, there is allocated AN AMOUNT to eligible districts for great start

 

readiness programs an amount not to exceed $89,400,000.00 from the state school aid fund

 

money appropriated in section 11. In addition, from the general fund appropriation in

 


section 11, there is allocated AND an amount not to exceed $8,875,000.00 for competitive

 

great start readiness program grants. Funds allocated under this section shall be used to

 

provide part-day or full SCHOOL-day comprehensive free compensatory programs designed to do

 

1 or both of the following:

 

       (a) Improve IMPROVE the readiness and subsequent achievement of educationally

 

disadvantaged children as defined by the department who will be at least 4, but less than 5

 

years of age, as of December 1 of the school year in which the programs are offered, and

 

who show evidence of 2 or more risk factors MEET THE PARTICIPANT ELIGIBILITY AND

 

PRIORITIZATION GUIDELINES as defined by the state board.

 

       (b) Provide preschool and parenting education programs similar to those under former

 

section 32b as in effect for 2001-2002. Beginning in 2007-2008, funds spent by a district

 

for programs described in this subdivision shall not exceed the lesser of the amount spent

 

by the district under this subdivision for 2006-2007 or the amount spent under this

 

subdivision in any subsequent fiscal year.

 

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

 

with this section and section 39. To receive competitive grant payments under this section,

 

an eligible grant recipient shall comply with this section and section 32l.

 

       (3) In addition to FROM the allocation under subsection (1), from the general fund

 

money appropriated under section 11, there is allocated an amount not to exceed $300,000.00

 

for 2010-2011 for a competitive grant to continue a longitudinal evaluation of children who

 

have participated in great start readiness programs.

 

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

 

for success in school through comprehensive part-day or full SCHOOL-day programs that

 

contain all of the following program components, as determined by the department:

 

       (a) Participation in a collaborative recruitment and enrollment process. At a

 

minimum, the process shall include all other funded preschool programs that may serve

 

children in the same geographic area, to assure that each child is enrolled in the program

 


most appropriate to his or her needs and to maximize the use of federal, state, and local

 

funds.

 

       (b) An age-appropriate educational curriculum that is in compliance with the early

 

childhood standards of quality for prekindergarten children adopted by the state board.

 

       (c) Nutritional services for all program participants.

 

       (d) Health and developmental screening services for all program participants.

 

       (e) Referral services for families of program participants to community social

 

service agencies, as appropriate.

 

       (f) Active and continuous involvement of the parents or guardians of the program

 

participants.

 

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

 

continuous improvement plans using criteria approved by the department.

 

       (h) Participation in a multidistrict, multiagency, school readiness advisory

 

committee that provides for the involvement of classroom teachers, parents or guardians of

 

program participants, and community, volunteer, and social service agencies and

 

organizations, as appropriate. The advisory committee shall review the program components

 

listed in this subsection and make recommendations for changes to the great start readiness

 

program for which it is an advisory committee.

 

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

 

districts, provide for the ongoing articulation of the early childhood, kindergarten, and

 

first grade programs offered by the district or districts GRANT RECIPIENTS.

 

       (5) An application for funding under this section shall provide for the following, in

 

a form and manner determined by the department:

 

       (a) Ensure compliance with all program components described in subsection (4).

 

       (b) Ensure that more than 75% of the children participating in an eligible great

 

start readiness program are children who live with families with a household income that is

 

equal to or less than 300% of the federal poverty level.

 


       (c) Ensure that the applicant only employs qualified personnel for this program, as

 

follows:

 

       (i) Teachers possessing proper training. For programs the district manages itself

 

MANAGED DIRECTLY BY A SCHOOL DISTRICT, a valid teaching certificate and an early childhood

 

(ZA OR ZS) endorsement are required. This provision does not apply to a district OR

 

COMPETITIVE GRANTEE that subcontracts with an eligible child development program. In that

 

situation, a teacher must have a valid Michigan teaching certificate with an early

 

childhood (ZA OR ZS) endorsement, a valid Michigan ELEMENTARY teaching certificate with a

 

child development associate credential, or a bachelor's degree in child development with

 

specialization in preschool teaching. However, both of the following apply to this

 

subparagraph:

 

       (A) If IF a district demonstrates to the department that it is unable to fully comply

 

with this subparagraph after making reasonable efforts to comply, teachers who have

 

significant but incomplete training in early childhood education or child development may

 

be employed by the district if the district provides to the department, and the department

 

approves, a plan for each teacher to come into compliance with the standards in this

 

subparagraph. A teacher's compliance plan must be completed within 4 2 years of the date of

 

employment. Progress toward completion of the compliance plan shall consist of at least 2

 

courses per calendar year.

 

       (B) For a subcontracted program, the department shall consider a teacher with 90

 

credit hours and at least 4 years' teaching experience in a qualified preschool program to

 

meet the requirements under this subparagraph.

 

       (ii) Paraprofessionals possessing proper training in early childhood development,

 

including an associate's degree in early childhood education or child development or the

 

equivalent, or a child development associate (CDA) credential, or the equivalent as

 

approved by the state board. However, if a district demonstrates to the department that it

 

is unable to fully comply with this subparagraph after making reasonable efforts to comply,

 


the district may employ paraprofessionals who have completed at least 1 CREDIT-BEARING

 

course in early childhood education or child development if the district provides to the

 

department, and the department approves, a plan for each paraprofessional to come into

 

compliance with the standards in this subparagraph. A paraprofessional's compliance plan

 

must be completed within 2 years of the date of employment. Progress toward completion of

 

the compliance plan shall consist of at least 2 courses or 60 clock hours of training per

 

calendar year.

 

       (d) Include a program budget that contains only those costs that are not reimbursed

 

or reimbursable by federal funding, that are clearly and directly attributable to the great

 

start readiness program, and that would not be incurred if the program were not being

 

offered. The program budget shall indicate the extent to which these funds will supplement

 

other federal, state, local, or private funds. Funds received under this section shall not

 

be used to supplant any federal funds by the applicant to serve children eligible for a

 

federally funded existing preschool program that has the capacity to serve those children.

 

       (6) For a grant recipient that enrolls pupils in a full SCHOOL-day program funded

 

under this section, each child enrolled in the full SCHOOL-day program shall be counted as

 

2 children served by the program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant award shall not be

 

increased solely on the basis of providing a full SCHOOL-day program. As used in this

 

subsection, "full SCHOOL-day program" means a program that operates for at least the same

 

length of day as a district's first grade program for a minimum of 4 days per week, 30

 

weeks per year. A classroom that offers a full SCHOOL-day program must enroll all children

 

for the full SCHOOL day to be considered a full SCHOOL-day program.

 

       (7) A district or consortium of districts OR COMPETITIVE GRANTEE receiving a grant

 

under this section may contract with for-profit or nonprofit preschool center providers

 

that meet all requirements of subsection (4) and retain for administrative services an

 

amount equal to not more than 5% of the grant amount. A district or consortium of districts

 


OR COMPETITIVE GRANTEE may expend not more than 10% of the total grant amount for

 

administration of the program.

 

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

 

for a competitive grant under this section. However, a district or intermediate district

 

may not apply for a competitive grant under this section unless the district, intermediate

 

district, or consortium of districts or intermediate districts is acting as a local grantee

 

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

 

       (9) A recipient of funds under this section shall report to the department on the

 

midyear report IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT the number of children

 

participating in the program who meet the income or other eligibility criteria prescribed

 

by the department and the total number of children participating in the program. For

 

children participating in the program who meet the income or other eligibility criteria

 

specified under subsection (5)(b), a recipient shall also report whether or not a parent is

 

available to provide care based on employment status. For the purposes of this subsection,

 

"employment status" shall be defined by the department of human services in a manner

 

consistent with maximizing the amount of spending that may be claimed for temporary

 

assistance for needy families maintenance of effort purposes.

 

       (10) As used in this section, "part-day program" means a program that operates at

 

least 4 days per week, 30 weeks per year, for at least 3 hours of teacher-child contact

 

time per day but for fewer hours of teacher-child contact time per day than a full SCHOOL-

 

day program as defined in subsection (6). A FULL-DAY PROGRAM PROVIDES SUPPLEMENTARY CHILD

 

CARE THAT TOTALS AT LEAST 10 HOURS OF PROGRAMMING PER DAY.

 

       (11) A district or intermediate district GRANTEE receiving funds under this section

 

is encouraged to establish a sliding scale of tuition rates based upon a child's family

 

income for the purpose of expanding eligible programs under this section. A district or

 

intermediate district GRANTEE may charge tuition for programs provided under this section

 

according to that sliding scale of tuition rates on a uniform basis for any child who does

 


not meet the program eligibility requirements under this section.

 

       Sec. 32j. (1) From the appropriations APPROPRIATION in section 11 192(7) FOR EARLY

 

CHILDHOOD EDUCATION, there is allocated an amount not to exceed $5,000,000.00 for 2010-2011

 

for great parents, great start grants to intermediate districts to provide programs for

 

parents with young children. The purpose of these programs is to encourage early

 

mathematics and reading literacy, improve school readiness, reduce the need for special

 

education services, and foster the maintenance of stable families by encouraging positive

 

parenting skills.

 

       (2) To qualify for funding under this section, a program shall provide services to

 

all families with children age 5 or younger residing within the intermediate district who

 

choose to participate, including at least all of the following services:

 

       (a) Providing parents with information on child development from birth to age 5.

 

       (b) Providing parents with methods to enhance parent-child interaction that promote

 

social and emotional development and age-appropriate language, mathematics, and early

 

reading skills for young children; including, but not limited to, encouraging parents to

 

read to their preschool children at least 1/2 hour per day.

 

       (c) Providing parents with examples of learning opportunities to promote

 

intellectual, physical, and social growth of young children, including the acquisition of

 

age-appropriate language, mathematics, and early reading skills.

 

       (d) Promoting access to needed community services through a community-school-home

 

partnership.

 

       (3) To receive a grant under this section, an intermediate district shall submit a

 

plan to the department not later than October 15, 2010 2011 in the form and manner

 

prescribed by the department. The plan shall do all of the following in a manner prescribed

 

by the department:

 

       (a) Provide a plan for the delivery of the program components described in subsection

 

(2) that targets resources based on family need and provides for educators trained in child

 


development to help parents understand their role in their child's developmental process,

 

thereby promoting school readiness and mitigating the need for special education services.

 

       (b) Demonstrate an adequate collaboration of local entities involved in providing

 

programs and services for preschool children and their parents and, where there is a great

 

start collaborative, demonstrate that the planned services are part of the community's

 

great start strategic plan.

 

       (c) Provide a projected budget for the program to be funded. The intermediate

 

district shall provide at least a 20% local match from local public or private resources

 

for the funds received under this section. Not more than 1/2 of this matching requirement,

 

up to a total of 10% of the total project budget, may be satisfied through in-kind services

 

provided by participating providers of programs or services. In addition, not more than 10%

 

of the grant may be used for program administration.

 

       (4) Each intermediate district receiving a grant under this section shall agree to

 

include a data collection system approved by the department. The data collection system

 

shall provide a report by October 15 of each year on the number of children in families

 

with income below 200% of the federal poverty level that received services under this

 

program and the total number of children who received services under this program.

 

       (5) The department or superintendent, as applicable, shall do all of the following:

 

       (a) The superintendent shall approve or disapprove the plans and notify the

 

intermediate district of that decision not later than November 15, 2010 2011. The amount

 

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

 

intermediate district's 2009-2010 2010-2011 payment under this section.

 

       (b) The department shall ensure that all programs funded under this section utilize

 

the most current validated research-based methods and curriculum for providing the program

 

components described in subsection (2).

 

       (c) The department shall submit a report to the state budget director and the senate

 

and house fiscal agencies summarizing the data collection reports described in subsection

 


(4) by December 1 of each year.

 

       (6) An intermediate district receiving funds under this section shall use the funds

 

only for the program funded under this section. An intermediate district receiving funds

 

under this section may carry over any unexpended funds received under this section into the

 

next fiscal year and may expend those unused funds in the next fiscal year. A recipient of

 

a grant shall return any unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal year after the fiscal year

 

in which the funds are received.

 

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

 

preapplication, in a form and manner prescribed by the department, by a date specified by

 

the department in the immediately preceding state fiscal year. The preapplication shall

 

include a comprehensive needs assessment and community collaboration plan, which is

 

endorsed by the local great start collaborative and is part of the community's great start

 

strategic plan that includes, but is not limited to, great start readiness program and head

 

start providers, and shall identify all of the following:

 

       (a) The estimated total number of children in the community who meet the criteria of

 

section 32d and how that calculation was made.

 

       (b) The estimated number of children in the community who meet the criteria of

 

section 32d and are being served by other early childhood development programs operating in

 

the community, and how that calculation was made.

 

       (c) The number of children the district will be able to serve who meet the criteria

 

of section 32d including a verification of physical facility and staff resources capacity.

 

       (d) The estimated number of children who meet the criteria of section 32d who will

 

remain unserved after the district and community early childhood programs have met their

 

funded enrollments. The school district shall maintain a waiting list of identified

 

unserved eligible children who would be served when openings are available.

 

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

 


application for approval, in a form and manner prescribed by the department, by a date

 

specified by the department, that details how the district complies with the program

 

components established by the department pursuant to section 32d.

 

       (3) The number of prekindergarten children construed to be in need of special

 

readiness assistance under section 32d shall be calculated for each district in the

 

following manner: 1/2 of the percentage of the district's pupils in grades 1 to 5 who are

 

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

 

the pupil membership count day in the school year prior to the fiscal year for which the

 

calculation is made, under the Richard B. Russell national school lunch act, 42 USC 1751 to

 

1769i, shall be multiplied by the average kindergarten enrollment of the district on the

 

pupil membership count day of the 2 immediately preceding fiscal years.

 

       (4) Beginning in 2008-2009, the initial allocation for each fiscal year to each

 

eligible district under section 32d shall be determined by multiplying the number of

 

children determined by the formula under subsection (3) or the number of children the

 

district indicates it will be able to serve under subsection (1)(c), whichever is less, by

 

$3,400.00 and shall be distributed among districts in decreasing order of concentration of

 

eligible children as determined by the formula under subsection (3). If the number of

 

children a district indicates it will be able to serve under subsection (1)(c) includes

 

children able to be served in a full SCHOOL-day program, then the number able to be served

 

in a full SCHOOL-day program shall be doubled for the purposes of making this calculation

 

of the lesser of the number of children determined by the formula under subsection (3) and

 

the number of children the district indicates it will be able to serve under subsection

 

(1)(c) and determining the amount of the initial allocation to the district under section

 

32d. A district may contract with a head start agency to serve children enrolled in head

 

start with a full SCHOOL-day program by blending head start funds with a part-day great

 

start readiness program allocation. All head start and great start readiness program

 

policies and regulations apply to the blended program.

 


       (5) If funds appropriated ALLOCATED for eligible districts in section 32d remain

 

after the initial allocation under subsection (4), the allocation under this subsection

 

shall be distributed to each eligible district under section 32d in decreasing order of

 

concentration of eligible children as determined by the formula under subsection (3). The

 

allocation shall be determined by multiplying the number of children each eligible district

 

served in the immediately preceding fiscal year, including the number of children the

 

district would have served if it had not satisfied all or part of the reduction under

 

section 11d from funding under this section, or the number of children the district

 

indicates it will be able to serve under subsection (1)(c), whichever is less, minus the

 

number of children for which the district received funding in subsection (4) by $3,400.00.

 

       (6) If funds appropriated ALLOCATED for eligible districts in section 32d remain

 

after the allocations under subsections (4) and (5), remaining funds shall be distributed

 

to each eligible district under section 32d in decreasing order of concentration of

 

eligible children as determined by the formula under subsection (3). If the number of

 

children the district indicates it will be able to serve under subsection (1)(c) exceeds

 

the number of children for which funds have been received under subsections (4) and (5),

 

the allocation under this subsection shall be determined by multiplying the number of

 

children the district indicates it will be able to serve under subsection (1)(c) less the

 

number of children for which funds have been received under subsections (4) and (5) by

 

$3,400.00 until the funds allocated for eligible districts in section 32d are distributed.

 

       (7) If a district is participating in a program under section 32d for the first year,

 

the maximum allocation under this section is 32 multiplied by $3,400.00.

 

       (8) A district that offers supplementary day CHILD care funded by funds other than

 

those received under this section and therefore offers full-day programs as part of its

 

early childhood development program shall receive priority in the allocation of funds under

 

section 32d over other eligible districts.

 

       (9) For any district with 315 or more eligible pupils, the number of eligible pupils

 


shall be 65% of the number calculated using the formula under subsection (3). However, none

 

of these districts may have less than 315 pupils for purposes of calculating the tentative

 

allocation for eligible districts under section 32d.

 

       (10) If, taking into account the total amount to be allocated to the district as

 

calculated under this section, a district determines that it is able to include additional

 

eligible children in the great start readiness program without additional funds under

 

section 32d, the district may include additional eligible children but shall not receive

 

additional funding under section 32d for those children.

 

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

 

section 32d if the districts designate a district or intermediate district to serve as the

 

fiscal agent for the consortium's allocation. A consortium shall submit a single

 

application for the total number of children to be served. The consortium may decide, with

 

approval of all consortium members, to serve numbers of children based on the allocation to

 

each district or based on the allocation to the entire consortium, allowing children

 

residing in any district in the consortium to be served by the consortium at any location.

 

       Sec. 39a. (1) From the federal funds appropriated in section 11 192(4) FOR STUDENT

 

SUPPLEMENTAL SERVICES, there is allocated for 2010-2011 to districts, intermediate

 

districts, and other eligible entities all available federal funding, estimated at

 

$761,973,600.00, for the federal programs under the no child left behind act of 2001,

 

Public Law 107-110. These funds are allocated as follows:

 

       (a) An amount estimated at $10,808,600.00 to provide students with drug- and

 

violence-prevention programs and to implement strategies to improve school safety, funded

 

from DED-OESE, drug-free schools and communities funds.

 

       (b) An amount estimated at $7,461,800.00 for the purpose of improving teaching and

 

learning through a more effective use of technology, funded from DED-OESE, educational

 

technology state grant funds.

 

       (c) An amount estimated at $109,411,900.00 for the purpose of preparing, training,

 


and recruiting high-quality teachers and class size reduction, funded from DED-OESE,

 

improving teacher quality funds.

 

       (d) An amount estimated at $10,322,300.00 for programs to teach English to limited

 

English proficient (LEP) children, funded from DED-OESE, language acquisition state grant

 

funds.

 

       (e) An amount estimated at $8,550,000.00 for the Michigan charter school subgrant

 

program, funded from DED-OESE, charter school funds.

 

       (f) An amount estimated at $1,760,000.00 for rural and low income schools, funded

 

from DED-OESE, rural and low income school funds.

 

       (g) An amount estimated at $1,000.00 to help schools develop and implement

 

comprehensive school reform programs, funded from DED-OESE, title I and title X,

 

comprehensive school reform funds.

 

       (h) An amount estimated at $517,479,800.00 to provide supplemental programs to enable

 

educationally disadvantaged children to meet challenging academic standards, funded from

 

DED-OESE, title I, disadvantaged children funds.

 

       (i) An amount estimated at $2,152,700.00 for the purpose of providing unified family

 

literacy programs, funded from DED-OESE, title I, even start funds.

 

       (j) An amount estimated at $8,807,200.00 for the purpose of identifying and serving

 

migrant children, funded from DED-OESE, title I, migrant education funds.

 

       (k) An amount estimated at $24,733,200.00 to promote high-quality school reading

 

instruction for grades K-3, funded from DED-OESE, title I, reading first state grant funds.

 

       (l) An amount estimated at $2,849,000.00 for the purpose of implementing innovative

 

strategies for improving student achievement, funded from DED-OESE, title VI, innovative

 

strategies funds.

 

       (m) An amount estimated at $40,050,000.00 for the purpose of providing high-quality

 

extended learning opportunities, after school and during the summer, for children in low-

 

performing schools, funded from DED-OESE, twenty-first century community learning center

 


funds.

 

       (n) An amount estimated at $17,586,100.00 to help support local school improvement

 

efforts, funded from DED-OESE, title I, local school improvement grants.

 

       (2) From the federal funds appropriated in section 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated for 2010-2011 to districts, intermediate districts, and other

 

eligible entities all available federal funding, estimated at $32,359,700.00, for the

 

following programs that are funded by federal grants:

 

       (a) An amount estimated at $600,000.00 for acquired immunodeficiency syndrome

 

education grants, funded from HHS – center for disease control, AIDS funding.

 

       (b) An amount estimated at $1,814,100.00 to provide services to homeless children and

 

youth, funded from DED-OVAE, homeless children and youth funds.

 

       (c) An amount estimated at $1,445,600.00 for serve America grants, funded from the

 

corporation for national and community service funds.

 

       (d) An amount estimated at $28,500,000.00 for providing career and technical

 

education services to pupils, funded from DED-OVAE, basic grants to states.

 

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

 

(1)(h), (i), (k), and (n) may be used for 1 or more reading improvement programs that meet

 

at least 1 of the following:

 

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

 

resources to state standards and includes continuous assessment of pupils and

 

individualized education plans for pupils.

 

       (b) A mentoring program that is a research-based, validated program or a statewide 1-

 

to-1 mentoring program and is designed to enhance the independence and life quality of

 

pupils who are mentally impaired by providing opportunities for mentoring and integrated

 

employment.

 

       (c) A cognitive development program that is a research-based, validated educational

 

service program focused on assessing and building essential cognitive and perceptual

 


learning abilities to strengthen pupil concentration and learning.

 

       (d) A structured mentoring-tutorial reading program for pupils in preschool to grade

 

4 that is a research-based, validated program that develops individualized educational

 

plans based on each pupil's age, assessed needs, reading level, interests, and learning

 

style.

 

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

 

with federal law and with flexibility provisions outlined in Public Law 107-116, and in the

 

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

 

17b, payments of federal funds to districts, intermediate districts, and other eligible

 

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

 

       (5) For the purposes of applying for federal grants appropriated under this act, the

 

department shall allow an intermediate district to submit a consolidated CONSORTIA

 

application on behalf of 2 or more districts with the agreement of those districts AS

 

APPROPRIATE ACCORDING TO FEDERAL RULES AND GUIDANCE.

 

       (6) 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) "DED-OVAE" means the DED office of vocational and adult education.

 

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

 

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

 

       Sec. 40. The department biennially shall review alternative methods to determine the

 

number of children construed to be in need of special readiness assistance and shall report

 

not later than November 15 of each even-numbered year its findings and recommendations to

 

the senate and house appropriations subcommittees responsible for district funding and the

 

senate and house committees responsible for education legislation and the state budget

 

director.

 

       Sec. 51a. (1) From the appropriation in section 11 192(3) FOR SPECIAL EDUCATION,

 


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 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 the amount necessary, estimated at $234,780,000.00 for 2009-2010 and estimated at

 

$248,200,000.00 for 2010-2011, 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) (9),

 

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) (9), 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.

 

       (3) (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.

 

       (4) (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.

 

       (5) (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) (4), and (12)

 

(9) and sections 53a, 54, and 56 will exceed expenditures for that fiscal year under

 

subsections (2), (3), (6), (8) (4), and (12) (9) 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)

 

(4), and (12) (9) 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.

 

       (6) (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.

 

       (7) (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.

 

       (8) (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.

 

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

 

year the amount necessary, estimated at $6,200,000.00 for 2009-2010 and estimated at

 

$6,600,000.00 for 2010-2011, 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 PUPILS WITH AN EMOTIONAL IMPAIRMENT counted in

 

membership by an intermediate district and provided educational services by the department

 

of community health.

 

       (10) (13) If it is determined that funds allocated under subsection (2) or (12) (9)

 

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) (9) or under section

 

51c in order to fully fund those allocations. After payments under subsections (2) and (12)

 

(9) 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) (4).

 

       (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).

 

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

 

       (11) (14) The allocations under subsections (2), (3), and (12) (9) 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, for payments to reimburse districts for 28.6138% of total

 

approved costs of special education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education transportation. Funds allocated under

 

this section that are not expended in the state fiscal year for which they were allocated,

 

as determined by the department, may be used to supplement the allocations under sections

 

22a and 22b in order to fully fund those calculated allocations for the same fiscal year.

 

       Sec. 51d. (1) From the federal funds appropriated in section 11 192(3) FOR SPECIAL

 

EDUCATION, there is allocated for 2010-2011 all available federal funding, estimated at

 

$74,000,000.00, for special education programs that are funded by federal grants. All

 

federal funds allocated under this section shall be distributed in accordance with federal

 

law. Notwithstanding section 17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

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

 

allocated for 2010-2011:

 

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

 

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

 

       (b) An amount estimated at $14,000,000.00 for preschool grants (Public Law 94-142)

 

SPECIAL EDUCATION-PRESCHOOL GRANTS (PUBLIC LAW 108-446), funded from DED-OSERS, handicapped

 

preschool incentive funds INDIVIDUALS WITH DISABILITIES EDUCATION ACT FUNDS.

 


       (c) An amount estimated at $45,000,000.00 for special education programs funded by

 

DED-OSERS, handicapped program SPECIAL EDUCATION-GRANTS TO STATES, individuals with

 

disabilities act funds.

 

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

 

education office of special education and rehabilitative services.

 

       Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2)

 

shall be 100% of the total approved costs of operating special education programs and

 

services approved by the department and included in the intermediate district plan adopted

 

pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the

 

district's foundation allowance calculated under section 20, and minus the amount

 

calculated for the district under section 20j. For intermediate districts, reimbursement

 

for pupils described in subsection (2) shall be calculated in the same manner as for a

 

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

 

residence, not to exceed the basic foundation allowance under section 20 for the current

 

fiscal year, and under section 20j.

 

       (2) Reimbursement under subsection (1) is for the following special education pupils:

 

       (a) Pupils assigned to a district or intermediate district through the community

 

placement program of the courts or a state agency, if the pupil was a resident of another

 

intermediate district at the time the pupil came under the jurisdiction of the court or a

 

state agency.

 

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

 

health.

 

       (c) Pupils who are former residents of department of community health institutions

 

for the developmentally disabled who are placed in community settings other than the

 

pupil's home.

 

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

 

than 180 days, but not longer than 233 days, at a residential child care institution, if

 


the child care institution offered in 1991-92 an on-grounds educational program longer than

 

180 days but not longer than 233 days.

 

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

 

home, if the parent does not reside in the same intermediate district as the district in

 

which the pupil is placed.

 

       (3) Only those costs that are clearly and directly attributable to educational

 

programs for pupils described in subsection (2), and that would not have been incurred if

 

the pupils were not being educated in a district or intermediate district, are reimbursable

 

under this section.

 

       (4) The costs of transportation shall be funded under this section and shall not be

 

reimbursed under section 58.

 

       (5) Not more than $13,500,000.00 of FROM the allocation for 2010-2011 in section

 

51a(1), THERE IS shall be allocated AN AMOUNT under this section.

 

       Sec. 54. Each intermediate district shall receive an amount per pupil for each pupil

 

in attendance at the Michigan schools for the deaf and blind. The amount shall be

 

proportionate to the total instructional cost at each school. Not more than $1,688,000.00

 

of the allocation for 2010-2011 in section 51a(1) shall be allocated under this section.

 

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

 

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

 

immediately preceding fiscal year of the intermediate district and the districts

 

constituent to the intermediate district.

 

       (b) "Millage levied" means the millage levied for special education pursuant to part

 

30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service

 

obligations.

 

       (c) "Taxable value" means the total taxable value of the districts constituent to an

 

intermediate district, except that if a district has elected not to come under part 30 of

 

the revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the

 


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

 

district.

 

       (2) From the allocation under section 51a(1), there is allocated an amount not to

 

exceed $39,281,100.00 for 2009-2010 and an amount not to exceed $36,881,100.00 for 2010-

 

2011 to reimburse intermediate districts levying millages for special education pursuant to

 

part 30 of the revised school code, MCL 380.1711 to 380.1743. The purpose, use, and

 

expenditure of the reimbursement shall be limited as if the funds were generated by these

 

millages and governed by the intermediate district plan adopted pursuant to article 3 of

 

the revised school code, MCL 380.1701 to 380.1766. As a condition of receiving funds under

 

this section, an intermediate district distributing any portion of special education

 

millage funds to its constituent districts shall submit for departmental approval and

 

implement a distribution plan.

 

       (3) Reimbursement for those millages levied in 2008-2009 2010-2011 shall be made in

 

2009-2010 2011-2012 at an amount per 2008-2009 2010-2011 membership pupil computed by

 

subtracting from $180,600.00 $174,700.00 the 2008-2009 2010-2011 taxable value behind each

 

membership pupil and multiplying the resulting difference by the 2008-2009 2010-2011

 

millage levied. Reimbursement for those millages levied in 2009-2010 2011-2012 shall be

 

made in 2010-2011 2012-2013 at an amount per 2009-2010 2011-2012 membership pupil computed

 

by subtracting from $181,700.00 $173,000.00 the 2009-2010 2011-2012 taxable value behind

 

each membership pupil and multiplying the resulting difference by the 2009-2010 2011-2012

 

millage levied.

 

       Sec. 61a. (1) From the appropriation in section 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated an amount not to exceed $26,611,300.00 for 2010-2011 to

 

reimburse on an added cost basis districts, except for a district that served as the fiscal

 

agent for a vocational education consortium in the 1993-94 school year, and secondary area

 

vocational-technical education centers for secondary-level career and technical education

 

programs according to rules approved by the superintendent. Applications for participation

 


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

 

shall determine the added cost for each career and technical education program area. The

 

allocation of added cost funds shall be based on the type of career and technical education

 

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

 

provided, and shall not exceed 75% of the added cost of any program. With the approval of

 

the department, the board of a district maintaining a secondary career and technical

 

education program may offer the program for the period from the close of the school year

 

until September 1. The program shall use existing facilities and shall be operated as

 

prescribed by rules promulgated by the superintendent.

 

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

 

consortium in the 1993-94 school year, districts and intermediate districts shall be

 

reimbursed for local career and technical education administration, shared time career and

 

technical education administration, and career education planning district career and

 

technical education administration. The definition of what constitutes administration and

 

reimbursement shall be pursuant to guidelines adopted by the superintendent. Not more than

 

$800,000.00 of the allocation in subsection (1) shall be distributed under this subsection.

 

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

 

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

 

immediately preceding fiscal year of the intermediate district and the districts

 

constituent to the intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

       (b) "Millage levied" means the millage levied for area vocational-technical education

 

pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690,

 

including a levy for debt service obligations incurred as the result of borrowing for

 

capital outlay projects and in meeting capital projects fund requirements of area

 

vocational-technical education.

 

       (c) "Taxable value" means the total taxable value of the districts constituent to an

 


intermediate district or area vocational-technical education program, except that if a

 

district has elected not to come under sections 681 to 690 of the revised school code, MCL

 

380.681 to 380.690, the membership and taxable value of that district shall not be included

 

in the membership and taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, shall be included in the membership and

 

taxable value of the intermediate district if the district meets both of the following:

 

       (i) The district operates the area vocational-technical education program pursuant to

 

a contract with the intermediate district.

 

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

 

is commensurate with the revenue that would have been raised for operation of the program

 

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

 

revised school code, MCL 380.681 to 380.690.

 

       (2) From the appropriation in section 11 192(4) FOR STUDENT SUPPLEMENTAL SERVICES,

 

there is allocated an amount not to exceed $9,000,000.00 each fiscal year for 2009-2010 and

 

for 2010-2011 to reimburse intermediate districts and area vocational-technical education

 

programs established under section 690(3) of the revised school code, MCL 380.690, levying

 

millages for area vocational-technical education pursuant to sections 681 to 690 of the

 

revised school code, MCL 380.681 to 380.690. The purpose, use, and expenditure of the

 

reimbursement shall be limited as if the funds were generated by those millages.

 

       (3) Reimbursement for the millages levied in 2008-2009 2010-2011 shall be made in

 

2009-2010 2011-2012 at an amount per 2008-2009 2010-2011 membership pupil computed by

 

subtracting from $191,000.00 $190,400.00 the 2008-2009 2010-2011 taxable value behind each

 

membership pupil and multiplying the resulting difference by the 2008-2009 2010-2011

 

millage levied. Reimbursement for the millages levied in 2009-2010 2011-2012 shall be made

 

in 2010-2011 2012-2013 at an amount per 2009-2010 2011-2012 membership pupil computed by

 

subtracting from $194,700.00 $188,300.00 the 2009-2010 2011-2012 taxable value behind each

 


membership pupil and multiplying the resulting difference by the 2009-2010 2011-2012

 

millage levied.

 

       Sec. 74. (1) From the amount appropriated APPROPRIATION in section 11 192(4) FOR

 

STUDENT SUPPLEMENTAL SERVICES, 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 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 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.

 

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

 

section 11 192(2) FOR BASIC OPERATIONS, there is allocated for 2010-2011 to the

 

intermediate districts the sum necessary, but not to exceed $65,376,800.00, to provide

 

state aid to intermediate districts under this section. Except as otherwise provided in

 

this section, there shall be allocated to each intermediate district for 2010-2011 2011-

 

2012 an amount equal to 80% 95% of the amount allocated under this subsection for 2008-2009

 

2010-2011. Funding provided under this section shall be used to comply with requirements of

 

this act and the revised school code that are applicable to intermediate districts, and for

 

which funding is not provided elsewhere in this act, and to provide technical assistance to

 

districts as authorized by the intermediate school board.

 

       (2) Intermediate districts receiving funds under this section shall collaborate with

 

the department to develop expanded professional development opportunities for teachers to

 

update and expand their knowledge and skills needed to support the Michigan merit

 

curriculum.

 

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

 

district, formed by the consolidation or annexation of 2 or more intermediate districts or

 


the attachment of a total intermediate district to another intermediate school district or

 

the annexation of all of the constituent K-12 districts of a previously existing

 

intermediate school district which has disorganized, an additional allotment of $3,500.00

 

each fiscal year for each intermediate district included in the new intermediate district

 

for 3 years following consolidation, annexation, or attachment.

 

       (4) During a fiscal year, the department shall not increase an intermediate

 

district's allocation under subsection (1) because of an adjustment made by the department

 

during the fiscal year in the intermediate district's taxable value for a prior year.

 

Instead, the department shall report the adjustment and the estimated amount of the

 

increase to the house and senate fiscal agencies and the state budget director not later

 

than June 1 of the fiscal year, and the legislature shall appropriate money for the

 

adjustment in the next succeeding fiscal year.

 

       (5) In order to receive funding under this section, an intermediate district shall do

 

all of the following:

 

       (a) Demonstrate to the satisfaction of the department that the intermediate district

 

employs at least 1 person who is trained in pupil counting procedures, rules, and

 

regulations.

 

       (b) Demonstrate to the satisfaction of the department that the intermediate district

 

employs at least 1 person who is trained in rules, regulations, and district reporting

 

procedures for the individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout rates.

 

       (c) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a

 

and 380.1278b.

 

       (d) Furnish data and other information required by state and federal law to the

 

center and the department in the form and manner specified by the center or the department,

 

as applicable.

 

       (e) Comply with section 1230g of the revised school code, MCL 380.1230g.

 


       (f) Comply with section 761 of the revised school code, MCL 380.761.

 

       (6) If the amount of the allocation to intermediate districts under subsection (1) is

 

reduced in a fiscal year after 2010-2011 from the amount of that allocation for 2010-2011,

 

that reduced allocation shall not result in an intermediate district's allocation being

 

less than the funding actually received by or paid on behalf of the intermediate district

 

for the 1994-95 fiscal year under former section 146a(1) and section 147(1), as those

 

sections were in effect for the 1994-95 fiscal year.

 

       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 (6) (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 state budget director shall appoint a CEPI advisory committee to provide

 

advice to the director. The CEPI advisory committee shall consist of the following members:

 

       (a) One representative from the house fiscal agency.

 

       (b) One representative from the senate fiscal agency.

 

       (c) One representative from the state budget office.

 

       (d) One representative from the state education agency.

 

       (e) One representative each from the department of energy, labor, and economic growth

 

and the department of treasury.

 

       (f) Three representatives from intermediate school districts.

 

       (g) One representative from each of the following educational organizations:

 

       (i) Michigan association of school boards.

 


       (ii) Michigan association of school administrators.

 

       (iii) Michigan school business officials.

 

       (h) One representative representing private sector firms responsible for auditing

 

school records.

 

       (i) Other representatives as the state budget director determines are necessary.

 

       (4) The CEPI advisory committee appointed under subsection (3) shall provide advice

 

to the director of the center regarding the management of the center's data collection

 

activities, including, but not limited to:

 

       (a) Determining what data is necessary to collect and maintain in order to perform

 

the center's functions in the most efficient manner possible.

 

       (b) Defining the roles of all stakeholders in the data collection system.

 

       (c) Recommending timelines for the implementation and ongoing collection of data.

 

       (d) Establishing and maintaining data definitions, data transmission protocols, and

 

system specifications and procedures for the efficient and accurate transmission and

 

collection of data.

 

       (e) Establishing and maintaining a process for ensuring the reasonable accuracy of

 

the data.

 

       (f) Establishing and maintaining state and model local policies related to data

 

collection, including, but not limited to, privacy policies related to individual student

 

data. These privacy policies shall ensure that a student's social security number is not

 

released to the public for any purpose.

 

       (g) Working with stakeholders to develop a state research agenda.

 

       (h) Other matters as determined by the state budget director or the director of the

 

center.

 

       (3) (5) The center may enter into any interlocal agreements necessary to fulfill its

 

functions.

 

       (4) (6) 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) (7) From the general fund appropriation in section 11 192(8) FOR STUDENT

 

ASSESSMENT AND ACCOUNTABILITY, there is allocated an amount not to exceed $3,621,100.00 for

 

2010-2011 to the department of technology, management, and budget 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 federal department of education in order to

 

receive state fiscal stabilization funds. In addition, from the federal funds appropriated

 

in section 11 there is allocated for 2010-2011 the amount necessary, estimated at

 


$10,067,800.00 for 2010-2011, to support the operations of the center. 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) (8) From the federal funds allocated in subsection (7) (5), there is allocated

 

for 2010-2011 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.

 

       (9) In addition to the amount allocated under subsection (7) there is also allocated

 

from the general fund money appropriated in section 11 for 2010-2011 an additional amount

 

not to exceed $1,800,000.00 for the purpose of establishing a longitudinal data system as

 

provided under this section in compliance with the assurance provided to the federal

 

department of education in order to receive state fiscal stabilization funds. In addition,

 

there is allocated for 2010-2011 from the state school aid fund money appropriated under

 

section 11 an amount not to exceed $8,440,000.00 to support the efforts of districts to

 

match individual teacher and student records. The funds shall be distributed to districts

 

in an amount and manner determined by the center.

 

       (10) From the federal funds allocated in subsection (7), there is allocated for 2010-

 

2011 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.

 

       (7) (11) 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.

 


       (8) (12) 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.

 

       (9) (13) 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 (7) (5) to cover

 

the costs associated with salaries, benefits, supplies, materials, and equipment necessary

 

to provide such data, analysis, and reporting services.

 

       (10) (14) 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. 98. (1) From the general fund money appropriated APPROPRIATION in section 11

 

192(4) FOR STUDENT SUPPLEMENTAL SERVICES, there is allocated an amount not to exceed

 

$1,687,500.00 for 2010-2011 to provide a grant to the Michigan virtual university for the

 

development, implementation, and operation of the Michigan virtual high school; to provide

 

professional development opportunities for educators; and to fund other purposes described

 

in this section. In addition, from the federal funds appropriated in section 11, there is

 

allocated for 2010-2011 an amount estimated at $2,700,000.00.

 

       (2) The Michigan virtual high school shall have the following goals:

 

       (a) Significantly expand curricular offerings for high schools across this state

 

through agreements with districts or licenses from other recognized providers.

 


       (b) Create statewide instructional models using interactive multimedia tools

 

delivered by electronic means, including, but not limited to, the internet, digital

 

broadcast, or satellite network, for distributed learning at the high school level.

 

       (c) Provide pupils with opportunities to develop skills and competencies through

 

online learning.

 

       (d) Grant high school diplomas through a dual enrollment method with districts.

 

       (e) Act as a broker for college level equivalent courses, as defined in section 1471

 

of the revised school code, MCL 380.1471, and dual enrollment courses from postsecondary

 

education institutions.

 

       (f) Maintain the accreditation status of the Michigan virtual high school from

 

recognized national and international accrediting entities.

 

       (3) The Michigan virtual high school course offerings shall include, but are not

 

limited to, all of the following:

 

       (a) Information technology courses.

 

       (b) College level equivalent courses, as defined in section 1471 of the revised

 

school code, MCL 380.1471.

 

       (c) Courses and dual enrollment opportunities.

 

       (d) Programs and services for at-risk pupils.

 

       (e) General education development test preparation courses for adjudicated youth.

 

       (f) Special interest courses.

 

       (g) Professional development programs that teach Michigan educators how to develop

 

and deliver online instructional services.

 

       (4) From the federal funds allocated in subsection (1), there is allocated for 2010-

 

2011 an amount estimated at $1,700,000.00 from DED-OESE, title II, improving teacher

 

quality funds for a grant to the Michigan virtual university for the purpose of this

 

subsection. With the approval of the department, the Michigan virtual university shall

 

coordinate the following activities related to DED-OESE, title II, improving teacher

 


quality funds in accordance with federal law:

 

       (a) Develop, and assist districts in the development and use of, proven, innovative

 

strategies to deliver intensive professional development programs that are both cost-

 

effective and easily accessible, such as strategies that involve delivery through the use

 

of technology, peer networks, and distance learning.

 

       (b) Encourage and support the training of teachers and administrators to effectively

 

integrate technology into curricula and instruction.

 

       (c) Coordinate the activities of eligible partnerships that include higher education

 

institutions for the purposes of providing professional development activities for

 

teachers, paraprofessionals, and principals as defined in federal law.

 

       (d) Offer teachers opportunities to learn new skills and strategies for developing

 

and delivering instructional services.

 

       (e) Provide online professional development opportunities for educators to update and

 

expand knowledge and skills needed to support the Michigan merit curriculum core content

 

standards and credit requirements.

 

       (5) The Michigan virtual university shall offer at least 200 hours of online

 

professional development for classroom teachers under this section each fiscal year

 

beginning in 2006-2007 without charge to the teachers or to districts or intermediate

 

districts.

 

       (6) From the federal funds appropriated in subsection (1), there is allocated for

 

2010-2011 an amount estimated at $1,000,000.00 from the DED-OESE, title II, educational

 

technology grant funds to support e-learning and virtual school initiatives consistent with

 

the goals contained in the United States national educational technology plan issued in

 

January 2005. These funds shall be used to support activities designed to build the

 

capacity of the Michigan virtual university and shall not be used to supplant other

 

funding. Not later than November 30, 2010 2011, from the funds allocated in this

 

subsection, the department shall award a single grant of $1,000,000.00 to a consortium or

 


partnership established by the Michigan virtual university that meets the requirements of

 

this subsection. To be eligible for this funding, a consortium or partnership established

 

by the Michigan virtual university shall include at least 1 intermediate district and at

 

least 1 high-need local district. All of the following apply to this funding:

 

       (a) An eligible consortium or partnership must demonstrate the following:

 

       (i) Prior success in delivering online courses and instructional services to K-12

 

pupils throughout this state.

 

       (ii) Expertise in designing, developing, and evaluating online K-12 course content.

 

       (iii) Experience in maintaining a statewide help desk service for pupils, online

 

teachers, and other school personnel.

 

       (iv) Knowledge and experience in providing technical assistance and support to K-12

 

schools in the area of online education.

 

       (v) Experience in training and supporting K-12 educators in this state to teach

 

online courses.

 

       (vi) Demonstrated technical expertise and capacity in managing complex technology

 

systems.

 

       (vii) Experience promoting twenty-first century learning skills through the use of

 

online technologies.

 

       (b) The Michigan virtual university, which operates the Michigan virtual high school,

 

shall perform the following tasks related to this funding:

 

       (i) Strengthen its capacity by pursuing activities, policies, and practices that

 

increase the overall number of Michigan virtual high school course enrollments and course

 

completions by at-risk students.

 

       (ii) Examine the curricular and specific course content needs of middle and high

 

school students in the areas of mathematics and science.

 

       (iii) Design, develop, and acquire online courses and related supplemental resources

 

aligned to state standards to create a comprehensive and rigorous statewide catalog of

 


online courses and instructional services.

 

       (iv) Continue to evaluate and conduct pilot programs for new and innovative online

 

tools, resources, and courses.

 

       (v) Evaluate existing online teaching and learning practices and develop continuous

 

improvement strategies to enhance student achievement.

 

       (vi) Develop, support, and maintain the technology infrastructure and related

 

software required to deliver online courses and instructional services to students

 

statewide.

 

       (7) If a home-schooled or nonpublic school student is a resident of a district that

 

subscribes to services provided by the Michigan virtual high school, the student may use

 

the services provided by the Michigan virtual high school to the district without charge to

 

the student beyond what is charged to a district pupil using the same services.

 

       (8) Not later than December 1, 2010, the Michigan virtual university shall provide a

 

report to the house and senate appropriations subcommittees on state school aid, the state

 

budget director, the house and senate fiscal agencies, and the department that includes at

 

least all of the following information related to the Michigan virtual high school for the

 

preceding state fiscal year:

 

       (a) A list of the Michigan schools served by the Michigan virtual high school.

 

       (b) A list of online course titles available to Michigan schools.

 

       (c) The total number of online course enrollments and information on registrations

 

and completions by course.

 

       (d) The overall course completion rate percentage.

 

       (e) A summary of DED-OESE, title IIA, teacher quality grant and DED-OESE, title IID,

 

education technology grant expenditures.

 

       (f) Identification of unmet educational needs that could be addressed by the Michigan

 

virtual high school.

 

       (8) (9) As used in this section:

 


       (a) "DED-OESE" means the United States department of education office of elementary

 

and secondary education.

 

       (b) "High-need local district" means a local educational agency as defined in the

 

enhancing education through technology part of the no child left behind act of 2001, Public

 

Law 107-110.

 

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

 

       Sec. 99. (1) From the state school aid fund money appropriated in section 11, there

 

is allocated an amount not to exceed $2,515,000.00 for 2010-2011 and from the general fund

 

appropriation in section 11 192(4) FOR STUDENT SUPPLEMENTAL SERVICES, there is allocated an

 

amount not to exceed $110,000.00 for 2010-2011 to support the activities and programs of

 

mathematics and science centers and for other purposes as described in this section. In

 

addition, from the federal funds appropriated in section 11 192(4) FOR STUDENT SUPPLEMENTAL

 

SERVICES, there is allocated for 2010-2011 an amount estimated at $5,249,300.00 from DED-

 

OESE, title II, mathematics and science partnership grants.

 

       (2) Within a service area designated locally, approved by the department, and

 

consistent with the comprehensive master plan for mathematics and science centers developed

 

by the department and approved by the state board, an established mathematics and science

 

center shall provide 2 or more of the following 6 basic services, as described in the

 

master plan, to constituent districts and communities: leadership, pupil services,

 

curriculum support, community involvement, professional development, and resource

 

clearinghouse services.

 

       (3) The department shall not award a state grant under this section to more than 1

 

mathematics and science center located in a designated region as prescribed in the 2007

 

master plan unless each of the grants serves a distinct target population or provides a

 

service that does not duplicate another program in the designated region.

 

       (4) As part of the technical assistance process, the department shall provide minimum

 

standard guidelines that may be used by the mathematics and science center for providing

 


fair access for qualified pupils and professional staff as prescribed in this section.

 

       (5) Allocations under this section to support the activities and programs of

 

mathematics and science centers shall be continuing support grants to all 33 established

 

mathematics and science centers. Each established mathematics and science center that was

 

funded in 2009-2010 THE IMMEDIATELY PRECEDING FISCAL YEAR shall receive state funding in an

 

amount equal to 100% of the amount it was allocated under this subsection for 2009-2010 THE

 

IMMEDIATELY PRECEDING FISCAL YEAR. If a center declines state funding or a center closes,

 

the remaining money available under this section shall be distributed to the remaining

 

centers, as determined by the department.

 

       (6) From the funds allocated in subsection (1), there is allocated for 2010-2011 an

 

amount not to exceed $750,000.00 in a form and manner determined by the department to those

 

centers able to provide curriculum and professional development support to assist districts

 

in implementing the Michigan merit curriculum components for mathematics and science.

 

Funding under this subsection is in addition to funding allocated under subsection (5).

 

       (7) In order to receive state or federal funds under this section, a grant recipient

 

shall allow access for the department or the department's designee to audit all records

 

related to the program for which it receives such funds. The grant recipient shall

 

reimburse the state for all disallowances found in the audit.

 

       (8) Not later than September 30, 2013, the department shall reevaluate and update the

 

comprehensive master plan described in subsection (1).

 

       (9) The department shall give preference in awarding the federal grants allocated in

 

subsection (1) to eligible existing mathematics and science centers.

 

       (10) In order to receive state funds under this section, a grant recipient shall

 

provide at least a 10% local match from local public or private resources for the funds

 

received under this section.

 

       (11) NOT LATER THAN JULY 1 OF EACH YEAR, A MATHEMATICS AND SCIENCE CENTER THAT

 

RECEIVES FUNDS UNDER THIS SECTION SHALL REPORT TO THE DEPARTMENT IN A FORM AND MANNER

 


PRESCRIBED BY THE DEPARTMENT ON THE FOLLOWING PERFORMANCE MEASURES:

 

       (A) STATISTICAL CHANGE IN PRE- AND POST-ASSESSMENT SCORES FOR STUDENTS WHO ENROLLED

 

IN MATHEMATICS AND SCIENCE ACTIVITIES PROVIDED TO DISTRICTS BY THE MATHEMATICS AND SCIENCE

 

CENTER.

 

       (B) STATISTICAL CHANGE IN PRE- AND POST-ASSESSMENT SCORES FOR TEACHERS WHO ENROLLED

 

IN PROFESSIONAL DEVELOPMENT ACTIVITIES PROVIDED BY THE MATHEMATICS AND SCIENCE CENTER.

 

       (12) (11) As used in this section:

 

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

 

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

 

       Sec. 101. (1) To be eligible to receive state aid under this act, not later than the

 

fifth Wednesday after the pupil membership count day and not later than the fifth Wednesday

 

after the supplemental count day, each district superintendent shall submit to the center

 

and the intermediate superintendent, in the form and manner prescribed by the center, the

 

number of pupils enrolled and in regular daily attendance in the district as of the pupil

 

membership count day and as of the supplemental count day, as applicable, for the current

 

school year. In addition, a district maintaining school during the entire year, as provided

 

under section 1561 of the revised school code, MCL 380.1561, shall submit to the center and

 

the intermediate superintendent, in the form and manner prescribed by the center, the

 

number of pupils enrolled and in regular daily attendance in the district for the current

 

school year pursuant to rules promulgated by the superintendent. Not later than the seventh

 

SIXTH Wednesday after the pupil membership count day and not later than the seventh

 

Wednesday after the supplemental count day, the district shall certify the data in a form

 

and manner prescribed by the center and file the certified data with the intermediate

 

superintendent. If a district fails to submit and certify the attendance data, as required

 

under this subsection, the center shall notify the department and state aid due to be

 

distributed under this act shall be withheld from the defaulting district immediately,

 

beginning with the next payment after the failure and continuing with each payment until

 


the district complies with this subsection. If a district does not comply with this

 

subsection by the end of the fiscal year, the district forfeits the amount withheld. A

 

person who willfully falsifies a figure or statement in the certified and sworn copy of

 

enrollment shall be punished in the manner prescribed by section 161.

 

       (2) To be eligible to receive state aid under this act, not later than the twenty-

 

fourth Wednesday after the pupil membership count day and not later than the twenty-fourth

 

Wednesday after the supplemental count day, an intermediate district shall submit to the

 

center, in a form and manner prescribed by the center, the audited enrollment and

 

attendance data for the pupils of its constituent districts and of the intermediate

 

district. If an intermediate district fails to submit the audited data as required under

 

this subsection, state aid due to be distributed under this act shall be withheld from the

 

defaulting intermediate district immediately, beginning with the next payment after the

 

failure and continuing with each payment until the intermediate district complies with this

 

subsection. If an intermediate district does not comply with this subsection by the end of

 

the fiscal year, the intermediate district forfeits the amount withheld.

 

       (3) Except as otherwise provided in subsection (11), all of the following apply to

 

the provision of pupil instruction:

 

       (a) Except as otherwise provided in this section, each district shall provide at

 

least 1,098 hours and, beginning in 2010-2011, the required minimum number of days of pupil

 

instruction. For 2010-2011 and for 2011-2012, the required minimum number of days of pupil

 

instruction is 165. Beginning in 2012-2013, the required minimum number of days of pupil

 

instruction is 170. However, beginning in 2010-2011, a district shall not provide fewer

 

days of pupil instruction than the district provided for 2009-2010. A district may apply

 

for a waiver under subsection (9) from the requirements of this subdivision.

 

       (b) Except as otherwise provided in this act, a district failing to comply with the

 

required minimum hours and days of pupil instruction under this subsection shall forfeit

 

from its total state aid allocation an amount determined by applying a ratio of the number

 


of hours or days the district was in noncompliance in relation to the required minimum

 

number of hours and days under this subsection. Not later than August 1, the board of each

 

district shall certify to the department the number of hours and, beginning in 2010-2011,

 

days of pupil instruction in the previous school year. If the district did not provide at

 

least the required minimum number of hours and days of pupil instruction under this

 

subsection, the deduction of state aid shall be made in the following fiscal year from the

 

first payment of state school aid. A district is not subject to forfeiture of funds under

 

this subsection for a fiscal year in which a forfeiture was already imposed under

 

subsection (6).

 

       (c) Hours or days lost because of strikes or teachers' conferences shall not be

 

counted as hours or days of pupil instruction.

 

       (d) If a collective bargaining agreement that provides a complete s