HB-5314, As Passed House, June 12, 2014

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5314

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 12, 15,

 

17a, 18, 19, 20, 20d, 20f, 20g, 21b, 21f, 22a, 22b, 22c, 22d, 22f,

 

22g, 22i, 22j, 24, 24a, 24c, 25e, 25f, 26a, 26b, 26c, 31a, 31d,

 

31f, 32d, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62,

 

74, 81, 94, 94a, 98, 99, 99h, 101, 104, 104b, 107, 147, 147a, 147c,

 

152a, 161, 163, 168, 201, 201a, 202a, 206, 209, 210b, 217, 224,

 

225, 229, 229a, 230, 236, 236a, 236b, 236c, 241, 245, 246, 252,

 

256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 272a, 273, 274,

 

274a, 275, 276, 277, 278, 279, 280, 281, 282, 283, and 284 (MCL

 

388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g, 388.1611j,

 

388.1611k, 388.1611m, 388.1612, 388.1615, 388.1617a, 388.1618,


 

388.1619, 388.1620, 388.1620d, 388.1620f, 388.1620g, 388.1621b,

 

388.1621f, 388.1622a, 388.1622b, 388.1622c, 388.1622d, 388.1622f,

 

388.1622g, 388.1622i, 388.1622j, 388.1624, 388.1624a, 388.1624c,

 

388.1625e, 388.1625f, 388.1626a, 388.1626b, 388.1626c, 388.1631a,

 

388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639, 388.1639a,

 

388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654,

 

388.1656, 388.1661a, 388.1662, 388.1674, 388.1681, 388.1694,

 

388.1694a, 388.1698, 388.1699, 388.1699h, 388.1701, 388.1704,

 

388.1704b, 388.1707, 388.1747, 388.1747a, 388.1747c, 388.1752a,

 

388.1761, 388.1763, 388.1768, 388.1801, 388.1801a, 388.1802a,

 

388.1806, 388.1809, 388.1810b, 388.1817, 388.1824, 388.1825,

 

388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b,

 

388.1836c, 388.1841, 388.1845, 388.1846, 388.1852, 388.1856,

 

388.1863, 388.1863a, 388.1864, 388.1865, 388.1865a, 388.1867,

 

388.1868, 388.1869, 388.1870, 388.1872a, 388.1873, 388.1874,

 

388.1874a, 388.1875, 388.1876, 388.1877, 388.1878, 388.1879,

 

388.1880, 388.1881, 388.1882, 388.1883, and 388.1884), sections 6,

 

20, 24c, 25e, 26a, 74, 104b, 107, and 147a as amended by 2013 PA

 

130, section 8b as amended by 2007 PA 92, sections 11, 11m, 20g,

 

21f, 22a, 22b, 22g, 51a, 51c, 99h, 101, and 147c as amended and

 

sections 25f and 94 as added by 2014 PA 116, sections 11a, 11j,

 

11k, 12, 15, 18, 19, 20d, 22d, 22f, 22i, 22j, 24, 24a, 26b, 26c,

 

31a, 31d, 31f, 32d, 32p, 39, 39a, 41, 51d, 53a, 54, 56, 61a, 62,

 

81, 94a, 98, 99, 104, 147, 152a, 201, 201a, 206, 209, 224, 225,

 

229, 229a, 230, 236, 236a, 236b, 241, 245, 246, 252, 263, 263a,

 

264, 265, 265a, 267, 268, 269, 270, 273, 274, 274a, 275, 276, 277,

 

278, 279, 280, 281, and 282 as amended and sections 20f, 22c, 210b,


 

236c, and 272a as added by 2013 PA 60, sections 11g and 17a as

 

amended by 2013 PA 97, section 21b as amended by 2004 PA 351,

 

section 161 as amended by 1990 PA 207, section 163 as amended by

 

2007 PA 137, section 168 as added by 1993 PA 175, and section 202a

 

as added and sections 217, 256, 283, and 284 as amended by 2012 PA

 

201, and by adding sections 11r, 31g, 43, 64b, 64c, 74a, 95a, 99b,

 

104c, 147d, 164f, 207a, 207b, 207c, and 271a; and to repeal acts

 

and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

district or by an intermediate district for special education

 

pupils from several districts in programs for pupils with autism

 

spectrum disorder, pupils with severe cognitive impairment, pupils

 

with moderate cognitive impairment, pupils with severe multiple

 

impairments, pupils with hearing impairment, pupils with visual

 

impairment, and pupils with physical impairment or other health

 

impairment. Programs for pupils with emotional impairment housed in

 

buildings that do not serve regular education pupils also qualify.

 

Unless otherwise approved by the department, a center program

 

either shall serve all constituent districts within an intermediate

 

district or shall serve several districts with less than 50% of the

 

pupils residing in the operating district. In addition, special

 

education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment

 

provisions of section 612 of part B of the individuals with

 

disabilities education act, 20 USC 1412, may be considered center

 

program pupils for pupil accounting purposes for the time scheduled


 

in either a center program or a noncenter program.

 

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

 

annual completion and pupil dropout rate that is calculated by the

 

center pursuant to nationally recognized standards.

 

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

 

report of the number of pupils, excluding adult participants, in

 

the district for the immediately preceding school year, adjusted

 

for those pupils who have transferred into or out of the district

 

or high school, who leave high school with a diploma or other

 

credential of equal status.

 

     (4) "Membership", except as otherwise provided in this

 

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

 

education achievement system, or an intermediate district the sum

 

of the product of .90 times the number of full-time equated pupils

 

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

 

on the pupil membership count day for the current school year, plus

 

the product of .10 times the final audited count from the

 

supplemental count day for the current school year. A district's,

 

public school academy's, or intermediate district's membership

 

shall be adjusted as provided under section 25 25E for pupils who

 

enroll in the district, public school academy, or intermediate

 

district after the pupil membership count day. 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; for the education

 

achievement system, a pupil's participation in an online

 

educational program of the education achievement system or of an

 

achievement school is considered regular daily attendance; and for

 

a district a pupil's participation in an online course as defined

 

in section 21f 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, a public school academy, the education achievement

 

system, or an 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 public school academy shall be

 

counted in membership in the public school academy.

 

     (h) A pupil enrolled in an achievement school shall be counted

 

in membership in the education achievement system.

 

     (i) For a new district or public school academy beginning its

 

operation after December 31, 1994, or for the education achievement


 

system or an achievement school, 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, a public school academy, the education

 

achievement system, or an 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) To be counted in membership, a pupil shall meet the

 

minimum age requirement to be eligible to attend school under

 

section 1147 of the revised school code, MCL 380.1147, or shall be

 

enrolled under subsection (3) of that section, and shall be 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 175,000.

 

     (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.

 

     (iii) If a child does not meet the minimum age requirement to

 

be eligible to attend school for that school year under section

 

1147 of the revised school code, MCL 380.1147, but will be 5 years

 

of age not later than December 1 of that school year, the district

 

may count the child in membership for that school year if the

 

parent or legal guardian has notified the district in writing that

 

he or she intends to enroll the child in kindergarten for that

 

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 pupil 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

 

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 or the education achievement system 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 or the education achievement system

 

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 or the

 

education achievement system 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 or the education achievement

 

system provides instruction for at least 1/2 of the class hours

 

specified in subdivision (q), the public school academy or the

 

education achievement system 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 or the education achievement system 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 or the education achievement

 

system 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 or the education achievement system.

 

     (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) Beginning in 2012-2013, full-time equated memberships for

 

pupils in kindergarten shall be determined by dividing the number

 

of instructional hours scheduled and provided per year per

 

kindergarten pupil by the same number used for determining full-

 

time equated memberships for pupils in grades 1 to 12. However, to

 

the extent allowable under federal law, for a district or public

 

school academy that provides evidence satisfactory to the

 

department that it used federal title I money in the 2 immediately

 

preceding school fiscal years to fund full-time kindergarten, 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. The change in the counting of full-time

 

equated memberships for pupils in kindergarten that took effect for

 

2012-2013 is not a mandate.

 

     (s) For a district, a public school academy, or the education

 

achievement system that has pupils enrolled in a grade level that

 

was not offered by the district, the public school academy, or the

 

education achievement system 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 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, the public school academy, or the


 

education achievement system that is educating the pupil.

 

     (v) (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 or the education achievement system within 45 days after

 

the pupil membership count day, the department shall adjust the

 

district's or the education achievement system's pupil count for

 

the pupil membership count day to include the pupil in the count.

 

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

 

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

 

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

 

product of .90 times the number of full-time equated pupils in

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

product of .10 times the final audited count from the most recent

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.

 

     (x) (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 if the district

 

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

 

membership shall be considered to be the membership figure

 

calculated under this subdivision. If a district educates and

 

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


 

contiguous district that does not operate grades 9 to 12 and if 1

 

or both of the affected districts request the department to use the

 

determination allowed under this sentence, the department shall

 

include the square mileage of both districts in determining the

 

number of pupils per square mile for each of the districts for the

 

purposes of this subdivision. The membership figure calculated

 

under this subdivision is the greater of the following:

 

     (i) The average of the district's membership for the 3-fiscal-

 

year period ending with that fiscal year, calculated by adding the

 

district's actual membership for each of those 3 fiscal years, as

 

otherwise calculated under this subsection, and dividing the sum of

 

those 3 membership figures by 3.

 

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

 

otherwise calculated under this subsection.

 

     (z) If a public school academy that is not in its first or

 

second year of operation closes at the end of a school year and

 

does not reopen for the next school year, the department shall

 

adjust the membership count of the district or the education

 

achievement system 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 or the education

 

achievement system receives the same amount of membership aid for

 

the pupil as if the pupil were counted in the district or the

 

education achievement system on the supplemental count day of the

 

preceding school year.

 

     (y) (aa) Full-time equated memberships for 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 special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 or 340.1862 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.

 

     (z) (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.

 

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

 

membership on the pupil membership count day in a middle college

 

program, the membership is the average of the full-time equated

 

membership on the pupil membership count day and on the

 

supplemental count day for the current school year, as determined

 

by the department. If a pupil was counted by the operating district

 

on the immediately preceding supplemental count day, the pupil

 

shall be excluded from the district's immediately preceding

 

supplemental count for purposes of determining the district's

 

membership.

 

     (bb) (dd) A district, a public school academy, or the

 

education achievement system 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 or the education achievement system.

 

     (dd) (ff) For a pupil enrolled in a dropout recovery program

 

that meets the requirements of section 23a, the pupil shall be

 

counted as 1/12 of a full-time equated membership for each month

 

that the district operating the program reports that the pupil was

 

enrolled in the program and was in full attendance. However, a

 

pupil counted under this subdivision shall not be counted as more

 

than 1.0 FTE in a fiscal year. if the special membership counting

 

provisions under this subdivision and the operation of the other

 

membership counting provisions under this subsection result in a

 

pupil being counted as more than 1.0 FTE in a fiscal year, the

 

payment made for the pupil under sections 22a and 22b shall not be

 

based on more than 1.0 FTE for that pupil, and any portion of an

 

FTE for that pupil that exceeds 1.0 shall instead be paid under

 

section 25f. The district operating the program shall report to the

 

center the number of pupils who were enrolled in the program and

 

were in full attendance for a month not later than the tenth day of

 

the next month. A district shall not report a pupil as being in

 

full attendance for a month unless both of the following are met:

 

     (i) A personalized learning plan is in place on or before the

 

first school day of the month for the first month the pupil

 

participates in the program.

 

     (ii) The pupil meets the district's definition under section


 

23a of satisfactory monthly progress for that month or, if the

 

pupil does not meet that definition of satisfactory monthly

 

progress for that month, the pupil did meet that definition of

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

after it is determined that the pupil does not meet that definition

 

of satisfactory monthly progress.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

     (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 the

 

education achievement system.

 

     (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 750.90h, 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 school, for the

 

pupil's enrollment in the Michigan virtual school.

 

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

 

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

 

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

 

longer works at the district due to a workforce reduction. As used

 

in this subdivision, "child" includes an adopted child, stepchild,

 

or legal ward.

 

     (k) An expelled pupil who has been denied reinstatement by the

 

expelling district and is reinstated by another school board under

 

section 1311 or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a.

 

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


 

district of residence in a middle college program if the pupil's

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic education

 

center.

 

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

 

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

 

school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 

2001, Public Law 107-110.

 

     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 

section 21f.

 

     However, if a district educates pupils who reside in another

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.

 

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

 

district means:

 

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

 

in October each school year or, for a district or building in which

 

school is not in session on that Wednesday due to conditions not


 

within the control of school authorities, with the approval of the

 

superintendent, the immediately following day on which school is in

 

session in the district or building.

 

     (b) For a district or intermediate district maintaining school

 

during the entire school year, the following days:

 

     (i) Fourth Wednesday in July.

 

     (ii) First Wednesday in October.

 

     (iii) Second Wednesday in February.

 

     (iv) Fourth Wednesday in April.

 

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

 

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

 

receiving instruction in all classes for which they are enrolled on

 

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

 

applicable. Except as otherwise provided in this subsection, a

 

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

 

enrolled on the pupil membership count day or supplemental count

 

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

 

consecutive school days immediately following the pupil membership

 

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

 

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

 

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

 

pupil membership count day or supplemental count day and who fails

 

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

 

30 calendar days after the pupil membership count day or

 

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

 

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

 

attendance in a district, an intermediate district, a public school


 

academy, or the education achievement system 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, public school academy, or education

 

achievement system 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, for the purposes

 

of this article only, a district that had at least 60,000 40,000

 

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 to the district of residence.

 

Tuition pupil does not include a pupil who is a special education

 

pupil, a pupil described in subsection (6)(c) to (p), or a pupil

 

whose parent or guardian voluntarily enrolls the pupil in a

 

district that is not the pupil's district of residence. 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 or, for an

 

achievement school, by the chancellor of the achievement authority

 

and that contains a presentation of principles of a subject, or

 

that is a literary work relevant to the study of a subject required


 

for the use of classroom pupils, or another type of course material

 

that forms the basis of classroom instruction.

 

     (20) "Total state aid" or "total state school aid" means the

 

total combined amount of all funds due to a district, intermediate

 

district, or other entity under all of the provisions of this

 

article.

 

     Sec. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised

 

school code and is eligible to receive funding under this act

 

article within 30 days after a contract is submitted to the

 

department by the authorizing body of a public school academy.

 

     (2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this act article to the newly authorized public

 

school academy shall be a number that is equivalent to the sum of

 

the last district code assigned to a public school academy located

 

in the same county as the newly authorized public school academy

 

plus 1. However, if there is not an existing public school academy

 

located in the same county as the newly authorized public school

 

academy, then the district code the department shall use to make

 

payments under this act article to the newly authorized public

 

school academy shall be a 5-digit number that has the county code

 

in which the public school academy is located as its first 2

 

digits, 9 as its third digit, 0 as its fourth digit, and 1 as its

 

fifth digit. If the number of public school academies in a county

 

grows to exceed 100, the third digit in this 5-digit number shall


 

then be 8 7 for the public school academies in excess of 100.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2014,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,115,232,300.00 $11,200,232,300.00 from the state school aid

 

fund, the sum of $156,000,000.00 from the MPSERS retirement

 

obligation reform reserve fund created under section 147b, and the

 

sum of $234,900,000.00 $149,900,000.00 from the general fund. For

 

the fiscal year ending September 30, 2015, there is appropriated

 

for the public schools of this state and certain other state

 

purposes relating to education the sum of $11,929,262,900.00 from

 

the state school aid fund, the sum of $18,000,000.00 from the

 

MPSERS retirement obligation reform reserve fund created under

 

section 147b, and the sum of $114,900,000.00 from the general fund.

 

In addition, all other available federal funds are appropriated

 

each fiscal year for the fiscal year ending September 30, 2014 and

 

for the fiscal year ending September 30, 2015.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

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

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

     (3) Any general fund allocations under this article that are

 

not expended by the end of the state fiscal year are transferred to

 

the school aid stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by


 

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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that


 

fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

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

 

stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

as required under section 296(2) and state payments in an amount

 

equal to the remainder of the projected shortfall shall be prorated

 

in the manner provided under section 296(3).

 

     (7) For 2013-2014, 2014-2015, in addition to the

 

appropriations in section 11, there is appropriated from the school

 

aid stabilization fund to the state school aid fund the amount

 

necessary to fully fund the allocations under this article.

 

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

 

allocated for this section an amount not to exceed $39,500,000.00

 

for the fiscal year ending September 30, 2014 and for 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 article 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, 2015.

 

     (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.

 

     (7) If a district eligible for payments under this section is

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

the payment otherwise due to the dissolved district under this


 

section shall be paid instead to the intermediate district of the

 

dissolved district. The intermediate district of the dissolved

 

district shall perform any functions and responsibilities of the

 

board and other officers of the dissolved district necessary under

 

this section on behalf of the dissolved district. As used in this

 

subsection, "dissolved district" and "receiving district" mean

 

those terms as defined in section 20.

 

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

 

allocated an amount not to exceed $131,660,000.00 for 2013-2014

 

$126,000,000.00 for 2014-2015 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 296

 

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 2013-2014, 2014-2015, there is appropriated from

 

the general fund to the school loan revolving fund an amount equal

 

to the amount of school bond loans assigned to the Michigan 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 in section 11, there is

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$2,500,000.00 $4,000,000.00 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. 11r. (1) From the appropriation in section 11, there is


 

allocated an amount not to exceed $4,000,000.00 to be deposited

 

into the distressed districts emergency grant fund created under

 

this section for the purpose of funding grants under this section.

 

     (2) The distressed districts emergency grant fund is created

 

as a separate account within the state school aid fund. The state

 

treasurer may receive money or other assets from any source for

 

deposit into the distressed districts emergency grant fund. The

 

state treasurer shall direct the investment of the distressed

 

districts emergency grant fund and shall credit to the distressed

 

districts emergency grant fund interest and earnings from the fund.

 

     (3) Subject to subsection (4), a district is eligible to

 

receive a grant from the distressed districts emergency grant fund

 

if either of the following applies:

 

     (a) The district has adopted a resolution authorizing the

 

voluntary dissolution of the district approved by the state

 

treasurer under section 12 of the revised school code, MCL 380.12,

 

but the dissolution has not yet taken effect under that section.

 

     (b) The district is a receiving district under section 12 of

 

the revised school code, MCL 380.12, and the district enrolls

 

pupils who were previously enrolled in a district that was

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

in the immediately preceding school year.

 

     (4) A district receiving funds under section 20g is not

 

eligible to receive funds under this section.

 

     (5) The amount of a grant under this section shall be

 

determined by the state treasurer after consultation with the

 

superintendent of public instruction, but shall not exceed the


 

estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits,

 

retirement system contributions, pupil transportation, food

 

services, special education, building security, and other costs

 

necessary to allow the district to operate schools directly and

 

provide public education services until the end of the current

 

school fiscal year. For a district that meets the eligibility

 

criteria under subsection (3)(b), the amount of the grant shall be

 

determined in the same manner as transition costs under section

 

20g.

 

     (6) Before disbursing funds under this section, the state

 

treasurer shall notify the house and senate appropriations

 

subcommittees on school aid and the house and senate fiscal

 

agencies. The notification shall include, but not be limited to,

 

the district receiving funds under this section, the amount of the

 

funds awarded under this section, an explanation of the district

 

conditions that necessitate funding under this section, and the

 

intended use of funds disbursed under this section.

 

     (7) Money in the distressed districts emergency grant fund at

 

the close of a fiscal year shall remain in the distressed districts

 

emergency grant fund and shall not lapse to the state school aid

 

fund or to the general fund.

 

     Sec. 12. It is the intent of the legislature to appropriate

 

and allocate for the fiscal year ending September 30, 2015 2016 the

 

same amounts of money from the same sources for the same purposes

 

as are appropriated and allocated under this article for the fiscal

 

year ending September 30, 2014, 2015, as adjusted for changes in


 

pupil membership, taxable values, special education costs, interest

 

costs, retirement costs, and available revenue. These adjustments

 

will be determined after the January 2014 2015 consensus revenue

 

estimating conference.

 

     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

 

article, 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

 

article other than a special education or special education

 

transportation payment, from the proceeds of a loan to the district

 

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under

 

section 1211 of the revised school code, MCL 380.1211. State aid

 

overpayments made in special education or special education

 

transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the

 

proceeds of a loan to the district under the emergency municipal

 

loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds

 

of millage levied or pledged under section 1211 of the revised

 

school code, MCL 380.1211.


 

     (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 and may advance payments to the district otherwise

 

authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations.

 

     (3) If, based on an audit by the department or the

 

department's designee or because of the receipt of new or updated

 

data, information received by the department, the department

 

determines during a fiscal year that the amount paid to a district

 

or intermediate district under this article for the current fiscal

 

year or a prior fiscal year was incorrect, under the law in effect

 

for that year, the department may shall 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.

 

in the next apportionment after the adjustment is finalized. The

 

deduction or payment shall be calculated according to the law in

 

effect in the fiscal year in which the improper incorrect amount


 

was paid. If the district does not receive an allocation for the

 

fiscal year or if the allocation is not sufficient to pay the

 

amount of any deduction, the amount of any deduction otherwise

 

applicable shall be satisfied from the proceeds of a loan to the

 

district under the emergency municipal loan act, 1980 PA 243, MCL

 

141.931 to 141.942, or from the proceeds of millage levied or

 

pledged under section 1211 of the revised school code, MCL

 

380.1211, as determined by the department.

 

     (4) The department may conduct audits, or may direct audits by

 

designee of the department, for the current fiscal year and the

 

immediately preceding 3 fiscal years of all records related to a

 

program for which a district or intermediate district has received

 

funds under this article.

 

     (5) (4) Expenditures made by the department under this article

 

that are caused by the write-off of prior year accruals may be

 

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

 

     (6) (5) In addition to funds appropriated in section 11 for

 

all programs and services, there is appropriated for 2013-2014

 

2014-2015 for obligations in excess of applicable appropriations an

 

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

 

amounts available from overpayments.

 

     Sec. 17a. (1) The department may withhold all or part of any

 

payment that a district or intermediate district is entitled to

 

receive under this act article to the extent the withholdings are a

 

component part of a plan, developed and implemented pursuant to the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821, the emergency municipal loan act, 1980 PA 243, MCL


 

141.931 to 141.942, the local financial stability and choice act,

 

2012 PA 436, MCL 141.1541 to 141.1575, or other statutory

 

authority, for financing an outstanding obligation upon which the

 

district or intermediate district defaulted or for other financial

 

obligations of the district or intermediate district. Amounts

 

withheld shall be used to pay, on behalf of the district or

 

intermediate district, unpaid amounts or subsequently due amounts,

 

or both, of principal and interest on the outstanding obligation

 

upon which the district or intermediate district defaulted.

 

     (2) The state treasurer may withhold all or part of any

 

payment that a district or intermediate district is entitled to

 

receive under this act article to the extent authorized or required

 

under section 15 of the school bond qualification, approval, and

 

loan act, 2005 PA 92, MCL 388.1935, the emergency municipal loan

 

act, 1980 PA 243, MCL 141.931 to 141.942, the local financial

 

stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575, or

 

other statutory authority.

 

     (3) Under an agreement entered into by a district or

 

intermediate district assigning all or a portion of the payment

 

that it is eligible to receive under this act article to the

 

Michigan finance authority or to the trustee of a pooled

 

arrangement or pledging the amount for payment of an obligation it

 

incurred with the Michigan finance authority or with the trustee of

 

a pooled arrangement, the state treasurer shall transmit to the

 

Michigan finance authority or a trustee designated by the Michigan

 

finance authority or to the trustee of a pooled arrangement or

 

other designated depository the amount of the payment that is


 

assigned or pledged under the agreement.

 

     (4) If a district or intermediate district for which an

 

emergency manager has been appointed pursuant to is in place under

 

the local financial stability and choice act, 2012 PA 436, MCL

 

141.1541 to 141.1575, or that has an approved deficit elimination

 

plan or an approved enhanced deficit elimination plan under section

 

102, enters into or has entered into an agreement described in

 

subsection (3) pursuant to section 1225(2) of the revised school

 

code, MCL 380.1225, whether the obligation was issued before or

 

after the effective date of this subsection, the portion of state

 

school aid paid or to be paid on behalf of the district or

 

intermediate district directly to the Michigan finance authority,

 

or to a trustee designated by the Michigan finance authority, for

 

the sole purpose of paying the principal of and interest on the

 

obligation is subject to a lien and trust that is a statutory lien

 

and trust, paramount and superior to all other liens and interests

 

of any kind, for the sole purpose of paying the principal of and

 

interest on the obligation. The statutory lien and trust applies to

 

the state school aid received or to be received by the Michigan

 

finance authority, or trustee designated by the Michigan finance

 

authority, on behalf of the district or intermediate district,

 

immediately upon the later of the effective date of this subsection

 

or the time when the state school aid is allocated to the district

 

or intermediate district, but is subject to any subsequent

 

reduction of the state school aid allocation by operation of law or

 

executive order. The lien and trust imposed by this section with

 

respect to state school aid has a priority as established in the


 

agreement, except that the agreement shall not impair any existing

 

lien and trust previously created pursuant to this section,

 

including any lien and trust applicable to a multi-year repayment

 

agreement under section 1225 of the revised school code, MCL

 

380.1225. Except as otherwise provided in this subsection, the lien

 

and trust created under this subsection for the benefit of holders

 

of the obligation issued pursuant to this section is valid and

 

binding against a party having a claim of any kind in tort,

 

contract, or otherwise against the district or intermediate

 

district that has issued the obligation secured by a pledge of

 

state school aid pursuant to this section, regardless of whether

 

that party has notice of the pledge. A pledge made pursuant to this

 

section for the benefit of the holders of obligations or others is

 

perfected without delivery, recording, or notice. The state school

 

aid paid or to be paid on behalf of a district or intermediate

 

district to the Michigan finance authority, or trustee designated

 

by the Michigan finance authority, shall be held in trust for the

 

sole benefit of the holders of the obligation issued pursuant to

 

this section or section 1225 of the revised school code, MCL

 

380.1225, and is exempt from being levied upon, taken, sequestered,

 

or applied toward paying the debts or liabilities of the district

 

or intermediate district other than for payment of the obligation

 

to which the lien applies. However, nothing in this subsection

 

alters the ability of the state treasurer to withhold state school

 

aid from a district or intermediate district as provided by law.

 

     (5) Notwithstanding the payment dates prescribed by this act

 

article for distributions under this act, article, the state


 

treasurer may advance all or part of a payment that is dedicated

 

for distribution or for which the appropriation authorizing the

 

payment has been made if and to the extent, under the terms of an

 

agreement entered into by a district or intermediate district and

 

the Michigan finance authority, the payment that the district or

 

intermediate district is eligible to receive has been assigned to

 

or pledged for payment of an obligation it incurred with the

 

Michigan finance authority.

 

     (6) This section does not require the state to make an

 

appropriation to any school district or intermediate school

 

district and shall not be construed as creating an indebtedness of

 

the state, and any agreement made pursuant to this section shall

 

contain a statement to that effect.

 

     (7) As used in this section, "trustee of a pooled arrangement"

 

means the trustee of a trust approved by the state treasurer and,

 

subject to the conditions and requirements of that approval,

 

established for the purpose of offering for sale, as part of a

 

pooled arrangement, certificates representing undivided interests

 

in notes issued by districts or intermediate districts under

 

section 1225 of the revised school code, MCL 380.1225.

 

     (8) If a trustee applies to the state treasurer for approval

 

of a trust for the purposes of this section, the state treasurer

 

shall approve or disapprove the trust within 10 days after receipt

 

of the application.

 

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

 

article, each district or other entity shall apply the money

 

received by the district or entity under this article to salaries


 

and other compensation of teachers and other employees, tuition,

 

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

 

purchase of textbooks, 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 sections 22a

 

and 22b or received by an intermediate district under this article

 

section 81 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 article the apportionment otherwise due upon a

 

violation by the recipient.

 

     (2) Within 30 15 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.

 

     (iv) The bids required under section 5 of the public employee

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (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.

 

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under this

 

article.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

authorized to use each of those credit cards, the credit limit on

 

each credit card, and the dollar limit, if any, for each

 

individual's authorized use of the credit card.

 

     (i) Costs incurred for each instance of out-of-state travel by

 

the school administrator of the district that is fully or partially

 

paid for by the district and the details of each of those instances

 

of out-of-state travel, including at least identification of each

 

individual on the trip, destination, and purpose.

 

     (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 purposes of determining the reasonableness

 

of expenditures, whether a district or intermediate district has

 

received the proper amount of funds under this article, and whether

 

a violation of this article 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, and at such other times as determined

 

by the department, at the expense of the district or intermediate

 

district, as applicable. , The audits must be performed 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. A district or intermediate district shall retain these

 

records for the current fiscal year and from at least the 3

 

immediately preceding fiscal years.

 

     (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) 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) 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) All of the following shall be done not later than November

 

15, each year:2014 for reporting 2013-2014 data during 2014-2015,

 

and not later than October 15 for reporting the prior fiscal year

 

data for all subsequent fiscal years:

 

     (i) A district shall file the annual financial audit reports

 

with the intermediate district and the department.

 

     (ii) The intermediate district shall file the annual financial

 

audit reports for the intermediate district with the department.

 

     (iii) The intermediate district shall enter the pupil

 

membership audit reports for its constituent districts and for the

 

intermediate district, for the pupil membership count day and

 

supplemental count day, in the Michigan student data system.

 

     (f) 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) Not later than 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, 2014 for 2014-2015 and by

 

October 15 for all subsequent fiscal years, 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.

 

     (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 article.

 

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

 

property using money received under this article, 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 article, 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). However, the department shall not withhold the payment due on

 

October 20 due to the operation of this subsection. 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.

 

     (11) Not later than September November 1, 2014, if a district

 

or intermediate district offers online learning under section 21f,

 

the district or intermediate district shall submit to the

 

department a report that details the per-pupil costs of operating

 

the online learning by vendor type. The report shall include at


 

least all of the following information concerning the operation of

 

online learning for the school fiscal year ending June 30, 2014:

 

     (a) The name of the district operating the online learning and

 

of each district that enrolled students in the online learning.

 

     (b) The total number of students enrolled in the online

 

learning and the total number of membership pupils enrolled in the

 

online learning.

 

     (c) For each pupil who is enrolled in a district other than

 

the district offering online learning, the name of that district.

 

     (d) The district in which the pupil was enrolled before

 

enrolling in the district offering online learning.

 

     (e) The number of participating students who had previously

 

dropped out of school.

 

     (f) The number of participating students who had previously

 

been expelled from school.

 

     (g) The total cost to enroll a student in the program. This

 

cost shall be reported on a per-pupil, per-course, per-semester or

 

trimester basis by vendor type. The total shall include costs

 

broken down by cost for content development, content licensing,

 

training, online instruction and instructional support, personnel,

 

hardware and software, payment to each online learning provider,

 

and other costs associated with operating online learning.

 

     (h) The name of each online education provider contracted by

 

the district and the state in which each online education provider

 

is headquartered.

 

     (12) Not later than March 31, 2015, the department shall

 

submit to the house and senate appropriations subcommittees on


 

state school aid, the state budget director, and the house and

 

senate fiscal agencies a report summarizing the per pupil costs by

 

vendor type of online courses available under section 21f.

 

     (13) As used in subsections (11) and (12), "vendor type" means

 

the following:

 

     (a) Online courses provided by the Michigan virtual

 

university.

 

     (b) Online courses provided by a school of excellence that is

 

a cyber school, as defined in section 551 of the revised school

 

code, MCL 380.551.

 

     (c) Online courses provided by third party vendors not

 

affiliated with a Michigan public school.

 

     (d) Online courses created and offered by a district or

 

intermediate district.

 

     Sec. 19. (1) A district or intermediate district shall comply

 

with all applicable reporting requirements specified in state and

 

federal law. Data provided to the center, in a form and manner

 

prescribed by the center, shall be aggregated and disaggregated as

 

required by state and federal law. In addition, a district or

 

intermediate district shall cooperate with all measures taken by

 

the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

     (2) Each district shall furnish to the center not later than 5

 

weeks after the pupil membership count day and by June 30 of the

 

school fiscal year ending in the fiscal year, in a manner

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This


 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

for each high school, each district, and this state, in compliance

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

state budget director, and the department not later than 30 days

 

after the publication of the list described in subsection (6).

 

     (3) By the first business day in December and by June 30 of

 

each year, a district shall furnish to the center, in a manner

 

prescribed by the center, information related to educational

 

personnel as necessary for reporting required by state and federal

 

law.

 

     (4) By June 30 of each year, a district shall furnish to the

 

center, in a manner prescribed by the center, information related

 

to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.

 

     (5) If a district or intermediate district fails to meet the

 

requirements of this section, the department shall withhold 5% of

 

the total funds for which the district or intermediate district

 

qualifies under this article until the district or intermediate

 

district complies with all of those subsections. If the district or

 

intermediate district does not comply with all of those subsections

 

by the end of the fiscal year, the department shall place the

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.


 

     (6) Before publishing a list of school or district

 

accountability designations as required by the no child left behind

 

act of 2001, Public Law 107-110, the department shall allow a

 

school or district to appeal that determination. The department

 

shall consider and act upon the appeal within 30 days after it is

 

submitted and shall not publish the list until after all appeals

 

have been considered and decided.

 

     (7) It is the intent of the legislature to implement not later

 

than 2014-2015, 2016-2017, statewide standard reporting

 

requirements for education data approved by the department in

 

conjunction with the center. The department shall work with the

 

center, intermediate districts, districts, and other interested

 

stakeholders to develop recommendations on the implementation of

 

this policy change. A district or intermediate district shall

 

implement the statewide standard reporting requirements not later

 

than 2014-2015 or when a district or intermediate district updates

 

its education data reporting system, whichever is later.

 

     Sec. 20. (1) For 2013-2014, the 2014-2015, both of the

 

following apply:

 

     (a) The basic foundation allowance is $8,049.00.$8,099.00.

 

     (b) The minimum foundation allowance is $7,126.00.

 

     (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 Except as otherwise provided in this subdivision, 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, minimum foundation

 

allowance for the immediately preceding state fiscal year, 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 greater of $6,966.00

 

or 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 difference between the basic foundation allowance

 

for the current state fiscal year and basic foundation allowance

 

for the immediately preceding state fiscal year to the current

 

state fiscal year made in the basic foundation allowance minus

 

$10.00) 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) minimum

 

foundation allowance for the immediately preceding state fiscal

 

year) 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 2011-2012,

 

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 2010-

 

2011, minus $470.00. minimum foundation allowance for the

 

immediately preceding state fiscal year]. However, the foundation

 

allowance for a district that had less than the basic foundation

 

allowance for the immediately preceding state fiscal year shall not

 

exceed the basic foundation allowance for the current state fiscal

 

year. For the purposes of this subdivision, for 2014-2015, the

 

minimum foundation allowance for the immediately preceding state

 

fiscal year shall be considered to be $7,076.00. For 2014-2015, for

 

a district that had a foundation allowance for the immediately

 

preceding state fiscal year that was at least equal to the minimum

 

foundation allowance for the immediately preceding state fiscal

 

year 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 2013-2014 plus $50.00.


 

     (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 for

 

2011-2012 2014-2015 in an amount equal to the district's basic

 

foundation allowance for 2010-2011, minus $470.00.2014-2015.

 

     (c) Except as otherwise provided in subdivision (d), for For a

 

district that in the 1994-95 state fiscal year had a foundation

 

allowance for the immediately preceding state fiscal year that was

 

greater than $6,500.00, the basic foundation allowance for the

 

immediately preceding state fiscal year, 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, 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 district's foundation allowance for the 2010-2011 fiscal


 

year minus $470.00.

 

     (d) 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.

 

     (d) (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.

 

     (e) (g) For a district that received a payment under section

 

22c as that section was in effect for 2006-2007, 2013-2014, the

 

district's 2006-2007 2013-2014 foundation allowance shall be

 

considered to have been an amount equal to the sum of the

 

district's actual 2006-2007 2013-2014 foundation allowance as

 

otherwise calculated under this section plus the per pupil amount

 

of the district's equity payment for 2006-2007 2013-2014 under

 

section 22c as that section was in effect for 2006-2007.2013-2014.


 

     (h) For 2012-2013, for a district that had a foundation

 

allowance for the 2011-2012 state fiscal year of less than

 

$6,966.00, the district's foundation allowance is an amount equal

 

to $6,966.00.

 

     (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 local

 

portion of the district's foundation allowance 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 local portion of the district's foundation

 

allowance 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 a

 

receiving district, if school operating taxes continue to be levied

 

on behalf of a dissolved district that has been attached in whole

 

or in part to the receiving district to satisfy debt obligations of

 

the dissolved district under section 12 of the revised school code,

 

MCL 380.12, the taxable value per membership pupil of property in

 

the receiving district used for the purposes of this subsection ,

 

does not include the taxable value of property within the

 

geographic area of the dissolved district.

 

     (5) The allocation calculated under this section for a pupil

 

shall be based on the foundation allowance of the pupil's district

 

of residence. 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.

 

     (6) Except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

whichever is less. However, a public school academy 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 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) Except as otherwise provided in this subsection, for

 

pupils attending an achievement school and in membership in the

 

education achievement system, other than special education pupils,

 

the allocation calculated under this section is an amount per

 

membership pupil other than special education pupils equal to the

 

foundation allowance of the district in which the achievement

 

school is located, not to exceed the basic foundation allowance.

 

Notwithstanding section 101, for an achievement school that begins

 

operation 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 achievement school 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. For the purposes of this subsection, if a public school

 

is transferred from a district to the state school reform/redesign

 

district or the achievement authority under section 1280c of the

 

revised school code, MCL 380.1280c, that public school is

 

considered to be an achievement school within the education

 

achievement system and not a school that is part of a district, and

 

a pupil attending that public school is considered to be in

 

membership in the education achievement system and not in

 

membership in the district that operated the school before the

 

transfer.


 

     (8) 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 lesser of the sum of

 

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 plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

subsection does not apply to a receiving district unless there is a

 

subsequent consolidation or annexation that affects the district.

 

     (9) 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) 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) 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. 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) 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. All of the following apply to districts

 

receiving a foundation allowance adjustment under this subsection:

 

     (a) Except as otherwise provided in this subdivision, 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. For an individual school or

 

schools operated by a district qualifying for a foundation

 

allowance adjustment 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 subdivision. 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.

 

     (b) A district receiving an adjustment under this subsection

 

shall not receive as a result of this adjustment an amount that

 

exceeds 68.5% of the amount the district received as a result of

 

this adjustment for 2010-2011.

 

     (c) Notwithstanding subsection (8), for a district that is

 

formed or reconfigured by consolidation of 2 or more districts, 1

 

of which received an adjustment under this subsection for 2012-

 

2013, the resulting district's foundation allowance for 2013-2014

 

and each succeeding fiscal year shall be adjusted to be an amount

 

equal to the sum of the resulting district's foundation allowance


 

as calculated under subsection (8) excluding any adjustment

 

calculated under this subsection plus [(the original district's

 

adjustment under this subsection in 2012-2013 times the number of

 

pupils in the original district's membership for 2012-2013) divided

 

by the number of pupils in the resulting district's membership for

 

2013-2014].

 

     (d) Beginning in 2013-2014, for a district that received an

 

adjustment for the immediately preceding fiscal year and that had a

 

foundation allowance as adjusted by this subsection for the

 

immediately preceding fiscal year equal to $6,966.00, the district

 

shall not receive an adjustment under this section for the current

 

fiscal year.

 

     (12) (13) Payments to districts, public school academies, or

 

the education achievement system 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.

 

     (13) (14) 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.

 

     (14) (15) 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) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

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

 

fiscal year immediately preceding the current state fiscal year.

 

     (g) "Local portion of the district's foundation allowance"

 

means an amount that is 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

 

product of the captured assessed valuation under tax increment

 

financing acts times the district's certified mills divided by the

 

district's membership excluding special education pupils).

 

     (h) (g) "Local school operating revenue" means school

 

operating taxes levied under section 1211 of the revised school

 

code, MCL 380.1211. For a receiving district, if school operating


 

taxes are to be levied on behalf of a dissolved district that has

 

been attached in whole or in part to the receiving district to

 

satisfy debt obligations of the dissolved district under section 12

 

of the revised school code, MCL 380.12, local school operating

 

revenue does not include school operating taxes levied within the

 

geographic area of the dissolved district.

 

     (i) (h) "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.

 

     (j) (i) "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 amount of the difference between the

 

basic foundation allowance for the current state fiscal year and

 

the basic foundation for 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 amount of

 

the difference between the basic foundation allowance for the

 

current state fiscal year and the basic foundation for the

 

immediately preceding state fiscal year to the current state fiscal

 

year made in the basic foundation allowance minus $10.00) 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) minimum foundation allowance for the immediately

 

preceding state fiscal year) 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].minimum foundation allowance for the immediately

 

preceding state fiscal year]. For the purposes of this subdivision,

 

for 2014-2015, the minimum foundation allowance for the immediately

 

preceding state fiscal year shall be considered to be $7,076.00.

 

For 2014-2015, the maximum public school academy allocation is

 

$7,218.00.

 

     (k) (j) "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.

 

     (l) (k) "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.

 

     (m) (l) "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.

 

     (n) (m) "Receiving district" means a district to which all or

 

part of the territory of a dissolved district is attached under


 

section 12 of the revised school code, MCL 380.12.

 

     (o) (n) "School operating purposes" means the purposes

 

included in the operation costs of the district as prescribed in

 

sections 7 and 18 and purposes authorized under section 1211 of the

 

revised school code, MCL 380.1211.

 

     (p) (o) "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.

 

     (q) (p) "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.

 

     (r) (q) "Taxable value per membership pupil" means taxable

 

value, as certified by the department of treasury, county treasurer

 

and reported to the department, 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 2013-2014, 2014-2015, 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. 20f. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $6,000,000.00 for 2013-2014

 

2014-2015 for payments to eligible districts under this section. A

 

district is eligible for funding under this section if the district

 

received a payment under this section as it was in effect for 2013-

 

2014. A district was eligible for funding in 2013-2014 if the sum

 

of the following is was less than $5.00:

 

     (a) The increase in the district's foundation allowance or per

 

pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c for 2013-2014.

 

     (c) The quotient of the district's allocation under section

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

     (2) The amount allocated to each eligible district under this

 

section is an amount per membership pupil equal to $5.00 minus the

 

sum of the following:the amount per membership pupil the district

 

received in 2013-2014.

 

     (a) The increase in the district's foundation allowance or per


 

pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

section 22c.

 

     (c) The quotient of the district's allocation under section

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

     (3) If the allocation under subsection (1) is insufficient to

 

fully fund payments as otherwise calculated under this section, the

 

department shall prorate payments under this section on an equal

 

per-pupil basis.

 

     Sec. 20g. (1) From the money appropriated under section 11,

 

the following amounts are allocated for 2013-2014:

 

     (a) From the general fund money, there is allocated an amount

 

not to exceed $2,200,000.00 for 2013-2014 2014-2015 for grants to

 

eligible districts that first received payments under this section

 

in 2013-2014 for transition costs related to the enrollment of

 

pupils who were previously enrolled in a district that was

 

dissolved under section 12 of the revised school code, MCL 380.12,

 

allocated as provided under subsection (3). It is the intent of the

 

legislature to continue this transition funding Payments under this

 

section shall continue for a total of 4 fiscal years following the

 

dissolution of a district, after which the payments shall cease.

 

     (b) From the state school aid fund money, an amount not to

 

exceed $5,000,000.00 for reimbursements to eligible districts for


 

costs incurred by the eligible district associated with the

 

transfer of property from a dissolved school district to the

 

eligible district, allocated as provided under subsection (4).

 

     (2) A receiving school district, as that term is defined in

 

section 12 of the revised school code, MCL 380.12, is an eligible

 

district under this section.

 

     (3) The amount allocated to each eligible district under

 

subsection (1)(a) This section is an amount equal to the product of

 

the number of membership pupils enrolled in the eligible district

 

who were previously enrolled in the dissolved school district in

 

the school year immediately preceding the dissolution, or who

 

reside in the geographic area of the dissolved school district and

 

are entering kindergarten, times 10.0% of the lesser of the

 

foundation allowance of the eligible district as calculated under

 

section 20 or the basic foundation allowance under section 20(1).

 

     (4) To allocate funds under subsection (1)(b), the department

 

shall develop a reimbursement application process and a

 

reimbursement distribution process. Reimbursable costs shall

 

include, but are not limited to, the costs of maintenance,

 

utilities, security, or insurance associated with, or the

 

demolition of, buildings transferred from a dissolved school

 

district to the eligible district. However, the reimbursement made

 

to eligible districts for all of the property transferred from a

 

single dissolved school district shall not exceed the total

 

cumulative sum of $2,500,000.00 for all of the eligible districts

 

to which property was transferred from that dissolved school

 

district.


 

     (5) The funds allocated under subsection (1)(b) are considered

 

work project appropriations and any unexpended funds for 2013-2014

 

are carried forward into 2014-2015. The purpose of the work project

 

is as described in subsection (1)(b). The total estimated cost of

 

the work project is $5,000,000.00. The tentative estimated

 

completion date for the work project is September 30, 2015.

 

     (4) (6) As used in this section, "dissolved school district"

 

means a school district that has been declared dissolved under

 

section 12 of the revised school code, 1976 PA 451, MCL 380.12.

 

     Sec. 21b. (1) Subject to subsections (2) and (3), a district

 

shall use funds received under section 22a or 22b to support the

 

attendance of a district pupil who is an eligible student at an

 

eligible postsecondary institution under the postsecondary

 

enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or

 

under the career and technical preparation act, 2000 PA 258, MCL

 

388.1901 to 388.1913, by paying eligible charges on behalf of the

 

district pupil as required under those acts.

 

     (2) To the extent required under subsection (3), a district

 

shall pay tuition and mandatory course fees, material fees, and

 

registration fees required by an eligible postsecondary institution

 

for enrollment in an eligible course. A district also shall pay any

 

late fees charged by an eligible postsecondary institution due to

 

the district's failure to make a required payment according to the

 

timetable prescribed by the postsecondary enrollment options act,

 

1996 PA 160, MCL 388.511 to 388.524, or the career and technical

 

preparation act, 2000 PA 258, MCL 388.1901 to 388.1913. A district

 

is not required to pay transportation costs, parking costs, or


 

activity fees on behalf of an eligible student for attendance at an

 

eligible postsecondary institution as described in subsection (1).

 

     (3) A district shall pay to the eligible postsecondary

 

institution on behalf of an eligible student an amount equal to the

 

lesser of the amount of the eligible charges described in

 

subsection (2) or the prorated percentage of the state portion of

 

the foundation allowance paid or calculated, as applicable, on

 

behalf of that eligible student under section 20, with the

 

proration based on the proportion of the school year that the

 

eligible student attends the postsecondary institution. A district

 

may pay more money to an eligible postsecondary institution on

 

behalf of an eligible student than required under this section and

 

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

 

to 388.524, or the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, and may use local school operating

 

revenue for that purpose. An eligible student is responsible for

 

payment of the remainder of the costs associated with his or her

 

postsecondary enrollment that exceed the amount the district is

 

required to pay under this section and the postsecondary enrollment

 

options act, 1996 PA 160, MCL 388.511 to 388.524, or the career and

 

technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913,

 

and that are not paid by the district. As used in this subsection,

 

"local school operating revenue" means that term as defined in

 

section 20.

 

     (4) As used in this section, "eligible course", "eligible

 

student" , and "eligible postsecondary institution" mean those

 

terms as defined in section 3 of the postsecondary enrollment


 

options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3

 

of the career and technical preparation act, 2000 PA 258, MCL

 

388.1903, as applicable.

 

     Sec. 21f. (1) A pupil enrolled in a district in any of grades

 

5 6 to 12 is eligible to enroll in an online course as provided for

 

in this section. However, this section does not apply to a pupil

 

enrolled in a school of excellence that is a cyber school, as

 

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

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a district shall enroll an eligible pupil in up to 2 online courses

 

as requested by the pupil during an academic term, semester, or

 

trimester. It is the intent of the legislature to consider

 

increasing the limit on the number of online courses that a pupil

 

may enroll in beginning in 2014-2015 for pupils who have

 

demonstrated previous success with online courses. Unless the pupil

 

is newly enrolled in the district, the request for online course

 

enrollment must be made in the academic term, semester, trimester,

 

or summer preceding the enrollment. A district may not establish

 

additional requirements that would prohibit a pupil from taking an

 

online course. If a pupil has demonstrated previous success with

 

online courses and the school leadership and the pupil's parent or

 

legal guardian determine that it is in the best interest of the

 

pupil, a pupil may be enrolled in more than 2 online courses in a

 

specific academic term, semester, or trimester. Consent of the

 

pupil's parent or legal guardian is not required if the pupil is at

 

least age 18 or is an emancipated minor.

 

     (3) An eligible pupil may enroll in an online course published


 

in the pupil's educating district's catalog of online courses

 

described in subsection (7)(a) or the statewide catalog of online

 

courses maintained by the Michigan virtual university pursuant to

 

section 98.

 

     (4) A district shall determine whether or not it has capacity

 

to accept applications for enrollment from nonresident applicants

 

in online courses and may use that limit as the reason for refusal

 

to enroll an applicant. If the number of nonresident applicants

 

eligible for acceptance in an online course does not exceed the

 

capacity of the district to provide the online course, the district

 

shall accept for enrollment all of the nonresident applicants

 

eligible for acceptance. If the number of nonresident applicants

 

exceeds the district's capacity to provide the online course, the

 

district shall use a random draw system, subject to the need to

 

abide by state and federal antidiscrimination laws and court

 

orders.

 

     (5) A district may deny a pupil enrollment in an online course

 

if any of the following apply, as determined by the district:

 

     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course or has demonstrated

 

failure in previous online coursework in the same subject.


 

     (e) The online course is of insufficient quality or rigor. A

 

district that denies a pupil enrollment for this reason shall make

 

a reasonable effort to assist the pupil to find an alternative

 

course in the same or a similar subject that is of acceptable rigor

 

and quality.

 

     (f) The cost of the online course exceeds the amount

 

identified in subsection (8), unless the pupil's parent or legal

 

guardian agrees to pay the cost that exceeds this amount.

 

     (g) The online course enrollment request does not occur within

 

the same timelines established by the district for enrollment and

 

schedule changes for regular courses.

 

     (6) If a pupil is denied enrollment in an online course by a

 

district, the pupil may appeal the denial by submitting a letter to

 

the superintendent of the intermediate district in which the

 

pupil's educating district is located. The letter of appeal shall

 

include the reason provided by the district for not enrolling the

 

pupil and the reason why the pupil is claiming that the enrollment

 

should be approved. The intermediate district superintendent or

 

designee shall respond to the appeal within 5 days after it is

 

received. If the intermediate district superintendent or designee

 

determines that the denial of enrollment does not meet 1 or more of

 

the reasons specified in subsection (5), the district shall allow

 

the pupil to enroll in the online course.

 

     (7) To offer or provide an online course under this section, a

 

district or intermediate district shall do all of the following:

 

     (a) Provide the Michigan virtual university with the course

 

syllabus in a form and method prescribed by the Michigan virtual


 

university for inclusion in a statewide online course catalog. The

 

district or intermediate district shall also provide on its

 

publicly accessible website a link to the course syllabi for all of

 

the online courses offered by the district or intermediate district

 

and a link to the statewide catalog of online courses maintained by

 

the Michigan virtual university.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (c) Not later than October 1, 2014, provide the Michigan

 

virtual university with the number of enrollments in each online

 

course the district or intermediate district offered to pupils

 

pursuant to this section in the immediately preceding school year,

 

and the number of enrollments in which the pupil earned 60% or more

 

of the total course points for each online course.

 

     (8) For a pupil enrolled in 1 or more online courses published

 

in the pupil's educating district's catalog of online courses under

 

subsection (7) or in the statewide catalog of online courses

 

maintained by the Michigan virtual university, the district shall

 

use foundation allowance or per pupil funds calculated under

 

section 20 to pay for the expenses associated with the online

 

course or courses. The district shall pay 80% of the cost of the

 

online course upon enrollment and 20% upon completion as determined

 

by the district. A district is not required to pay toward the cost

 

of an online course an amount that exceeds 1/12 8.33% of the

 

district's minimum foundation allowance or per pupil payment for

 

the current fiscal year as calculated under section 20. per


 

semester or an amount that exceeds 1/18 of the district's

 

foundation allowance or per pupil payment as calculated under

 

section 20 per trimester.

 

     (9) An online learning pupil shall have the same rights and

 

access to technology in his or her educating primary district's

 

school facilities as all other pupils enrolled in the educating

 

pupil's primary district.

 

     (10) If a pupil successfully completes an online course, as

 

determined by the pupil's primary district, the pupil's primary

 

district shall grant appropriate academic credit for completion of

 

the course and shall count that credit toward completion of

 

graduation and subject area requirements. A pupil's school record

 

and transcript shall identify the online course title as it appears

 

in the online course syllabus.

 

     (11) The enrollment of a pupil in 1 or more online courses

 

shall not result in a pupil being counted as more than 1.0 full-

 

time equivalent pupils under this act.article.

 

     (12) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under this

 

section shall not be transferred under the pupil transfer process

 

under section 25e.

 

     (13) (12) As used in this section:

 

     (a) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a teacher who holds a valid Michigan teaching certificate is


 

responsible for determining appropriate instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

     (b) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online

 

course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing

 

the online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district or intermediate

 

district and the course titles and course codes from the national

 

center for education statistics (NCES) school codes for the

 

exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district or intermediate district in the online

 

course.

 

     (xii) The results of the online course quality review using


 

the guidelines and model review process published by the Michigan

 

virtual university.

 

     (c) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

     (d) "Primary district" means the district that enrolls the

 

pupil and reports the pupil as a full-time equated pupil for pupil

 

membership purposes.

 

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

 

allocated an amount not to exceed $5,526,000,000.00

 

$5,393,000,000.00 for 2013-2014 2014-2015 for payments to districts

 

and qualifying public school academies to guarantee each district

 

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. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax


 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district.

 

     (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. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the


 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

     (3) Beginning in 2003-2004, for pupils in membership in a

 

qualifying public school academy, 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 an amount equal to the 1994-95 per pupil

 

payment to the qualifying public school academy under section 20.

 

     (4) A district or qualifying public school academy may use

 

funds allocated under this section in conjunction with any federal

 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

     (5) Except as otherwise provided in this subsection, 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. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

     (6) Payments under this section are subject to section 25f.

 

     (7) (6) As used in this section:

 

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

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

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

 

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

 

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

 

1993-94.

 

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

 

for which a particular calculation is made.

 

     (d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other


 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "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. For a receiving district, if

 

school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

school operating taxes do not include school operating taxes levied

 

within the geographic area of the dissolved district.

 

     (g) "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.

 

     (h) "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.


 

     (i) "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.

 

     (j) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (k) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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

 

380.1211, and retained for school operating purposes as defined in

 

section 20.

 

     (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

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

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (n) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, 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. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, mills do

 

not include mills within the geographic area of the dissolved

 

district.

 

     (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. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

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

 

allocated an amount not to exceed $3,335,000,000.00

 

$3,492,000,000.00 for 2013-2014 2014-2015 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) Subject to subsection (3) and section 296, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

 

and 51a(11), minus the sum of the allocations to the district under

 

sections 22a and 51c.

 

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

 

each district shall do all of the following:

 

     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

     (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.

 

     (e) Comply with section 21f.

 

     (4) 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) 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) From the allocation in subsection (1), the department

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 

constitutional obligations of this state have been fully funded

 

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

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (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) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

     (9) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is


 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

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

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

     (12) Payments under this section are subject to section 25f.

 

     Sec. 22c. From the appropriation in section 11, there is

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$36,000,000.00 $103,000,000.00 to make equity payments to districts

 

that have a foundation allowance or per pupil payment as calculated

 

under section 20 for 2013-2014 2014-2015 of less than $7,076.00.

 

$7,251.00. The equity payment for a district shall be an amount per

 

membership pupil equal to the lesser of $50.00 $125.00 or the

 

difference between $7,076.00 $7,251.00 and the district's 2013-2014

 

2014-2015 foundation allowance or per pupil payment as calculated

 

under section 20.


 

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

 

not to exceed $2,584,600.00 is allocated for 2013-2014 2014-2015

 

for supplemental payments to rural districts under this section.

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$957,300.00 for payments under this subsection to districts that

 

meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 

     (3) The amount of the additional funding to each eligible

 

district under subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon


 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

     (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2013-2014 2014-2015 an

 

amount not to exceed $1,627,300.00 for payments under this

 

subsection to districts that meet all of the following:

 

     (a) The district has 5.0 or fewer pupils per square mile as

 

determined by the department.

 

     (b) The district has a total square mileage greater than 200.0

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

     (5) The funds allocated under subsection (4) shall be

 

allocated on an equal per pupil basis.

 

     (6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$80,000,000.00 $75,000,000.00 to provide incentive payments to

 

districts that meet best practices under this section. Payments

 

received under this section may be used for any purpose for which

 

payments under sections 22a and 22b may be used.

 

     (2) The amount of the incentive payment under this section is

 

an amount equal to $52.00 $50.00 per pupil. A district shall

 

receive an incentive payment under this section if the district


 

satisfies at least 7 of the following requirements not later than

 

June 1, 2014:2015:

 

     (a) If a district provides medical, pharmacy, dental, vision,

 

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

 

constitute a health care services benefit, to employees and their

 

dependents, the district is the policyholder for each of its

 

insurance policies that covers 1 or more of these benefits. A

 

district that does not directly employ its staff or a district with

 

a voluntary employee beneficiary association that pays no more than

 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     (b) The district has obtained competitive bids on the

 

provision of pupil transportation, food service, custodial, or 1 or

 

more other noninstructional services for 2013-2014. 2014-2015. In

 

comparing competitive bids to the current costs of providing 1 or

 

more of these services, a district shall exclude the unfunded

 

accrued liability costs for retirement and other benefits from the

 

district's current costs.

 

     (c) The district accepts applications for enrollment by

 

nonresident applicants under section 105 or 105c. A public school

 

academy is considered to have met this requirement.

 

     (d) The district monitors individual pupil academic growth in

 

each subject area at least twice during the school year using


 

competency-based online assessments and reports those results to

 

the pupil and his or her parent or guardian, or provides the

 

department with a plan and is able to show progress toward

 

developing the technology infrastructure necessary for the

 

implementation of pupil academic growth assessments by 2014-2015.

 

     (e) The district supports opportunities for pupils to receive

 

postsecondary credit while attending secondary school, by doing at

 

least 1 of the following, and makes all eligible pupils and their

 

parents or guardians aware of these opportunities:

 

     (i) Supports attendance of district pupils under the

 

postsecondary enrollment options act, MCL 388.511 to 388.524, or

 

under the career and technical preparation act, MCL 388.1901 to

 

388.1913, consistent with provisions under section 21b.

 

     (ii) Offers college-level equivalent courses, as defined in

 

section 1471 of the revised school code, MCL 380.1471.

 

     (iii) Participates in a middle college. For the purposes of

 

this subparagraph, "middle college" means a series of courses and

 

other requirements and conditions that allow a pupil to graduate

 

with a high school diploma and a certificate or degree from a

 

community college or state public university.

 

     (iv) Provides other opportunities to pupils that allow those

 

pupils to graduate with a high school diploma and also complete

 

coursework that a postsecondary institution normally applies toward

 

satisfaction of degree requirements.

 

     (v) If a district does not offer any high school grades, the

 

district informs all pupils and parents of the opportunities that

 

are available for postsecondary options during high school.


 

     (d) (f) The district offers online courses or blended learning

 

opportunities to all eligible pupils. In order to satisfy this

 

requirement, a district must make all eligible pupils and their

 

parents or guardians aware of these opportunities and must publish

 

an online course syllabus as described in section 21f for each

 

online course that the district offers. For the purposes of this

 

subdivision:

 

     (i) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided content, instruction, and

 

assessment in part at a supervised educational facility away from

 

home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through

 

internet-connected learning environments with some degree of pupil

 

control over time, location, and pace of instruction.

 

     (ii) "Online course" means a course of study that is capable

 

of generating a credit or a grade, that is provided in an

 

interactive internet-connected learning environment, in which

 

pupils are separated from their teachers by time or location, or

 

both, and in which a teacher with a valid Michigan teaching

 

certificate is responsible for determining appropriate

 

instructional methods for each pupil, diagnosing learning needs,

 

assessing pupil learning, prescribing intervention strategies,

 

reporting outcomes, and evaluating the effects of instruction and

 

support strategies.

 

     (e) (g) The district provides to parents and community members

 

a dashboard or report card demonstrating the district's efforts to

 

manage its finances responsibly. The dashboard or report card shall


 

include revenue and expenditure projections for the district for

 

fiscal year 2013-2014 and fiscal year 2014-2015 and fiscal year

 

2015-2016, a listing of all debt service obligations, detailed by

 

project, including anticipated fiscal year 2013-2014 2014-2015

 

payment for each project, a listing of total outstanding debt, and

 

at least all of the following for the 3 most recent school years

 

for which the data are available:

 

     (i) Graduation and dropout rates.

 

     (ii) Average class size in grades kindergarten to 3.

 

     (iii) College readiness as measured by Michigan merit

 

examination test scores.

 

     (iv) Elementary and middle school MEAP scores.

 

     (v) Teacher, principal, and superintendent salary information

 

including at least minimum, average, and maximum pay levels.

 

     (vi) General fund balance.

 

     (vii) The total number of days of instruction provided.

 

     (h) The district provides physical education or provides

 

health education.

 

     (f) The district complies with a method of compensation for

 

teachers and school administrators that includes job performance

 

and accomplishments as a significant factor in determining

 

compensation, as required under section 1250 of the revised school

 

code, MCL 380.1250.

 

     (g) The district's collective bargaining agreements,

 

including, but not limited to, appendices, addenda, letters of

 

agreement, or any other documents reflecting agreements with

 

collective bargaining representatives, do not contain any


 

provisions pertaining to, relating to, or that are otherwise

 

contrary to the prohibited subjects of bargaining enumerated in

 

section 15(3) of 1947 PA 336, MCL 423.215.

 

     (h) The district implements a comprehensive guidance and

 

counseling program.

 

     (i) The district offers pupils in grades K to 8 the

 

opportunity to complete coursework or other learning experiences

 

that are substantially equivalent to 1 credit in a language other

 

than English.

 

     (3) If the department determines that a district has

 

intentionally submitted false information in order to qualify for

 

an incentive payment under this section, the district forfeits an

 

amount equal to the amount it received under this section from its

 

total state school aid for 2014-2015.2015-2016.

 

     (4) If the department determines that funds allocated under

 

this section will remain unexpended after the initial allocation of

 

$52.00 $50.00 per pupil to eligible districts under subsection (2),

 

the remaining unexpended amount is allocated on an equal per pupil

 

basis to districts that meet the requirements of subsection (2) and

 

that have a foundation allowance, as calculated under section 20,

 

in an amount that is less than the basic foundation allowance under

 

that section.

 

     Sec. 22g. (1) From the funds appropriated in section 11, there

 

is allocated for 2013-2014 2014-2015 only an amount not to exceed

 

$5,000,000.00 $2,000,000.00 for competitive assistance grants to

 

districts and intermediate districts.

 

     (2) Funds received under this section may be used for


 

reimbursement of transition costs associated with the consolidation

 

of operations or services between 2 or more districts, intermediate

 

districts, or other local units of government, the consolidation or

 

sharing of technology and data operations or services between 50 or

 

more districts or 5 or more intermediate districts, or the

 

consolidation of districts or intermediate districts. Grant funding

 

shall be available for consolidations that occur on or after June

 

1, 2013. 2014. The department shall develop an application process

 

and method of grant distribution. The department shall give

 

priority to applicants that propose including at least 1 of the

 

following statewide activities:

 

     (a) A comprehensive, research-based academic early warning

 

indicator and dropout prevention solution.

 

     (b) A data-driven system for identifying early reading

 

challenges and establishing individual reading development plans

 

for every student by the end of grade 3.

 

     Sec. 22i. (1) From the state school aid fund money funds

 

appropriated in section 11, there is allocated for 2013-2014 an

 

amount not to exceed $45,000,000.00 and there is allocated for

 

2014-2015 an amount not to exceed $41,500,000.00 for the technology

 

infrastructure grant program for districts or intermediate

 

districts on behalf of their constituent districts. Funds received

 

under this subsection shall be used for the development or

 

improvement of a district's technology infrastructure, the shared

 

services consolidation of technology and data, and hardware in

 

preparation for the planned implementation in 2014-2015 of online

 

growth assessments.


 

     (2) The department shall develop a competitive application

 

process and method of grant distribution to eligible districts and

 

intermediate districts that demonstrate need for grants under

 

subsection (1). The department may consult with the department of

 

technology, management, and budget during the grant process and

 

grant distribution. Grants to districts shall not exceed

 

$2,000,000.00 per district. A grant to an intermediate district on

 

behalf of its constituent districts shall not exceed $2,000,000.00

 

per constituent district. To receive a grant under subsection (1),

 

an intermediate district shall demonstrate that a grant awarded to

 

the intermediate district on behalf of its constituent districts

 

would provide savings compared to providing grants to individual

 

districts.

 

     (3) From the general fund money appropriated in section 11,

 

there is allocated an amount not to exceed $5,000,000.00 for 2013-

 

2014 to be awarded through a competitive bid process to a single

 

provider of whole-school technology as described in this

 

subsection. The department shall issue a single request for

 

proposal with application rules written and administered by the

 

department, and with a focus on economic and geographic diversity.

 

To be eligible to receive the grant under this section, a provider

 

shall meet all of the following:

 

     (a) Agrees to submit evaluation criteria in a form and manner

 

determined by the department.

 

     (b) Provides at least all of the following:

 

     (i) One-to-one mobile devices.

 

     (ii) Laptop or desktop computers for each classroom.


 

     (iii) On- and off-campus filtering.

 

     (iv) Wireless networks and peripherals.

 

     (v) Wireless audio equipment.

 

     (vi) Operating software.

 

     (vii) Instructional software.

 

     (viii) Repairs and replacements.

 

     (ix) Professional development.

 

     (x) Ongoing support.

 

     (4) The funds allocated under subsection (1) are a work

 

project appropriation. Any unexpended funds for 2013-2014 are

 

carried forward into 2014-2015 and any unexpected funds for 2014-

 

2015 are carried forward into 2015-2016. The purpose of the work

 

project is to continue to implement the projects described under

 

this section. The estimated completion date of the work project is

 

September 30, 2016.

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$46,400,000.00 $51,100,000.00 to provide separate incentive

 

payments to districts that meet student academic performance

 

funding goals under subsections (2) to (5). Payments received under

 

this section may be used for any purpose for which payments under

 

sections 22a and 22b may be used.

 

     (2) The maximum amount of the incentive payment for student

 

academic performance is an amount equal to $100.00 per pupil.

 

Payments calculated and awarded to qualifying districts under

 

subsections (3) to (5) shall be calculated and awarded separately,

 

and a district may receive a payment under any or all of


 

subsections (3) to (5).

 

     (3) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

mathematics in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in a qualifying district. The department shall determine

 

the qualifying districts under this subsection as follows:

 

     (a) Using a model determined by the department that

 

incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2011-2012 2012-2013 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in mathematics and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 

proficiently in mathematics and declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in mathematics and who maintains his or her level of

 

proficiency, as determined by the department, over the school year,

 

1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in mathematics and who maintains his or her level of


 

proficiency, as determined by the department, over the school year,

 

2 points.

 

     (v) For each pupil who began the school year not performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2011-2012 2012-2013 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision

 

(a) and dividing that total by the number of those pupils.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2011-2012 2012-2013

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in

 

mathematics, and the district had at least 30 full academic year

 

pupils in grades 3 to 8 with a performance level change designation

 

in mathematics.

 

     (4) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

reading in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in the district. The department shall determine the

 

qualifying districts under this subsection as follows:


 

     (a) Using a model determined by the department that

 

incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2011-2012 2012-2013 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in reading and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 

proficiently in reading and declines in proficiency, as determined

 

by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (v) For each pupil who began the school year not performing

 

proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2011-2012 2012-2013 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision


 

(a) and dividing that total by the number of those pupils.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2011-2012 2012-2013

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in reading,

 

and the district had at least 30 full academic year pupils in

 

grades 3 to 8 reading with a performance level change designation

 

in reading.

 

     (5) An amount not to exceed 40% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection for high school improvement using a metric based on the

 

positive trend over a 4-year period in the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on the state assessments of high school pupils. The

 

amount of a payment under this subsection is an amount equal to

 

$40.00 per pupil for all pupils in membership in the district. The

 

department shall determine the qualifying districts under this

 

subsection as follows:

 

     (a) Calculate a linear regression of the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on state assessments of high school pupils on school

 

year over the 4-year period ending with the 2011-2012 2012-2013

 

school year as adjusted for changes in cut scores most recently

 

adopted for the Michigan merit examination.

 

     (b) Calculate a statewide average for all districts operating

 

a high school of the linear regression of the percentage of high


 

school pupils testing as proficient in all tested subject areas on

 

state assessments of high school pupils on school year over the 4-

 

year period ending with the 2011-2012 2012-2013 school year, as

 

adjusted for changes in cut scores most recently adopted for the

 

Michigan merit examination as the base year for all comparisons.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district's linear regression over the 4-year

 

period ending with the 2011-2012 2012-2013 school year under

 

subdivision (a) is at least equal to the statewide average linear

 

regression over the 4-year period ending with the base year under

 

subdivision (b), and the district's linear regression over the 4-

 

year period ending with the 2011-2012 2012-2013 school year under

 

subdivision (a) is positive, and the district tested 95% of high

 

school pupils in each tested subject on state assessments, and the

 

district had at least 20 full academic year pupils take all tested

 

subjects on state assessments of high school pupils over each of

 

the most recent 4 years.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments as otherwise calculated under this section, the

 

department shall prorate payments under this section on an equal

 

percentage basis.

 

     Sec. 24. (1) From the appropriation in section 11, there is

 

allocated for 2013-2014 2014-2015 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 licensing and regulatory

 

affairs 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 article for pupils described in

 

this section from total costs, as approved by the department, in

 

whole or in part, for educating those pupils in the on-grounds

 

education program or in a program approved by the department that

 

is located on property adjacent to a juvenile detention facility or

 

child caring institution. Costs reimbursed by federal funds are not

 

included.

 

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

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by


 

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

 

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

 

for the district or intermediate district.

 

     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution

 

may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

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

 

allocated an amount not to exceed $2,167,500.00 $2,195,500.00 for

 

2013-2014 2014-2015 for payments to intermediate districts for

 

pupils who are placed in juvenile justice service facilities

 

operated by the department of human services. Each intermediate

 

district shall receive an amount equal to the state share of those

 

costs that are clearly and directly attributable to the educational

 

programs for pupils placed in facilities described in this section

 

that are located within the intermediate district's boundaries. The

 

intermediate districts receiving payments under this section shall

 

cooperate with the department of human services to ensure that all

 

funding allocated under this section is utilized by the

 

intermediate district and department of human services for


 

educational programs for pupils described in this section. Pupils

 

described in this section are not eligible to be funded under

 

section 24. However, a program responsibility or other fiscal

 

responsibility associated with these pupils shall not be

 

transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district

 

consents to the transfer.

 

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

 

allocated an amount not to exceed $1,500,000.00 for 2013-2014 2014-

 

2015 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

 

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. 25e. (1) The center shall work with the department,

 

districts, and intermediate districts to develop a The pupil

 

membership transfer application and a pupil transfer process

 

administered by the center under this section shall be used for

 

processing pupil transfers. The center shall complete development


 

of this pupil membership transfer application not later than

 

November 1, 2013.

 

     (2) If a pupil counted in membership for the pupil membership

 

count day transfers from a district or intermediate district to

 

enroll in another district or intermediate district after the pupil

 

membership count day and before the supplemental count day and, due

 

to the pupil's enrollment and attendance status as of the pupil

 

membership count day, the pupil was not counted in membership in

 

the educating district or intermediate district, the educating

 

district or intermediate district may report the enrollment and

 

attendance information to the center through the pupil transfer

 

process within 30 days after the transfer or within 30 days after

 

the sixth Wednesday after the pupil membership count day,

 

certification date, whichever is later. Pupil transfers may be

 

submitted no earlier than the first day after the certification

 

deadline for the pupil membership count day and before the

 

supplemental count day. Upon receipt of the transfer information

 

under this subsection indicating that a pupil has enrolled and is

 

in attendance in an educating district or intermediate district as

 

described in this subsection, the pupil transfer process shall do

 

the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district is located and the pupil

 

auditing staff of the intermediate district in which the district

 

that previously enrolled the pupil is located. The pupil auditing


 

staff shall approve or investigate a representative sample based on

 

required audit sample sizes in the pupil auditing manual and may

 

deny the pupil membership transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to a change in the

 

pupil's enrollment and attendance so that the district's or

 

intermediate district's membership is prorated to allow the

 

district or intermediate district to receive for each school day,

 

as determined by the financial calendar furnished by the center, in

 

which the pupil was enrolled and in attendance in the district or

 

intermediate district an amount equal to 1/105 of a full-time

 

equated membership claimed in the fall pupil membership count. The

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the district or intermediate

 

district multiplied by the foundation allowance or per pupil

 

payment as calculated under section 20 for the district or

 

intermediate district. The foundation allowance or per pupil

 

payment shall be adjusted by the pupil's full-time equated status

 

as affected by the membership definition under section 6(4).

 

     (b) Adjust the membership calculation for the educating

 

district or intermediate district in which the pupil is enrolled


 

and is in attendance so that the district's or intermediate

 

district's membership is increased to allow the district or

 

intermediate district to receive an amount equal to the difference

 

between the full-time equated membership claimed in the fall pupil

 

membership count and the sum of the adjustments calculated under

 

subdivision (a) for each district or intermediate district in which

 

the pupil was previously enrolled and in attendance. The educating

 

district or intermediate district shall receive a prorated

 

foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the educating district or

 

intermediate district multiplied by the foundation allowance or per

 

pupil payment as calculated under section 20 for the educating

 

district or intermediate district. The foundation allowance or per

 

pupil payment shall be adjusted by the pupil's full-time equated

 

status as affected by the membership definition under section 6(4).

 

     (4) The changes in calculation of state school aid required

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the

 

affected districts or intermediate districts on this recalculation

 

of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

intermediate district as described in subsection (2), the district

 

or intermediate district in which the pupil is counted in

 

membership or another educating district or intermediate district

 

that received an adjustment in its membership calculation under


 

subsection (3), if any, and the educating district or intermediate

 

district shall provide to the center and the department all

 

information they require to comply with this section.

 

     (6) Not later than December 1, 2014, the center in conjunction

 

with the department shall report to the legislature data related to

 

the implementation of this section, including, but not limited to,

 

the number of transfer transactions and the net change in pupil

 

memberships in 2013-2014 by district and intermediate district.

 

     (7) The portion of the full-time equated pupil membership for

 

which a pupil is enrolled in 1 or more online courses under section

 

21f shall not be counted or transferred under the pupil transfer

 

process under this section.

 

     (8) (6) As used in this section: , "educating

 

     (a) Educating district or intermediate district" means the

 

district or intermediate district in which a pupil enrolls after

 

the pupil membership count day or after an adjustment was made in

 

another district's or intermediate district's membership

 

calculation under this section due to the pupil's enrollment and

 

attendance.

 

     (b) "Pupil" means that term as defined under section 6 and

 

also children receiving early childhood special education programs

 

and services.

 

     Sec. 25f. (1) From the state school aid fund money

 

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

 

exceed $2,000,000.00 for 2013-2014 2014-2015 for payments to strict

 

discipline academies established under sections 1311b to 1311m of

 

the revised school code, MCL 380.1311b to 380.1311m, as provided


 

under this section and for the purposes described in subsection

 

(5).

 

     (2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment

 

as prescribed under that section.

 

     (3) Not later than June 30, 2014, 2015, a strict discipline

 

academy shall report to the center and to the department, in a

 

manner prescribed by the center and the department, the following

 

information for 2013-2014:2014-2015:

 

     (a) The number of pupils enrolled and in attendance at the

 

strict discipline academy.

 

     (b) The number of days each pupil enrolled was in attendance

 

at the strict discipline academy, not to exceed 180.

 

     (4) The amount of the payment to a strict discipline academy

 

under this section shall be an amount equal to the difference

 

between the product of 1/180 of the per-pupil payment as calculated

 

under section 20 for the strict discipline academy multiplied by

 

the number of days of pupil attendance reported under subsection

 

(3)(b) minus the product of the per-pupil payment as calculated

 

under section 20 for the strict discipline academy multiplied by

 

the pupils in membership at the strict discipline academy as

 

calculated under section 6 and as adjusted by section 25e.

 

     (5) If the operation of the special membership counting

 

provisions under section 6(4)(dd) and the other membership counting

 

provisions under section 6(4) result in a pupil being counted as

 

more than 1.0 FTE in a fiscal year, then the payment made for the


 

pupil under sections 22a and 22b shall not be based on more than

 

1.0 FTE for that pupil, and that portion of the FTE that exceeds

 

1.0 shall be paid under this section in an amount equal to that

 

portion multiplied by the educating district's foundation allowance

 

or per pupil payment calculated under section 20.

 

     (6) (5) If the funds allocated under this section are

 

insufficient to fully fund the adjustments under subsection

 

subsections (4) and (5), payments to eligible strict discipline

 

academies under this section shall be prorated on an equal per-

 

pupil basis.

 

     (7) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 26a. (1) From the state school aid fund appropriation

 

funds appropriated in section 11, there is allocated an amount not

 

to exceed $26,300,000.00 for 2013-2014 2014-2015 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 2013. 2014. 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.

 

     (2) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $3,200,000.00 for 2013-2014 to

 

reimburse public libraries pursuant to section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied


 

in 2013. The allocations shall be made not later than 60 days after

 

the department of treasury certifies to the department and to the

 

state budget director that the department of treasury has received

 

all necessary information to properly determine the amounts due to

 

each eligible recipient.

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$4,009,500.00 $4,210,000.00 for payments to districts, intermediate

 

districts, and community college districts for the portion of the

 

payment in lieu of taxes obligation that is attributable to

 

districts, intermediate districts, and community college districts

 

pursuant to section 2154 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2154.

 

     (2) If the amount appropriated under this section is not

 

sufficient to fully pay obligations under this section, payments

 

shall be prorated on an equal basis among all eligible districts,

 

intermediate districts, and community college districts.

 

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

 

allocated an amount not to exceed $209,400.00 for 2012-2013 and an

 

amount not to exceed $266,200.00 for 2013-2014 $293,100.00 for

 

2014-2015 to the promise zone fund created in subsection (3).

 

     (2) Funds allocated to the promise zone fund under this

 

section shall be used solely for payments to eligible districts and

 

intermediate districts that have a promise zone development plan

 

approved by the department of treasury under section 7 of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

 

     (3) The promise zone fund is created as a separate account


 

within the state school aid fund to be used solely for the purposes

 

of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1661 to 390.1679. All of the following apply to the promise

 

zone fund:

 

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

 

promise zone fund. The state treasurer shall credit to the promise

 

zone fund interest and earnings from fund investments.

 

     (b) Money in the promise zone fund at the close of a fiscal

 

year shall remain in the promise zone fund and shall not lapse to

 

the general fund.

 

     (4) Subject to subsection (2), the state treasurer may make

 

payments from the promise zone fund to eligible districts and

 

intermediate districts pursuant to the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that

 

act.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2013-2014 2014-

 

2015 an amount not to exceed $317,695,500.00 for payments to

 

eligible districts, eligible public school academies, and the

 

education achievement system 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 or the education achievement system 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 not later than the fifth

 

Wednesday after the 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, or for an achievement

 

school that began operations as an achievement school, 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 or the education achievement system 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 pupil membership count

 

day.for the purposes of ensuring that pupils are proficient in

 

reading by the end of grade 3 and that high school graduates are

 

career and college ready and for the purposes under subsections (6)

 

and (7).

 

     (2) To For a district or public school academy, or the

 

education achievement system, 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 or the education achievement system shall

 

apply to the department, in a form and manner prescribed by the

 

department, and a district or public school academy or the


 

education achievement system must meet all of the following:

 

     (a) The the sum of the district's or public school academy's

 

or the education achievement system's combined state and local

 

revenue per membership pupil in the current state fiscal year, as

 

calculated under section 20, is must be 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 or the education

 

achievement system 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 or the

 

education achievement system shall receive under this section for

 

each membership pupil in the district or public school academy or

 

the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under

 

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

 

1769, and as reported to the department in the form and manner

 

prescribed by the department not later than the fifth Wednesday

 

after the 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 the

 

public school academy's or the education achievement system's per

 

pupil amount calculated under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal


 

year, or of the public school academy's or the education

 

achievement system's per membership pupil amount calculated under

 

section 20 for the current state fiscal year. A However, a public

 

school academy that began operations as a public school academy, or

 

an achievement school that began operations as an achievement

 

school, 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 or in the education

 

achievement system 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

 

not later than the fifth Wednesday after the 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 or the education achievement

 

system'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, or the education achievement system,

 

receiving funding under this section shall use that money only to

 

provide instructional programs and direct noninstructional

 

services, including, but not limited to, medical, mental health, or

 

counseling services, for at-risk pupils; for school health clinics;

 

and for the purposes of subsection (5), (6), or (7), or (10). 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),

 

(3), or the education achievement system if it meets this

 

requirement, may use not more than 20% of the funds it receives

 

under this section for school security. A district, the public

 

school academy, or the education achievement system 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 or the education achievement system under

 

this section in the immediately preceding year and already being

 

used by the district or public school academy or the education

 

achievement system 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 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, or the education

 

achievement system if it operates a school breakfast program, 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 or the education achievement system 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 2013-2014 2014-2015 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 2013-2014 2014-2015 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 and the education achievement system 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 or the education achievement system of funds under

 

this section, which report shall include at least a brief

 

description of each program conducted or services performed by the

 

district or public school academy or the education achievement

 

system 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 or services, the total

 

number of at-risk pupils served by each of those programs or

 

services, and the data necessary for the department and the

 

department of human services to verify matching funds for the

 

temporary assistance for needy families program. If a district or

 

public school academy or the education achievement system 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 or the education achievement

 

system complies with this subsection. If the district or public

 

school academy or the education achievement system 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 or the education achievement system 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 or the education

 

achievement system shall reimburse the state for all disallowances

 

found in the audit.

 

     (10) Subject to subsections (5), (6), and (7), (12), and (13),

 

a 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-12,

 

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), a 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-12, 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 implement

 

schoolwide reform in schools with 40% or more of their pupils

 

identified as at-risk pupils by providing supplemental

 

instructional or noninstructional services consistent with the

 

school improvement plan.

 

     (11) A district or public school academy or the education

 

achievement system 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 or the education achievement system 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 or the education achievement system may

 

use not more than 20% of the funds it receives under this section

 

for specific alternative purposes identified by the district or


 

public school academy or the education achievement system that are

 

designed to benefit at-risk pupils in the school, but that may be

 

different from the purposes otherwise allowable under this section.

 

If a district or public school academy or the education achievement

 

system uses funds for alternative purposes allowed under the

 

flexibility provisions under this subsection, the district or

 

public school academy or the education achievement system shall

 

maintain documentation of the amounts used for those alternative

 

purposes and shall make that information available to the

 

department upon request.

 

     (13) A district or public school academy that receives funds

 

under this section or the education achievement system 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.

 

     (11) (14) If necessary, and before any proration required

 

under section 296, 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).(3).

 

     (12) (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. In addition, if a district is dissolved

 

pursuant to section 12 of the revised school code, MCL 380.12, the

 

intermediate district to which the dissolved school district was

 

constituent shall determine the estimated number of pupils that

 

meet the income eligibility criteria for free breakfast, lunch, or

 

milk, as described under subsection (3), enrolled in each of the

 

other districts within the intermediate district and provide that

 

estimate to the department for the purposes of distributing funds

 

under this section within 60 days after the school district is

 

declared dissolved.

 

     (13) (16) As used in this section, "at-risk pupil" means a

 

pupil for whom the district has documentation that the pupil meets

 

at least 2 any of the following criteria: is

 

     (a) Is a victim of child abuse or neglect. ; is below grade

 

level in English language arts or mathematics; is

 

     (b) 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

 

     (c) Has a family history of school failure, incarceration, or

 

substance abuse. At-risk pupil also includes all pupils in a

 

priority school as defined in the elementary and secondary

 

education act of 2001 flexibility request approved by the United

 

States department of education. 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, science test, or social studies

 

for which results for the pupil have been received.

 

     (d) For pupils for whom the results of the Michigan merit

 

examination have been received, at-risk pupil also includes is a

 

pupil who does not meet the other criteria under this subsection

 

but who did not achieve proficiency on the reading, writing,

 

mathematics, science, or social studies components of the most

 

recent Michigan merit examination for which results for the pupil

 

have been received.

 

     (e) For pupils in grades K-3, at-risk pupil also includes is a

 

pupil who is at risk of not meeting the district's core academic

 

curricular objectives in English language arts or mathematics.

 

     (f) The pupil is enrolled in a priority or priority-successor

 

school, as defined in the elementary and secondary education act of

 

2001 flexibility waiver approved by the United States department of

 

education.

 

     (g) The pupil did not achieve a score of at least proficient

 

on 2 or more state-administered assessments for English language

 

arts, mathematics, science, or social studies.

 

     (h) For high school pupils in grades not assessed by the

 

state, the pupil did not receive a satisfactory score on 2 or more

 

end-of-course examinations that are aligned with state standards in

 

English language arts, mathematics, science, or social studies. For

 

middle school pupils in grades not assessed by the state, the pupil

 

did not receive a satisfactory score on 2 or more end-of-semester


 

or end-of-trimester examinations that are aligned with state

 

standards in science or social studies. For pupils in the

 

elementary grades in grades and subjects not assessed by the state,

 

the pupil did not receive a satisfactory score or did not have a

 

satisfactory outcome on 2 or more interim assessments in English

 

language arts, mathematics, science, or social studies.

 

     (i) In the absence of state or local assessment data, the

 

pupil meets at least 2 of the following criteria, as documented in

 

a form and manner approved by the department:

 

     (i) The pupil is eligible for free breakfast, lunch, or milk.

 

     (ii) The pupil is absent more than 10% of enrolled days or 10

 

school days during the school year.

 

     (iii) The pupil is homeless.

 

     (iv) The pupil is a migrant.

 

     (v) The pupil is an English language learner.

 

     (vi) The pupil is an immigrant who has immigrated within the

 

immediately preceding 3 years.

 

     (vii) The pupil did not complete high school in 4 years and is

 

still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (14) Beginning in 2014-2015, if a district, public school

 

academy, or the education achievement system does not demonstrate

 

to the satisfaction of the department that at least 50% of at-risk

 

pupils are reading at grade level by the end of grade 3 as measured

 

by the state assessment and demonstrate to the satisfaction of the

 

department improvement over 3 consecutive years in the percentage

 

of at-risk pupils that are career- and college-ready as measured by


 

the pupil's score on each of the individual subject areas on the

 

college entrance examination portion of the Michigan merit

 

examination under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g, the district, public school academy, or education

 

achievement system shall ensure all of the following:

 

     (a) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at risk

 

pupils that represents the number of pupils in grade 3 that are not

 

reading at grade level by the end of grade 3, and the district,

 

public school academy, or the education achievement system shall

 

expend that same proportion multiplied by 1/2 of its total at risk

 

funds under this section on tutoring and other methods of improving

 

grade 3 reading levels.

 

     (b) The district, public school academy, or the education

 

achievement system shall determine the proportion of total at risk

 

pupils that represent the number of pupils in grade 11 that are not

 

career- and college-ready as measured by the student's score on

 

each of the individual subject areas on the college entrance

 

examination portion of the Michigan merit examination under section

 

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

 

district, public school academy, or the education achievement

 

system shall expend that same proportion multiplied by 1/2 of its

 

total at risk funds under this section on tutoring and other

 

activities to improve scores on the college entrance examination

 

portion of the Michigan merit examination.

 

     (15) As used in subsection (14), "total at risk pupils" means

 

the sum of the number of pupils in grade 3 that are not reading at


 

grade level by the end of third grade and the number of pupils in

 

grade 11 that are not career- and college-ready as measured by the

 

student's score on each of the individual subject areas on the

 

college entrance examination portion of the Michigan merit

 

examination under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g.

 

     (16) (17) A district or public school academy that receives

 

funds under this section or the education achievement system may

 

use funds received under this section to provide an anti-bullying

 

or crisis intervention program.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2013-2014

 

2014-2015 for the purpose of making payments to districts and other

 

eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be

 

computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no.

 

104458-104492.

 

     (3) The payments made under this section include all state

 

payments made to districts so that each district receives at least

 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.


 

     (4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

     (5) From the federal funds appropriated in section 11, there

 

is allocated for 2013-2014 2014-2015 all available federal funding,

 

estimated at $460,000,000.00 $510,000,000.00 for the national

 

school lunch program and all available federal funding, estimated

 

at $3,200,000.00 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 in section 11, there is

 

allocated an amount not to exceed $5,625,000.00 for 2013-2014 2014-

 

2015 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. 31g. (1) From the general fund money appropriated in

 

section 11, there is allocated to the department for 2014-2015 the

 

amount of $1,200,000.00 for a contract with a single provider to

 

provide an online, research-based, secure, personal user health and

 

nutrition education software platform in a representative sample of

 

pilot schools in this state, to include schools operated by

 

districts, public school academies, and intermediate districts, for

 

2 school years. The contract shall include platform and content

 

development and evaluation. The department shall oversee a

 

competitive request for proposals process for the contract, and the


 

request for proposals shall include, but not be limited to, all of

 

the following requirements:

 

     (a) A Michigan-based, platform-neutral, technology-driven

 

online platform that does not require additional information

 

technology resources beyond Internet access.

 

     (b) A sustainable, interactive health and nutrition education

 

platform and personal responsibility health behavior record that is

 

cost-neutral to all participants, including pupils, parents,

 

guardians, and schools, and that requires an opt-in from the parent

 

or legal guardian of each pupil participant.

 

     (c) Personal use health behavior data that are cumulative and

 

accessible in real time only to the user and those authorized by

 

the user through a secure online dashboard that meets all federal,

 

state, and local health information and child online privacy

 

requirements, including, but not limited to, being in compliance

 

with the children's online privacy protection act of 1998, 5 USC

 

6501 to 6505, and the kidsafe seal program.

 

     (d) A program that provides for age- and developmentally

 

appropriate self-monitoring through the recording of health habits,

 

including, but not limited to, dietary intake and physical

 

activity, that is consistent with current, established standards

 

for well-child preventive health care, and that provides a personal

 

responsibility health record.

 

     (e) A program that promotes a healthy lifestyle and reinforces

 

positive health outcomes while aligning with currently established

 

school health curricula, physical education and physical activity

 

curricula, federal school meal programs, school-based health


 

programs, current United States dietary guidelines for Americans,

 

and established state-funded and federally funded food, nutrition,

 

and health promotion programs. The overall goal of the program

 

shall be improved dietary intake and increased physical activity.

 

     (2) The funds appropriated under this section are to be spent

 

over 2 years and shall be considered a work project appropriation.

 

Any unexpended funds for 2014-2015 are carried forward into 2015-

 

2016. The purpose of the work project is as described under

 

subsection (1). The total estimated cost of these projects is

 

$1,200,000.00. The tentative estimated completion date of the work

 

project is September 30, 2017.

 

     (3) The contract under subsection (1) shall require the

 

provider to submit a progress report to the legislature by

 

September 30, 2017. The report shall provide details on the

 

program's progress and impact, including, but not limited to, all

 

of the following:

 

     (a) Increase in the number of active registrants in the

 

program and in the length of participation by registrants in the

 

program.

 

     (b) Improvement and increase in the number of healthy options

 

served to pupils by school lunch programs.

 

     (c) Increase in participation by pupils in school athletic and

 

physical activities.

 

     (d) Continued alignment with the department of community

 

health's Michigan Health and Wellness 4x4 plan.

 

     (4) Not later than 1 year after the completion of the work

 

project under this section, the auditor general shall perform a


 

performance post-audit of the pilot project and submit a report to

 

the legislature on the effectiveness of the program in achieving

 

improvements in child health.

 

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

 

is allocated to eligible intermediate districts and consortia of

 

intermediate districts for great start readiness programs an amount

 

not to exceed $149,275,000.00 $214,275,000.00 for 2013-2014. 2014-

 

2015. In addition, from the funds appropriated in section 11, there

 

is allocated to the great start readiness reserve fund created

 

under subsection (14) (19) an amount not to exceed $25,000,000.00

 

for 2013-2014. 2014-2015. Funds allocated under this section for

 

great start readiness programs shall be used to provide part-day,

 

school-day, or GSRP/head start blended comprehensive free

 

compensatory classroom programs designed to improve the readiness

 

and subsequent achievement of educationally disadvantaged children

 

who meet the participant eligibility and prioritization guidelines

 

as defined by the department. Beginning in 2013-2014, for For a

 

child to be eligible to participate in a program under this

 

section, the child shall be at least 4, but less than 5, years of

 

age as of the date specified for determining a child's eligibility

 

to attend school under section 1147 of the revised school code, MCL

 

380.1147.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this

 

section shall act as the fiduciary for the great start readiness


 

programs. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2013-2014 2014-

 

2015 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, school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process 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

 

supported by federal, state, and local resources as applicable.

 

     (d) Health Physical and dental health and developmental

 

screening services for all program participants.


 

     (e) Referral services for families of program participants to

 

community social service agencies, including mental health

 

services, 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 convened as a workgroup of the great

 

start collaborative 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 annually

 

shall review and make recommendations regarding 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.The advisory committee also shall make

 

recommendations to the great start collaborative regarding other

 

community services designed to improve all children's school

 

readiness.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (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 Except as otherwise provided in this subdivision,

 

ensure that at least 90% of the children participating in an

 

eligible great start readiness program for whom the provider

 

intermediate district is receiving funds under this section are

 

children who live with families with a household income that is

 

equal to or less than 250% of the federal poverty level. If the

 

intermediate district determines that all eligible children are

 

being served and that there are no children on the waiting list

 

under section 39(1)(d) who live with families with a household

 

income that is equal to or less than 250% of the federal poverty

 

level, the intermediate district may then enroll children who live

 

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

 

300% of the federal poverty level. The enrollment process shall

 

consider income and risk factors, such that children determined

 

with higher need are enrolled before children with lesser need. For

 

purposes of this subdivision, all age-eligible children served in

 

foster care or who are experiencing homelessness or who have

 

individualized education plans recommending placement in an

 

inclusive preschool setting shall be considered to live with

 

families with household income equal to or less than 250% of the

 

federal poverty level regardless of actual family income.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. For programs managed


 

directly by a district or intermediate district, A lead teacher

 

must have a valid teaching certificate and with an early childhood

 

(ZA or ZS) endorsement are required. This provision does not apply

 

to 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 or early child

 

development with specialization in preschool teaching. However, if

 

an applicant 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 used if the

 

applicant provides to the department, and the department approves,

 

a plan for each teacher to come into compliance with the standards

 

in this subparagraph. A teacher's compliance plan must be completed

 

within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses per calendar year.

 

     (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. However, if an

 

applicant demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to

 

comply, the applicant may use paraprofessionals who have completed

 

at least 1 course that earns college credit in early childhood


 

education or child development if the applicant provides to the

 

department, and the department approves, a plan for each

 

paraprofessional to come into compliance with the standards in this

 

subparagraph. A paraprofessional's compliance plan must be

 

completed within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2

 

courses or 60 clock hours of training per calendar year.

 

     (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. Eligible costs include transportation costs. 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 received by the applicant to serve children eligible

 

for a federally funded preschool program that has the capacity to

 

serve those children.

 

     (6) For a grant recipient that enrolls pupils in a school-day

 

program funded under this section, each child enrolled in the

 

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

 

school-day program.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all


 

head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsection (4). and retain for administrative services an amount

 

equal to not more than 7% of the grant amount. In addition, an

 

     (9) Funds received under this section may be retained for

 

administrative services as follows:

 

     (a) For the portion of the total grant amount for which

 

services are provided directly by an intermediate district or

 

consortium of intermediate districts, the intermediate district or

 

consortium of intermediate districts may retain an amount equal to

 

not more than 7% of that portion of the grant amount.

 

     (b) For the portion of the total grant amount for which

 

services are contracted, the intermediate district or consortium of

 

intermediate districts receiving the grant may retain an amount

 

equal to not more than 2% of that portion of the grant amount and

 

the subrecipients engaged by the intermediate district to provide

 

program services may retain for administrative services an amount

 

equal to not more than 5% of that portion of the grant amount.

 

     (10) An intermediate district or consortium of intermediate

 

districts may expend not more than 2% of the total grant amount for

 

outreach, recruiting, and public awareness of the program.


 

     (11) (9) Each grant recipient shall enroll children identified

 

under subsection (5)(b) according to how far the child's household

 

income is below 250% of the federal poverty level by ranking each

 

applicant child's household income from lowest to highest and

 

dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty

 

level, and then enrolling children in the quintile with the lowest

 

household income before enrolling children in the quintile with the

 

next lowest household income until slots are completely filled. If

 

the grant recipient determines that all eligible children are being

 

served and that there are no children on the waiting list under

 

section 39(1)(d) who live with families with a household income

 

that is equal to or less than 250% of the federal poverty level,

 

the grant recipient may then enroll children who live with families

 

with a household income that is equal to or less than 300% of the

 

federal poverty level. The enrollment process shall consider income

 

and risk factors, such that children determined with higher need

 

are enrolled before children with lesser need. For purposes of this

 

subdivision, all age-eligible children served in foster care or who

 

are experiencing homelessness or who have individualized education

 

plans recommending placement in an inclusive preschool setting

 

shall be considered to live with families with household income

 

equal to or less than 250% of the federal poverty level regardless

 

of actual family income.

 

     (12) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall allow parents

 

of eligible children who are residents of the intermediate district


 

or within the consortium to choose a program operated by or

 

contracted with another intermediate district or consortium of

 

intermediate districts and shall pay to the educating intermediate

 

district or consortium the per-child amount attributable to each

 

child enrolled pursuant to this sentence, as determined under

 

section 39.

 

     (13) (10) An intermediate district or consortium of

 

intermediate districts receiving a grant under this section shall

 

conduct a local process to contract with interested and eligible

 

public and private for-profit and nonprofit community-based

 

providers that meet all requirements of subsection (4) for at least

 

30% of its total slot allocation. The intermediate district or

 

consortium shall report to the department, in a manner prescribed

 

by the department, a detailed list of community-based providers by

 

provider type, including private for-profit, private nonprofit,

 

community college or university, head start grantee or delegate,

 

and district or intermediate district, and the number and

 

proportion of its total slot allocation allocated to each provider

 

as subrecipient. If the intermediate district or consortium is not

 

able to contract for at least 30% of its total slot allocation, the

 

grant recipient shall notify the department and, if the department

 

verifies that the intermediate district or consortium attempted to

 

contract for at least 30% of its total slot allocation and was not

 

able to do so, then the intermediate district or consortium may

 

retain and use all of its allocated slots as provided under this

 

section. To be able to use this exemption, the intermediate

 

district or consortium shall demonstrate to the department that the


 

intermediate district or consortium increased the percentage of its

 

total slot allocation for which it contracts with a community-based

 

provider and the intermediate district or consortium shall submit

 

evidence satisfactory to the department, and the department must be

 

able to verify this evidence, demonstrating that the intermediate

 

district or consortium took measures to contract for at least 30%

 

of its total slot allocation as required under this subsection,

 

including, but not limited to, at least all of the following

 

measures:

 

     (a) The intermediate district or consortium notified each

 

licensed child care center located in the service area of the

 

intermediate district or consortium at least twice regarding the

 

center's eligibility to participate. One of these notifications may

 

be made electronically, but at least 1 of these notifications shall

 

be made via hard copy through the United States mail. At least 1 of

 

these notifications shall be made within 7 days after the

 

intermediate district or consortium receives notice from the

 

department of its slot allocations.

 

     (b) The intermediate district or consortium provided to each

 

licensed child care center located in the service area of the

 

intermediate district or consortium information regarding great

 

start readiness program requirements and a description of the

 

application and selection process for community-based providers.

 

     (c) The intermediate district or consortium provided to the

 

public and to participating families a list of community-based

 

great start readiness program subrecipients with a great start to

 

quality rating of at least 3 stars.


 

     (14) If an intermediate district or consortium of intermediate

 

districts receiving a grant under this section fails to submit

 

satisfactory evidence to demonstrate its effort to contract for at

 

least 30% of its total slot allocation, as required under

 

subsection (1), the department shall reduce the slots allocated to

 

the intermediate district or consortium by a percentage equal to

 

the difference between the percentage of an intermediate district's

 

or consortium's total slot allocation awarded to community-based

 

providers and 30% of its total slot allocation.

 

     (15) In order to assist intermediate districts and consortia

 

in complying with the requirement to contract with community-based

 

providers for at least 30% of their total slot allocation, the

 

department shall do all of the following:

 

     (a) Ensure that a great start resource center or the

 

department provides each intermediate district or consortium

 

receiving a grant under this section with the contact information

 

for each licensed child care center located in the service area of

 

the intermediate district or consortium by March 1 of each year.

 

     (b) Provide, or ensure that an organization with which the

 

department contracts provides, a community-based provider with a

 

validated great start to quality rating within 90 days of the

 

provider's having submitted a request and self-assessment.

 

     (c) Ensure that all intermediate district, district, community

 

college or university, head start grantee or delegate, private for-

 

profit, and private nonprofit providers are subject to a single

 

great start to quality rating system. The rating system shall

 

ensure that regulators process all prospective providers at the


 

same pace on a first-come, first-served basis and shall not allow 1

 

type of provider to receive a great start to quality rating ahead

 

of any other type of provider.

 

     (d) Not later than November 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (10) and report to the legislature a

 

list by intermediate district or consortium with the number and

 

percentage of each intermediate district's or consortium's total

 

slot allocation allocated to community-based providers by provider

 

type, including private for-profit, private nonprofit, community

 

college or university, head start grantee or delegate, and district

 

or intermediate district.

 

     (16) (11) A recipient of funds under this section shall report

 

to the department in a form and manner prescribed by the department

 

the number of children participating in the program who meet the

 

income eligibility criteria under subsection (5)(b) and the total

 

number of children participating in the program. For children

 

participating in the program who meet the income 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.

 

     (17) (12) As used in this section:

 

     (a) "GSRP/head start blended program" means a part-day program


 

funded under this section and a head start program, which are

 

combined for a school-day program.

 

     (b) "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 school-day program.

 

     (c) "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 school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (18) (13) An intermediate district or consortium of

 

intermediate districts receiving funds under this section shall

 

establish a sliding scale of tuition rates based upon household

 

income for children participating in an eligible great start

 

readiness program who live with families with a household income

 

that is more than 250% of the federal poverty level to be used by

 

all of its providers, as approved by the department. A grant

 

recipient shall charge tuition according to that sliding scale of

 

tuition rates on a uniform basis for any child who does not meet

 

the income eligibility requirements under this section.

 

     (19) (14) The great start readiness reserve 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. Money

 

available in the great start readiness reserve fund may not be

 

expended for 2013-2014 2014-2015 unless transferred by the

 

legislature not later than January 31, December 15, 2014 to the


 

allocation under subsection (1) for great start readiness programs.

 

Money in the great start readiness reserve fund shall be expended

 

only for purposes for which state school aid fund money may be

 

expended. The state treasurer shall direct the investment of the

 

great start readiness reserve fund. The state treasurer shall

 

credit to the great start readiness reserve fund interest and

 

earnings from fund investments. Money in the great start readiness

 

reserve fund at the close of a fiscal year shall remain in the

 

great start readiness reserve fund and shall not lapse to the

 

unreserved school aid fund balance or the general fund.

 

     (20) From the amount appropriated in subsection (1), there is

 

allocated an amount not to exceed $10,000,000.00 for reimbursement

 

of transportation costs for children attending great start

 

readiness programs funded under this section. To receive

 

reimbursement under this subsection, not later than November 1,

 

2014, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be the lesser of the projected transportation

 

budget or $150.00 multiplied by the number of slots funded for the

 

program under this section. If the amount allocated under this

 

subsection is insufficient to fully reimburse the transportation

 

costs for all programs that provide transportation and submit the

 

required information, the reimbursement shall be prorated in an

 

equal amount per slot funded. Payments shall be made to the

 

intermediate district that is the fiscal agent for each program,


 

and the intermediate district shall then reimburse the program

 

provider for transportation costs as prescribed under this

 

subsection.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$10,900,000.00 to intermediate districts for 2013-2014 2014-2015

 

for the purpose of providing early childhood funding to

 

intermediate school districts in block grants, supporting the

 

activities under subsection (2), and providing early childhood

 

programs for children from birth through age 8. Beginning in 2013-

 

2014, the The funding provided to each intermediate district under

 

this section shall be determined by the distribution formula

 

established by the department's office of great start to provide

 

equitable funding statewide. In order to receive funding under this

 

section, each intermediate district shall provide an application to

 

the office of great start not later than September 15 of the

 

immediately preceding fiscal year indicating the activities planned

 

to be provided.

 

     (2) Each intermediate district or consortium of intermediate

 

districts that receives funding under this section shall convene a

 

local great start collaborative and a parent coalition. The goal of

 

each great start collaborative and parent coalition shall be to

 

ensure the coordination and expansion of local early childhood

 

infrastructure and programs that allow every child in the community

 

to achieve the following outcomes:

 

     (a) Children born healthy.

 

     (b) Children healthy, thriving, and developmentally on track


 

from birth to third grade.

 

     (c) Children developmentally ready to succeed in school at the

 

time of school entry.

 

     (d) Children prepared to succeed in fourth grade and beyond by

 

reading proficiently by the end of third grade.

 

     (3) Each local great start collaborative and parent coalition

 

shall convene a workgroup to serve as a school readiness advisory

 

committee as required under section 32d and shall workgroups to

 

make recommendations about community services designed to achieve

 

the outcomes described in subsection (2) and to ensure that its

 

local great start system includes the following supports for

 

children from birth through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.

 

     (d) Parent education and child advocacy.

 

     (e) Early education and care.

 

     (4) Not later than December 1 of each year, each intermediate

 

district shall provide a report to the department detailing the

 

activities actually provided during the immediately preceding

 

school year and the families and children actually served. The

 

department shall compile and summarize these reports and submit its

 

summary to the house and senate appropriations subcommittees on

 

school aid and to the house and senate fiscal agencies not later

 

than February 15 of each year. The block grants allocated under

 

this section implement legislative intent language for this purpose

 

enacted in 2011 PA 62.


 

     (5) An intermediate district or consortium of intermediate

 

districts that receives funding 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 through June 30 of

 

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) An eligible applicant receiving funds under

 

section 32d shall submit a preapplication, an application, 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 application shall include a comprehensive needs

 

assessment using aggregated data from the applicant's entire

 

service area and a community collaboration plan that 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 applicant 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 applicant and

 

community early childhood programs have met their funded

 

enrollments. The applicant shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

     (2) An After notification of funding allocations, an applicant

 

receiving funds under section 32d shall also submit a final

 

application an implementation plan for approval, in a form and

 

manner prescribed by the department, by a date specified by the

 

department, that details how the applicant 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 applicant in the following manner: 1/2 of the

 

percentage of the applicant's pupils in grades 1 to 5 in all

 

districts served by the applicant 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 districts

 

served by the applicant on the pupil membership count day of the 2

 

immediately preceding fiscal years.


 

     (4) The initial allocation for each fiscal year to each

 

eligible applicant 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 applicant indicates it

 

will be able to serve under subsection (1)(c), whichever is less,

 

by $3,625.00 and shall be distributed among applicants in

 

decreasing order of concentration of eligible children as

 

determined by the formula under subsection (3). If the number of

 

children an applicant indicates it will be able to serve under

 

subsection (1)(c) includes children able to be served in a school-

 

day program, then the number able to be served in a 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

 

applicant indicates it will be able to serve under subsection

 

(1)(c) and determining the amount of the initial allocation to the

 

applicant under section 32d. A district may contract with a head

 

start agency to serve children enrolled in head start with a

 

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 allocated for eligible applicants or to the great

 

start readiness reserve fund under section 32d remain after the

 

initial allocation under subsection (4), the allocation under this

 

subsection shall be distributed to each eligible applicant 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 district within the applicant's service area served

 

in the immediately preceding fiscal year or the number of children

 

the applicant indicates it will be able to serve under subsection

 

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

 

the applicant received funding in subsection (4) by $3,625.00.

 

     (6) If funds allocated for eligible applicants or to the great

 

start readiness reserve fund under section 32d remain after the

 

allocations under subsections (4) and (5), remaining funds shall be

 

distributed to each eligible applicant 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 applicant 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 applicant 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 $3,625.00 until the

 

funds allocated for eligible applicants in section 32d are

 

distributed.

 

     (7) An applicant that offers supplementary child care funded

 

by funds other than those received under section 32d 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 applicants. As used in this


 

subsection, "full-day program" means a program that provides

 

supplementary child care that totals at least 10 hours of

 

programming per day.

 

     (8) If, taking into account the total amount to be allocated

 

to the applicant as calculated under this section, an applicant

 

determines that it is able to include additional eligible children

 

in the great start readiness program without additional funds under

 

section 32d, the applicant may include additional eligible children

 

but shall not receive additional funding under section 32d for

 

those children.

 

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

 

11, there is allocated for 2013-2014 2014-2015 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $811,828,500.00, $807,969,900.00 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 $8,000,000.00 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 $111,111,900.00 for the purpose of

 

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

 

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

 

funds.

 

     (c) An amount estimated at $12,200,000.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.


 

     (d) An amount estimated at $10,286,500.00 for the Michigan

 

charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

     (e) An amount estimated at $2,393,500.00 for rural and low

 

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

 

funds.

 

     (f) An amount estimated at $591,500,000.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

     (g) An amount estimated at $8,878,000.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

     (h) An amount estimated at $40,050,000.00 $39,000,000.00 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.

 

     (i) An amount estimated at $24,600,000.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2013-2014 2014-2015 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $31,700,000.00 $31,300,000.00 for the

 

following programs that are funded by federal grants:

 

     (a) An amount estimated at $600,000.00 $200,000.00 for


 

acquired immunodeficiency syndrome education grants, funded from

 

HHS – center for disease control, AIDS funding.

 

     (b) An amount estimated at $2,600,000.00 to provide services

 

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

 

children and youth funds.

 

     (c) 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)(f) and (i) 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.

 

     (3) (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.

 

     (4) (5) For the purposes of applying for federal grants

 

appropriated under this article, the department shall allow an

 

intermediate district to submit a consortium application on behalf

 

of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

     (5) (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. 41. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,200,000.00 each fiscal year


 

for 2013-2014 and for 2014-2015 to applicant districts and

 

intermediate districts offering programs of instruction for pupils

 

of limited English-speaking ability under section 1153 of the

 

revised school code, MCL 380.1153. Subject to subsection (2),

 

reimbursement Reimbursement shall be on a per-pupil basis and shall

 

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

 

ability in membership on the pupil membership count day. Funds

 

allocated under this section shall be used solely for instruction

 

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

 

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

 

under this section for more than 3 years.

 

     (2) A district or intermediate district shall not receive

 

funds under this section if it allows pupils to participate in the

 

program of instruction who are not residing in the United States

 

legally.

 

     Sec. 43. From the general fund money appropriated in section

 

11, there is allocated to the department for 2014-2015 an amount

 

not to exceed $1,800,000.00 for updating teacher certification

 

tests. The department shall use these funds to update the set of

 

teacher certification tests, including content-specific and

 

subject-relevant tests, to reflect current education standards by

 

not later than September 30, 2016.

 

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

 

allocated an amount not to exceed $919,846,100.00 $938,946,100.00

 

for 2013-2014 2014-2015 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 $370,000,000.00 for 2013-2014, 2014-2015, 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 other entities, or federal funds that may be

 

available for this purpose, as determined by the intermediate

 

district plan prepared pursuant to article 3 of the revised school

 

code, MCL 380.1701 to 380.1766. All federal funds allocated under

 

this section in excess of those allocated under this section for

 

2002-2003 may be distributed in accordance with the flexible

 

funding provisions of the individuals with disabilities education

 

act, Public Law 108-446, including, but not limited to, 34 CFR

 

300.206 and 300.208. Notwithstanding section 17b, payments of

 

federal funds to districts, intermediate districts, and other

 

eligible entities under this section shall be paid on a schedule

 

determined by the department.


 

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

 

allocated the amount necessary, estimated at $247,000,000.00

 

$252,000,000.00 for 2013-2014, 2014-2015, 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 (11), times

 

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

 

of residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, or, for a special education

 

pupil in membership in a district that is a public school academy,

 

times an amount equal to the amount per membership pupil calculated

 

under section 20(6) or, for a pupil described in this subsection

 

who is counted in membership in the education achievement system,

 

times an amount equal to the amount per membership pupil under

 

section 20(7). 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 (11), and shall be

 

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

 

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

 

residence, not to exceed the basic foundation allowance under


 

section 20 for the current fiscal year.

 

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

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$1,000,000.00 to make payments to districts and intermediate

 

districts under this subsection. If the amount allocated to a

 

district or intermediate district for a fiscal year under

 

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

 

the district or intermediate district for 1996-97 under sections 52

 

and 58, there is allocated to the district or intermediate district

 

for the fiscal year an amount equal to that difference, adjusted by

 

applying the same proration factor that was used in the

 

distribution of funds under section 52 in 1996-97 as adjusted to

 

the district's or intermediate district's necessary costs of

 

special education used in calculations for the fiscal year. This

 

adjustment is to reflect reductions in special education program

 

operations or services between 1996-97 and subsequent fiscal years.

 

Adjustments for reductions in special education program operations

 

or services shall be made in a manner determined by the department

 

and shall include adjustments for program or service shifts.

 

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

 

allocated for a fiscal year to a district or intermediate district

 

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


 

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

 

be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and

 

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

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

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

 

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

 

department shall deduct the amount of the excess from the

 

district's or intermediate district's payments under this article

 

for the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

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

 

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

 

deduction under this subsection.

 

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

 

basis. Federal funds shall be allocated under applicable federal

 

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

 

be allocated by the department for 2013-2014 2014-2015 to

 

districts, intermediate districts, or other eligible entities on a

 

competitive grant basis for programs, equipment, and services that

 

the department determines to be designed to benefit or improve

 

special education on a statewide scale.

 

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

 

allocated an amount not to exceed $2,200,000.00 for 2013-2014 2014-

 

2015 to reimburse 100% of the net increase in necessary costs


 

incurred by a district or intermediate district in implementing the

 

revisions in the administrative rules for special education that

 

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

 

increase in necessary costs" means the necessary additional costs

 

incurred solely because of new or revised requirements in the

 

administrative rules minus cost savings permitted in implementing

 

the revised rules. Net increase in necessary costs shall be

 

determined in a manner specified by the department.

 

     (7) For purposes of sections 51a to 58, all of the following

 

apply:

 

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

 

determined in a manner specified by the department and may include

 

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

 

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

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 

special education personnel as defined in section 6 of the revised

 

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

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not

 

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

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and


 

services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 

an on-grounds education program.

 

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

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

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

 

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

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

     (c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

 

will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

 

district or intermediate district whose reimbursement for that

 

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

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and


 

reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully

 

fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis. This reimbursement

 

shall not be made after 2014-2015.

 

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

 

program conducted or administered by an intermediate district or a

 

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

 

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

 

but shall be counted in membership in the intermediate district of

 

residence.

 

     (9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

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

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

     (10) If a district or intermediate district uses money

 

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

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

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

 

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

 

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

 

allocated the amount necessary, estimated at $3,500,000.00


 

$3,300,000.00 for 2013-2014, 2014-2015, to pay the foundation

 

allowances for pupils described in this subsection. The allocation

 

to a district under this subsection shall be calculated by

 

multiplying the number of pupils described in this subsection who

 

are counted in membership in the district times the foundation

 

allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for

 

the current fiscal year, or, for a pupil described in this

 

subsection who is counted in membership in a district that is a

 

public school academy, times an amount equal to the amount per

 

membership pupil under section 20(6) or, for a pupil described in

 

this subsection who is counted in membership in the education

 

achievement system, times an amount equal to the amount per

 

membership pupil under section 20(7). The allocation to an

 

intermediate district under this subsection shall be calculated in

 

the same manner as for a district, using the foundation allowance

 

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

 

exceed the basic foundation allowance under section 20 for the

 

current fiscal year. This subsection applies to all of the

 

following pupils:

 

     (a) Pupils described in section 53a.

 

     (b) Pupils counted in membership in an intermediate district

 

who are not special education pupils and are served by the

 

intermediate district in a juvenile detention or child caring

 

facility.

 

     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by


 

the department of community health.

 

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

 

(2) or (11) or under section 51c will not be expended, funds up to

 

the amount necessary and available may be used to supplement the

 

allocations under subsection (2) or (11) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (11) and section 51c, the remaining

 

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

 

the following order:

 

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

 

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

 

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

 

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

 

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

 

     (13) The allocations under subsections (2), (3), and (11)

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.

 

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

 

section a pupil who resides outside of the intermediate district in

 

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

 

special education programs and services according to statute or

 

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

 

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

 

the provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and


 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has a written agreement

 

with the district or intermediate district in which the pupil

 

resides or the public school academy for the purpose of providing

 

the pupil with a free appropriate public education and the written

 

agreement includes at least an agreement on the responsibility for

 

the payment of the added costs of special education programs and

 

services for the pupil.

 

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

 

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

 

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

 

is allocated for 2013-2014 2014-2015 the amount necessary,

 

estimated at $613,200,000.00, $630,500,000.00, for payments to

 

reimburse districts for 28.6138% of total approved costs of special

 

education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

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

 

11, there is allocated for 2013-2014 2014-2015, all available

 

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

 

programs and services 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 2013-2014:2014-2015:

 

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

 

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

 

and toddlers funds.

 

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

 

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

 

incentive funds.

 

     (c) An amount estimated at $45,000,000.00 for special

 

education programs funded by DED-OSERS, handicapped program,

 

individuals with disabilities act funds.

 

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

 

States department of education office of special education and

 

rehabilitative services.

 

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

 

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

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

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

 

380.1701 to 380.1766, minus the district's foundation allowance

 

calculated under section 20. 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.

 

     (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 $10,500,000.00 of the

 

allocation for 2013-2014 2014-2015 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 54. Each intermediate district shall receive an amount

 

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

 

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

 

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

 

the allocation for 2013-2014 2014-2015 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 $37,758,100.00 for 2013-2014

 

2014-2015 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 2012-2013 2013-

 

2014 shall be made in 2013-2014 2014-2015 at an amount per 2012-

 

2013 2013-2014 membership pupil computed by subtracting from

 

$169,900.00 $172,200.00 the 2012-2013 2013-2014 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2012-2013 2013-2014 millage levied.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 62.9% of the total amount allocated

 

under subsection (2).

 

     (5) The amount paid to a single intermediate district under

 

this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

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

 

allocated an amount not to exceed $26,611,300.00 for 2013-2014

 

2014-2015 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.


 

     (3) In addition to the funds allocated in subsection (1), from

 

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

 

to exceed $1,000,000.00 for 2013-2014 2014-2015 to districts or

 

intermediate districts for area career and technical education

 

centers for the purpose of integrating the Michigan merit

 

curriculum content standards under sections 1278a and 1278b of the

 

revised school code, MCL 380.1278a and 380.1278b, into state-

 

approved career and technical education instructional programs for

 

the purpose of awarding academic credit. The department shall

 

determine the allocation to each career and technical education

 

center in a manner that provides for maximum integration of

 

Michigan merit curriculum content standards statewide.

 

     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, there is allocated

 

an amount not to exceed $9,190,000.00 for 2013-2014 2014-2015 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 2012-2013 2013-


 

2014 shall be made in 2013-2014 2014-2015 at an amount per 2012-

 

2013 2013-2014 membership pupil computed by subtracting from

 

$186,500.00 $188,100.00 the 2012-2013 2013-2014 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2012-2013 2013-2014 millage levied.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 38.4% of the total amount allocated

 

under subsection (2).

 

     (5) The amount paid to a single intermediate district under

 

this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

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

 

allocated an amount not to exceed $1,750,000.00 for 2014-2015 for

 

supplemental payments to districts that support the attendance of

 

district pupils in grades 9 to 12 under the postsecondary

 

enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or

 

under the career and technical preparation act, 2000 PA 258, MCL

 

388.1901 to 388.1913, consistent with section 21b, or that support

 

the attendance of district pupils in a concurrent enrollment

 

program if the district meets the requirements under subsection

 

(3).

 

     (2) To be eligible for payments under this section for

 

supporting the attendance of district pupils under the

 

postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to

 

388.524, or under the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, a district shall do all of the


 

following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution before the enrollment of district pupils.

 

     (c) Agree to pay all eligible charges pursuant to section 21b.

 

     (d) Award high school credit for the postsecondary course if

 

the pupil successfully completes the course.

 

     (3) To be eligible for payments under this section for pupils

 

enrolled in a concurrent enrollment program, a district shall do

 

all of the following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution establishing the concurrent enrollment program before

 

the enrollment of district pupils in a postsecondary course through

 

the postsecondary institution.

 

     (c) Ensure that the course is taught by either a high school

 

teacher or postsecondary faculty pursuant to standards established


 

by the postsecondary institution with which the district has

 

entered into a written agreement to operate the concurrent

 

enrollment program.

 

     (d) Ensure that the written agreement provides that the

 

postsecondary institution agrees not to charge the pupil for any

 

cost of the program.

 

     (e) Ensure that the course is taught in the local district or

 

intermediate district.

 

     (f) Ensure that the pupil is awarded both high school and

 

college credit upon successful completion of the course as outlined

 

in the agreement with the postsecondary institution.

 

     (4) Funds shall be awarded to eligible districts under this

 

section in the following manner:

 

     (a) A payment of $10.00 per credit, for up to 3 credits, for a

 

credit-bearing course in which a pupil enrolls during the 2014-2015

 

school year as described under either subsection (2) or (3).

 

     (b) An additional payment of $30.00 per pupil per course

 

identified in subdivision (a), if the pupil successfully completes,

 

and is awarded both high school and postsecondary credit for, the

 

course during the 2014-2015 school year.

 

     (5) A district requesting payment under this section shall

 

submit an application to the department in the form and manner

 

prescribed by the department. Notwithstanding section 17b, payments

 

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

 

department.

 

     Sec. 64c. (1) From the general fund money appropriated in

 

section 11, there is allocated to the department for 2014-2015 an


 

amount not to exceed $250,000.00 for a study under this section.

 

The department shall commission an independent third party to

 

conduct a study and prepare a report analyzing the state's current

 

career readiness education system.

 

     (2) The purpose of the study under this section shall be to

 

research current high school and postsecondary curricula and

 

facilities and develop recommendations for the implementation of a

 

statewide system to support career pathways that lead to education

 

and training opportunities to lessen the existing talent gap in the

 

state.

 

     (3) The study under this section shall, at a minimum, include

 

recommendations that address at least all of the following:

 

     (a) Identification of redundancy of roles, programs, and

 

capital infrastructure among public schools, intermediate

 

districts, community colleges, and universities in providing high-

 

skilled degrees and credentials and make recommendations to better

 

coordinate those roles, programs, and facilities.

 

     (b) Development of a statewide strategy and related policies

 

that will result in more coordinated and expedited pathways for

 

students to obtain high-skilled college degrees and credentials,

 

regardless of point of entry.

 

     (c) Proposed metrics that can be used to measure this state's

 

success towards achieving the desired outcomes.

 

     (d) Identification of specific barriers for students and

 

potential ways to address those barriers.

 

     (4) The department shall ensure that educators and the

 

business community are solicited for their input as part of the


 

study.

 

     (5) The report summarizing the results of the study under this

 

section shall be presented to the department no later than

 

September 30, 2015.

 

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

 

is allocated an amount not to exceed $3,299,000.00 for 2013-2014

 

$3,316,500.00 for 2014-2015 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 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 for 2014-2015 the amount necessary to pay the

 

reasonable costs of nonspecial education auxiliary services

 

transportation provided pursuant to section 1323 of the revised

 

school code, MCL 380.1323. Districts funded under this subsection

 

shall not receive funding under any other section of this article


 

for nonspecial education auxiliary services transportation.

 

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

 

allocated an amount not to exceed $1,674,000.00 for 2013-2014

 

$1,691,500.00 for 2014-2015 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 an intermediate district serving as

 

fiduciary in a time and manner determined jointly by the department

 

and the department of state police. Upon review and approval of the

 

statement of cost, the department shall forward to the designated

 

intermediate district serving as fiduciary the amount of the

 

reimbursement on behalf of each district and intermediate district

 

for costs detailed on the statement within 45 days after receipt of

 

the statement. The designated intermediate district 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. 74a. From the school aid fund money appropriated in

 

section 11, there is allocated an amount not to exceed


 

$3,000,000.00 for 2014-2015 for a pilot project providing grants to

 

districts to convert buses from diesel fuel to natural gas. In

 

order to be eligible for a grant, a district shall provide the

 

department with information on the cost of fuel for the converted

 

buses, expressed in dollars per mile driven. Grants to eligible

 

districts shall not exceed $8,000.00 per bus converted, with a

 

maximum grant per district not to exceed $30,000.00. Districts

 

seeking grants under this section shall apply to the department not

 

later than November 1, 2014. The department shall rank order all

 

districts that apply for grants based on miles driven in the

 

previous school year, and shall award grants to districts with the

 

highest number of miles driven, until all funding is awarded.

 

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

 

from the appropriation in section 11, there is allocated each

 

fiscal year for 2012-2013 and for 2013-2014 for 2014-2015 to the

 

intermediate districts the sum necessary, but not to exceed

 

$64,115,100.00 each fiscal year, $67,115,000.00 to provide state

 

aid to intermediate districts under this section.

 

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

 

for 2014-2015 an amount not to exceed $62,108,000.00 $65,108,000.00

 

for allocations to each intermediate district for 2012-2013 in an

 

amount equal to 100% of the amount allocated to the intermediate

 

district under this subsection for 2011-2012. From the allocation

 

in subsection (1), there is allocated an amount not to exceed

 

$62,108,000.00 for allocations to each intermediate district for

 

2013-2014 in an amount equal to 100.0% 104.8% of the amount

 

allocated to the intermediate district under this subsection for


 

2012-2013. 2013-2014. Funding provided under this section shall be

 

used to comply with requirements of this article and the revised

 

school code that are applicable to intermediate districts, and for

 

which funding is not provided elsewhere in this article, and to

 

provide technical assistance to districts as authorized by the

 

intermediate school board.

 

     (3) Intermediate districts receiving funds under subsection

 

(2) 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.

 

     (4) 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. From the allocation in subsection (1), there is

 

allocated $7,000.00 for purposes of this subsection for 2012-2013,

 

for 2013-2014, and for 2014-2015, after which the payment under

 

this subsection will cease.

 

     (5) In order to receive funding under subsection (2), 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 accounting and auditing 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) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $2,000,000.00 for 2012-2013 for an

 

incentive payment to each intermediate district that meets best

 

practices as determined by the department under this subsection.

 

The amount of the incentive payment is an amount equal to 3.2% of

 

the amount allocated to the intermediate district under subsection

 

(2). An intermediate district is eligible for an incentive payment

 

under this subsection if the intermediate district satisfies at

 

least 4 of the following requirements not later than June 1, 2013:

 

     (a) The intermediate district enters into an agreement with


 

the department to do all of the following:

 

     (i) Develop a service consolidation plan in 2012-2013 to

 

reduce operating costs that is in compliance with guidelines that

 

were developed by the department for former section 11d as that

 

section was in effect for 2010-2011.

 

     (ii) Implement the service consolidation plan in 2013-2014 and

 

report to the department not later than February 1, 2014 on the

 

intermediate district's progress in implementing the service

 

consolidation plan.

 

     (b) The intermediate district has obtained competitive bids on

 

the provision of 1 or more noninstructional services for the

 

intermediate district or its constituent districts with a value of

 

at least $50,000.00.

 

     (c) The intermediate district develops a technology plan in

 

accordance with department policy on behalf of all constituent

 

districts within the intermediate district that integrates

 

technology into the classroom and prepares teachers to use digital

 

technologies as part of the instructional program of each of its

 

constituent districts.

 

     (d) The intermediate district provides to parents and

 

community members a dashboard or report card demonstrating the

 

intermediate district's efforts to manage its finances responsibly.

 

The dashboard or report card shall include at least all of the

 

following for the 3 most recent school years for which the data are

 

available:

 

     (i) A list of services offered by the intermediate district

 

that are shared by other local or intermediate districts and a list


 

of the districts or intermediate districts that participate.

 

     (ii) The total cost savings to local or other intermediate

 

districts that share services with the intermediate district.

 

     (iii) The number and percentage of teachers in the

 

intermediate district service area that are trained to integrate

 

technology into the classroom.

 

     (iv) The total funds received from levying special education

 

and vocational education millages, and the number of special

 

education and vocational education pupils served with those

 

dollars.

 

     (v) The number and percentage of individualized education

 

programs developed for special education pupils that contain

 

academic goals.

 

     (e) The intermediate district works in a consortium with 1 or

 

more other intermediate districts to develop information management

 

system requirements and bid specifications that can be used as

 

statewide models. At a minimum, these specifications shall include

 

pupil management systems for both general and special education,

 

learning management tools, and business services.

 

     (6) (7) From the allocation in subsection (1), there is

 

allocated an amount not to exceed $2,000,000.00 for 2013-2014 2014-

 

2015 for an incentive payment to each intermediate district that

 

meets best practices as determined by the department under this

 

subsection. The amount of the incentive payment is an amount equal

 

to 3.2% 3.1% of the amount allocated to the intermediate district

 

under subsection (2). An intermediate district is eligible for an

 

incentive payment under this subsection if the intermediate


 

district satisfies at least 5 of the following requirements not

 

later than June 1, 2014:2015:

 

     (a) The intermediate district enters into an agreement with

 

the department to comply with all of the following:

 

     (i) If the intermediate district developed a service

 

consolidation plan in 2012-2013, 2013-2014, implement the service

 

consolidation plan in 2013-2014 2014-2015 and report to the

 

department not later than February 1, 2014 2015 on the intermediate

 

district's progress in implementing the service consolidation plan.

 

     (ii) If the intermediate district did not develop a service

 

consolidation plan in 2012-2013 or 2013-2014, develop a service

 

consolidation plan in 2013-2014 2014-2015 to reduce operating costs

 

that is in compliance with guidelines that were developed by the

 

department for former section 11d as that section was in effect for

 

2010-2011.

 

     (iii) If the intermediate district developed a service

 

consolidation plan in 2013-2014, implement the service

 

consolidation plan in 2014-2015 and report to the department not

 

later than February 1, 2015 on the intermediate district's progress

 

in implementing the service consolidation plan.

 

     (iii) (iv) Make the intermediate district's service

 

consolidation plan publicly available on the intermediate

 

district's website.

 

     (b) The intermediate district has obtained competitive bids on

 

the provision of 1 or more noninstructional services for the

 

intermediate district or its constituent districts with a value of

 

at least $50,000.00. The unfunded accrued liability costs for


 

retirement and other benefits shall be excluded from the

 

intermediate district's current costs for the purpose of comparing

 

competitive bids to the current costs of providing services.

 

     (c) The intermediate district develops a technology plan in

 

accordance with department policy on behalf of all constituent

 

districts within the intermediate district that integrates

 

technology into the classroom and prepares teachers to use digital

 

technologies as part of the instructional program of each of its

 

constituent districts. An intermediate district that developed a

 

technology plan in 2012-2013 or 2013-2014 shall begin implementing

 

continue to implement that technology plan in 2013-2014.2014-2015.

 

     (d) The intermediate district provides to parents and

 

community members a dashboard or report card demonstrating the

 

intermediate district's efforts to manage its finances responsibly.

 

The dashboard or report card shall include revenue and expenditure

 

projections for the intermediate district for 2013-2014 and 2014-

 

2015 and 2015-2016, a listing of all debt service obligations,

 

detailed by project, including anticipated 2013-2014 2014-2015

 

payment for each project, a listing of total outstanding debt, and

 

at least all of the following for the 3 most recent school years

 

for which the data are available:

 

     (i) A list of services offered by the intermediate district

 

that are shared by other local or intermediate districts and a list

 

of the districts or intermediate districts that participate.

 

     (ii) The total cost savings to local or other intermediate

 

districts that share services with the intermediate district.

 

     (iii) The number and percentage of teachers in the


 

intermediate district service area that are trained to integrate

 

technology into the classroom.

 

     (iv) The total funds received from levying special education

 

and vocational education millages, and the number of special

 

education and vocational education pupils served with those

 

dollars.

 

     (v) The number and percentage of individualized education

 

programs developed for special education pupils that contain

 

academic goals.

 

     (e) The intermediate district works in a consortium with 1 or

 

more other intermediate districts and the center to develop local

 

information management system requirements and bid specifications

 

that result in a recommended model information system that supports

 

interoperability to ensure linkage and connectivity in a manner

 

that facilitates the efficient exchange of data among districts,

 

intermediate districts, and the center. At a minimum, these

 

specifications shall include pupil management systems for both

 

general and special education, learning management tools, and

 

business services.

 

     (f) If an intermediate district provides medical, pharmacy,

 

dental, vision, disability, long-term care, or any other type of

 

benefit that would constitute a health care services benefit, to

 

employees and their dependents, the intermediate district is the

 

policyholder for each of its insurance policies that covers 1 or

 

more of these benefits. An intermediate district that does not

 

directly employ its staff or an intermediate district with a

 

voluntary employee beneficiary association that pays no more than


 

the maximum per employee contribution amount and that contributes

 

no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections

 

3 and 4 of the publicly funded health insurance contribution act,

 

2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied

 

this requirement.

 

     Sec. 94. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2013-2014 2014-2015 an

 

amount not to exceed $250,000.00 for efforts to increase the number

 

of pupils who participate and succeed in advanced placement and

 

international baccalaureate programs.

 

     (2) From the funds allocated under this section, the

 

department shall award funds to cover all or part of the costs of

 

advanced placement test fees or international baccalaureate test

 

fees for low-income pupils who take an advanced placement or an

 

international baccalaureate test. Payments shall not exceed $20.00

 

per test completed.

 

     (3) The department shall only award funds under this section

 

if the department determines that all of the following criteria are

 

met:

 

     (a) Each pupil for whom payment is made meets eligibility

 

requirements of the federal advanced placement test fee program

 

under section 1701 of the no child left behind act of 2001, Public

 

Law 107-110.

 

     (b) The tests are administered by the college board, the

 

international baccalaureate organization, or another test provider

 

approved by the department.


 

     (c) The pupil for whom payment is made pays at least $5.00

 

toward the cost of each test for which payment is made.

 

     (4) The department shall establish procedures for awarding

 

funds under this section.

 

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

 

shall be made on a schedule determined by the department.

 

     Sec. 94a. (1) There is created within the state budget office

 

in the department of technology, management, and budget the center

 

for educational performance and information. The center shall do

 

all of the following:

 

     (a) Coordinate the collection of all data required by state

 

and federal law from districts, intermediate districts, and

 

postsecondary institutions.

 

     (b) Create, maintain, and enhance this state's P-20

 

longitudinal data system and ensure that it meets the requirements

 

of subsection (4).

 

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

 

order to reduce the administrative burden on reporting entities,

 

including, but not limited to, electronic transcript services.

 

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

 

educational portal to provide information to school leaders,

 

teachers, researchers, and the public in compliance with all

 

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

 

limited to, all of the following:

 

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

 

allowing districts to assess individual teacher impact on student

 

performance and consider student growth factors in teacher and


 

principal evaluation systems.

 

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

 

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

 

improve teaching and learning in the classroom.

 

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

 

research that advances this state's educational performance.

 

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

 

policymakers to make informed policy decisions.

 

     (f) Provide public reports to the citizens of this state to

 

allow them to assess allocation of resources and the return on

 

their investment in the education system of this state.

 

     (g) Other functions as assigned by the state budget director.

 

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

 

information from districts, intermediate districts, or

 

postsecondary institutions as required under state or federal law

 

shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection

 

(1). This subsection does not apply to information collected by the

 

department of treasury under the uniform budgeting and accounting

 

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

 

388.1939; or section 1351a of the revised school code, MCL

 

380.1351a.

 

     (3) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (4) The center shall ensure that the P-20 longitudinal data


 

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

 

     (a) Includes data at the individual student level from

 

preschool through postsecondary education and into the workforce.

 

     (b) Supports interoperability by using standard data

 

structures, data formats, and data definitions to ensure linkage

 

and connectivity in a manner that facilitates the exchange of data

 

among agencies and institutions within the state and between

 

states.

 

     (c) Enables the matching of individual teacher and student

 

records so that an individual student may be matched with those

 

teachers providing instruction to that student.

 

     (d) Enables the matching of individual teachers with

 

information about their certification and the institutions that

 

prepared and recommended those teachers for state certification.

 

     (e) Enables data to be easily generated for continuous

 

improvement and decision-making, including timely reporting to

 

parents, teachers, and school leaders on student achievement.

 

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

 

of data contained in the system.

 

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

 

state reporting requirements.

 

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

 

and postsecondary, meets all of the following:

 

     (i) Contains a unique statewide student identifier that does

 

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

 

system, except as allowed by federal and state law.

 

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


 

program participation information.

 

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

 

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

 

complete education programs.

 

     (iv) Has the capacity to communicate with higher education

 

data systems.

 

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

 

only, meets all of the following:

 

     (i) Contains yearly test records of individual students for

 

assessments approved by DED-OESE for accountability purposes under

 

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

 

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

 

tested, by grade and subject.

 

     (ii) Contains student-level transcript information, including

 

information on courses completed and grades earned.

 

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

 

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

 

     (i) Contains data that provide information regarding the

 

extent to which individual students transition successfully from

 

secondary school to postsecondary education, including, but not

 

limited to, all of the following:

 

     (A) Enrollment in remedial coursework.

 

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

 

to a degree within 2 years of enrollment.

 

     (ii) Contains data that provide other information determined

 

necessary to address alignment and adequate preparation for success

 

in postsecondary education.


 

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

 

is allocated an amount not to exceed $9,535,100.00 for 2013-2014

 

$12,022,800.00 for 2014-2015 to the department of technology,

 

management, and budget to support the operations of the center. In

 

addition, from the federal funds appropriated in section 11 there

 

is allocated for 2013-2014 2014-2015 the amount necessary,

 

estimated at $193,500.00, to support the operations of the center

 

and to establish a P-20 longitudinal data system as provided under

 

this section in compliance with the assurance provided to the

 

United States department of education in order to receive state

 

fiscal stabilization funds. The center shall cooperate with the

 

department to ensure that this state is in compliance with federal

 

law and is maximizing opportunities for increased federal funding

 

to improve education in this state.

 

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

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$850,000.00 for competitive grants to support collaborative efforts

 

on the P-20 longitudinal data system. All of the following apply to

 

grants awarded under this subsection:

 

     (a) The center shall award competitive grants to eligible

 

intermediate districts or a consortium of intermediate districts

 

based on criteria established by the center.

 

     (b) Activities funded under the grant shall support the P-20

 

longitudinal data system portal and may include portal hosting,

 

hardware and software acquisition, maintenance, enhancements, user

 

support and related materials, and professional learning tools and

 

activities aimed at improving the utility of the P-20 longitudinal


 

data system.

 

     (c) An applicant that received a grant under this subsection

 

for the immediately preceding fiscal year shall receive priority

 

for funding under this section. However, after 3 fiscal years of

 

continuous funding, an applicant is required to compete openly with

 

new applicants.

 

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

 

allocated for 2013-2014 an amount not to exceed $100,000.00 for the

 

center to develop the pupil transfer application as required under

 

section 25e.

 

     (7) (8) 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) It is the intent of the legislature that, beginning in

 

2014-2015, a district shall report to the center by June 30, in a

 

manner prescribed by the center, the number of pupils in the

 

district who have had 10 or more unexcused absences each school

 

year. For pupils in grades 9 to 12, the report shall include both

 

the total number of unexcused absences in any single course and the

 

total number of unexcused absences in all courses. Each district

 

shall define unexcused absence. It is the intent of the legislature

 

that a district that reports false information under this

 

subsection shall forfeit an amount equal to 5% of its total state

 

aid allocation under this act.

 

     (8) (10) The center may bill departments as necessary in order

 

to fulfill reporting requirements of state and federal law. The


 

center may also enter into agreements to supply custom data,

 

analysis, and reporting to other principal executive departments,

 

state agencies, local units of government, and other individuals

 

and organizations. The center may receive and expend funds in

 

addition to those authorized in subsection (5) to cover the costs

 

associated with salaries, benefits, supplies, materials, and

 

equipment necessary to provide such data, analysis, and reporting

 

services.

 

     (9) (11) As used in this section:

 

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

 

office of elementary and secondary education.

 

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

 

     Sec. 95a. (1) The educator evaluation reserve fund is created

 

as a separate account within the state school aid fund.

 

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

 

any source for deposit into the educator evaluation reserve fund.

 

The state treasurer shall direct the investment of the educator

 

evaluation reserve fund. The state treasurer shall credit to the

 

educator evaluation reserve fund interest and earnings from the

 

educator evaluation reserve fund.

 

     (3) Money in the educator evaluation reserve fund at the close

 

of the fiscal year shall remain in the educator evaluation reserve

 

fund and shall not lapse to the state school aid fund or to the

 

general fund. The department of treasury shall be the administrator

 

of the educator evaluation reserve fund for auditing purposes.

 

     (4) From the appropriations in section 11, there is allocated

 

to the educator evaluation reserve fund for 2014-2015 an amount not


 

to exceed $12,100,000.00 from the state school aid fund and an

 

amount not to exceed $2,700,000.00 from the general fund. Subject

 

to subsections (5) and (6), the department shall expend the money

 

in the educator evaluation reserve fund for implementing evaluation

 

systems for public school teachers and school administrators.

 

     (5) Funds in the educator evaluation reserve fund shall not be

 

expended unless House Bill Nos. 5223 and 5224 of the 97th

 

Legislature are enacted into law.

 

     (6) Funds in the educator evaluation reserve fund shall not be

 

expended unless the state budget office has approved the

 

department's spending plan.

 

     Sec. 98. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed

 

$9,387,500.00 for 2013-2014 $7,387,500.00 for 2014-2015 for the

 

purposes described in this section.

 

     (2) The Michigan virtual university shall operate the Michigan

 

virtual learning research institute. The Michigan virtual learning

 

research institute shall do all of the following:

 

     (a) Support and accelerate innovation in education through the

 

following activities:

 

     (i) Test, evaluate, and recommend as appropriate new

 

technology-based instructional tools and resources.

 

     (ii) Research, design, and recommend digital education

 

delivery models for use by pupils and teachers that include age-

 

appropriate multimedia instructional content.

 

     (iii) Research, design, and recommend competency-based online

 

assessments.


 

     (iii) (iv) Research, develop, and recommend annually to the

 

department criteria by which cyber schools and online course

 

providers should be monitored and evaluated to ensure a quality

 

education for their pupils.

 

     (iv) (v) Based on pupil completion and performance data

 

reported to the department or the center for educational

 

performance and information from cyber schools and other online

 

course providers operating in this state, analyze the effectiveness

 

of online learning delivery models in preparing pupils to be

 

college- and career-ready and publish a report that highlights

 

enrollment totals, completion rates, and the overall impact on

 

pupils. The report shall be submitted to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, the house and senate fiscal agencies, and the department

 

not later than December 1, 2014.2015.

 

     (v) (vi) Before August 31, 2014, 2015, provide an extensive

 

professional development program to at least 500 educational

 

personnel, including teachers, school administrators, and school

 

board members, that focuses on the effective integration of digital

 

learning into curricula and instruction. Not later than December 1,

 

2014, 2015, the Michigan virtual learning research institute shall

 

submit 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 on the number

 

and percentage of teachers, school administrators, and school board

 

members who have received professional development services from

 

the Michigan virtual university. The report shall also identify


 

barriers and other opportunities to encourage the adoption of

 

digital learning in the public education system.

 

     (vi) (vii) Identify and share best practices for planning,

 

implementing, and evaluating online and blended education delivery

 

models with intermediate districts, districts, and public school

 

academies to accelerate the adoption of innovative education

 

delivery models statewide.

 

     (b) Provide leadership for this state's system of digital

 

learning education by doing the following activities:

 

     (i) Develop and report policy recommendations to the governor

 

and the legislature that accelerate the expansion of effective

 

online learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to online

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, recommend to the

 

superintendent guidelines and standards for a new teacher

 

endorsement credential support implementation and improvements

 

related to effective digital learning instruction.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich online

 

learning models.

 

     (vi) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify


 

barriers and opportunities related to online learning.

 

     (vii) Produce an annual consumer awareness report for schools

 

and parents about effective online education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (viii) Research and establish an internet-based platform that

 

educators can use to create student-centric learning tools and

 

resources and facilitate a user network that assists educators in

 

using the platform. As part of this initiative, the Michigan

 

virtual university shall work collaboratively with districts and

 

intermediate districts to establish a plan to make available online

 

resources that align to Michigan's K-12 curriculum standards for

 

use by students, educators, and parents.

 

     (ix) Create and maintain a public statewide catalog of online

 

learning courses being offered by all public schools in this state.

 

The Michigan virtual learning research institute shall identify and

 

develop a list of nationally recognized best practices for online

 

learning and use this list to provide support reviews of online

 

course vendors, courses, and instructional practices. The Michigan

 

virtual learning research institute shall also provide a mechanism

 

for intermediate districts to use the identified best practices to

 

review content offered by constituent districts. The Michigan

 

virtual learning research institute shall review the online course

 

offerings of the Michigan virtual university, and make the results

 

from these reviews available to the public as part of the statewide

 

catalog. The Michigan virtual learning research institute shall

 

ensure that the statewide catalog is made available to the public


 

on the Michigan virtual university website and linked shall allow

 

the ability to link it to each district's website as provided for

 

in section 21f. Beginning in 2014-2015, the statewide catalog shall

 

also contain all of the following:

 

     (A) The number of pupils enrolled enrollments in each online

 

course in the 2012-2013 immediately preceding school year.

 

     (B) The number of pupils who successfully completed

 

enrollments that earned 60% or more of the total course points for

 

each online course in the 2012-2013 immediately preceding school

 

year.

 

     (C) The completion rate for each online course.

 

     (x) Collaborate with key stakeholders to examine the need and

 

process for incorporating registration, payment services, and

 

transcript functionality to the statewide catalog.

 

     (xi) Collaborate with key stakeholders to examine district

 

level accountability and teacher effectiveness issues related to

 

online learning under section 21f and make findings and

 

recommendations publicly available.

 

     (3) In order for the Michigan virtual university to receive

 

any funds allocated under this section, the Michigan virtual school

 

must maintain its accreditation status from recognized national and

 

international accrediting entities.

 

     (4) If the course offerings are included in the statewide

 

catalog of online courses under subsection (2)(b)(ix), the Michigan

 

virtual school operated by the Michigan virtual university may

 

offer online course offerings, including, but 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 for teachers, school

 

administrators, other school employees, and school board members.

 

     (5) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan virtual school, the student may use the services provided

 

by the Michigan virtual school to the district without charge to

 

the student beyond what is charged to a district pupil using the

 

same services.

 

     (6) Not later than December 1 of each fiscal year, 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 school for the preceding state

 

fiscal year:

 

     (a) A list of the districts served by the Michigan virtual

 

school.

 

     (b) A list of online course titles available to districts.

 

     (c) The total number of online course enrollments and


 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (7) The governor may appoint an advisory group for the

 

Michigan virtual learning research institute established under

 

subsection (2). The members of the advisory group shall serve at

 

the pleasure of the governor and shall serve without compensation.

 

The purpose of the advisory group is to make recommendations to the

 

governor, the legislature, and the president and board of the

 

Michigan virtual university that will accelerate innovation in this

 

state's education system in a manner that will prepare elementary

 

and secondary students to be career and college ready and that will

 

promote the goal of increasing the percentage of citizens of this

 

state with high-quality degrees and credentials to at least 60% by

 

2025.

 

     (8) Not later than November 1, 2013, 2014, the Michigan

 

virtual university shall submit to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a detailed

 

budget for the 2013-2014 2014-2015 fiscal year that includes a

 

breakdown on its projected costs to deliver online educational

 

services to districts and a summary of the anticipated fees to be

 

paid by districts for those services. Beginning in 2013-2014, not

 

later than February 1, the Michigan virtual university shall submit

 

to the house and senate appropriations subcommittees on state

 

school aid, the state budget director, and the house and senate

 

fiscal agencies a breakdown on its actual costs to deliver online

 

educational services to districts and a summary of the actual fees


 

paid by districts for those services based on audited financial

 

statements for the immediately preceding fiscal year.

 

     (9) As used in this section:

 

     (a) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided content, instruction, and

 

assessment, in part at a supervised educational facility away from

 

home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through

 

internet-connected learning environments with some degree of pupil

 

control over time, location, and pace of instruction.

 

     (b) "Cyber school" means a full-time instructional program of

 

online courses for pupils that may or may not require attendance at

 

a physical school location.

 

     (c) "Digital learning" means instruction delivered via a web-

 

based educational delivery system that uses various information

 

technologies to provide a structured learning environment,

 

including online and blended learning instructional methods.

 

     (d) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

     Sec. 99. (1) From the funds appropriated in section 11, there


 

is allocated for 2013-2014 2014-2015 an amount not to exceed

 

$2,850,000.00 $2,750,000.00 from the state school aid fund and an

 

amount not to exceed $375,000.00 $475,000.00 from the general fund

 

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, there

 

is allocated for 2013-2014 2014-2015 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 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 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 2013-2014 2014-2015 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) From the state school aid general fund money allocated in

 

subsection (1), there is allocated for 2013-2014 2014-2015 an

 

amount not to exceed $100,000.00 in a form and manner determined by

 

the department to a single mathematics and science center that is a

 

participant in to the Michigan STEM partnership, to be used to

 

administer the grant process under this subsection. From the

 

general fund money allocated in subsection (1), there is allocated


 

for 2013-2014 2014-2015 an amount not to exceed $375,000.00 to the

 

Michigan STEM partnership to be used for a competitive grant

 

process to award competitive grants to organizations conducting

 

student-focused, project-based programs and competitions, either in

 

the classroom or extracurricular, in science, technology,

 

engineering, and mathematics subjects such as, but not limited to,

 

robotics, coding, and design-build-test projects, from pre-

 

kindergarten through college level. Funding under this subsection

 

is in addition to funding allocated under subsection (5) and shall

 

be used for connecting mathematics and science centers for science,

 

technology, engineering, and mathematics purposes and to support

 

the goals of the Michigan STEM partnership. A program receiving

 

funds under section 99h may not receive funds under this

 

subsection.

 

     (8) 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.

 

     (9) Not later than September 30, 2013, 2018, the department

 

shall reevaluate and update the comprehensive master plan described

 

in subsection (1).

 

     (10) The department shall give preference in awarding the

 

federal grants allocated in subsection (1) to eligible existing

 

mathematics and science centers.

 

     (11) 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.

 

     (12) 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.

 

     (13) 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. 99b. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $330,000.00 for 2014-2015 for

 

grants to districts to support professional development for

 

teachers in a department-approved training program for science,

 

technology, engineering, and mathematics (STEM) instruction.

 

     (2) Any district may apply for funding under this section for

 

2014-2015 by a date determined by the department. Beginning in

 

2014-2015, in awarding grants, the department shall give priority,

 

in a form and manner determined by the department, to applicant

 

districts with teachers who have not previously received training

 

in programs funded under this section.


 

     (3) For a training program to be approved by the department

 

for the purposes of this section, the program shall meet all of the

 

following criteria:

 

     (a) Utilizes an integrative STEM approach to content

 

organization and delivery. The integrative STEM approach shall

 

include content derived from science, technology, engineering, and

 

mathematics.

 

     (b) Offers evidence that the program outcomes address

 

mathematics, science, and technological literacy standards in an

 

exploratory middle school or high school offering.

 

     (c) Offers evidence that the program positively influences

 

student career choices along STEM career paths and increases

 

student engagement through peer-reviewed research.

 

     (d) Presents evidence of the periodic improvement of the

 

curriculum.

 

     (e) Utilizes outcome measures for teacher professional

 

development.

 

     (f) Provides peer-reviewed evidence that the program is

 

effective with disadvantaged students and those with language

 

barriers.

 

     (4) The department shall award grants to districts in an

 

amount determined by the department, but not to exceed $3,200.00

 

per participant.

 

     (5) A district receiving funds under this section shall use

 

the funds only for department-approved training programs under this

 

section.

 

     Sec. 99h. (1) From the appropriation in section 11, there is


 

allocated an amount not to exceed $3,000,000.00 $2,000,000.00 for

 

2013-2014 2014-2015 for competitive grants to districts that

 

provide pupils in grades 7 to 12 with expanded opportunities to

 

improve mathematics, science, and technology skills by

 

participating in events hosted by a science and technology

 

development program known as FIRST (for inspiration and recognition

 

of science and technology) robotics.

 

     (2) A district applying for a FIRST tech challenge or FIRST

 

robotics competition program grant shall submit an application in a

 

form and manner determined by the department. To be eligible for a

 

grant, a district shall demonstrate in its application that the

 

district has established a partnership for the purposes of the

 

FIRST program with at least 1 sponsor, business entity, higher

 

education institution, or technical school, shall submit a spending

 

plan, and shall pay at least 25% of the cost of the FIRST robotics

 

program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:

 

     (a) Except as otherwise provided in subparagraph (iii), an

 

amount estimated at $1,000,000.00 for grants Grants to districts to

 

pay for stipends of $1,500.00 for 1 coach per team, distributed as

 

follows:

 

     (i) Not more than 500 stipends for coaches of high school

 

teams, including existing teams.

 

     (ii) Not more than 100 stipends for coaches of middle school

 

or junior high teams, including existing teams.

 

     (iii) If the requests for stipends exceed the numbers of


 

stipends allowed under subparagraphs (i) and (ii), and if there is

 

funding remaining unspent under subdivisions (b) and (c), the

 

department shall use that remaining unspent funding for grants to

 

districts to pay for additional stipends in a manner that expands

 

the geographical distribution of teams.

 

     (b) An amount estimated at $1,000,000.00 for grants Grants to

 

districts for event registrations, materials, travel costs, and

 

other expenses associated with the preparation for and attendance

 

at FIRST tech challenge and FIRST robotics competitions. Each grant

 

recipient shall provide a local match from other private or local

 

funds for the funds received under this subdivision equal to at

 

least 50% of the costs of participating in an event. The department

 

shall set maximum grant amounts under this subdivision in a manner

 

that maximizes the number of teams that will be able to receive

 

funding.

 

     (c) An amount estimated at $1,000,000.00 for grants Grants to

 

districts for awards to teams that advance to the state and world

 

championship competitions. The department shall determine an equal

 

amount per team for those teams that advance to the state

 

championship and a second equal award amount to those teams that

 

advance to the world championship.

 

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

 

appropriation, and any unexpended funds for 2013-2014 2014-2015 are

 

carried forward into 2014-2015. 2015-2016. The purpose of the work

 

project is to continue to implement the projects described under

 

subsection (1). The estimated completion date of the work project

 

is September 30, 2016.2017.


 

     Sec. 101. (1) To be eligible to receive state aid under this

 

article, 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 sixth Wednesday after the pupil membership count day and

 

not later than the sixth 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 article 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 article,

 

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 article 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 subsections (11) and (12),

 

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.

 

Beginning in 2012-2013, the required minimum number of days of

 

pupil instruction is 170. Beginning in 2014-2015, the required


 

minimum number of days of pupil instruction is 175. However, all of

 

the following apply to these requirements:

 

     (i) Except as otherwise provided in subparagraph (ii), a

 

district shall not provide fewer days of pupil instruction than the

 

district provided for 2009-2010.

 

     (ii) For 2013-2014 only, if a district is scheduled to provide

 

more than 174 days of instruction, the district shall provide at

 

least 174 days of instruction and 1,098 hours of pupil instruction.

 

     (iii) If a collective bargaining agreement that provides for

 

at least 170 days but less than 175 days, and at least 1,098 hours,

 

of pupil instruction is in effect for employees of a district as of

 

June 13, 2013, then until the school year that begins after the

 

expiration of that collective bargaining agreement the district

 

shall provide at least the number of days of pupil instruction

 

identified in the collective bargaining agreement, and at least

 

1,098 hours of pupil instruction.

 

     (i) If a collective bargaining agreement that provides a

 

complete school calendar was in effect for employees of a district

 

as of July 1, 2013, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement. If a district entered into a

 

collective bargaining agreement on or after July 1, 2013 and if

 

that collective bargaining agreement did not provide for at least

 

175 days of pupil instruction beginning in 2014-2015, then the

 

department shall withhold from the district's total state school

 

aid an amount equal to 5% of the funding the district receives in


 

2014-2015 under sections 22a and 22b.

 

     (ii) (iv) A district may apply for a waiver under subsection

 

(9) from the requirements of this subdivision.

 

     (b) Beginning in 2016-2017, the required minimum number of

 

days of pupil instruction is 180. If a collective bargaining

 

agreement that provides a complete school calendar was in effect

 

for employees of a district as of the effective date of the

 

amendatory act that added this subdivision, and if that school

 

calendar is not in compliance with this subdivision, then this

 

subdivision does not apply to that district until after the

 

expiration of that collective bargaining agreement. A district may

 

apply for a waiver under subsection (9) from the requirements of

 

this subdivision.

 

     (c) (b) Except as otherwise provided in this article, 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

 

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).

 

     (d) (c) Hours or days lost because of strikes or teachers'

 

conferences shall not be counted as hours or days of pupil

 

instruction.

 

     (e) (d) If a collective bargaining agreement that provides a

 

complete school calendar is in effect for employees of a district

 

as of October 19, 2009, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement.

 

     (f) (e) Except as otherwise provided in subdivisions (f) (g)

 

and (g), (h), a district not having at least 75% of the district's

 

membership in attendance on any day of pupil instruction shall

 

receive state aid in that proportion of 1/180 that the actual

 

percent of attendance bears to the specified percentage.

 

     (g) (f) If a district adds 1 or more days of pupil instruction

 

to the end of its instructional calendar for a school year to

 

comply with subdivision (a) because the district otherwise would

 

fail to provide the required minimum number of days of pupil

 

instruction even after the operation of subsection (4) due to

 

conditions not within the control of school authorities, then

 

subdivision (e) (f) does not apply for any day of pupil instruction

 

that is added to the end of the instructional calendar. Instead,

 

for any of those days, if the district does not have at least 60%

 

of the district's membership in attendance on that day, the

 

district shall receive state aid in that proportion of 1/180 that


 

the actual percentage of attendance bears to the specified

 

percentage. For any day of pupil instruction added to the

 

instructional calendar as described in this subdivision, the

 

district shall report to the department the percentage of the

 

district's membership that is in attendance, in the form and manner

 

prescribed by the department.

 

     (h) (g) At the request of a district that operates a

 

department-approved alternative education program and that does not

 

provide instruction for pupils in all of grades K to 12, the

 

superintendent may grant a waiver from the requirements of

 

subdivision (e). (f). The waiver shall indicate that an eligible

 

district is subject to the proration provisions of subdivision (e)

 

(f) only if the district does not have at least 50% of the

 

district's membership in attendance on any day of pupil

 

instruction. In order to be eligible for this waiver, a district

 

must maintain records to substantiate its compliance with the

 

following requirements:

 

     (i) The district offers the minimum hours of pupil instruction

 

as required under this section.

 

     (ii) For each enrolled pupil, the district uses appropriate

 

academic assessments to develop an individual education plan that

 

leads to a high school diploma.

 

     (iii) The district tests each pupil to determine academic

 

progress at regular intervals and records the results of those

 

tests in that pupil's individual education plan.

 

     (i) (h) All of the following apply to a waiver granted under

 

subdivision (g):(h):


 

     (i) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (ii) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (iii) A waiver that is not a waiver described in subparagraph

 

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

 

to remain in effect.

 

     (j) (i) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

     (4) Except as otherwise provided in this subsection, the first

 

6 days or the equivalent number of hours for which pupil

 

instruction is not provided because of conditions not within the

 

control of school authorities, such as severe storms, fires,

 

epidemics, utility power unavailability, water or sewer failure, or

 

health conditions as defined by the city, county, or state health

 

authorities, shall be counted as hours and days of pupil

 

instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil

 

instruction for a fiscal year not more than 6 additional days or


 

the equivalent number of additional hours for which pupil

 

instruction is not provided in a district after April 1 of the

 

applicable school year due to unusual and extenuating occurrences

 

resulting from conditions not within the control of school

 

authorities such as those conditions described in this subsection.

 

Subsequent such hours or days shall not be counted as hours or days

 

of pupil instruction.

 

     (5) A district shall not forfeit part of its state aid

 

appropriation because it adopts or has in existence an alternative

 

scheduling program for pupils in kindergarten if the program

 

provides at least the number of hours required under subsection (3)

 

for a full-time equated membership for a pupil in kindergarten as

 

provided under section 6(4).

 

     (6) In addition to any other penalty or forfeiture under this

 

section, if at any time the department determines that 1 or more of

 

the following have occurred in a district, the district shall

 

forfeit in the current fiscal year beginning in the next payment to

 

be calculated by the department a proportion of the funds due to

 

the district under this article that is equal to the proportion

 

below the required minimum number of hours and days of pupil

 

instruction under subsection (3), as specified in the following:

 

     (a) The district fails to operate its schools for at least the

 

required minimum number of hours and days of pupil instruction

 

under subsection (3) in a school year, including hours and days

 

counted under subsection (4).

 

     (b) The board of the district takes formal action not to

 

operate its schools for at least the required minimum number of


 

hours and days of pupil instruction under subsection (3) in a

 

school year, including hours and days counted under subsection (4).

 

     (7) In providing the minimum number of hours and days of pupil

 

instruction required under subsection (3), a district shall use the

 

following guidelines, and a district shall maintain records to

 

substantiate its compliance with the following guidelines:

 

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

 

must be scheduled for at least the required minimum number of hours

 

of instruction, excluding study halls, or at least the sum of 90

 

hours plus the required minimum number of hours of instruction,

 

including up to 2 study halls.

 

     (b) The time a pupil is assigned to any tutorial activity in a

 

block schedule may be considered instructional time, unless that

 

time is determined in an audit to be a study hall period.

 

     (c) Except as otherwise provided in this subdivision, a pupil

 

in grades 9 to 12 for whom a reduced schedule is determined to be

 

in the individual pupil's best educational interest must be

 

scheduled for a number of hours equal to at least 80% of the

 

required minimum number of hours of pupil instruction to be

 

considered a full-time equivalent pupil. A pupil in grades 9 to 12

 

who is scheduled in a 4-block schedule may receive a reduced

 

schedule under this subsection if the pupil is scheduled for a

 

number of hours equal to at least 75% of the required minimum

 

number of hours of pupil instruction to be considered a full-time

 

equivalent pupil.

 

     (d) If a pupil in grades 9 to 12 who is enrolled in a

 

cooperative education program or a special education pupil cannot


 

receive the required minimum number of hours of pupil instruction

 

solely because of travel time between instructional sites during

 

the school day, that travel time, up to a maximum of 3 hours per

 

school week, shall be considered to be pupil instruction time for

 

the purpose of determining whether the pupil is receiving the

 

required minimum number of hours of pupil instruction. However, if

 

a district demonstrates to the satisfaction of the department that

 

the travel time limitation under this subdivision would create

 

undue costs or hardship to the district, the department may

 

consider more travel time to be pupil instruction time for this

 

purpose.

 

     (e) In grades 7 through 12, instructional time that is part of

 

a junior reserve officer training corps (JROTC) program shall be

 

considered to be pupil instruction time regardless of whether the

 

instructor is a certificated teacher if all of the following are

 

met:

 

     (i) The instructor has met all of the requirements established

 

by the United States department of defense and the applicable

 

branch of the armed services for serving as an instructor in the

 

junior reserve officer training corps program.

 

     (ii) The board of the district or intermediate district

 

employing or assigning the instructor complies with the

 

requirements of sections 1230 and 1230a of the revised school code,

 

MCL 380.1230 and 380.1230a, with respect to the instructor to the

 

same extent as if employing the instructor as a regular classroom

 

teacher.

 

     (8) Except as otherwise provided in subsections (11) and (12),


 

the department shall apply the guidelines under subsection (7) in

 

calculating the full-time equivalency of pupils.

 

     (9) Upon application by the district for a particular fiscal

 

year, the superintendent may waive for a district the minimum

 

number of hours and days of pupil instruction requirement of

 

subsection (3) for a department-approved alternative education

 

program or another innovative program approved by the department,

 

including a 4-day school week. If a district applies for and

 

receives a waiver under this subsection and complies with the terms

 

of the waiver, the district is not subject to forfeiture under this

 

section for the specific program covered by the waiver. If the

 

district does not comply with the terms of the waiver, the amount

 

of the forfeiture shall be calculated based upon a comparison of

 

the number of hours and days of pupil instruction actually provided

 

to the minimum number of hours and days of pupil instruction

 

required under subsection (3). Pupils enrolled in a department-

 

approved alternative education program under this subsection shall

 

be reported to the center in a form and manner determined by the

 

center. All of the following apply to a waiver granted under this

 

subsection:

 

     (a) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (b) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least


 

1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (c) A waiver that is not a waiver described in subdivision (a)

 

or (b) is valid for 1 fiscal year and must be renewed annually to

 

remain in effect.

 

     (10) Until 2014-2015, a district may count up to 38 hours of

 

qualifying professional development for teachers as hours of pupil

 

instruction. However, if a collective bargaining agreement that

 

provides for the counting of up to 38 hours of qualifying

 

professional development for teachers as pupil instruction is in

 

effect for employees of a district as of June 13, July 1, 2013,

 

then until the school year that begins after the expiration of that

 

collective bargaining agreement a district may count up to the

 

contractually specified number of hours of qualifying professional

 

development for teachers as hours of pupil instruction.

 

Professional development provided online is allowable and

 

encouraged, as long as the instruction has been approved by the

 

district. The department shall issue a list of approved online

 

professional development providers, which shall include the

 

Michigan virtual school. As used in this subsection, "qualifying

 

professional development" means professional development that is

 

focused on 1 or more of the following:

 

     (a) Achieving or improving adequate yearly progress as defined

 

under the no child left behind act of 2001, Public Law 107-110.


 

     (b) Achieving accreditation or improving a school's

 

accreditation status under section 1280 of the revised school code,

 

MCL 380.1280.

 

     (c) Achieving highly qualified teacher status as defined under

 

the no child left behind act of 2001, Public Law 107-110.

 

     (d) Integrating technology into classroom instruction.

 

     (e) Maintaining teacher certification.

 

     (11) Subsections (3) and (8) do not apply to 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.

 

     (12) Subsections (3) and (8) do not apply to eligible pupils

 

enrolled in a dropout recovery program that meets the requirements

 

of section 23a. As used in this subsection, "eligible pupil" means

 

that term as defined in section 23a.

 

     (13) Beginning in 2013, at least every 2 years the

 

superintendent shall review the waiver standards set forth in the

 

pupil accounting and auditing manuals to ensure that the waiver

 

standards and waiver process continue to be appropriate and

 

responsive to changing trends in online learning. The

 

superintendent shall solicit and consider input from stakeholders

 

as part of this review.

 

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

 

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

 

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

 

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

 

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


 

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

 

is allocated for 2013-2014 2014-2015 an amount not to exceed

 

$26,694,400.00 $41,394,400.00 for payments on behalf of districts

 

for costs associated with complying with those provisions of law.

 

In addition, from the federal funds appropriated in section 11,

 

there is allocated for 2013-2014 2014-2015 an amount estimated at

 

$8,250,000.00, $6,250,000.00, funded from DED-OESE, title VI, state

 

assessment funds, and from DED-OSERS, section 504 of part B of the

 

individuals with disabilities education act, Public Law 94-142,

 

plus any carryover federal funds from previous year appropriations,

 

for the purposes of complying with the federal no child left behind

 

act of 2001, Public Law 107-110.

 

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

 

Michigan educational assessment program, including tests

 

administered to high school students, shall include an item

 

analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible

 

response.

 

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

 

distributed in accordance with federal law and with flexibility

 

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

 

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

 

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

 

districts, intermediate districts, and other eligible entities

 

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

 

department.

 

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


 

an amount not to exceed $8,500,000.00 for the following purposes:

 

     (a) Converting existing student assessments to online

 

assessments.

 

     (b) Providing paper and pencil test versions to districts not

 

prepared to implement online assessments.

 

     (c) Expanding writing assessments to additional grade levels.

 

     (d) Providing an increased number of constructed response test

 

questions so that pupils can demonstrate higher-order skills such

 

as problem solving and communicating reasoning.

 

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

 

an amount not to exceed $3,200,000.00 for the development or

 

selection of an online reporting tool to provide student-level

 

assessment data in a secure environment to educators, parents, and

 

pupils immediately after assessments are scored. The department and

 

the center shall ensure that any data collected by the online

 

reporting tool do not provide individually identifiable student

 

data to the federal government.

 

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

 

an amount not to exceed $3,000,000.00 for the purpose of

 

implementing a summative assessment system pursuant to section

 

104c.

 

     (8) (5) As used in this section:

 

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

 

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

 

secondary education.

 

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

 

rehabilitative services.


 

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

 

article, a district shall comply with this section and shall

 

administer the Michigan merit examination to pupils in grade 11,

 

and to pupils in grade 12 who did not take the complete Michigan

 

merit examination in grade 11, as provided in this section.

 

     (2) For the purposes of this section, the department of

 

technology, management, and budget shall contract with 1 or more

 

providers to develop, supply, and score the Michigan merit

 

examination. The Michigan merit examination shall consist of all of

 

the following:

 

     (a) Assessment instruments that measure English language arts,

 

mathematics, reading, and science and are used by colleges and

 

universities in this state for entrance or placement purposes. This

 

shall include a writing component in which the pupil produces an

 

extended writing sample. The Michigan merit examination shall not

 

require any other extended writing sample.1 or more writing

 

components.

 

     (b) One or more tests from 1 or more test developers that

 

assess a pupil's ability to apply at least reading and mathematics

 

skills in a manner that is intended to allow employers to use the

 

results in making employment decisions. The department of

 

technology, management, and budget and the superintendent shall

 

ensure that any test or tests selected under this subdivision have

 

all the components necessary to allow a pupil to be eligible to

 

receive the results of a nationally recognized evaluation of

 

workforce readiness if the pupil's test performance is adequate.

 

     (c) A social studies component.


 

     (d) Any other component that is necessary to obtain the

 

approval of the United States department of education to use the

 

Michigan merit examination for the purposes of the no child left

 

behind act of 2001, Public Law 107-110.

 

     (3) In addition to all other requirements of this section, all

 

of the following apply to the Michigan merit examination:

 

     (a) The department of technology, management, and budget and

 

the superintendent shall ensure that any contractor used for

 

scoring the Michigan merit examination supplies an individual

 

report for each pupil that will identify for the pupil's parents

 

and teachers whether the pupil met expectations or failed to meet

 

expectations for each standard, to allow the pupil's parents and

 

teachers to assess and remedy problems before the pupil moves to

 

the next grade.

 

     (b) The department of technology, management, and budget and

 

the superintendent shall ensure that any contractor used for

 

scoring, developing, or processing the Michigan merit examination

 

meets quality management standards commonly used in the assessment

 

industry, including at least meeting level 2 of the capability

 

maturity model developed by the software engineering institute of

 

Carnegie Mellon university for the first year the Michigan merit

 

examination is offered to all grade 11 pupils and at least meeting

 

level 3 of the capability maturity model for subsequent years.

 

     (c) The department of technology, management, and budget and

 

the superintendent shall ensure that any contract for scoring,

 

administering, or developing the Michigan merit examination

 

includes specific deadlines for all steps of the assessment


 

process, including, but not limited to, deadlines for the correct

 

testing materials to be supplied to schools and for the correct

 

results to be returned to schools, and includes penalties for

 

noncompliance with these deadlines.

 

     (d) The superintendent shall ensure that the Michigan merit

 

examination meets all of the following:

 

     (i) Is designed to test pupils on grade level content

 

expectations or course content expectations, as appropriate, in all

 

subjects tested.

 

     (ii) Complies with requirements of the no child left behind

 

act of 2001, Public Law 107-110.

 

     (iii) Is consistent with the code of fair testing practices in

 

education prepared by the joint committee on testing practices of

 

the American psychological association.

 

     (iv) Is factually accurate. If the superintendent determines

 

that a question is not factually accurate and should be excluded

 

from scoring, the state board and the superintendent shall ensure

 

that the question is excluded from scoring.

 

     (4) A district shall include on each pupil's high school

 

transcript all of the following:

 

     (a) For each high school graduate who has completed the

 

Michigan merit examination under this section, the pupil's scaled

 

score on each subject area component of the Michigan merit

 

examination.

 

     (b) The number of school days the pupil was in attendance at

 

school each school year during high school and the total number of

 

school days in session for each of those school years.


 

     (5) The superintendent shall work with the provider or

 

providers of the Michigan merit examination to produce Michigan

 

merit examination subject area scores for each pupil participating

 

in the Michigan merit examination, including scaling and merging of

 

test items for the different subject area components. The

 

superintendent shall design and distribute to districts,

 

intermediate districts, and nonpublic schools a simple and concise

 

document that describes the scoring for each subject area and

 

indicates the scaled score ranges for each subject area.

 

     (6) The Michigan merit examination shall be administered each

 

year after March 1 and before June 1 to pupils in grade 11. in each

 

district during the last 12 weeks of the district's school year.

 

The superintendent shall ensure that the Michigan merit examination

 

is scored and the scores are returned to pupils, their parents or

 

legal guardians, and districts not later than the beginning of the

 

pupil's first semester of grade 12. The returned scores shall

 

indicate at least the pupil's scaled score for each subject area

 

component and the range of scaled scores for each subject area. In

 

reporting the scores to pupils, parents, and schools, the

 

superintendent shall provide standards-specific, meaningful, and

 

timely feedback on the pupil's performance on the Michigan merit

 

examination.

 

     (7) A district shall administer the complete Michigan merit

 

examination to a pupil only once and shall not administer the

 

complete Michigan merit examination to the same pupil more than

 

once. If a pupil does not take the complete Michigan merit

 

examination in grade 11, the district shall administer the complete


 

Michigan merit examination to the pupil in grade 12. If a pupil

 

chooses to retake the college entrance examination component of the

 

Michigan merit examination, as described in subsection (2)(a), the

 

pupil may do so through the provider of the college entrance

 

examination component and the cost of the retake is the

 

responsibility of the pupil unless all of the following are met:

 

     (a) The pupil has taken the complete Michigan merit

 

examination.

 

     (b) The pupil did not qualify for a Michigan promise grant

 

under section 6 of the Michigan promise grant act, 2006 PA 479, MCL

 

390.1626, based on the pupil's performance on the complete Michigan

 

merit examination.

 

     (c) The pupil meets the income eligibility criteria for free

 

breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769i.

 

     (d) The pupil has applied to the provider of the college

 

entrance examination component for a scholarship or fee waiver to

 

cover the cost of the retake and that application has been denied.

 

     (e) After taking the complete Michigan merit examination, the

 

pupil has not already received a free retake of the college

 

entrance examination component paid for either by this state or

 

through a scholarship or fee waiver by the provider.

 

     (8) The superintendent shall ensure that the length of the

 

Michigan merit examination and the combined total time necessary to

 

administer all of the components of the Michigan merit examination

 

are the shortest possible that will still maintain the degree of

 

reliability and validity of the Michigan merit examination results


 

determined necessary by the superintendent. The superintendent

 

shall ensure that the maximum total combined length of time that

 

schools are required to set aside for pupils to answer all test

 

questions on the Michigan merit examination does not exceed 8 hours

 

if the superintendent determines that sufficient alignment to

 

applicable Michigan merit curriculum content standards can be

 

achieved within that time limit.

 

     (9) A district shall provide accommodations to a pupil with

 

disabilities for the Michigan merit examination, as provided under

 

section 504 of title V of the rehabilitation act of 1973, 29 USC

 

794; subtitle A of title II of the Americans with disabilities act

 

of 1990, 42 USC 12131 to 12134; the individuals with disabilities

 

education act amendments of 1997, Public Law 105-17; and the

 

implementing regulations for those statutes. The provider or

 

providers of the Michigan merit examination and the superintendent

 

shall mutually agree upon the accommodations to be provided under

 

this subsection.

 

     (10) To the greatest extent possible, the Michigan merit

 

examination shall be based on grade level content expectations or

 

course content expectations, as appropriate. Not later than July 1,

 

2008, the department shall identify specific grade level content

 

expectations to be taught before and after the middle of grade 11,

 

so that teachers will know what content will be covered within the

 

Michigan merit examination.

 

     (11) A child who is a student in a nonpublic school or home

 

school may take the Michigan merit examination under this section.

 

To take the Michigan merit examination, a child who is a student in


 

a home school shall contact the district in which the child

 

resides, and that district shall administer the Michigan merit

 

examination, or the child may take the Michigan merit examination

 

at a nonpublic school if allowed by the nonpublic school. Upon

 

request from a nonpublic school, the superintendent shall direct

 

the provider or providers to supply the Michigan merit examination

 

to the nonpublic school and the nonpublic school may administer the

 

Michigan merit examination. If a district administers the Michigan

 

merit examination under this subsection to a child who is not

 

enrolled in the district, the scores for that child are not

 

considered for any purpose to be scores of a pupil of the district.

 

     (12) In contracting under subsection (2), the department of

 

management and budget shall consider a contractor that provides

 

electronically-scored essays with the ability to score constructed

 

response feedback in multiple languages and provide ongoing

 

instruction and feedback.

 

     (13) The purpose of the Michigan merit examination is to

 

assess pupil performance in mathematics, science, social studies,

 

and English language arts for the purpose of improving academic

 

achievement and establishing a statewide standard of competency.

 

The assessment under this section provides a common measure of data

 

that will contribute to the improvement of Michigan schools'

 

curriculum and instruction by encouraging alignment with Michigan's

 

curriculum framework standards and promotes pupil participation in

 

higher level mathematics, science, social studies, and English

 

language arts courses. These standards are based upon the

 

expectations of what pupils should learn through high school and


 

are aligned with national standards.

 

     (14) For a pupil enrolled in a middle college program, other

 

than a middle college operated as a shared educational entity or a

 

specialized shared educational entity, if the pupil receives at

 

least 50% of his or her instruction at the high school while in

 

grade 11, the Michigan merit examination shall be administered to

 

the pupil at the high school at which the pupil receives high

 

school instruction, and the department shall include the pupil's

 

scores on the Michigan merit examination in the scores for that

 

high school for all purposes for which a school's or district's

 

results are reported. The department shall allow the middle college

 

program to use a 5-year graduation rate for determining adequate

 

yearly progress. As used in this subsection, "middle college" means

 

a program consisting of a series of courses and other requirements

 

and conditions, including an early college or other program created

 

under a memorandum of understanding, that allows a pupil to

 

graduate from high school with both a high school diploma and a

 

certificate or degree from a community college or state public

 

university.

 

     (15) As used in this section:

 

     (a) "English language arts" means reading and writing.

 

     (b) "Social studies" means United States history, world

 

history, world geography, economics, and American government.

 

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

 

article, a district shall administer the state assessments

 

described in this section.

 

     (2) For the purposes of this section, the department shall


 

develop for use in the spring of 2014-2015 new Michigan education

 

assessment program (MEAP) assessments in English language arts and

 

mathematics. These assessments shall be aligned to state standards.

 

     (3) For the purposes of this section, the department shall

 

implement beginning in the 2015-2016 school year a summative

 

assessment system that is proven to be valid and reliable for

 

administration to pupils as provided under this subsection. The

 

summative assessment system shall meet all of the following

 

requirements:

 

     (a) The summative assessment system shall measure student

 

proficiency on the current state standards, shall measure student

 

growth for consecutive grade levels in which students are assessed

 

in the same subject area in both grade levels, and shall be capable

 

of measuring individual student performance.

 

     (b) The summative assessments for English language arts and

 

mathematics shall be administered to all public school pupils in

 

grades 3 to 10, including those pupils as required by the federal

 

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

 

and by title I of the federal elementary and secondary education

 

act.

 

     (c) The summative assessments for science shall be

 

administered to all public school pupils in at least grades 4 and

 

7, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.

 

     (d) The summative assessments for social studies shall be

 

administered to all public school pupils in at least grades 5 and


 

8, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal elementary and secondary education act.

 

     (e) The content of the summative assessments shall be aligned

 

to state standards.

 

     (f) The pool of questions for the summative assessments shall

 

be subject to a transparent review process for quality, bias, and

 

sensitive issues involving educator review and comment. The

 

department shall post samples from tests or retired tests featuring

 

questions from this pool for review by the public.

 

     (g) The summative assessment system shall ensure that

 

students, parents, and teachers are provided with reports that

 

convey individual student proficiency and growth on the assessment

 

and that convey individual student domain-level performance in each

 

subject area, including representative questions, and individual

 

student performance in meeting state standards.

 

     (h) The summative assessment system shall be capable of

 

providing, and the department shall ensure that students, parents,

 

teachers, administrators, and community members are provided with,

 

reports that convey aggregate student proficiency and growth data

 

by teacher, grade, school, and district.

 

     (i) The summative assessment system shall ensure the

 

capability of reporting the available data to support educator

 

evaluations.

 

     (j) The summative assessment system shall ensure that the

 

reports provided to districts containing individual student data

 

are available within 60 days after completion of the assessments.


 

     (k) The assessments shall be capable of being implemented

 

statewide in a fully operational manner no later than the 2015-2016

 

school year.

 

     (l) The summative assessment system shall ensure that access

 

to individually identifiable student data meets all of the

 

following:

 

     (i) Is in compliance with 20 USC 1232g, commonly referred to

 

as the family educational rights and privacy act of 1974.

 

     (ii) Except as may be provided for in an agreement with a

 

vendor to provide assessment services, as necessary to support

 

educator evaluations pursuant to subdivision (i), or for research

 

or program evaluation purposes, is available only to the student;

 

to the student's parent or legal guardian; and to a school

 

administrator or teacher, to the extent that he or she has a

 

legitimate educational interest.

 

     (m) The summative assessment system shall ensure that the

 

assessments are pilot tested before statewide implementation.

 

     (n) The summative assessment system shall ensure that

 

assessments are designed so that the maximum total combined length

 

of time that schools are required to set aside for a pupil to

 

answer all test questions on all assessments that are part of the

 

system for the pupil's grade level does not exceed that maximum

 

total combined length of time for the previous statewide assessment

 

system or 9 hours, whichever is less. This subdivision does not

 

limit the amount of time a district may allow a pupil to complete a

 

test.

 

     (o) The total cost of executing the summative assessment


 

system statewide each year, including, but not limited to, the cost

 

of contracts for administration, scoring, and reporting, shall not

 

exceed an amount equal to 2 times the cost of executing the

 

previous statewide assessment after adjustment for inflation.

 

     (4) To begin the process required under subsection (3), not

 

later than September 1, 2014, the department shall issue a request

 

for proposals for the summative assessment system described in that

 

subsection.

 

     (5) This section does not prohibit districts from adopting

 

interim assessments.

 

     (6) The department shall seek a waiver or amendment to an

 

existing waiver for federal approval of the assessment framework

 

under this section and shall notify the United States department of

 

education about the provisions of this section and take necessary

 

steps to assure the United States department of education that this

 

state is on track to develop and implement a summative assessment

 

system as required by federal law.

 

     (7) As used in this section, "English language arts" means

 

that term as defined in section 104b.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $22,000,000.00 for 2013-2014

 

2014-2015 for adult education programs authorized under this

 

section. Funds allocated under this section are restricted for

 

adult education programs as authorized under this section only. A

 

recipient of funds under this section shall not use those funds for

 

any other purpose.

 

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


 

shall employ certificated teachers and qualified administrative

 

staff and shall offer continuing education opportunities for

 

teachers to allow them to maintain certification.

 

     (3) To be eligible to be a participant funded under this

 

section, a person shall be enrolled in an adult basic education

 

program, an adult English as a second language program, a general

 

educational development (G.E.D.) test preparation program, a job-

 

or employment-related program, or a high school completion program,

 

that meets the requirements of this section, and for which

 

instruction is provided, and shall meet either of the following, as

 

applicable:

 

     (a) If the individual has obtained a high school diploma or a

 

general educational development (G.E.D.) certificate, the

 

individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (ii) Is less than 20 years of age on September 1 of the school

 

year, is not attending an institution of higher education, and is

 

enrolled in a job- or employment-related program through a referral

 

by an employer or by a Michigan workforce agency.

 

     (iii) Is enrolled in an English as a second language program.

 

     (iv) Is enrolled in a high school completion program.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.


 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (4) Except as otherwise provided in subsection (5), the money

 

allocated under this section shall be distributed as follows:

 

     (a) For districts and consortia that received payments for

 

2012-2013 under this section, the amount allocated to each for

 

2013-2014 shall be based on the number of participants served by

 

the district or consortium for 2013-2014, using the amount

 

allocated per full-time equated participant under subsection (7),

 

up to a maximum total allocation under this subsection in an amount

 

equal to the amount the district or consortium received for 2012-

 

2013 under this section before any reallocations made for 2012-2013

 

under subsection (5).

 

     (b) A district or consortium that received funding in 2012-

 

2013 under this section may operate independently of a consortium

 

or join or form a consortium for 2013-2014. The allocation for

 

2013-2014 to the district or the newly formed consortium under this

 

subsection shall be determined by the department and shall be based

 

on the proportion of the amounts that are attributable to the

 

district or consortium that received funding in 2012-2013. A

 

district or consortium described in this subdivision shall notify

 

the department of its intention with regard to 2013-2014 by October

 

1, 2013.

 

     (5) A district that operated an adult education program in


 

2012-2013 and does not intend to operate a program in 2013-2014

 

shall notify the department by October 1, 2013 of its intention.

 

The money intended to be allocated under this section to a district

 

that does not operate a program in 2013-2014 and the unspent money

 

originally allocated under this section to a district or consortium

 

that subsequently operates a program at less than the level of

 

funding allocated under subsection (4) and any other unallocated

 

money under this section shall instead be proportionately

 

reallocated to the other districts described in subsection (4)(a)

 

that are operating an adult education program in 2013-2014 under

 

this section.

 

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

 

as determined under this subsection shall be allocated to each

 

intermediate district serving as a fiscal agent for adult education

 

programs in each of the 10 prosperity regions identified by the

 

department. An intermediate district shall not use more than 5% of

 

the funds allocated under this subsection for administration costs

 

for serving as the fiscal agent. The department shall ensure that

 

the funds allocated under this subsection for 2014-2015 will

 

provide services in 2014-2015 to at least the same number of

 

individuals as the number of individuals who were enrolled in

 

programs funded under this section in 2013-2014. For 2014-2015, 67%

 

of the allocation provided to each intermediate district serving as

 

a fiscal agent shall be based on the proportion of total funding

 

formerly received by the adult education providers in that

 

prosperity region in 2013-2014, and 33% shall be allocated based on

 

the factors in subdivisions (a), (b), and (c). For 2015-2016, 33%


 

of the allocation provided to each intermediate district serving as

 

a fiscal agent shall be based upon the proportion of total funding

 

formerly received by the adult education providers in that

 

prosperity region in 2013-2014 and 67% of the allocation shall be

 

based upon the factors in subdivisions (a), (b), and (c). For 2016-

 

2017, 100% of the allocation provided to each intermediate district

 

serving as a fiscal agent shall be based on the factors in

 

subdivisions (a), (b), and (c). The funding factors for this

 

section are as follows:

 

     (a) Sixty percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals between the ages of 18 and 24 that are not high school

 

graduates that resides in each of the prosperity regions, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States census bureau.

 

     (b) Thirty-five percent of this portion of the funding shall

 

be distributed based upon the proportion of the state population of

 

individuals age 25 or older who are not high school graduates that

 

resides in each of the prosperity regions, as reported by the most

 

recent 5-year estimates from the American community survey (ACS)

 

from the United States census bureau.

 

     (c) Five percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals age 18 or older who lack basic English language

 

proficiency that resides in each of the prosperity regions, as

 

reported by the most recent 5-year estimates from the American

 

community survey (ACS) from the United States census bureau.


 

     (5) To be an eligible fiscal agent, an intermediate district

 

must agree to do the following in a form and manner determined by

 

the department:

 

     (a) Distribute funds to adult education programs in a

 

prosperity region as described in this section.

 

     (b) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region to

 

develop a regional strategy that aligns adult education programs

 

and services into an efficient and effective delivery system for

 

adult education learners.

 

     (c) Collaborate with education advisory groups of the

 

workforce development boards located in the prosperity region to

 

create a local process and criteria that will identify eligible

 

adult education providers to receive funds allocated under this

 

section based on location, demand for services, and cost to provide

 

instructional services. All local processes, criteria, and provider

 

determinations must be approved by the department before funds may

 

be distributed to the fiscal agent.

 

     (d) Report adult education program and participant data and

 

information as prescribed by the department.

 

     (6) The amount allocated under this section per full-time

 

equated participant is shall not exceed $2,850.00 for a 450-hour

 

program. The amount shall be proportionately reduced for a program

 

offering less than 450 hours of instruction.

 

     (7) An adult basic education program or an adult English as a

 

second language program operated on a year-round or school year

 

basis may be funded under this section, subject to all of the


 

following:

 

     (a) The program enrolls adults who are determined by a

 

department-approved assessment, in a form and manner prescribed by

 

the department, to be below ninth grade level in reading or

 

mathematics, or both, or to lack basic English proficiency.

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and upon completion of the

 

program in compliance with the state-approved assessment policy.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed at or above the ninth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (d) A funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (11) until the participant meets 1 of the following:

 

     (i) The participant is assessed as having attained basic

 

English proficiency as determined by a department-approved

 

assessment.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments after having completed at least 450

 

hours of instruction. The department shall provide information to a

 

funding recipient regarding appropriate assessment instruments for

 

this program.

 

     (8) A general educational development (G.E.D.) test


 

preparation program operated on a year-round or school year basis

 

may be funded under this section, subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program shall administer a G.E.D. pre-test approved by

 

the department before enrolling an individual to determine the

 

individual's literacy levels, shall administer a G.E.D. practice

 

test to determine the individual's potential for success on the

 

G.E.D. test, and shall administer a post-test upon completion of

 

the program in compliance with the state-approved assessment

 

policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant passes obtains the G.E.D. test.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) A high school completion program operated on a year-round

 

or school year basis may be funded under this section, subject to

 

all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the state-approved assessment policy.


 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant in a course offered under this

 

subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (10) A job- or employment-related adult education program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the department-approved assessment policy.

 

     (c) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (11)

 

until 1 of the following occurs:

 

     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.


 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Ninety Seventy-five percent for enrollment of eligible

 

participants.

 

     (b) Ten Twenty-five percent for participant completion of the

 

adult basic education objectives by achieving an increase of at

 

least 1 grade level of proficiency in reading or mathematics;

 

educational gain as determined by the national reporting system

 

levels; for achieving basic English proficiency; , as defined by

 

the department in the adult education guidebook; for obtaining a

 

G.E.D. or passage of 1 or more individual G.E.D. tests; for

 

attainment of a high school diploma or passage of a course required

 

for a participant to attain a high school diploma; or for

 

completion of the course and demonstrated proficiency in the

 

academic skills to be learned in the course, for enrollment in a

 

postsecondary institution, or for entry into or retention of

 

employment, as applicable.

 

     (12) As used in this section, "participant" means the sum of

 

the number of full-time equated individuals enrolled in and

 

attending a department-approved adult education program under this

 

section, using quarterly participant count days on the schedule

 

described in section 6(7)(b).

 

     (12) (13) A person who is not eligible to be a participant

 

funded under this section may receive adult education services upon

 

the payment of tuition. In addition, a person who is not eligible

 

to be served in a program under this section due to the program

 

limitations specified in subsection (7), (8), (9), or (10) may


 

continue to receive adult education services in that program upon

 

the payment of tuition. The tuition level shall be determined by

 

the local or intermediate district conducting the program.

 

     (13) (14) An individual who is an inmate in a state

 

correctional facility shall not be counted as a participant under

 

this section.

 

     (14) (15) A district funding recipient shall not commingle

 

money received under this section or from another source for adult

 

education purposes with any other funds of the district. A district

 

receiving adult education funds and shall establish a separate

 

ledger account for those funds received under this section. This

 

subsection does not prohibit a district from using general funds of

 

the district to support an adult education or community education

 

program.

 

     (15) (16) A district or intermediate district funding

 

recipient receiving funds under this section may establish a

 

sliding scale of tuition rates based upon a participant's family

 

income. A district or intermediate district funding recipient may

 

charge a participant tuition to receive adult education services

 

under this section from that sliding scale of tuition rates on a

 

uniform basis. The amount of tuition charged per participant shall

 

not exceed the actual operating cost per participant minus any

 

funds received under this section per participant. A district or

 

intermediate district funding recipient may not charge a

 

participant tuition under this section if the participant's income

 

is at or below 200% of the federal poverty guidelines published by

 

the United States department of health and human services.


 

     (16) (17) In order to receive funds under this section, a

 

district funding recipient shall furnish to the department, in a

 

form and manner determined by the department, all information

 

needed to administer this program and meet federal reporting

 

requirements; shall allow the department or the department's

 

designee to review all records related to the program for which it

 

receives funds; and shall reimburse the state for all disallowances

 

found in the review, as determined by the department.

 

     (17) (18) All intermediate district participant audits of

 

adult education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (19) It is the intent of the legislature to study allocating

 

funds under this section on a competitive basis beginning for 2014-

 

2015.

 

     (18) (20) As used in this section: , "department"

 

     (a) "Department" means the Michigan strategic fund.

 

     (b) "Eligible adult education provider" means a district,

 

intermediate district, a consortium of districts, a consortium of

 

intermediate districts, or a consortium of districts and

 

intermediate districts that is identified as part of the local

 

process described in subsection (5)(c) and approved by the

 

department.

 

     (c) "Participant" means the sum of the number of full-time

 

equated individuals enrolled in and attending a department-approved

 

adult education program under this section, using quarterly

 

participant count days on the schedule described in section


 

6(7)(b).

 

     Sec. 147. (1) The allocation each fiscal year for 2013-2014

 

and for 2014-2015 for the public school employees' retirement

 

system pursuant to the public school employees retirement act of

 

1979, 1980 PA 300, MCL 38.1301 to 38.1408, shall be made using the

 

individual projected benefit entry age normal cost method of

 

valuation and risk assumptions adopted by the public school

 

employees retirement board and the department of technology,

 

management, and budget.

 

     (2) The annual level percentage of payroll contribution rates

 

for the 2013-2014 fiscal year, as determined by the retirement

 

system, are estimated as follows:

 

     (a) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who are enrolled in

 

the health premium subsidy, the annual level percentage of payroll

 

contribution rate is estimated at 29.35%, with 24.79% paid directly

 

by the employer.

 

     (b) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who are enrolled

 

in the health premium subsidy, the annual level percentage of

 

payroll contribution rate is estimated at 29.12%, with 24.56% paid

 

directly by the employer.

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the pension plus plan and in the personal healthcare fund, the

 

annual level percentage of payroll contribution rate is estimated

 

at 28.19%, with 23.63% paid directly by the employer.


 

     (d) For public school employees who first worked for a public

 

school reporting unit on or after September 4, 2012, who elect

 

defined contribution, and who participate in the personal

 

healthcare fund, the annual level percentage of payroll

 

contribution rate is estimated at 25.52%, with 20.96% paid directly

 

by the employer.

 

     (e) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who are enrolled in the health premium subsidy,

 

the annual level percentage of payroll contribution rate is

 

estimated at 26.45%, with 21.89% paid directly by the employer.

 

     (f) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who participate in the personal healthcare fund,

 

the annual level percentage of payroll contribution rate is

 

estimated at 25.52%, with 20.96% paid directly by the employer.

 

     (g) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who participate in

 

the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 28.42%, with 23.86% paid

 

directly by the employer.

 

     (2) (3) The annual level percentage of payroll contribution

 

rates for the 2014-2015 fiscal year, as determined by the

 

retirement system, are estimated as follows:

 

     (a) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who are enrolled in

 

the health premium subsidy, the annual level percentage of payroll


 

contribution rate is estimated at 33.10%, 33.41%, with 25.78% paid

 

directly by the employer.

 

     (b) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who are enrolled

 

in the health premium subsidy, the annual level percentage of

 

payroll contribution rate is estimated at 32.02%, 32.33%, with

 

24.70% paid directly by the employer.

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 31.51%, 31.82%, with

 

24.19% paid directly by the employer.

 

     (d) For public school employees who first worked for a public

 

school reporting unit on or after September 4, 2012, who elect

 

defined contribution, and who participate in the personal

 

healthcare fund, the annual level percentage of payroll

 

contribution rate is estimated at 28.28%, 28.59%, with 20.96% paid

 

directly by the employer.

 

     (e) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who are enrolled in the health premium subsidy,

 

the annual level percentage of payroll contribution rate is

 

estimated at 28.79%, 29.10%, with 21.47% paid directly by the

 

employer.

 

     (f) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who participate in the personal healthcare fund,


 

the annual level percentage of payroll contribution rate is

 

estimated at 28.28%, 28.59%, with 20.96% paid directly by the

 

employer.

 

     (g) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who participate in

 

the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 32.59%, 32.90%, with

 

25.27% paid directly by the employer.

 

     (3) (4) In addition to the employer payments described in

 

subsections (2) and (3), subsection (2), the employer shall pay the

 

applicable contributions to the Tier 2 plan, as determined by the

 

public school employees retirement act of 1979, 1980 PA 300 MCL

 

38.1301 to 38.1408.

 

     (4) (5) The contribution rates in subsection (2) reflect an

 

amortization period of 25 24 years for 2013-2014. 2014-2015. The

 

public school employees' retirement system board shall notify each

 

district and intermediate district by February 28 of each fiscal

 

year of the estimated contribution rate for the next fiscal year.

 

     Sec. 147a. From the appropriation in section 11, there is

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$100,000,000.00 for payments to participating districts. A district

 

that receives money under this section shall use that money solely

 

for the purpose of offsetting a portion of the retirement

 

contributions owed by the district for the fiscal year in which it

 

is received. The amount allocated to each participating district

 

under this section shall be based on each participating district's

 

percentage of the total statewide payroll for all participating


 

districts for the immediately preceding fiscal year. As used in

 

this section, "participating district" means a district that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1408, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     Sec. 147c. (1) From the appropriation in section 11, there is

 

allocated for 2013-2014 2014-2015 an amount not to exceed

 

$249,500,000.00 $656,700,000.00 from the state school aid fund, and

 

there is appropriated for 2013-2014 2014-2015 an amount not to

 

exceed $156,000,000.00 $18,000,000.00 from the MPSERS retirement

 

obligation reform reserve fund, for payments to districts and

 

intermediate districts that are participating entities of the

 

Michigan public school employees' retirement system.

 

     (2) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated for payments to district libraries that are participating

 

entities of the retirement system an amount not to exceed

 

$1,300,000.00 for 2013-2014.

 

     (2) For 2014-2015, the amounts allocated under subsection (1)

 

are estimated to provide an average MPSERS rate cap per pupil

 

amount of $441.00 and are estimated to provide a rate cap per pupil

 

for districts ranging between $4.00 and $1,400.00.

 

     (3) Payments made under this section for 2013-2014 2014-2015

 

shall be equal to the difference between the unfunded actuarial

 

accrued liability contribution rate as calculated pursuant to


 

section 41 of the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1341, as calculated without taking into account

 

the maximum employer rate of 20.96% included in section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341, and the maximum employer rate of 20.96% included in

 

section 41 of the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1341.

 

     (4) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this section shall

 

use the funds solely for the purpose of retirement contributions as

 

specified in subsection (5).

 

     (5) Each participating entity receiving funds under this

 

section shall forward an amount equal to the amount allocated under

 

subsection (4) to the retirement system in a form, manner, and time

 

frame determined by the retirement system.

 

     (6) Funds allocated under this section should be considered

 

when comparing a district's growth in total state aid funding from

 

1 fiscal year to the next.

 

     (7) Not later than October 20, 2014, the department shall

 

publish and post on its website an estimated MPSERS rate cap per

 

pupil for each district.

 

     (8) (7) As used in this section:

 

     (a) "MPSERS rate cap per pupil" means an amount equal to the

 

quotient of the district's payment under this section divided by


 

the district's pupils in membership.

 

     (b) (a) "Participating entity" means a district, intermediate

 

district, or district library that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     (c) (b) "Retirement board" means the board that administers

 

the retirement system under the public school employees retirement

 

act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (d) (c) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 147d. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 only an amount not to exceed

 

$108,000,000.00 for payments to participating entities.

 

     (2) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year. A participating entity that receives funds

 

under this section shall use the funds solely for purposes of this

 

section.

 

     (3) Each participating entity receiving funds under this

 

section shall forward an amount equal to the sum of the amount

 

allocated under this section and the amount allocated under section

 

147c to the retirement system in a form, manner, and time frame


 

prescribed by the retirement system.

 

     (4) Payments under this section shall be used by the

 

retirement system specifically for the payment or prepayment of the

 

final years or partial years of any additional costs to the

 

retirement system due to the operation of section 81b of the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1381b,

 

without regard to the amortization of those costs under section

 

81b(5) of the public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1381b, and in a manner and form as determined by the

 

office of retirement services.

 

     (5) As used in this section:

 

     (a) "Participating entity" means a district, intermediate

 

district, community college, or district library that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     (b) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 152a. (1) As required by the court in the consolidated

 

cases known as Adair v State of Michigan, Michigan supreme court

 

docket nos. 137424 and 137453, from the state school aid fund money

 

appropriated in section 11 there is allocated for 2013-2014 2014-

 

2015 an amount not to exceed $38,000,500.00 to be used solely for

 

the purpose of paying necessary costs related to the state-mandated


 

collection, maintenance, and reporting of data to this state.

 

     (2) From the allocation in subsection (1), the department

 

shall make payments to districts and intermediate districts in an

 

equal amount per pupil based on the total number of pupils in

 

membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after

 

the final installment payment under section 17b is made.

 

     Sec. 161. A school official or member of a board or other

 

person who neglects or refuses to do or perform an act required by

 

this act or who violates or knowingly permits or consents to the

 

violation of this act is guilty of a misdemeanor, punishable by

 

imprisonment for not more than 90 days, or a fine of not more than

 

$1,500.00, or both. This penalty is in addition to all other

 

financial penalties otherwise specified in this article.

 

     Sec. 163. (1) Except as provided in the revised school code,

 

the board of a district or intermediate district shall not permit

 

any of the following:

 

     (a) A noncertificated teacher to teach in an elementary or

 

secondary school or in an adult basic education or high school

 

completion program.

 

     (b) A noncertificated counselor to provide counseling services

 

to pupils in an elementary or secondary school or in an adult basic

 

education or high school completion program.

 

     (2) Except as provided in the revised school code, a district

 

or intermediate district employing teachers or counselors not

 

legally certificated shall have deducted the sum equal to the

 

amount paid the teachers or counselors for the period of


 

noncertificated or illegal employment. Each intermediate

 

superintendent shall notify the department of the name of the

 

noncertificated teacher or counselor, and the district employing

 

that individual and the amount of salary the noncertificated

 

teacher or counselor was paid within a constituent district.

 

     (3) If a school official is notified by the department that he

 

or she is employing a nonapproved noncertificated teacher or

 

counselor in violation of this section and knowingly continues to

 

employ that teacher or counselor, the school official is guilty of

 

a misdemeanor, punishable by a fine of $1,500.00 for each

 

incidence. This penalty is in addition to all other financial

 

penalties otherwise specified in this article.

 

     Sec. 164f. The intermediate board of an intermediate district,

 

the board of a district, or the board of directors of a public

 

school academy may use funds appropriated under this article to

 

enter into a swap, hedge, derivative, or similar agreement in

 

connection with the procurement of diesel fuel. However, not more

 

than 25% of a district's, public school academy's, or intermediate

 

district's annual diesel fuel budget may be procured in the manner

 

allowed under this section.

 

     Sec. 168. In order to receive funds under this act, article, a

 

district, intermediate district, grant recipient, contractor, or

 

other entity that directly or indirectly receives funds under this

 

act article shall allow access for the department or the

 

department's designee to audit all records related to a program for

 

which it receives such funds under this article or has received

 

funds under this article for any of the 3 immediately preceding


 

fiscal years. The district, intermediate district, grant recipient,

 

contractor, or other entity shall reimburse the state for all

 

disallowances found in the audit.any audit conducted under this

 

article.

 

     Sec. 201. (1) Subject to the conditions set forth in this

 

article, the amounts listed in subsections (2), (4), (5), (6), and

 

(7) this section are appropriated for community colleges for the

 

fiscal year ending September 30, 2014, 2015, from the funds

 

indicated in this section. The following is a summary of the

 

appropriations in subsections (2), (4), (5), (6), and (7):this

 

section:

 

     (a) The gross appropriation is $335,977,600.00.

 

$364,724,900.00. After deducting total interdepartmental grants and

 

intradepartmental transfers in the amount of $0.00, the adjusted

 

gross appropriation is $335,977,600.00.$364,724,900.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $0.00.

 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues, $197,614,100.00.

 

     (v) State general fund/general purpose money,

 

$138,363,500.00.$167,110,800.00.

 

     (2) Subject to subsection (3), the amount appropriated for

 

community college operations is $298,244,000.00, $307,191,300.00,

 

allocated as follows:

 

     (a) The appropriation for Alpena Community College ,


 

$5,221,100.00.is $5,390,700.00, $5,236,500.00 for operations and

 

$154,200.00 for performance funding.

 

     (b) The appropriation for Bay de Noc Community College ,

 

$5,263,800.00.is $5,419,500.00, $5,279,300.00 for operations and

 

$140,200.00 for performance funding.

 

     (c) The appropriation for Delta College , $14,022,200.00.is

 

$14,498,900.00, $14,063,500.00 for operations and $435,400.00 for

 

performance funding.

 

     (d) The appropriation for Glen Oaks Community College ,

 

$2,434,300.00.is $2,516,100.00, $2,441,500.00 for operations and

 

$74,600.00 for performance funding.

 

     (e) The appropriation for Gogebic Community College ,

 

$4,317,500.00.is $4,451,400.00, $4,330,300.00 for operations and

 

$121,100.00 for performance funding.

 

     (f) The appropriation for Grand Rapids Community College ,

 

$17,403,500.00.is $17,947,500.00, $17,454,900.00 for operations and

 

$492,600.00 for performance funding.

 

     (g) The appropriation for Henry Ford Community College ,

 

$20,997,900.00.is $21,623,800.00, $21,060,000.00 for operations and

 

$563,800.00 for performance funding.

 

     (h) The appropriation for Jackson Community College ,

 

$11,723,600.00.is $12,087,300.00, $11,758,200.00 for operations and

 

$329,100.00 for performance funding.

 

     (i) The appropriation for Kalamazoo Valley Community College ,

 

$12,086,900.00is $12,503,100.00, $12,122,500.00 for operations and

 

$380,600.00 for performance funding.

 

     (j) The appropriation for Kellogg Community College ,


 

$9,494,000.00.is $9,813,500.00, $9,522,000.00 for operations and

 

$291,500.00 for performance funding.

 

     (k) The appropriation for Kirtland Community College ,

 

$3,046,800.00.is $3,167,700.00, $3,055,700.00 for operations and

 

$112,000.00 for performance funding.

 

     (l) The appropriation for Lake Michigan College ,

 

$5,162,900.00.is $5,342,900.00, $5,178,100.00 for operations and

 

$164,800.00 for performance funding.

 

     (m) The appropriation for Lansing Community College ,

 

$29,935,300.00.is $30,877,600.00, $30,023,700.00 for operations and

 

$853,900.00 for performance funding.

 

     (n) The appropriation for Macomb Community College ,

 

$31,837,200.00.is $32,816,600.00, $31,931,200.00 for operations and

 

$885,400.00 for performance funding.

 

     (o) The appropriation for Mid Michigan Community College ,

 

$4,504,700.00.is $4,682,000.00, $4,517,900.00 for operations and

 

$164,100.00 for performance funding.

 

     (p) The appropriation for Monroe County Community College ,

 

$4,329,900.00.is $4,492,900.00, $4,342,600.00 for operations and

 

$150,300.00 for performance funding.

 

     (q) The appropriation for Montcalm Community College ,

 

$3,112,000.00.is $3,226,700.00, $3,121,200.00 for operations and

 

$105,500.00 for performance funding.

 

     (r) The appropriation for C.S. Mott Community College ,

 

$15,202,200.00.is $15,686,100.00, $15,247,100.00 for operations and

 

$439,000.00 for performance funding.

 

     (s) The appropriation for Muskegon Community College ,


 

$8,628,000.00.is $8,901,000.00, $8,653,500.00 for operations and

 

$247,500.00 for performance funding.

 

     (t) The appropriation for North Central Michigan College ,

 

$3,055,400.00.is $3,172,400.00, $3,064,400.00 for operations and

 

$108,000.00 for performance funding.

 

     (u) The appropriation for Northwestern Michigan College ,

 

$8,799,300.00.is $9,078,800.00, $8,825,300.00 for operations and

 

$253,500.00 for performance funding.

 

     (v) The appropriation for Oakland Community College ,

 

$20,422,900.00.is $21,123,300.00, $20,483,100.00 for operations and

 

$640,200.00 for performance funding.

 

     (w) The appropriation for St. Clair County Community College ,

 

$6,839,900.00.is $7,061,600.00, $6,860,100.00 for operations and

 

$201,500.00 for performance funding.

 

     (x) The appropriation for Schoolcraft College ,

 

$12,076,700.00.is $12,513,700.00, $12,112,200.00 for operations and

 

$401,500.00 for performance funding.

 

     (y) The appropriation for Southwestern Michigan College ,

 

$6,385,400.00.is $6,576,400.00, $6,404,300.00 for operations and

 

$172,100.00 for performance funding.

 

     (z) The appropriation for Washtenaw Community College ,

 

$12,573,900.00.is $13,077,300.00, $12,610,800.00 for operations and

 

$466,500.00 for performance funding.

 

     (aa) The appropriation for Wayne County Community College ,

 

$16,146,700.00.is $16,727,600.00, $16,194,300.00 for operations and

 

$533,300.00 for performance funding.

 

     (bb) The appropriation for West Shore Community College ,


 

$2,342,900.00.is $2,414,900.00, $2,349,800.00 for operations and

 

$65,100.00 for performance funding.

 

     (cc) Local strategic value, $877,100.00.

 

     (3) The amount appropriated in subsection (2) for community

 

college operations is appropriated from the following:

 

     (a) State school aid fund, $195,880,500.00.

 

     (b) State general fund/general purpose money,

 

$102,363,500.00.$111,310,800.00.

 

     (4) From the appropriations described in subsection (1), there

 

is subject to section 207a, the amount appropriated for fiscal year

 

2013-2014 an amount not to exceed $1,733,600.00 for payments to

 

community colleges from the state school aid fund. A community

 

college that receives money under this subsection shall use that

 

money solely for the purpose of offsetting a portion of the

 

retirement contributions owed by the college for the fiscal year

 

ending September 30, 2014. The amount allocated to each

 

participating community college under this section shall be based

 

on each participating college's total payroll covered by the

 

retirement system-covered payroll for all participating colleges

 

for the immediately preceding state fiscal year.2014-2015 to offset

 

certain fiscal year 2014-2015 retirement contributions is

 

$1,733,600.00, appropriated from the state school aid fund.

 

     (5) From the appropriations described in subsection (1), there

 

is subject to section 207b, the amount appropriated an amount not

 

to exceed $31,400,000.00 from the state general fund for payments

 

to community colleges that are participating entities of the

 

retirement system is $52,300,000.00, appropriated from general


 

fund/general purpose money. All of the following apply to the

 

appropriations described in this subsection:

 

     (a) The amount of a payment under this subsection shall be the

 

difference between the unfunded actuarial accrued liability

 

contribution rate as calculated under section 41 of the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

 

and the maximum employer rate of 20.96% under section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.

 

     (b) The amount allocated to each community college under this

 

subsection shall be based on each community college's percentage of

 

the total covered payroll for all community colleges that are

 

participating colleges in the immediately preceding fiscal year. A

 

community college that receives funds under this subsection shall

 

use the funds solely for the purpose of retirement contributions

 

under subdivision (c).

 

     (c) Each participating college receiving funds under this

 

subsection shall forward an amount equal to the amount allocated

 

under subdivision (b) to the retirement system in a form and manner

 

determined by the retirement system.

 

     (6) All of the following apply to community colleges described

 

in section 12(3) of the Michigan renaissance zone act, MCL

 

125.2692:

 

     (a) From the appropriations described in subsection (1), the

 

following subject to section 207c, the amount is appropriated for

 

reimbursement to community colleges under section 12(3) of the

 

Michigan renaissance zone act, MCL 125.2692:renaissance zone tax


 

reimbursements is $3,500,000.00, appropriated from general

 

fund/general purpose money.

 

     (i) If the amount of tax revenue lost by community colleges as

 

a result of the exemption of property under the Michigan

 

renaissance zone act in fiscal year 2012-2013 is $3,500,000.00 or

 

more, $3,500,000.00 from the state general fund.

 

     (ii) If the amount of tax revenue lost by community colleges

 

as a result of the exemption of property under the Michigan

 

renaissance zone act in fiscal year 2012-2013 is less than

 

$3,500,000.00, the actual amount of tax revenue lost by the

 

community colleges.

 

     (b) The amount allocated to each community college under this

 

subsection shall be based on that community college's proportion of

 

total revenue lost by community colleges in fiscal year 2012-2013

 

as a result of the exemption of property under the Michigan

 

renaissance zone act.

 

     (c) The appropriations described in this subsection shall be

 

made to each eligible community college within 60 days after the

 

department of treasury certifies to the state budget director that

 

it has received all necessary information to properly determine the

 

amounts of tax revenue lost by each eligible community college in

 

fiscal year 2012-2013 under section 12 of the Michigan renaissance

 

zone act, MCL 125.2692.

 

     (7) From the appropriations described in subsection (1), there

 

is appropriated $1,100,000.00 from the state general fund, for

 

fiscal year 2013-2014 only, to the Michigan community college

 

association, for the purpose of expanding the Michigan community


 

college virtual learning collaborative. The Michigan community

 

college association shall provide information on request to the

 

house and senate subcommittees on community colleges, the house and

 

senate fiscal agencies, and the state budget director on the use of

 

these funds until the project is completed.

 

     (8) As used in this section:

 

     (a) "Michigan renaissance zone act" means the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

 

     (b) "Participating college" means a community college that is

 

a reporting unit of the retirement system and that reports

 

employees to the retirement system for the state fiscal year.

 

     (c) "Retirement board" means the board that administers the

 

retirement system under the public school employees retirement act

 

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (d) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 201a. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2015

 

2016 for the items listed in section 201. The fiscal year 2014-2015

 

2015-2016 appropriations are anticipated to be the same as those

 

for fiscal year 2013-2014, 2014-2015, except that the amounts will

 

be adjusted for changes in retirement costs, caseload and related

 

costs, federal fund match rates, economic factors, and available

 

revenue. These adjustments will be determined after the January

 

2014 2015 consensus revenue estimating conference.

 

     Sec. 202a. As used in this article: , "workforce


 

     (a) "Michigan renaissance zone act" means the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2681 to 125.2696.

 

     (b) "Participating college" means a community college that is

 

a reporting unit of the retirement system and that reports

 

employees to the retirement system for the state fiscal year.

 

     (c) "Retirement board" means the board that administers the

 

retirement system under the public school employees retirement act

 

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (d) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (e) "Workforce development agency" means the workforce

 

development agency of the Michigan strategic fund.

 

     Sec. 206. The funds appropriated in section 201 are

 

appropriated for community colleges with fiscal years ending June

 

30, 2014 2015 and shall be paid out of the state treasury and

 

distributed by the state treasurer to the respective community

 

colleges in 11 monthly installments on the sixteenth of each month,

 

or the next succeeding business day, beginning with October 16,

 

2013. 2014. Each community college shall accrue its July and August

 

2014 2015 payments to its institutional fiscal year ending June 30,

 

2014. 2015. However, if the state budget director determines that a

 

community college failed to submit all verified Michigan community

 

colleges activities classification structure data for school year

 

2012-2013 2013-2014 to the workforce development agency by November

 

1, 2013, 2014, or failed to submit its longitudinal data system

 

data set for school year 2012-2013 2013-2014 to the center for


 

educational performance and information under section 219, the

 

state treasurer shall withhold the monthly installments from that

 

community college until those data are submitted. The state budget

 

director shall notify the chairs of the house and senate

 

appropriations subcommittees on community colleges at least 10 days

 

before withholding funds from any community college.

 

     Sec. 207a. All of the following apply to the allocation of the

 

appropriations described in section 201(4):

 

     (a) A community college that receives money under section

 

201(4) shall use that money solely for the purpose of offsetting a

 

portion of the retirement contributions owed by the college for the

 

fiscal year ending September 30, 2015.

 

     (b) The amount allocated to each participating community

 

college under section 201(4) shall be based on each participating

 

college's total payroll covered by the retirement system-covered

 

payroll for all participating colleges for fiscal year 2013-2014.

 

     Sec. 207b. All of the following apply to the allocation of the

 

appropriations described in section 201(5) for payments to

 

community colleges that are participating entities of the

 

retirement system:

 

     (a) The amount of a payment under section 201(5) shall be the

 

difference between the unfunded actuarial accrued liability

 

contribution rate as calculated under section 41 of the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

 

and the maximum employer rate of 20.96% under section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.


 

     (b) The amount allocated to each community college under

 

section 201(5) shall be based on each community college's

 

percentage of the total covered payroll for all community colleges

 

that are participating colleges in the immediately preceding fiscal

 

year. A community college that receives funds under this

 

subdivision shall use the funds solely for the purpose of

 

retirement contributions under section 201(5).

 

     (c) Each participating college that receives funds under

 

section 201(5) shall forward an amount equal to the amount

 

allocated under subdivision (b) to the retirement system in a form

 

and manner determined by the retirement system.

 

     Sec. 207c. All of the following apply to the allocation of the

 

appropriations described in section 201(6) to community colleges

 

described in section 12(3) of the Michigan renaissance zone act,

 

MCL 125.2692:

 

     (a) The amount allocated to each community college under

 

section 201(6) shall be based on that community college's

 

proportion of total revenue lost by community colleges in fiscal

 

year 2013-2014 as a result of the exemption of property under the

 

Michigan renaissance zone act.

 

     (b) The appropriations described in section 201(6) shall be

 

made to each eligible community college within 60 days after the

 

department of treasury certifies to the state budget director that

 

it has received all necessary information to properly determine the

 

amounts of tax revenue lost by each eligible community college in

 

fiscal year 2013-2014 under section 12 of the Michigan renaissance

 

zone act, MCL 125.2692.


 

     Sec. 209. (1) Within 30 days after the board of a community

 

college adopts its annual operating budget for the following school

 

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

 

that budget, the community college shall make all of the following

 

available through a link on its website homepage:

 

     (a) The annual operating budget and subsequent budget

 

revisions.

 

     (b) A link to the most recent "Activities Classification

 

Structure Manual for Michigan Community Colleges".Data Book and

 

Companion".

 

     (c) General fund revenue and expenditure projections for

 

fiscal year 2013-2014 2014-2015 and fiscal year 2014-2015.2015-

 

2016.

 

     (d) A listing of all debt service obligations, detailed by

 

project, anticipated fiscal year 2013-2014 2014-2015 payment of

 

each project, and total outstanding debt.

 

     (e) The estimated cost to the community college resulting from

 

the patient protection and affordable care act, Public Law 111-148,

 

as amended by the health care and education reconciliation act of

 

2010, Public Law 111-152.

 

     (f) Links to all of the following for the community college:

 

     (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 of the


 

community college.

 

     (iii) Audits and financial reports for the most recent fiscal

 

year for which they are available.

 

     (iv) A copy of the board of trustees resolution regarding

 

compliance with best practices for the local strategic value

 

component described in section 230(3).230(2).

 

     (2) For statewide consistency and public visibility, community

 

colleges must use the icon badge provided by the department of

 

technology, management, and budget consistent with the icon badge

 

developed by the department of education for K-12 school districts.

 

It must appear on the front of each community college's homepage.

 

The size of the icon may be reduced to 150 x 150 pixels.

 

     (3) The state budget director shall determine whether a

 

community college has complied with this section. The state budget

 

director may withhold a community college's monthly installments

 

described in section 206 until the community college complies with

 

this section. The state budget director shall notify the chairs of

 

the house and senate appropriations subcommittee on community

 

colleges at least 10 days before withholding funds from any

 

community college.

 

     (4) Each community college shall report the following

 

information to the senate and house appropriations subcommittees on

 

community colleges, the senate and house fiscal agencies, and the

 

state budget office by November 15 , 2013, of each fiscal year and

 

post that information on the internet website required under

 

subsection (1):

 

     (a) Budgeted fiscal year 2013-2014 2014-2015 general fund


 

revenue from tuition and fees.

 

     (b) Budgeted fiscal year 2013-2014 2014-2015 general fund

 

revenue from state appropriations.

 

     (c) Budgeted fiscal year 2013-2014 2014-2015 general fund

 

revenue from property taxes.

 

     (d) Budgeted fiscal year 2013-2014 2014-2015 total general

 

fund revenue.

 

     (e) Budgeted fiscal year 2013-2014 2014-2015 total general

 

fund expenditures.

 

     (5) By November 15 of each year, a community college shall

 

report the following information to the center for educational

 

performance and information and post the information on its website

 

under the budget transparency icon badge:

 

     (a) Opportunities for earning college credit through the

 

following programs:

 

     (i) State approved career and technical education or a tech

 

prep articulated program of study.

 

     (ii) Direct college credit or concurrent enrollment.

 

     (iii) Dual enrollment.

 

     (iv) An early college/middle college program.

 

     (b) For each program described in subdivision (a) that the

 

community college offers, all of the following information:

 

     (i) The number of high school students participating in the

 

program.

 

     (ii) The number of school districts that participate in the

 

program with the community college.

 

     (iii) Whether a college professor, qualified local school


 

district employee, or other individual teaches the course or

 

courses in the program.

 

     (iv) The total cost to the community college to operate the

 

program.

 

     (v) The cost per credit hour for the course or courses in the

 

program.

 

     (vi) The location where the course or courses in the program

 

are held.

 

     (vii) Instructional resources offered to the program

 

instructors.

 

     (viii) Resources offered to the student in the program.

 

     (ix) Transportation services provided to students in the

 

program.

 

     Sec. 210b. (1) It is the intent of the legislature that the

 

Michigan association of collegiate registrars and admissions

 

officers implement any agreement or agreements among the community

 

colleges and universities concerning the transferability of college

 

courses resulting from the recommendations of the committee created

 

under former section 210a.

 

     (2) It is the intent of the legislature that the Michigan

 

association of collegiate registrars and admissions officers, the

 

Michigan community college association, and the presidents council,

 

state universities of Michigan shall together submit an

 

implementation update report to the senate and house appropriations

 

subcommittees on community colleges and higher education, the

 

senate and house fiscal agencies, and the state budget director by

 

March 1, 2014.2015.


 

     Sec. 217. (1) Unless otherwise specifically stated, all data

 

items used in determining state aid in this article are as defined

 

in the "2001 Manual for Uniform Financial Reporting, Michigan

 

Public Community Colleges", which shall be the basis for reporting

 

data, and the "Activities Classification Structure Manual for

 

Michigan Community Colleges", as amended, which shall be used to

 

document financial needs of the community colleges.The workforce

 

development agency shall do all of the following:

 

     (a) Establish, maintain, and coordinate the state community

 

college database commonly known as the "activities classification

 

structure" or "ACS" database.

 

     (b) Collect data concerning community colleges and community

 

college programs in this state, including data required by law.

 

     (c) Establish procedures to ensure the validity and

 

reliability of the data and the collection process.

 

     (d) Develop model data collection policies, including, but not

 

limited to, policies that ensure the privacy of any individual

 

student data. Privacy policies shall ensure that student social

 

security numbers are not released to the public for any purpose.

 

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

 

policymakers and community college officials to make informed

 

policy decisions.

 

     (f) Assist community colleges in complying with audits under

 

this section or federal law.

 

     (2) There is created within the workforce development agency

 

the activities classification structure advisory committee. The

 

committee shall provide advice to the director of the workforce


 

development agency regarding the management of the state community

 

college database, including, but not limited to:

 

     (a) Determining what data are necessary to collect and

 

maintain to enable state and community college officials to make

 

informed policy decisions.

 

     (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

 

accuracy of the data.

 

     (f) Establishing and maintaining policies related to data

 

collection, including, but not limited to, privacy policies related

 

to individual student data.

 

     (g) Ensuring that the data are made available to state

 

policymakers and citizens of this state in the most useful format

 

possible.

 

     (h) Addressing other matters as determined by the director of

 

the workforce development agency or as required by law.

 

     (3) The activities classification structure advisory committee

 

created in subsection (2) shall consist of the following members:

 

     (a) One representative from the house fiscal agency, appointed

 

by the director of the house fiscal agency.

 

     (b) One representative from the senate fiscal agency,


 

appointed by the director of the senate fiscal agency.

 

     (c) One representative from the workforce development agency,

 

appointed by the director of the workforce development agency.

 

     (d) One representative from the state budget office, appointed

 

by the state budget director.

 

     (e) One representative from the governor's policy office,

 

appointed by that office.

 

     (f) Four representatives of the Michigan community colleges

 

association, appointed by the president of the association. From

 

the groupings of community colleges given in table 17 of the

 

activities classification structure report described in subsection

 

(4), the association shall appoint 1 representative each from group

 

1, group 2, and group 3, and 1 representative from either group 3

 

or 4.

 

     (4) The activities classification structure advisory committee

 

shall review the existing activities classification structure

 

report, data, definitions, processes, and other items as needed and

 

publish an initial report on their findings and recommendations by

 

July 30, 2015. This report shall be submitted to the senate and

 

house appropriations subcommittees on community colleges, the

 

senate and house fiscal agencies, the director of the workforce

 

development agency, the state budget director, and the Michigan

 

community colleges association.

 

     Sec. 224. A community college shall use the P-20 longitudinal

 

data system to inform interested Michigan high schools and the

 

public of the aggregate academic status of its students for the

 

previous academic year, in a manner prescribed by the Michigan


 

community college association and in cooperation with the Michigan

 

association of secondary school principals. Community colleges

 

shall cooperate with the center for educational performance and

 

information to design and implement maintain a systematic approach

 

for accomplishing this work.

 

     Sec. 225. Each community college shall report to the house and

 

senate fiscal agencies, the state budget director, and the

 

workforce development agency by August 31, 2013, 2014, the tuition

 

and mandatory fees paid by a full-time in-district student and a

 

full-time out-of-district student as established by the college

 

governing board for the 2013-2014 2014-2015 academic year. This

 

report should also include the annual cost of attendance based on a

 

full-time course load of 30 credits. Each community college shall

 

also report any revisions to the reported 2012-2013 or 2013-2014

 

2014-2015 academic year tuition and mandatory fees adopted by the

 

college governing board to the house and senate fiscal agencies,

 

the state budget director, and the workforce development agency

 

within 15 days of being adopted.

 

     Sec. 229. (1) It is the intent of the legislature that each

 

community college that receives an appropriation in section 201

 

include in its admission application process a specific question as

 

to whether an applicant for admission is a veteran, an active

 

member of the military, a member of the national guard or military

 

reserves, or the spouse or dependent of a veteran, active member of

 

the military, or member of the national guard or military reserves,

 

has ever served or is currently serving in the United States armed

 

forces or is the spouse or dependent of an individual who has


 

served or is currently serving in the United States armed forces,

 

in order to more quickly identify potential educational assistance

 

available to that applicant.

 

     (2) It is the intent of the legislature that each public

 

community college that receives an appropriation in section 201

 

shall work with the house and senate community college

 

subcommittees, the Michigan community college association, and

 

veterans groups to review the issue of in-district tuition for

 

veterans of this state when determining tuition rates and fees.

 

     (3) As used in this section, "veteran" means an honorably

 

discharged veteran entitled to educational assistance under the

 

provisions of section 5003 of the post-911 veterans educational

 

assistance act of 2008, 38 USC 3301 to 3324.

 

     Sec. 229a. Included in the fiscal year 2013-2014 2014-2015

 

appropriations for the department of technology, management, and

 

budget are appropriations to provide funding for the state share of

 

costs for previously constructed capital projects for community

 

colleges. Those appropriations for state building authority rent

 

represent additional state general fund support for community

 

colleges, and the following is an estimate of the amount of that

 

support to each community college:

 

     (a) Alpena Community College, $434,500.00.$485,400.00.

 

     (b) Bay de Noc Community College, $644,500.00.$636,600.00.

 

     (c) Delta College, $2,877,700.00.$2,842,800.00.

 

     (d) Glen Oaks Community College, $124,900.00.$123,300.00.

 

     (e) Gogebic Community College, $78,100.00.$16,900.00.

 

     (f) Grand Rapids Community College,


 

$1,700,400.00.$1,792,400.00.

 

     (g) Henry Ford Community College, $1,126,800.00.$1,030,800.00.

 

     (h) Jackson Community College, $1,809,500.00.$1,787,300.00.

 

     (i) Kalamazoo Valley Community College,

 

$1,489,300.00.$1,471,000.00.

 

     (j) Kellogg Community College, $527,900.00.$521,400.00.

 

     (k) Kirtland Community College, $368,800.00.$364,000.00.

 

     (l) Lake Michigan College, $345,200.00.$340,900.00.

 

     (m) Lansing Community College, $617,600.00.$610,100.00.

 

     (n) Macomb Community College, $1,332,900.00.$1,316,600.00.

 

     (o) Mid Michigan Community College, $928,900.00.$1,117,300.00.

 

     (p) Monroe County Community College,

 

$1,375,600.00.$1,266,500.00.

 

     (q) Montcalm Community College, $1,015,700.00.$973,700.00.

 

     (r) C.S. Mott Community College, $1,830,400.00.$1,808,000.00.

 

     (s) Muskegon Community College, $201,000.00.$198,500.00.

 

     (t) North Central Michigan College, $476,300.00.$117,600.00.

 

     (u) Northwestern Michigan College,

 

$1,324,800.00.$1,308,600.00.

 

     (v) Oakland Community College, $472,100.00.$466,300.00.

 

     (w) St. Clair County Community College,

 

$361,400.00.$357,000.00.

 

     (x) Schoolcraft College, $1,569,500.00.$1,550,300.00.

 

     (y) Southwestern Michigan College, $538,600.00.$231,100.00.

 

     (z) Washtenaw Community College, $2,023,100.00.$1,680,600.00.

 

     (aa) Wayne County Community College,

 

$1,918,700.00.$1,466,000.00.


 

     (bb) West Shore Community College, $585,800.00.$578,600.00.

 

     Sec. 230. (1) It is the intent of the legislature that the

 

recommendations and performance measures developed by the

 

performance indicators task force formed under section 242 of 2005

 

PA 154 be reviewed and more fully implemented for distribution of

 

state funding to community colleges in future years.

 

     (2) Any additional funding provided to Money included in the

 

appropriations for community college operations under section

 

201(2) in fiscal year 2013-2014 that exceeds the amounts

 

appropriated for operations in fiscal year 2012-2013 2014-2015 for

 

performance funding is distributed based on the following formula:

 

     (a) Allocated proportionate to fiscal year 2012-2013 2013-2014

 

base appropriations, 50%.

 

     (b) Based on contact hour equated students, 10%.

 

     (c) Based on administrative costs, 7.5%.

 

     (d) Based on a weighted degree formula as provided for in the

 

2006 recommendations of the performance indicators task force,

 

17.5%.

 

     (e) Based on the local strategic value component, as developed

 

in cooperation with the Michigan community college association and

 

described in subsection (3), (2), 15%.

 

     (2) (3) The appropriation in section 201(2)(cc) Money included

 

in the appropriations for community college operations under

 

section 201(2) for local strategic value shall be allocated to each

 

community college that certifies to the state budget director,

 

through a board of trustees resolution on or before November 1,

 

2013, October 15, 2014, that the college has met 4 out of 5 best


 

practices listed in each category described in subsection (4). (3).

 

The resolution shall provide specifics as to how the community

 

college meets each best practice measure within each category. One-

 

third of funding available under the strategic value component

 

shall be allocated to each category described in subsection (4).

 

(3). Amounts distributed under local strategic value shall be on a

 

proportionate basis to each college's fiscal year 2012-2013 2013-

 

2014 operations funding. Payments to community colleges that

 

qualify for local strategic value funding shall be distributed with

 

the November installment payment described in section 206.

 

     (3) (4) For purposes of subsection (3), (2), the following

 

categories of best practices reflect functional activities of

 

community colleges that have strategic value to the local

 

communities and regional economies:

 

     (a) For Category A, economic development and business or

 

industry partnerships, the following:

 

     (i) The community college has active partnerships with local

 

employers including hospitals and health care providers.

 

     (ii) The community college provides customized on-site

 

training for area companies, employees, or both.

 

     (iii) The community college supports entrepreneurship through

 

a small business assistance center or other training or consulting

 

activities targeted toward small businesses.

 

     (iv) The community college supports technological advancement

 

through industry partnerships, incubation activities, or operation

 

of a Michigan technical education center or other advanced

 

technology center.


 

     (v) The community college has active partnerships with local

 

or regional workforce and economic development agencies.

 

     (b) For Category B, educational partnerships, the following:

 

     (i) The community college has active partnerships with

 

regional high schools, intermediate school districts, and career-

 

tech centers to provide instruction through dual enrollment,

 

concurrent enrollment, direct credit, middle college, or academy

 

programs.

 

     (ii) The community college hosts, sponsors, or participates in

 

enrichment programs for area K-12 students, such as college days,

 

summer or after-school programming, or science Olympiad.

 

     (iii) The community college provides, supports, or

 

participates in programming to promote successful transitions to

 

college for traditional age students, including grant programs such

 

as talent search, upward bound, or other activities to promote

 

college readiness in area high schools and community centers.

 

     (iv) The community college provides, supports, or participates

 

in programming to promote successful transitions to college for new

 

or reentering adult students, such as adult basic education, GED

 

preparation, GED testing, general education development certificate

 

preparation and testing, or recruiting, advising, or orientation

 

activities specific to adults.

 

     (v) The community college has active partnerships with

 

regional 4-year colleges and universities to promote successful

 

transfer, such as articulation, 2+2, or reverse transfer agreements

 

or operation of a university center.

 

     (c) For Category C, community services, the following:


 

     (i) The community college provides continuing education

 

programming for leisure, wellness, personal enrichment, or

 

professional development.

 

     (ii) The community college operates or sponsors opportunities

 

for community members to engage in activities that promote leisure,

 

wellness, cultural or personal enrichment such as community sports

 

teams, theater or musical ensembles, or artist guilds.

 

     (iii) The community college operates public facilities to

 

promote cultural, educational, or personal enrichment for community

 

members, such as libraries, computer labs, performing arts centers,

 

museums, art galleries, or television or radio stations.

 

     (iv) The community college operates public facilities to

 

promote leisure or wellness activities for community members,

 

including gymnasiums, athletic fields, tennis courts, fitness

 

centers, hiking or biking trails, or natural areas.

 

     (v) The community college promotes, sponsors, or hosts

 

community service activities for students, staff, or community

 

members.

 

     Sec. 236. (1) Subject to the conditions set forth in this

 

article, the amounts listed in subsections (2) to (6) this section

 

are appropriated for higher education for the fiscal year ending

 

September 30, 2014, 2015, from the funds indicated in this section.

 

The following is a summary of the appropriations in subsections (2)

 

to (6):this section:

 

     (a) The gross appropriation is $1,430,573,500.00.

 

$1,516,496,300.00. After deducting total interdepartmental grants

 

and intradepartmental transfers in the amount of $0.00, the


 

adjusted gross appropriation is

 

$1,430,573,500.00.$1,516,496,300.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $97,026,400.00.

 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues,

 

$200,565,700.00.$204,567,900.00.

 

     (v) State general fund/general purpose money,

 

$1,132,981,400.00.$1,214,902,000.00.

 

     (2) Amounts appropriated for public universities are as

 

follows:

 

     (a) The appropriation for Central Michigan University is

 

$73,486,600.00, $71,352,300.00 $79,115,000.00, $73,540,100.00 for

 

operations and $2,134,300.00 $5,574,900.00 for performance funding.

 

, appropriated from the following:

 

     (i) State school aid fund, $11,284,600.00.

 

     (ii) State general fund/general purpose money, $62,202,000.00.

 

     (b) The appropriation for Eastern Michigan University is

 

$67,255,600.00, $66,466,700.00 $71,771,100.00, $67,275,400.00 for

 

operations and $788,900.00 $4,495,700.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $10,706,400.00.

 

     (ii) State general fund/general purpose money, $56,549,200.00.

 

     (c) The appropriation for Ferris State University is

 

$45,602,600.00, $44,250,700.00 $49,087,000.00, $45,636,500.00 for


 

operations and $1,351,900.00 $3,450,500.00 for performance funding.

 

, appropriated from the following:

 

     (i) State school aid fund, $6,846,800.00.

 

     (ii) State general fund/general purpose money, $38,755,800.00.

 

     (d) The appropriation for Grand Valley State University is

 

$57,765,100.00, $55,436,000.00 $63,136,000.00, $57,823,500.00 for

 

operations and $2,329,100.00 $5,312,500.00 for performance funding.

 

, appropriated from the following:

 

     (i) State school aid fund, $8,727,800.00.

 

     (ii) State general fund/general purpose money, $49,037,300.00.

 

     (e) The appropriation for Lake Superior State University is

 

$12,226,500.00, $12,046,100.00 $12,782,500.00, $12,231,000.00 for

 

operations and $180,400.00 $551,500.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $1,787,600.00.

 

     (ii) State general fund/general purpose money, $10,438,900.00.

 

     (f) The appropriation for Michigan State University is

 

$305,775,000.00, $245,037,000.00 $324,038,100.00, $249,597,800.00

 

for operations, $4,449,300.00 $14,831,300.00 for performance

 

funding, $30,243,900.00 $32,027,900.00 for MSU AgBioResearch, and

 

$26,044,800.00 $27,581,100.00 for MSU extension. , appropriated

 

from the following:

 

     (i) State school aid fund, $39,949,900.00.

 

     (ii) State general fund/general purpose money,

 

$265,825,100.00.

 

     (g) The appropriation for Michigan Technological University is

 

$43,451,900.00, $42,579,100.00 $45,923,100.00, $43,473,800.00 for


 

operations and $872,800.00 $2,449,300.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $6,748,900.00.

 

     (ii) State general fund/general purpose money, $36,703,000.00.

 

     (h) The appropriation for Northern Michigan University is

 

$41,719,800.00, $40,856,600.00 $44,277,200.00, $41,741,400.00 for

 

operations and $863,200.00 $2,535,800.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $6,356,900.00.

 

     (ii) State general fund/general purpose money, $35,362,900.00.

 

     (i) The appropriation for Oakland University is

 

$45,634,800.00, $44,964,100.00 $48,364,100.00, $45,651,600.00 for

 

operations and $670,700.00 $2,712,500.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $7,148,400.00.

 

     (ii) State general fund/general purpose money, $38,486,400.00.

 

     (j) The appropriation for Saginaw Valley State University is

 

$25,982,800.00, $25,656,700.00 $27,610,200.00, $25,991,000.00 for

 

operations and $326,100.00 $1,619,200.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $3,903,800.00.

 

     (ii) State general fund/general purpose money, $22,079,000.00.

 

     (k) The appropriation for University of Michigan - Ann Arbor

 

is $279,108,700.00, $274,156,700.00 $295,174,100.00,

 

$279,232,700.00 for operations and $4,952,000.00 $15,941,400.00 for

 

performance funding. , appropriated from the following:

 

     (i) State school aid fund, $44,536,300.00.


 

     (ii) State general fund/general purpose money,

 

$234,572,400.00.

 

     (l) The appropriation for University of Michigan – Dearborn is

 

$22,503,700.00, $22,237,300.00 $23,689,300.00, $22,510,400.00 for

 

operations and $266,400.00 $1,178,900.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $3,482,100.00.

 

     (ii) State general fund/general purpose money, $19,021,600.00.

 

     (m) The appropriation for University of Michigan – Flint is

 

$19,928,100.00, $19,526,600.00 $21,337,700.00, $19,938,200.00 for

 

operations and $401,500.00 $1,399,500.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $2,942,900.00.

 

     (ii) State general fund/general purpose money, $16,985,200.00.

 

     (n) The appropriation for Wayne State University is

 

$183,933,000.00, $190,519,800.00, $183,398,300.00 for operations

 

and $534,700.00 $7,121,500.00 for performance funding. ,

 

appropriated from the following:

 

     (i) State school aid fund, $30,160,600.00.

 

     (ii) State general fund/general purpose money,

 

$153,772,400.00.

 

     (o) The appropriation for Western Michigan University is

 

$97,235,200.00, $95,487,500.00 $102,742,000.00, $97,279,000.00 for

 

operations and $1,747,700.00 $5,463,000.00 for performance funding.

 

, appropriated from the following:

 

     (i) State school aid fund, $15,436,500.00.

 

     (ii) State general fund/general purpose money, $81,798,700.00.


 

     (3) The amount appropriated in subsection (2) for public

 

universities is appropriated from the following:

 

     (a) State school aid fund, $200,019,500.00.

 

     (b) State general fund/general purpose money,

 

$1,199,547,700.00.

 

     (4) (3) The amount appropriated for Michigan public school

 

employees' retirement system reimbursement is $2,446,200.00,

 

$446,200.00 appropriated from the state school aid fund and

 

$2,000,000.00 appropriated from general fund/general purpose money.

 

     (5) For fiscal year 2014-2015 only, in addition to the amount

 

appropriated under subsection (4), $4,002,200.00 is appropriated

 

for Michigan public school employees' retirement system

 

reimbursement, appropriated from the state school aid fund.

 

     (6) (4) The amount appropriated for state and regional

 

programs is $2,200,000.00 $2,295,000.00 appropriated from general

 

fund/general purpose money and allocated as follows:

 

     (a) College access program, $2,000,000.00.

 

     (b) Higher education database modernization and conversion,

 

$105,000.00.$200,000.00.

 

     (c) Midwestern higher education compact, $95,000.00.

 

     (7) (5) The amount appropriated for the Martin Luther King,

 

Jr. - Cesar Chavez - Rosa Parks program is $2,691,500.00,

 

appropriated from general fund/general purpose money and allocated

 

as follows:

 

     (a) Select student support services, $1,956,100.00.

 

     (b) Michigan college/university partnership program,

 

$586,800.00.


 

     (c) Morris Hood, Jr. educator development program,

 

$148,600.00.

 

     (8) (6) Subject to subsection (7), (9), the amount

 

appropriated for grants and financial aid is $101,626,400.00,

 

$105,494,200.00, allocated as follows:

 

     (a) State competitive scholarships, $18,361,700.00.

 

     (b) Tuition grants, $31,664,700.00.$33,532,500.00.

 

     (c) Tuition incentive program, $47,000,000.00.$48,500,000.00.

 

     (d) Children of veterans and officer's survivor tuition grant

 

programs, $1,400,000.00.

 

     (e) Project GEAR-UP, $3,200,000.00.

 

     (f) North American Indian tuition waivers, $500,000.00.

 

     (9) (7) The money appropriated in subsection (6) (8) for

 

grants and financial aid is appropriated from the following:

 

     (a) Federal revenues under the United States department of

 

education, office of elementary and secondary education, GEAR-UP

 

program, $3,200,000.00.

 

     (b) Federal revenues under the social security act, temporary

 

assistance for needy families, $93,826,400.00.

 

     (c) Contributions to children of veterans tuition grant

 

program, $100,000.00.

 

     (d) State general fund/general purpose money,

 

$4,500,000.00.$8,367,800.00.

 

     Sec. 236a. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2015

 

2016 for the items listed in section 236. The fiscal year 2014-2015

 

2015-2016 appropriations are anticipated to be the same as those


 

for fiscal year 2013-2014, 2014-2015, except that the amounts will

 

be adjusted for changes in caseload and related costs, federal fund

 

match rates, economic factors, and available revenue. These

 

adjustments will be determined after the January 2014 2015

 

consensus revenue estimating conference.

 

     Sec. 236b. In addition to the funds appropriated in section

 

236, there is appropriated for grants and financial aid in fiscal

 

year 2013-2014 2014-2015 an amount not to exceed $6,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred under section 393(2)

 

of the management and budget act, 1984 PA 431, MCL 18.1393, for

 

another purpose under this article.

 

     Sec. 236c. In addition to the funds appropriated for fiscal

 

year 2013-2014 2014-2015 in section 236, appropriations to the

 

department of technology, management, and budget in the act

 

providing general appropriations for fiscal year 2013-2014 2014-

 

2015 for state building authority rent, totaling an estimated

 

$125,370,600.00, $124,825,300.00, provide funding for the state

 

share of costs for previously constructed capital projects for

 

state universities. These appropriations for state building

 

authority rent represent additional state general fund support

 

provided to public universities, and the following is an estimate

 

of the amount of that support to each university:

 

     (a) Central Michigan University, $9,155,600.00.$9,103,200.00.

 

     (b) Eastern Michigan University, $5,234,800.00.$4,861,700.00.

 

     (c) Ferris State University, $6,360,600.00.$6,252,200.00.

 

     (d) Grand Valley State University,


 

$4,277,000.00.$4,252,500.00.

 

     (e) Lake Superior State University, $915,600.00.$1,112,900.00.

 

     (f) Michigan State University, $16,194,400.00.$16,101,200.00.

 

     (g) Michigan Technological University,

 

$7,692,200.00.$7,444,600.00.

 

     (h) Northern Michigan University, $8,062,600.00.$8,016,400.00.

 

     (i) Oakland University, $10,791,500.00.$10,969,800.00.

 

     (j) Saginaw Valley State University,

 

$9,833,700.00.$9,777,400.00.

 

     (k) University of Michigan - Ann Arbor,

 

$9,212,000.00.$9,159,200.00.

 

     (l) University of Michigan - Dearborn,

 

$6,332,400.00.$6,296,200.00.

 

     (m) University of Michigan - Flint,

 

$2,871,400.00.$2,855,000.00.

 

     (n) Wayne State University, $13,079,500.00.$13,679,800.00.

 

     (o) Western Michigan University,

 

$15,357,300.00.$14,943,200.00.

 

     Sec. 241. (1) Subject to section 265a, the funds appropriated

 

in section 236 to public universities shall be paid out of the

 

state treasury and distributed by the state treasurer to the

 

respective institutions in 11 equal monthly installments on the

 

sixteenth of each month, or the next succeeding business day,

 

beginning with October 16, 2013. 2014. Except for Wayne State

 

University, each institution shall accrue its July and August 2014

 

2015 payments to its institutional fiscal year ending June 30,

 

2014.2015.


 

     (2) All public universities shall submit higher education

 

institutional data inventory (HEIDI) data and associated financial

 

and program information requested by and in a manner prescribed by

 

the state budget director. For public universities with fiscal

 

years ending June 30, 2013, 2014, these data shall be submitted to

 

the state budget director by October 15, 2013. 2014. Public

 

universities with a fiscal year ending September 30, 2013 2014

 

shall submit preliminary HEIDI data by November 15, 2013 2014 and

 

final data by December 15, 2013. 2014. If a public university fails

 

to submit HEIDI data and associated financial aid program

 

information in accordance with this reporting schedule, the state

 

treasurer may withhold the monthly installments under subsection

 

(1) to the public university until those data are submitted.

 

     Sec. 245. (1) Within 30 days after the board of a public

 

university adopts its annual operating budget for the following

 

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

 

to that budget, the A public university shall make all of the

 

following maintain a public transparency website available through

 

a link on its website homepage. : The public university shall

 

update this website within 30 days after the university's governing

 

board adopts its annual operating budget for the next academic

 

year, or after the governing board adopts a subsequent revision to

 

that budget.

 

     (2) The website required under subsection (1) shall include

 

all of the following concerning the public university:

 

     (a) The annual operating budget and subsequent budget

 

revisions.


 

     (b) A summary of current expenditures for the most recent

 

fiscal year for which they are available, expressed as pie charts

 

in the following 2 categories:

 

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

 

following subcategories:

 

     (A) Earnings 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 current expenditures the public university

 

reported as part of its higher education institutional data

 

inventory data under section 241(2), broken into the same

 

subcategories in which it reported those data.

 

     (c) Links to all of the following for the public university:

 

     (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 of the public

 

university.

 

     (iii) Audits and financial reports for the most recent fiscal

 

year for which they are available.

 

     (iv) Campus security policies and crime statistics pursuant to

 

the student right-to-know and campus security act, Public Law 101-


 

542, 104 Stat. 2381. Information shall include all material

 

prepared pursuant to the public information reporting requirements

 

under the crime awareness and campus security act of 1990, title II

 

of the student right-to-know and campus security act, Public Law

 

101-542, 104 Stat. 2381.

 

     (d) A list of all positions funded partially or wholly through

 

institutional general fund revenue that includes the position title

 

and annual salary or wage amount for each position.

 

     (e) General fund revenue and expenditure projections for the

 

current fiscal year 2013-2014 and the next fiscal year. 2014-2015.

 

     (f) A listing of all debt service obligations, detailed by

 

project, anticipated fiscal year 2013-2014 payment for each

 

project, and total outstanding debt for the current fiscal year.

 

     (g) The institution's policy regarding the transferability of

 

core college courses between community colleges and the university.

 

     (h) A listing of all community colleges that have entered into

 

reverse transfer agreements with the university.

 

     (3) (2) A On the website required under subsection (1), a

 

public university shall provide a dashboard or report card

 

demonstrating the university's performance in several "best

 

practice" measures. The dashboard or report card shall include at

 

least all of the following for the 3 most recent school academic

 

years for which the data are available:

 

     (a) Enrollment.

 

     (b) Student retention rate.

 

     (c) Six-year graduation rates.

 

     (d) Number of Pell grant recipients and graduating Pell grant


 

recipients.

 

     (e) Geographic origination of students, categorized as in-

 

state, out-of-state, and international.

 

     (f) Faculty to student ratios and total university employee to

 

student ratios.

 

     (g) Teaching load by faculty classification.

 

     (h) Graduation outcome rates, including employment and

 

continuing education.

 

     (4) (3) For statewide consistency and public visibility,

 

public universities must use the icon badge provided by the

 

department of technology, management, and budget consistent with

 

the icon badge developed by the department of education for K-12

 

school districts. It must appear on the front of each public

 

university's homepage. The size of the icon may be reduced to 150 x

 

150 pixels. The font size and style for this reporting must be

 

consistent with other documents on each university's website.

 

     (5) (4) The state budget director shall determine whether a

 

public university has complied with this section. The state budget

 

director may withhold a public university's monthly installments

 

described in section 241 until the public university complies with

 

this section.

 

     (6) By November 15 of each year, a public university shall

 

report the following information to the center for educational

 

performance and information and post the information on its website

 

under the budget transparency icon badge:

 

     (a) Opportunities for earning college credit through the

 

following programs:


 

     (i) State approved career and technical education or a tech

 

prep articulated program of study.

 

     (ii) Direct college credit or concurrent enrollment.

 

     (iii) Dual enrollment.

 

     (iv) An early college/middle college program.

 

     (b) For each program described in subdivision (a) that the

 

public university offers, all of the following information:

 

     (i) The number of high school students participating in the

 

program.

 

     (ii) The number of school districts that participate in the

 

program with the public university.

 

     (iii) Whether a university professor, qualified local school

 

district employee, or other individual teaches the course or

 

courses in the program.

 

     (iv) The total cost to the public university to operate the

 

program.

 

     (v) The cost per credit hour for the course or courses in the

 

program.

 

     (vi) The location where the course or courses in the program

 

are held.

 

     (vii) Instructional resources offered to the program

 

instructors.

 

     (viii) Resources offered to the student in the program.

 

     (ix) Transportation services provided to students in the

 

program.

 

     Sec. 246. (1) The funds appropriated in section 236 for

 

Michigan public school employees' retirement system reimbursement


 

shall be allocated to each participating public university under

 

this section based on each participating public university's total

 

retiree health care premiums paid for Michigan public school

 

employees' retirement system retirants in proportion to the total

 

retiree health care premiums paid for Michigan public school

 

employees' retirement system retirants for all participating public

 

universities percentage of the total combined payrolls of the

 

universities' employees who are members of the retirement system

 

and who were hired before January 1, 1996 and the universities'

 

employees who would have been members of the retirement system on

 

or after January 1, 1996, but for the enactment of 1995 PA 272 for

 

all public universities that are participating public universities

 

for the immediately preceding state fiscal year. Payments shall be

 

made in a form and manner determined by the office of retirement

 

services. A public university that receives money under this

 

section shall use that money solely for the purpose of offsetting a

 

portion of the retirement contributions owed by the university.

 

     (2) As used in this section, "participating public university"

 

means a public university that is a reporting unit of the Michigan

 

public school employees' retirement system under the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

 

38.1408, and that pays retiree health care premiums contributions

 

to the Michigan public school employees' retirement system for the

 

state fiscal year.

 

     Sec. 252. (1) The amounts appropriated in section 236 for the

 

state tuition grant program shall be distributed pursuant to 1966

 

PA 313, MCL 390.991 to 390.997a.


 

     (2) Tuition grant awards shall be made to all eligible

 

Michigan residents enrolled in undergraduate degree programs who

 

are qualified and who apply before July 1 , 2012 for the 2012-2013

 

school year or July 1, 2013 for the 2013-2014 school year, as

 

applicable.of each year for the next academic year.

 

     (3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

 

subject to subsection subsections (7) and (8), the department of

 

treasury shall determine an actual maximum tuition grant award per

 

student, which shall be no less than $1,512.00, that ensures that

 

the aggregate payments for the tuition grant program do not exceed

 

the appropriation contained in section 236 for the state tuition

 

grant program. If the department determines that insufficient funds

 

are available to establish a maximum award amount equal to at least

 

$1,512.00, the department shall immediately report to the house and

 

senate appropriations subcommittees on higher education, the house

 

and senate fiscal agencies, and the state budget director regarding

 

the estimated amount of additional funds necessary to establish a

 

$1,512.00 maximum award amount. If the department determines that

 

sufficient funds are available to establish a maximum award amount

 

equal to at least $1,512.00, the department shall immediately

 

report to the house and senate appropriations subcommittees on

 

higher education, the house and senate fiscal agencies, and the

 

state budget director regarding the maximum award amount

 

established and the projected amount of any projected year-end

 

appropriation balance based on that maximum award amount. By

 

December 15, and again by February 18 of each fiscal year, the

 

department shall analyze the status of award commitments, shall


 

make any necessary adjustments, and shall confirm that those award

 

commitments will not exceed the appropriation contained in section

 

236 for the tuition grant program. The determination and actions

 

shall be reported to the state budget director and the house and

 

senate fiscal agencies no later than the final day of February of

 

each year. If award adjustments are necessary, the students shall

 

be notified of the adjustment by March 4 of each year.

 

     (4) Any unexpended and unencumbered funds remaining on

 

September 30, 2013 from the amounts appropriated in section 236 for

 

the tuition grant program for fiscal year 2012-2013 shall not lapse

 

on September 30, 2013, but shall continue to be available for

 

expenditure for tuition grants provided in the 2013-2014 fiscal

 

year under a work project account. The use of these unexpended

 

fiscal year 2012-2013 funds shall terminate at the end of the 2013-

 

2014 fiscal year. Any unexpended and unencumbered funds remaining

 

on September 30, 2014 2015 from the amounts appropriated in section

 

236 for the tuition grant program for fiscal year 2013-2014 2014-

 

2015 shall not lapse on September 30, 2014, 2015, but shall

 

continue to be available for expenditure for tuition grants

 

provided in the 2014-2015 2015-2016 fiscal year under a work

 

project account. The use of these unexpended fiscal year 2013-2014

 

2014-2015 funds shall terminate at the end of the 2014-2015 2015-

 

2016 fiscal year.

 

     (5) The department of treasury shall continue a proportional

 

tuition grant maximum award level for recipients enrolled less than

 

full-time in a given semester or term.

 

     (6) If the department of treasury increases the maximum award


 

per eligible student from that provided in the previous fiscal

 

year, it shall not have the effect of reducing the number of

 

eligible students receiving awards in relation to the total number

 

of eligible applicants. Any increase in the maximum grant shall be

 

proportional for all eligible students receiving awards for that

 

fiscal year.

 

     (7) In any fiscal year, Except as provided in subsection (4),

 

the department of treasury shall not award more than $3,000,000.00

 

$3,200,000.00 in tuition grants to eligible students enrolled in

 

the same independent nonprofit college or university in this state.

 

Any decrease in the maximum grant shall be proportional for all

 

eligible students enrolled in that college or university, as

 

determined by the department.

 

     (8) The department of treasury shall not award tuition grants

 

to otherwise eligible students enrolled in an independent college

 

or university that does not report, in a form and manner directed

 

by and satisfactory to the department of treasury, by August 31 of

 

each year, beginning with August 31, 2015, all of the following:

 

     (a) The number of students in the most recently completed

 

academic year that received a state tuition grant and successfully

 

completed a program or graduated.

 

     (b) The number of students in the most recently completed

 

academic year that received a state tuition grant and took a

 

remedial education class.

 

     (c) The number of students in the most recently completed

 

academic year that received a Pell grant and successfully completed

 

a program or graduated.


 

     Sec. 256. (1) The funds appropriated in section 236 for the

 

tuition incentive program shall be distributed as provided in this

 

section and pursuant to the administrative procedures for the

 

tuition incentive program of the department of treasury.

 

     (2) As used in this section:

 

     (a) "Phase I" means the first part of the tuition incentive

 

assistance program defined as the academic period of 80 semester or

 

120 term credits, or less, leading to an associate degree or

 

certificate.

 

     (b) "Phase II" means the second part of the tuition incentive

 

assistance program which provides assistance in the third and

 

fourth year of 4-year degree programs.

 

     (c) "Department" means the department of treasury.

 

     (3) An individual shall meet the following basic criteria and

 

financial thresholds to be eligible for tuition incentive benefits:

 

     (a) To be eligible for phase I, an individual shall meet all

 

of the following criteria:

 

     (i) Apply for certification to the department any time after

 

he or she begins the sixth grade but before graduating August 31 of

 

the school year in which he or she graduates from high school or

 

before completing the a general education development (GED)

 

certificate.

 

     (ii) Be less than 20 years of age at the time he or she

 

graduates from high school with a diploma or certificate of

 

completion or completes his or her GED.a general education

 

development certificate.

 

     (iii) Be a United States citizen and a resident of Michigan


 

according to institutional criteria.

 

     (iv) Be at least a half-time student, earning less than 80

 

semester or 120 term credits at a participating educational

 

institution within 4 years of high school graduation or GED

 

certificate completion.completion of a general education

 

development certificate.

 

     (v) Request information on filing a FAFSA.

 

     (vi) Must meet the satisfactory academic progress policy of

 

the educational institution he or she attends.

 

     (b) To be eligible for phase II, an individual shall meet

 

either of the following criteria in addition to the criteria in

 

subdivision (a):

 

     (i) Complete at least 56 transferable semester or 84

 

transferable term credits.

 

     (ii) Obtain an associate degree or certificate at a

 

participating institution.

 

     (c) To be eligible for phase I or phase II, an individual must

 

not be incarcerated and must be financially eligible as determined

 

by the department. An individual is financially eligible for the

 

tuition incentive program if he or she was eligible for Medicaid

 

from the state of Michigan for 24 months within the 36 months

 

before application. The department shall accept certification of

 

Medicaid eligibility only from the department of human services for

 

the purposes of verifying if a person is Medicaid eligible for 24

 

months within the 36 months before application. Certification of

 

eligibility may begin in the sixth grade. As used in this

 

subdivision, "incarcerated" does not include detention of a


 

juvenile in a state-operated or privately operated juvenile

 

detention facility.

 

     (4) For phase I, the department shall provide payment on

 

behalf of a person eligible under subsection (3). The department

 

shall reject billings that are excessive or outside the guidelines

 

for the type of educational institution.

 

     (5) For phase I, all of the following apply:

 

     (a) Payments for associate degree or certificate programs

 

shall not be made for more than 80 semester or 120 term credits for

 

any individual student at any participating institution.

 

     (b) For persons enrolled at a Michigan community college, the

 

department shall pay the current in-district tuition and mandatory

 

fees. For persons residing in an area that is not included in any

 

community college district, the out-of-district tuition rate may be

 

authorized.

 

     (c) For persons enrolled at a Michigan public university, the

 

department shall pay lower division resident tuition and mandatory

 

fees for the current year.

 

     (d) For persons enrolled at a Michigan independent, nonprofit

 

degree-granting college or university, or a Michigan federal

 

tribally controlled community college, or Focus: HOPE, the

 

department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college

 

in-district per-credit tuition rate as reported on August 1, for

 

the immediately preceding academic year.

 

     (6) A person participating in phase II may be eligible for

 

additional funds not to exceed $500.00 per semester or $400.00 per


 

term up to a maximum of $2,000.00 subject to the following

 

conditions:

 

     (a) Credits are earned in a 4-year program at a Michigan

 

degree-granting 4-year college or university.

 

     (b) The tuition reimbursement is for coursework completed

 

within 30 months of completion of the phase I requirements.

 

     (7) The department shall work closely with participating

 

institutions to develop an application and eligibility

 

determination process that will provide the highest level of

 

participation and ensure that all requirements of the program are

 

met.

 

     (8) Applications for the tuition incentive program may be

 

approved at any time after the student begins the sixth grade. If a

 

determination of financial eligibility is made, that determination

 

is valid as long as the student meets all other program

 

requirements and conditions.

 

     (9) Each institution shall ensure that all known available

 

restricted grants for tuition and fees are used prior to billing

 

the tuition incentive program for any portion of a student's

 

tuition and fees.

 

     (10) The department shall ensure that the tuition incentive

 

program is well publicized and that eligible Medicaid clients are

 

provided information on the program. The department shall provide

 

the necessary funding and staff to fully operate the program.

 

     Sec. 263. (1) Included in the appropriation in section 236 for

 

fiscal year 2014-2015 for MSU AgBioResearch is $2,982,900.00 and

 

included in the appropriation in section 236 for MSU extension is


 

$2,645,200.00 for project GREEEN. Project GREEEN is intended to

 

address critical regulatory, food safety, economic, and

 

environmental problems faced by this state's plant-based

 

agriculture, forestry, and processing industries. "GREEEN" is an

 

acronym for generating research and extension to meet environmental

 

and economic needs.

 

     (2) The department of agriculture and rural development and

 

Michigan State University, in consultation with agricultural

 

commodity groups and other interested parties, shall develop

 

project GREEEN and its program priorities.

 

     Sec. 263a. (1) Not later than September 30 of each year,

 

Michigan State University shall submit a report on MSU

 

AgBioResearch and MSU extension to the house and senate

 

appropriations subcommittees on agriculture and on higher

 

education, the house and senate standing committees on agriculture,

 

the house and senate fiscal agencies, and the state budget director

 

for the preceding school academic fiscal year.

 

     (2) The report required under subsection (1) shall include all

 

of the following:

 

     (a) Total funds expended by MSU AgBioResearch and by MSU

 

extension service identified by state, local, private, federal, and

 

university fund sources.

 

     (b) The metric goals that were used to evaluate the impacts of

 

programs operated by MSU extension and MSU AgBioResearch. It is the

 

intent of the legislature that the following metric goals will be

 

used to evaluate the impacts of those programs:

 

     (i) Increasing the number of agriculture and food-related


 

firms collaborating with and using services of research and

 

extension faculty and staff by 3% per year.

 

     (ii) Increasing the number of individuals utilizing MSU

 

extension's educational services by 5% per year.

 

     (iii) Increasing external funds generated in support of

 

research and extension, beyond state appropriations, by 10% over

 

the amounts generated in the past 3 state fiscal years.

 

     (iv) Increasing the sector's total economic impact from

 

today's $71,000,000,000.00 to $100,000,000,000.00.

 

     (v) Doubling Michigan's agricultural exports from

 

$1,750,000,000.00 to $3,500,000,000.00.

 

     (vi) Increasing jobs in the food and agriculture sector by

 

10%.

 

     (vii) Improving access by Michigan consumers to healthy foods

 

by 20%.

 

     (c) A review of major programs within both MSU AgBioResearch

 

and MSU extension with specific reference to accomplishments,

 

impacts, and the metrics described in subdivision (b), including a

 

specific accounting of Project GREEEN expenditures and the impact

 

of those expenditures.

 

     Sec. 264. Included in the appropriation in section 236 for

 

fiscal year 2013-2014 2014-2015 for Michigan State University is

 

$80,000.00 for the Michigan future farmers of America association.

 

This $80,000.00 allocation shall not supplant any existing support

 

that Michigan State University provides to the Michigan future

 

farmers of America association.

 

     Sec. 265. (1) Payments under section 265a for performance


 

funding shall only be made to a public university that certifies to

 

the state budget director by August 31, 2013 2014 that its board

 

did not adopt an increase in tuition and fee rates for resident

 

undergraduate students after September 1, 2012 2013 for the 2012-

 

2013 2013-2014 academic year and that its board will not adopt an

 

increase in tuition and fee rates for resident undergraduate

 

students for the 2013-2014 2014-2015 academic year that is greater

 

than 3.75%. 3.2%. As used in this subsection:

 

     (a) Subject to subdivision (c), "fee" means any board-

 

authorized fee that will be paid by more than 1/2 of all resident

 

undergraduate students at least once during their enrollment at a

 

public university. A university increasing a fee that applies to a

 

specific subset of students or courses shall provide sufficient

 

information to prove that the increase applied to that subset will

 

not cause the increase in the average amount of board-authorized

 

total tuition and fees paid by resident undergraduate students in

 

the 2013-2014 2014-2015 academic year to exceed the limit

 

established in this subsection.

 

     (b) "Tuition and fee rate" means the average of full-time

 

rates for all undergraduate classes, based on an average of the

 

rates authorized by the university board and actually charged to

 

students, deducting any uniformly-rebated or refunded amounts, for

 

the 2 semesters with the highest levels of full-time equated

 

resident undergraduate enrollment during the academic year.

 

     (c) For purposes of subdivision (a), for a public university

 

that compels resident undergraduate students to be covered by

 

health insurance as a condition to enroll at the university, "fee"


 

includes the annual amount a student is charged for coverage by the

 

university-affiliated group health insurance policy if he or she

 

does not provide proof that he or she is otherwise covered by

 

health insurance. This subdivision does not apply to limited

 

subsets of resident undergraduate students to be covered by health

 

insurance for specific reasons other than general enrollment at the

 

university.

 

     (2) The state budget director shall implement uniform

 

reporting requirements to ensure that a public university receiving

 

a payment under section 265a for performance funding has satisfied

 

the tuition restraint requirements of this section. The state

 

budget director shall have the sole authority to determine if a

 

public university has met the requirements of this section.

 

Information reported by a public university to the state budget

 

director under this subsection shall also be reported to the house

 

and senate appropriations subcommittees on higher education and the

 

house and senate fiscal agencies.

 

     Sec. 265a. (1) Appropriations to public universities in

 

section 236 for fiscal year 2014-2015 for performance funding shall

 

be paid only to a public university that complies with section 265

 

and certifies to the state budget director, the house and senate

 

appropriations subcommittees on higher education, and the house and

 

senate fiscal agencies by August 31, 2013 2014 that it complies

 

with all of the following requirements:

 

     (a) The university participates in reverse transfer agreements

 

described in section 286 with at least 3 Michigan community

 

colleges or has made a good-faith effort to enter into reverse


 

transfer agreements.

 

     (b) The university does not and will not consider whether dual

 

enrollment credits earned by an incoming student were utilized

 

towards his or her high school graduation requirements when making

 

a determination as to whether those credits may be used by the

 

student toward completion of a university degree or certificate

 

program.

 

     (c) The university participates in the Michigan transfer

 

network created as part of the Michigan association of collegiate

 

registrars and admissions officers transfer agreement.

 

     (2) Any performance funding amounts under section 236 that are

 

not paid to a public university because it did not comply with 1 or

 

more requirements under subsection (1) are unappropriated and

 

reappropriated for performance funding to those public universities

 

that meet the requirements under subsection (1), distributed in

 

proportion to their performance funding appropriation amounts under

 

section 236.

 

     (3) The state budget director shall report to the house and

 

senate appropriations subcommittees on higher education and the

 

house and senate fiscal agencies by September 17, 2013, 2014,

 

regarding any performance funding amounts that are not paid to a

 

public university because it did not comply with 1 or more

 

requirements under subsection (1) and any reappropriation of funds

 

under subsection (2).

 

     (4) Performance funding amounts described in section 236 are

 

distributed based on the following formula:

 

     (a) Proportional to each university's share of total


 

operations funding appropriated in fiscal year 2010-2011, 50.0%.

 

     (b) (a) Based on weighted undergraduate completions in

 

critical skills areas, 22.2%.11.1%.

 

     (c) (b) Based on research and development expenditures, for

 

universities classified in Carnegie classifications as

 

doctoral/research universities, research universities (high

 

research activity), or research universities (very high research

 

activity) only, 11.1%.5.6%.

 

     (d) (c) Based on 6-year graduation rate, total degree

 

completions, and institutional support as a percentage of core

 

expenditures, and students receiving Pell grants, scored against

 

national Carnegie classification peers and weighted by total

 

undergraduate fiscal year equated students, 66.7%. 33.3%.

 

     (5) For purposes of determining the score of a university

 

under subsection (4)(c), (4)(d), each university is assigned 1 of

 

the following scores:

 

     (a) A university classified as in the top 20%, a score of 3.

 

     (b) A university classified as above national median, a score

 

of 2.

 

     (c) A university classified as improving, a score of 2. It is

 

the intent of the legislature that, beginning in the 2014-2015

 

2015-2016 state fiscal year, a university classified as improving

 

is assigned a score of 1.

 

     (d) A university that is not included in subdivision (a), (b),

 

or (c), a score of 0.

 

     (6) For purposes of this section, "Carnegie classification"

 

shall mean the basic classification of the university according to


 

the most recent version of the Carnegie classification of

 

institutions of higher education, published by the Carnegie

 

foundation for the advancement of teaching.

 

     Sec. 267. All public universities shall submit the amount of

 

tuition and fees actually charged to a full-time resident

 

undergraduate student for academic year 2013-2014 2014-2015 as part

 

of their higher education institutional data inventory (HEIDI) data

 

by August 31 of each year. A public university shall report any

 

revisions for any semester of the reported academic year 2013-2014

 

2014-2015 tuition and fee charges to HEIDI within 15 days of being

 

adopted.

 

     Sec. 268. (1) For the fiscal year ending September 30, 2013,

 

2014, it is the intent of the legislature that funds be allocated

 

for unfunded North American Indian tuition waiver costs incurred by

 

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

 

from the general fund.

 

     (2) Appropriations in section 236(8)(f) for North American

 

Indian tuition waivers shall be paid to universities under section

 

2a of 1976 PA 174, MCL 390.1252a. Allocations shall be adjusted for

 

amounts included in university operations appropriations. If funds

 

are insufficient to support the entire cost of waivers, amounts

 

shall be prorated.

 

     (3) (2) By February 15 of each year, the department of civil

 

rights shall annually submit to the state budget director, the

 

house and senate appropriations subcommittees on higher education,

 

and the house and senate fiscal agencies for the preceding fiscal

 

year a report on North American Indian tuition waivers for the


 

preceding fiscal year that includes, but is not limited to, all of

 

the following information for each postsecondary institution:

 

     (a) The total number of waiver applications.

 

     (b) The total number of waivers granted and the monetary value

 

of each waiver.

 

     (c) The number of students who withdraw from classes.

 

     (d) The number of students who successfully complete a degree

 

or certificate program and the 6-year graduation rate.

 

     Sec. 269. For fiscal year 2013-2014, 2014-2015, from the

 

amount appropriated in section 236 to Central Michigan University

 

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

 

College for the costs of waiving tuition for North American Indians

 

under 1976 PA 174, MCL 390.1251 to 390.1253.

 

     Sec. 270. For fiscal year 2013-2014 2014-2015 from the amount

 

appropriated in section 236 to Lake Superior State University for

 

operations, $100,000.00 shall be paid to Bay Mills Community

 

College for the costs of waiving tuition for North American Indians

 

under 1976 PA 174, MCL 390.1251 to 390.1253.

 

     Sec. 271a. It is the intent of the legislature that a public

 

university that receives funds under section 236 shall not

 

knowingly and directly use any portion of those funds to offer any

 

instructional activity that targets specific companies or specific

 

groups of companies for unionization or decertification of a union.

 

     Sec. 272a. By February 15, 2014, of each year, each public

 

university receiving funds under section 236 shall submit a report

 

to the house and senate appropriations subcommittees on higher

 

education, the house and senate fiscal agencies, and the state


 

budget director regarding the rejection of transfer credits by the

 

university in the prior year. The report shall include information

 

on the number of credits earned by incoming resident students at

 

other postsecondary institutions in this state, with the equivalent

 

of a letter grade of C or higher, that were rejected by the

 

university for transfer, reported by both academic program area and

 

prior institution, along with explanatory information regarding the

 

rationale for the rejection of the credits. Data may be reported on

 

either an academic or calendar year basis.

 

     Sec. 273. It is the intent of the legislature that each public

 

university shall submit a report to the house and senate

 

appropriations committees, the house and senate fiscal agencies,

 

and the state budget director by October 15, 2013, 2014, on the

 

university's efforts to accommodate the sincerely held religious

 

beliefs of students enrolled in accredited counseling degree

 

programs at the university.

 

     Sec. 274. It is the intent of the legislature that public and

 

private organizations that conduct human embryonic stem cell

 

derivation subject to section 27 of article I of the state

 

constitution of 1963 will provide information to the director of

 

the department of community health by December 1, 2013 2014 that

 

includes all of the following:

 

     (a) Documentation that the organization conducting human

 

embryonic stem cell derivation is conducting its activities in

 

compliance with the requirements of section 27 of article I of the

 

state constitution of 1963 and all relevant national institutes of

 

health guidelines pertaining to embryonic stem cell derivation.


 

     (b) A list of all human embryonic stem cell lines submitted by

 

the organization to the national institutes of health for inclusion

 

in the human embryonic stem cell registry before and during fiscal

 

year 2012-2013, 2013-2014, and the status of each submission as

 

approved, pending approval, or review completed but not yet

 

accepted.

 

     (c) Number of human embryonic stem cell lines derived and not

 

submitted for inclusion in the human embryonic stem cell registry,

 

before and during fiscal year 2012-2013.2013-2014.

 

     Sec. 274a. (1) It is the intent of the legislature that a

 

public university that receives funds in section 236 not provide

 

health insurance or other fringe benefits for any adult coresident

 

of an employee of the university who is not married to or a

 

dependent of that employee or for any dependent of such an adult

 

coresident.

 

     (2) It is the intent of the legislature that each public

 

university receiving funds in section 236 submit a report by

 

December 1, 2013 2014 to the house and senate appropriations

 

subcommittees on higher education, the house and senate fiscal

 

agencies, and the state budget director containing the number of

 

individuals described in subsection (1) who received health

 

insurance or other fringe benefits provided by the university in

 

fiscal year 2012-2013 2013-2014 and the cost to the university of

 

providing those benefits.

 

     Sec. 275. (1) It is the intent of the legislature that each

 

public university that receives an appropriation in section 236 do

 

all of the following:


 

     (a) Meet the provisions of section 5003 of the post-911

 

veterans educational assistance act of 2008, 38 USC 3301 to 3324,

 

including voluntary participation in the yellow ribbon GI education

 

enhancement program established in that act in 38 USC 3317. By

 

October 1 of each year, each public university shall report to the

 

house and senate appropriations subcommittees on higher education,

 

the house and senate fiscal agencies, and the presidents council,

 

state universities of Michigan on whether or not it has chosen to

 

participate in the yellow ribbon GI education enhancement program.

 

If at any time during the fiscal year a university participating in

 

the yellow ribbon program chooses to leave the yellow ribbon

 

program, it shall notify the house and senate appropriations

 

subcommittees on higher education, the house and senate fiscal

 

agencies, and the presidents council, state universities of

 

Michigan.

 

     (b) Establish an on-campus veterans' liaison to provide

 

information and assistance to all student veterans.

 

     (c) Provide flexible enrollment application deadlines for all

 

veterans.

 

     (d) Include in its admission application process a specific

 

question as to whether an applicant for admission is a veteran, an

 

active member of the military, a member of the national guard or

 

military reserves, or the spouse or dependent of a veteran, active

 

member of the military, or member of the national guard or military

 

reserves, in order to more quickly identify potential educational

 

assistance available to that applicant.

 

     (e) Consider all veterans residents of this state for


 

determining their tuition rates and fees.

 

     (f) Waive enrollment fees for all veterans.

 

     (2) By October 1 of each year, each public university shall

 

report to the house and senate appropriations subcommittees on

 

higher education, the house and senate fiscal agencies, and the

 

department of military and veterans affairs regarding services

 

provided specifically to veterans and active military duty

 

personnel, including, but not limited to, the services described in

 

subsection (1).

 

     (3) (2) As used in this section, "veteran" means an honorably

 

discharged veteran entitled to educational assistance under the

 

provisions of section 5003 of the post-911 veterans educational

 

assistance act of 2008, 38 USC 3301 to 3324.

 

     Sec. 276. (1) Included in the appropriation for fiscal year

 

2013-2014 2014-2015 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

future faculty program that is intended to increase the pool of

 

academically or economically disadvantaged candidates pursuing

 

faculty teaching careers in postsecondary education. Preference may

 

not be given to applicants on the basis of race, color, ethnicity,

 

gender, or national origin. Institutions should encourage

 

applications from applicants who would otherwise not adequately be

 

represented in the graduate student and faculty populations. Each

 

public university shall apply the percentage change applicable to

 

every public university in the calculation of appropriations in

 

section 236 to the amount of funds allocated to the future faculty

 

program.


 

     (2) The program shall be administered by each public

 

university in a manner prescribed by the workforce development

 

agency. The workforce development agency shall use a good faith

 

effort standard to evaluate whether a fellowship is in default.

 

     Sec. 277. (1) Included in the appropriation for fiscal year

 

2013-2014 2014-2015 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

college day program that is intended to introduce academically or

 

economically disadvantaged schoolchildren to the potential of a

 

college education. Preference may not be given to participants on

 

the basis of race, color, ethnicity, gender, or national origin.

 

Public universities should encourage participation from those who

 

would otherwise not adequately be represented in the student

 

population.

 

     (2) Individual program plans of each public university shall

 

include a budget of equal contributions from this program, the

 

participating public university, the participating school district,

 

and the participating independent degree-granting college. College

 

day funds shall not be expended to cover indirect costs. Not more

 

than 20% of the university match shall be attributable to indirect

 

costs. Each public university shall apply the percentage change

 

applicable to every public university in the calculation of

 

appropriations in section 236 to the amount of funds allocated to

 

the college day program.

 

     (3) The program described in this section shall be

 

administered by each public university in a manner prescribed by

 

the workforce development agency.


 

     Sec. 278. (1) Included in section 236 for fiscal year 2013-

 

2014 2014-2015 is funding for the Martin Luther King, Jr. - Cesar

 

Chavez - Rosa Parks select student support services program for

 

developing academically or economically disadvantaged student

 

retention programs for 4-year public and independent educational

 

institutions in this state. Preference may not be given to

 

participants on the basis of race, color, ethnicity, gender, or

 

national origin. Institutions should encourage participation from

 

those who would otherwise not adequately be represented in the

 

student population.

 

     (2) An award made under this program to any 1 institution

 

shall not be greater than $150,000.00, and the amount awarded shall

 

be matched on a 70% state, 30% college or university basis.

 

     (3) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 279. (1) Included in section 236 for fiscal year 2013-

 

2014 2014-2015 is funding for the Martin Luther King, Jr. - Cesar

 

Chavez - Rosa Parks college/university partnership program between

 

4-year public and independent colleges and universities and public

 

community colleges, which is intended to increase the number of

 

academically or economically disadvantaged students who transfer

 

from community colleges into baccalaureate programs. Preference may

 

not be given to participants on the basis of race, color,

 

ethnicity, gender, or national origin. Institutions should

 

encourage participation from those who would otherwise not

 

adequately be represented in the transfer student population.

 

     (2) The grants shall be made under the program described in


 

this section to Michigan public and independent colleges and

 

universities. An award to any 1 institution shall not be greater

 

than $150,000.00, and the amount awarded shall be matched on a 70%

 

state, 30% college or university basis.

 

     (3) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 280. (1) Included in the appropriation for fiscal year

 

2013-2014 2014-2015 for each public university in section 236 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

 

visiting professors program which is intended to increase the

 

number of instructors in the classroom to provide role models for

 

academically or economically disadvantaged students. Preference may

 

not be given to participants on the basis of race, color,

 

ethnicity, gender, or national origin. Public universities should

 

encourage participation from those who would otherwise not

 

adequately be represented in the student population.

 

     (2) The program described in this section shall be

 

administered by the workforce development agency.

 

     Sec. 281. (1) Included in the appropriation for fiscal year

 

2013-2014 2014-2015 in section 236 is funding under the Martin

 

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

 

Morris Hood, Jr. educator development program which is intended to

 

increase the number of academically or economically disadvantaged

 

students who enroll in and complete K-12 teacher education programs

 

at the baccalaureate level. Preference may not be given to

 

participants on the basis of race, color, ethnicity, gender, or

 

national origin. Institutions should encourage participation from


 

those who would otherwise not adequately be represented in the

 

teacher education student population.

 

     (2) The program described in this section shall be

 

administered by each state-approved teacher education institution

 

in a manner prescribed by the workforce development agency.

 

     (3) Approved teacher education institutions may and are

 

encouraged to use student support services funding in coordination

 

with the Morris Hood, Jr. funding to achieve the goals of the

 

program described in this section.

 

     Sec. 282. Each institution receiving funds under section 278,

 

279, or 281 shall notify the workforce development agency by April

 

15, 2014 of each year as to whether it will expend by the end of

 

its fiscal year the funds received under section 278, 279, or 281.

 

Notwithstanding the award limitations in sections 278 and 279, the

 

amount of funding reported as not being expended will be

 

reallocated to the institutions that intend to expend all funding

 

received under section 278, 279, or 281.

 

     Sec. 283. (1) From the amount appropriated in section 236, the

 

public universities shall systematically inform Michigan high

 

schools regarding the academic status of students from each high

 

school in a manner prescribed by the presidents council, state

 

universities of Michigan in cooperation with the Michigan

 

association of secondary school principals. Public universities

 

shall also work with the center for educational performance and

 

information to design and implement maintain a systematic approach

 

for accomplishing this task.

 

     (2) Michigan high schools shall systematically inform the


 

public universities about the use of information received under

 

this section in a manner prescribed by the Michigan association of

 

secondary school principals in cooperation with the presidents

 

council, state universities of Michigan.

 

     Sec. 284. From the amount appropriated in section 236, the

 

public universities shall inform Michigan community colleges

 

regarding the academic status of community college transfer

 

students in a manner prescribed by the presidents council, state

 

universities of Michigan in cooperation with the Michigan community

 

college association. Public universities shall also work with the

 

center for educational performance and information to design and

 

implement maintain a systematic approach for accomplishing this

 

task.

 

     Enacting section 1. (1) In accordance with section 30 of

 

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

 

on school aid under 2013 PA 60, 2013 PA 130, 2014 PA 116, and this

 

amendatory act from state sources for fiscal year 2013-2014 is

 

estimated at $11,506,132,300.00 and state appropriations for school

 

aid to be paid to local units of government for fiscal year 2013-

 

2014 are estimated at $11,343,224,700.00. In accordance with

 

section 30 of article I of the state constitution of 1963, total

 

state spending on school aid under article I as amended by this

 

amendatory act from state sources for fiscal year 2014-2015 is

 

estimated at $12,062,162,900.00 and state appropriations for school

 

aid to be paid to local units of government for fiscal year 2014-

 

2015 are estimated at $11,905,777,600.00.

 

     (2) In accordance with section 30 of article IX of the state


 

constitution of 1963, total state spending from state sources for

 

community colleges for fiscal year 2014-2015 under article II is

 

estimated at $364,724,900.00 and the amount of that state spending

 

from state sources to be paid to local units of government for

 

fiscal year 2014-2015 is estimated at $364,724,900.00.

 

     (3) In accordance with section 30 of article IX of the state

 

constitution of 1963, total state spending from state sources for

 

higher education for fiscal year 2014-2015 under article III is

 

estimated at $1,419,469,900.00 and the amount of that state

 

spending from state sources to be paid to local units of government

 

for fiscal year 2014-2015 is estimated at $0.

 

     Enacting section 2. Sections 22k, 64a, 82, 95, and 229b of the

 

state school aid act of 1979, 1979 PA 94, MCL 388.1622k, 388.1664a,

 

388.1682, 388.1695, and 388.1829b, are repealed.

 

     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2014.

 

     (2) Sections 11, 22i, 41, and 101 of the state school aid act

 

of 1979, 1979 PA 94, MCL 388.1611, 388.1622i, 388.1641, and

 

388.1701, as amended by this amendatory act, and section 104c of

 

the state school aid act of 1979, 1979 PA 94, MCL 388.1704c, as

 

added by this amendatory act, take effect upon enactment of this

 

amendatory act.