HB-4115, As Passed House, April 29, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4115

(as amended April 29, 2015)

[A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 6, 8b, 11, 11a, 11j, 11k, 11m, 15, 18, 18a,

20, 20d, 20f, 21f, 22a, 22b, 22c, 22d, 22g, 23a, 24, 24a, 24c, 25f,

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 43, 51a, 51c, 51d,

53a, 54, 56, 61a, 62, 74, 81, 94, 94a, 95a, 98, 99, 99b, 99h, 101,

104, 104b, 104c, 107, 147, 147a, 147c, 152a, 163, 201, 201a, 206, 207a,

207b, 207c, 209, 210, 210b, 213, 217, 222, 225, 226, 229, 229a,

230, 236, 236a, 236b, 236c, 241, 244, 246, 252, 256, 258, 263,

263a, 264, 265, 265a, 267, 268, 269, 270, 274, 276, 277, 278, 279,

280, 281, 282, 283, 284, and 286 (MCL 388.1606, 388.1608b,

388.1611, 388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1615,

388.1618, 388.1618a, 388.1620, 388.1620d, 388.1620f, 388.1621f,

388.1622a, 388.1622b, 388.1622c, 388.1622d, 388.1622g, 388.1623a,

House Bill No. 4115 as amended April 29, 2015

388.1624, 388.1624a, 388.1624c, 388.1625f, 388.1626a, 388.1626b,

388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p,

388.1639, 388.1639a, 388.1643, 388.1651a, 388.1651c, 388.1651d,

388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 388.1674,

388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698, 388.1699,

388.1699b, 388.1699h, 388.1701, 388.1704, 388.1704b, 388.1704c, 388.1707,

388.1747, 388.1747a, 388.1747c, 388.1752a, 388.1763, 388.1801,

388.1801a, 388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1809,

388.1810, 388.1810b, 388.1813, 388.1817, 388.1822, 388.1825,

388.1826, 388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a,

388.1836b, 388.1836c, 388.1841, 388.1844, 388.1846, 388.1852,

388.1856, 388.1858, 388.1863, 388.1863a, 388.1864, 388.1865,

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874,

388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881,

388.1882, 388.1883, 388.1884, and 388.1886), sections 6, 8b, 11a,

11j, 11k, 15, 20, 20d, 20f, 21f, 22c, 22d, 22g, 24, 24a, 24c, 25f,

26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51d, 53a, 54, 56,

61a, 62, 74, 81, 94, 94a, 98, 99, 99h, 101, 104, 104b, 107, 147, 147a,

152a, 163, 201a, 206, 209, 210b, 217, 225, 229, 229a, 230, 236a,

236b, 236c, 241, 246, 252, 256, 263, 263a, 264, 265, 265a, 267,

268, 269, 270, 274, 276, 277, 278, 279, 280, 281, 282, 283, and 284

as amended and sections 43, 95a, 99b, 104c, 207a, 207b, and 207c as

added by 2014 PA 196, sections 11, 11m, 18, 22a, 22b, 51a, 51c,

147c, 201, and 236 as amended by 2015 PA 5, section 18a as amended

by 2004 PA 351, section 23a as added by 2012 PA 465, sections 210,

244, and 258 as amended by 2013 PA 60, and sections 213, 222, 226,

and 286 as amended by 2012 PA 201, and by adding sections 55, 65,

House Bill No. 4115 as amended April 29, 2015

67, 99q, 99r, 99s, 210c, 215, 260, and 274c; 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 education

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 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, as determined by the department

in accordance with the pupil accounting manual, in the cyber

school's educational program is considered regular daily

attendance; for the education achievement system, a pupil's

participation, as determined by the department in accordance with

the pupil accounting manual, 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.

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.

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

entered school.

current school year.

(D) Is considered to be homeless under 42 USC 11302.

(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~~ student with

a disability as defined in R 340.1702 of the Michigan

administrative code. An individual participating in a job training

program funded under former section 107a or a jobs program funded

under former section 107b, administered by the Michigan strategic

fund, or 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) and section 101.

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),~~ required under section 101, 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)~~ required under section 101 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),~~ required under section 101, 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)~~ required under section 101 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).~~ 101.

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~~ 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)~~ required under section 101 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) 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) 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) 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.

(y) 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 R 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) A pupil of a district that begins its school year after

Labor ~~day~~ Day who is enrolled in an intermediate district program

that begins before Labor ~~day~~ 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.~~Day.

(aa) 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.

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

achievement system that educates a pupil who attends a United

States Olympic ~~education center~~ Education Center may count the

pupil in membership regardless of whether or not the pupil is a

resident of this state.

(cc) 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) 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, 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.

(ee) A pupil participating in an online course under section

21f shall be counted in membership in the pupil's primary district,

as defined under section 21f.

(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.

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.

(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.~~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 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 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 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 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 7 for the

public school academies in excess of 100.

(3) For each school of excellence that is a cyber school and

is authorized under part 6e of the revised school code, MCL 380.551

to 380.561, by a school district, intermediate school district,

community college other than a federal tribally controlled

community college, or other authorizing body that is not empowered

to authorize a school of excellence to operate statewide and is

eligible to receive funding under this article, the department

shall assign a district code that includes as the first 2 digits

the county code in which the authorizing body is located.

Sec. 11. (1) ~~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~~

~~$11,827,097,400.00 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 $33,700,000.00 from~~

~~the general fund.~~ For the fiscal year ending September 30, 2016,

there is appropriated for the public schools of this state and

certain other state purposes relating to education the sum of

House Bill No. 4115 as amended April 29, 2015

[$12,084,799,900.00] from the state school aid fund and the sum of

$45,900,000.00 from the general fund. In addition, all other

available federal funds are appropriated for the fiscal year ending

September 30, ~~2015.~~2016.

(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.

(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 ~~2014-2015,~~ 2015-2016, 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. 11j. From the appropriation in section 11, there is

allocated an amount not to exceed ~~$126,000,000.00 for 2014-2015~~

$143,000,000.00 for 2015-2016 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 ~~2014-2015,~~ 2015-2016, 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 appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$3,000,000.00~~ $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. 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 new or updated information

received by the department, the department determines 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, the department shall make the appropriate deduction or

payment in the district's or intermediate district's allocation 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 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) 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) In addition to funds appropriated in section 11 for all

programs and services, there is appropriated for ~~2014-2015~~ 2015-

2016 for obligations in excess of applicable appropriations an

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

amounts available from overpayments.

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

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 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) A district or intermediate district shall adopt an annual

budget in a manner that complies with the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 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,~~ homepage, or may

make the information available through a link on its intermediate

district's website ~~home page,~~ homepage, 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.

(D) All other personnel costs.

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

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(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.

(v) The district's written policy governing procurement of

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district's accounts payable check register

for the most recent school fiscal year or a statement of the total

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

(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 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%.

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, 2014 for reporting 2013-2014 data during 2014-2015, and not~~

~~later than~~ November 1 each year 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, 2014 for 2014-2015 and by~~ November 1 ~~for~~

~~all subsequent fiscal years,~~ each year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with accounting manuals and charts of accounts approved

and published by the department. For an intermediate district, the

report shall also contain the website address where the department

can access the report required under section 620 of the revised

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

prescribed Michigan public school accounting manual chart of

accounts includes standard conventions to distinguish expenditures

by allowable fund function and object. The functions shall include

at minimum categories for instruction, pupil support, instructional

staff support, general administration, school administration,

business administration, transportation, facilities operation and

maintenance, facilities acquisition, and debt service; and shall

include object classifications of salary, benefits, including

categories for active employee health expenditures, purchased

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

report the required level of detail consistent with the manual as

part of the comprehensive annual financial report.

(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) If a district or intermediate district does not comply

with subsection (2), the department may withhold up to 10% of the

state school aid otherwise payable 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 subsection (2). If the district

or intermediate district does not comply with subsection (2) by the

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) ~~(11)~~ Not later than November 1, ~~2014,~~ 2015, 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:~~2015:

(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.

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.

(13) ~~(12)~~ Not later than March 31, ~~2015,~~ 2016, 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.

(14) ~~(13)~~ As used in subsections ~~(11) and (12),~~ (12) and (13),

"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.

affiliated with a Michigan public school.

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

intermediate district.

Sec. 18a. Grant funds awarded and allotted to a district,

intermediate district, or other entity, unless otherwise specified

in this ~~act,~~ article, shall be expended by the grant recipient

before the end of the ~~school~~ fiscal year immediately following the

fiscal year in which the funds are received. If a grant recipient

does not expend the funds received under this ~~act~~ article before

the end of the fiscal year in which the funds are received, the

grant recipient shall submit a report to the department not later

than November 1 after the fiscal year in which the funds are

received indicating whether it expects to expend those funds during

the fiscal year in which the report is submitted. 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

after the fiscal year in which the funds are received.

Sec. 20. (1) For ~~2014-2015,~~ 2015-2016, both of the following

apply:

(a) The basic foundation allowance is ~~$8,099.00.~~$8,236.00.

(b) The minimum foundation allowance is ~~$7,126.00.~~$7,525.00.

(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) Except as otherwise provided in this subdivision, for a

district that had a foundation allowance for the immediately

preceding state fiscal year that was 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 sum of the

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

allowance for the current state fiscal year and basic foundation

allowance for the immediately preceding state fiscal year minus

$10.00) times (the difference between the district's foundation

allowance for the immediately preceding state fiscal year and the

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 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,~~ 2015-2016, 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.~~$7,251.00.

(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 equal to the amount of the basic

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for ~~2014-~~

~~2015~~ 2015-2016 in an amount equal to the basic foundation allowance

for ~~2014-2015.~~2015-2016.

immediately preceding state fiscal year that was greater than 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.

(d) 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.

(e) For a district that received a payment under section 22c

as that section was in effect for ~~2013-2014,~~ 2014-2015, the

district's ~~2013-2014~~ 2014-2015 foundation allowance shall be

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

district's actual ~~2013-2014~~ 2014-2015 foundation allowance as

otherwise calculated under this section plus the per-pupil amount

of the district's equity payment for ~~2013-2014~~ 2014-2015 under

section 22c as that section was in effect for ~~2013-2014.~~2014-2015.

(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 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 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. For pupils in membership, other than special

education pupils, in a public school academy that is a cyber school

and is authorized by a school district, 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 that authorized the public

school academy 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.

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) 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) 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) 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.

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) "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) "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) "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 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 and [(the 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 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~~

~~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 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.~~means the

minimum foundation allowance under subsection (1).

(k) "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) "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, or property occupied by

a public school academy.

(m) "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) "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) "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) "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) "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) "Taxable value per membership pupil" means taxable value,

as certified by the 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 ~~2014-2015,~~ 2015-2016, 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 $14,000,000.00 for 2015-2016

for supplemental payments to districts under this section.

(2) From the ~~funds appropriated in section 11,~~ amount

allocated under subsection (1), there is allocated an amount not to

exceed $6,000,000.00 for ~~2014-2015~~ 2015-2016 for payments to

eligible districts under this ~~section.~~ subsection. A district is

eligible for funding under this ~~section~~ subsection 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 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.

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

~~this section~~ subsection (2) is an amount per membership pupil equal

to the amount per membership pupil the district received in 2013-

2014.

(4) ~~(3)~~ If the allocation under subsection ~~(1)~~ (2) is

insufficient to fully fund payments as otherwise calculated under

~~this section,~~ subsection (3), the department shall prorate payments

under ~~this section~~ subsection (2) on an equal per-pupil basis.

(5) From the amount allocated under subsection (1), there is

allocated an amount not to exceed $8,000,000.00 for 2015-2016 for

payments to eligible districts under this subsection. A district is

eligible for funding under this subsection if the sum of the

following is less than $25.00:

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

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The district's per-pupil allocation under section 20g for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 20g for 2014-2015.

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22f for 2014-2015.

(d) The district's per-pupil allocation under section 22j for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22j for 2014-2015.

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

147a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 147a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(6) The amount allocated to each eligible district under

subsection (5) is an amount per membership pupil equal to $25.00

minus the sum of the following:

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

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The district's per-pupil allocation under section 20g for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 20g for 2014-2015.

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22f for 2014-2015.

(d) The district's per-pupil allocation under section 22j for

2015-2016, which is $0.00, minus the district's per-pupil

allocation under section 22j for 2014-2015.

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

147a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 147a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(7) If the allocation under subsection (5) is insufficient to

fully fund payments as otherwise calculated under subsection (6),

the department shall prorate payments under subsection (5) on an

equal per-pupil basis.

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

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

in this section.

(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. Unless the pupil is newly enrolled in the pupil's

primary 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~~ primary district's catalog of online

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

online courses maintained by the Michigan ~~virtual university~~

Virtual University pursuant to section 98.

(4) A providing district or community college 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 providing

district or community college to provide the online course, the

providing district or community college shall accept for enrollment

all of the nonresident applicants eligible for acceptance. If the

number of nonresident applicants exceeds the providing district's

or community college's capacity to provide the online course, the

providing district or community college shall use a random draw

system, subject to the need to abide by state and federal

antidiscrimination laws and court orders.

(5) A pupil's primary district may deny a the 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.

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),~~ (10), 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 pupil's primary district for

enrollment and schedule changes for regular courses.

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

the pupil's primary district, the pupil may appeal the denial by

submitting a letter to the superintendent of the intermediate

district in which the pupil's ~~educating~~ primary district is

located. The letter of appeal shall include the reason provided by

the pupil's primary 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 pupil's primary district

shall allow the pupil to enroll in the online course.

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

the providing district or intermediate district shall do all of the

following:

(a) Provide the Michigan ~~virtual university~~ Virtual University

with the course syllabus in a form and method prescribed by the

Michigan ~~virtual university~~ 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.~~Virtual University.

(b) Assign to each pupil a teacher of record and provide the

pupil's primary district with the personal identification code for

the teacher of record.

method, or aligned to a semester, trimester, or accelerated

academic term format.

(d) ~~(c)~~ Not later than October 1, ~~2014,~~ 2015, provide the

Michigan virtual university with the number of enrollments in each

online course the district or intermediate district ~~offered~~

provided 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) To provide an online course under this section, a

community college 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.

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

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

format.

section generates postsecondary credit.

(d) Beginning with October 1, 2016, and by October 1 of each

year thereafter, provide the Michigan Virtual University with the

number of enrollments in each online course the community college

provided 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.

(e) Be taught by an instructor employed by or contracted

through the community college.

(9) For any online course a pupil enrolls in under this

section, the pupil's primary district must assign to the pupil a

mentor to monitor the pupil's progress during the online course and

shall supply the providing district with the mentor's contact

information.

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

published in the pupil's ~~educating~~ primary district's catalog of

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

online courses maintained by the Michigan ~~virtual university,~~

Virtual University, the pupil's primary 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 8.33% of the minimum

foundation allowance for the current fiscal year as calculated

under section 20.

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

and access to technology in his or her primary district's school

facilities as all other pupils enrolled in the pupil's primary

district.

(12) ~~(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.

(13) ~~(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 article.

(14) ~~(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.

(15) ~~(13)~~ As used in this section:

(a) "Mentor" means a professional employee of the primary

district who monitors the pupil's progress, ensures the pupil has

access to needed technology, is available for assistance, and

ensures access to the teacher of record. A mentor may also serve as

the teacher of record if the mentor meets the requirements under

subdivision (g).

(b) ~~(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~~ Internet-connected learning

environment, in which pupils are separated from their teachers by

time or location, or both, and, for a course provided by a district

or intermediate district, in which a teacher who holds a valid

Michigan teaching certificate that qualifies the teacher to teach

the course is responsible for providing instruction, 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.

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~~ 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.~~Virtual University.

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

more online courses.

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

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

membership purposes.

(f) "Providing district" means the district, intermediate

district, or community college that the primary district pays to

provide the online course.

(g) "Teacher of record" means a teacher who holds a valid

Michigan teaching certificate; who, where applicable, is endorsed

in the subject area and grade of the online course; and is

responsible for providing instruction, determining 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. 22a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$5,380,000,000.00 for 2014-2015~~

$5,277,000,000.00 for 2015-2016 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) 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.

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, and property occupied

by a public school academy 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, or property occupied by

a public school academy.

(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, and property occupied by a public school academy

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, and property occupied by a public school academy

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 ~~$3,434,000,000.00 for 2014-2015~~

$3,912,400,000.00 for 2015-2016 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.

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 ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$103,000,000.00~~ $24,000,000.00 to make equity payments to districts

that have a foundation allowance or per-pupil payment as calculated

under section 20 for ~~2014-2015~~ 2015-2016 of less than ~~$7,251.00.~~

$7,550.00. The equity payment for a district shall be an amount per

membership pupil equal to the lesser of ~~$125.00~~ $25.00 or the

difference between ~~$7,251.00~~ $7,550.00 and the district's ~~2014-2015~~

2015-2016 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 ~~2014-2015~~ 2015-2016

for supplemental payments to rural districts under this section.

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

allocated for ~~2014-2015~~ 2015-2016 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.

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 ~~2014-2015~~ 2015-2016 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. 22g. (1) From the funds appropriated in section 11, there

is allocated for ~~2014-2015~~ 2015-2016 only an amount not to exceed

~~$2,000,000.00~~ $5,000,000.00 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

or annexation of ~~operations or services between 2 or more~~ districts

, or 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 or

annexations that occur on or after June 1, ~~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:~~

2015. Districts may spend funds allocated under this section over 3

fiscal years.

~~(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. 23a. (1) A dropout recovery program operated by a

district qualifies for the special membership counting provisions

of section ~~6(4)(ff)~~ 6(4)(dd) and the hours and day of pupil

instruction exemption under section 101(12) if the dropout recovery

program meets all of the following:

(a) Enrolls only eligible pupils.

(b) Provides an advocate. An advocate may serve in that role

for more than 1 pupil but no more than 50 pupils. An advocate may

be employed by the district or may be provided by an education

management organization that is partnering with the district.

Before an individual is assigned to be an advocate for a pupil in

the dropout recovery program, the district shall comply with

sections 1230 and 1230a of the revised school code, MCL 380.1230

and 380.1230a, with respect to that individual.

(d) Monitors the pupil's progress against the written learning

plan.

(e) Requires each pupil to make satisfactory monthly progress,

as defined by the district under subsection (2).

(f) Reports the pupil's progress results to the partner

district at least monthly.

(g) The program may be operated on or off a district school

campus, but may be operated using distance learning online only if

the program provides a computer and internet access for each

eligible pupil participating in the program.

(h) Is operated throughout the entire calendar year.

(i) If the district partners with an education management

organization for the program, the education management organization

has a dropout recovery program partnership relationship with at

least 1 other district.

(2) A district operating a dropout recovery program under this

section shall adopt a definition of satisfactory monthly progress

that is consistent with the definition of that term under

subsection (3).

(3) As used in this section:

(a) "Advocate" means an adult available to meet in person with

assigned pupils, as needed, to conduct social interventions, to

proctor final examinations, and to provide academic and social

support to pupils enrolled in the district's dropout recovery

program.

(b) "Education management organization" means a private

provider that operates 1 or more other dropout recovery programs

that meet the requirements of this section in partnership with 1 or

more districts.

school under the mandatory expulsion provisions in section 1311 or

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

pupil who has been suspended or expelled from school under a local

policy, a pupil who is referred by a court, a pupil who is pregnant

or is a parent, a pupil who was previously a dropout, or a pupil

who is determined by the district to be at risk of dropping out.

(d) "Satisfactory monthly progress" means an amount of

progress that is measurable on a monthly basis and that, if

continued for a full 12 months, would result in the same amount of

academic credit being awarded to the pupil as would be awarded to a

general education pupil completing a full school year. Satisfactory

monthly progress may include a lesser required amount of progress

for the first 2 months a pupil participates in the program.

(e) "Written learning plan" means a written plan developed in

conjunction with the advocate that includes the plan start and end

dates, courses to be taken, credit to be earned for each course,

teacher of record for each course, and advocate name and contact

information.

Sec. 24. (1) From the appropriation in section 11, there is

allocated for ~~2014-2015~~ 2015-2016 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 ~~$2,195,500.00 for 2014-2015~~

$2,189,800.00 for 2015-2016 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 2014-2015~~

$1,497,400.00 for 2015-2016 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. 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 2014-2015~~ $1,000,000.00 for 2015-2016 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).

~~(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, 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 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.~~

(2) ~~(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.

(3) ~~(6)~~ If the funds allocated under this section are

insufficient to fully fund the adjustments under ~~subsections (4)~~

~~and (5),~~ subsection (2), payments under this section shall be

prorated on an equal per-pupil basis.

(4) ~~(7)~~ Payments to districts under this section shall be made

according to the payment schedule under section 17b.

Sec. 26a. From the funds appropriated in section 11, there is

allocated an amount not to exceed $26,300,000.00 for ~~2014-2015~~

2015-2016 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 ~~2014.~~ 2015. 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 ~~2014-2015~~ 2015-2016 an amount not to exceed

~~$4,210,000.00~~ $4,276,800.00 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 ~~$293,100.00 for 2014-2015~~

$610,000.00 for 2015-2016 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

House Bill No. 4115 as amended April 28, 2015

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 ~~2014-2015~~ 2015-

2016 an amount not to exceed $317,695,500.00 for payments to

eligible districts, eligible public school academies, and the

education achievement system 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).~~(5) and (6).

(2) [~~For~~ If the total amount allocated under subsection (1) is less

than $347,695,500.00, then 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),~~ (5) or

(6), 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, must be less than or equal to the basic

foundation allowance under section 20 for the current state fiscal

year.

(3) 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 (5) or (6), the

district or public school academy, or the education achievement

system, must implement a multi-tiered system of supports that is an

evidence-based model that uses data-driven problem solving to

integrate academic and behavioral instruction and that uses

House Bill No. 4115 as amended April 29, 2015

intervention delivered to all pupils in varying intensities based

on pupil needs. To qualify a district or public school academy, or

the education achievement system, for funding under this section, a

multi-tiered system of supports must provide at least all of the

following essential elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

intervention that provides the following:

(i) A core curriculum and classroom interventions available to

all pupils that meet the needs of [most ] pupils.

(ii) Targeted group interventions[.

]

(iii) Intense individual interventions[.

]

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated,

instruction and intervention.

(i) Implements instruction and intervention practices with

fidelity.

(j) Uses a collaborative problem-solving model.

(4) ~~(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. 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), (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 (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. 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.~~

~~(5) 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.~~

(5) ~~(6)~~ From the funds allocated under subsection (1), there

is allocated for ~~2014-2015~~ 2015-2016 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.~~

(6) ~~(7)~~ From the funds allocated under subsection (1), there

is allocated for ~~2014-2015~~ 2015-2016 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 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 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), a district may~~

~~use up to 100% of the funds it receives under this section 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.~~

(7) ~~(11)~~ 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 (3).

(8) ~~(12)~~ If a district is formed by consolidation after June

1, 1995, and if 1 or more of the original districts ~~was~~ were 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) As used in this section, "at-risk pupil" means a pupil~~

~~for whom the district has documentation that the pupil meets any of~~

~~the following criteria:~~

~~(a) Is a victim of child abuse or neglect.~~

~~(b) Is a pregnant teenager or teenage parent.~~

~~(c) Has a family history of school failure, incarceration, or~~

~~substance abuse.~~

~~(d) For pupils for whom the results of the Michigan merit~~

~~examination have been received, 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, 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) 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 ~~2014-2015~~

2015-2016 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 ~~2014-2015~~ 2015-2016 all available federal funding,

estimated at $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 ~~2014-2015~~ 2015-

2016 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. 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 ~~$214,275,000.00 for 2014-2015. In addition, from the~~

~~funds appropriated in section 11, there is allocated to the great~~

~~start readiness reserve fund created under subsection (19) an~~

~~amount not to exceed $25,000,000.00 for 2014-2015.~~ $239,275,000.00

for 2015-2016. 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. 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 ~~2014-2015~~ 2015-

2016 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.

supported by federal, state, and local resources as applicable.

(d) 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 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. 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) 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 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.

for this program, as follows:

(i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement 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).

(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% 5% 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% 2% 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) 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) 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.

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.

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)~~ (16) 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) 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) 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.

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) 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) 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 2014-2015 unless transferred by the legislature not~~

~~later than 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.~~

(19) ~~(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,~~ 2015, 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 ~~2014-2015~~ 2015-2016

for the purpose of providing early childhood funding to

intermediate school districts in block grants ~~, supporting~~ to

support the activities under subsection (2) , and ~~providing~~ to

provide early childhood programs for children from birth through

age 8. 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.

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 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.

(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.

(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 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 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 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.

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) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit 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 in 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 ~~2014-2015~~ 2015-2016 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$807,969,900.00~~ $779,076,400.00 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 ~~$8,000,000.00~~ $5,000,000.00 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.

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~~ $3,000,000.00 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~~ $565,000,000.00 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 $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 ~~2014-2015~~ 2015-2016 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at ~~$31,300,000.00~~ $30,800,000.00 for the

following programs that are funded by federal grants:

(a) An amount estimated at $200,000.00 for acquired

immunodeficiency syndrome education grants, funded from HHS –

~~center for disease control,~~ Centers for Disease Control and

Prevention, 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.

health, substance abuse, or violence prevention services to

students, funded from HHS-SAMHSA.

(d) ~~(c)~~ An amount estimated at ~~$28,500,000.00~~ $24,000,000.00

for providing career and technical education services to pupils,

funded from DED-OVAE, basic grants to states.

(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.

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) 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) As used in this section:

(a) "DED" means the United States ~~department of~~

~~education.~~Department of Education.

(b) "DED-OESE" means the DED ~~office of elementary and~~

~~secondary education.~~Office of Elementary and Secondary Education.

~~education.~~Office of Vocational and Adult Education.

(d) "HHS" means the United States ~~department of health and~~

~~human services.~~Department of Health and Human Services.

~~(e) "HHS-ACF" means the HHS administration for children and~~

~~families.~~

(e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 43. From the general fund money appropriated in section

11, there is allocated to the department for ~~2014-2015~~ 2015-2016 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. This is the second year of 2

years of funding.

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

allocated an amount not to exceed ~~$914,946,100.00 for 2014-2015~~

$934,546,100.00 for 2015-2016 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 ~~2014-2015,~~ 2015-2016, 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. 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 ~~$251,800,000.00 for~~

~~2014-2015,~~ $257,200,000.00 for 2015-2016 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 ~~2014-2015~~ 2015-2016 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 ~~2014-2015~~ 2015-2016 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 ~~2014-2015~~ 2015-

2016 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.~~

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.

(d) ~~(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 ~~$4,000,000.00 for~~

~~2014-2015,~~ $3,200,000.00 for 2015-2016, 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.

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).

(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.

(15) A district or intermediate district that fails to comply

with subsection (14) or with the requirements of federal

regulations regarding the treatment of public school academies and

public school academy pupils for the purposes of special education,

34 CFR 300.209, forfeits from its total state aid an amount equal

to 10% of its total state aid.

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 ~~2014-2015~~ 2015-2016 the amount necessary,

estimated at ~~$606,000,000.00,~~ $621,000,000.00, 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 ~~2014-2015,~~ 2015-2016, all available

federal funding, estimated at ~~$74,000,000.00,~~ $71,000,000.00, 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 ~~2014-2015:~~2015-2016:

(a) An amount estimated at ~~$15,000,000.00~~ $14,000,000.00 for

handicapped infants and toddlers, funded from DED-OSERS,

handicapped infants and toddlers funds.

(b) An amount estimated at ~~$14,000,000.00~~ $12,000,000.00 for

preschool grants (Public Law 94-142), funded from DED-OSERS,

handicapped preschool incentive funds.

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.~~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.

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 $10,500,000.00 of the allocation for ~~2014-~~

~~2015~~ 2015-2016 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 ~~2014-2015~~ 2015-2016 in section 51a(1) shall be

allocated under this section.

Sec. 55. (1) From the money appropriated in section 11, there

is allocated an amount not to exceed $150,000.00 for 2015-2016 to

Michigan State University, Department of Epidemiology, for a study

of the Conductive Learning Center located at Aquinas College. This

funding shall be used to develop and implement an evaluation of the

effectiveness of conductive education for children with cerebral

palsy. The evaluation shall be multidimensional and shall include a

control group of children with cerebral palsy not enrolled in

conductive education. It should include an assessment of the motor

system itself as well as the impact of conductive education on each

of the following:

(a) The acquisition of skills permitting complex motor

functions.

(b) The performance of tasks essential to daily living.

(d) The long-term need for special education for children with

cerebral palsy.

(2) It is the intent of the legislature that this funding is

for the first of 2 years of funding for this purpose.

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.

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 ~~2014-2015~~

2015-2016 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 ~~2013-2014~~ 2014-

2015 shall be made in ~~2014-2015~~ 2015-2016 at an amount per ~~2013-~~

~~2014~~ 2014-2015 membership pupil computed by subtracting from

~~$172,200.00~~ $174,400.00 the ~~2013-2014~~ 2014-2015 taxable value

behind each membership pupil and multiplying the resulting

difference by the ~~2013-2014~~ 2014-2015 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