HB-5579, As Passed House, June 12, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5579
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 6, 11, 11a, 11j, 11k, 11m, 11s, 15, 18, 19,
20, 20d, 20f, 21f, 21h, 22a, 22b, 22d, 22g, 22m, 22n, 24, 24a, 24c,
25e, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 32d, 32p,
32q, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 55, 56, 61a,
61b, 61c, 62, 64b, 64d, 65, 67, 74, 81, 94, 94a, 95b, 98, 99h, 99s,
99t, 99u, 102d, 104, 104b, 104c, 104d, 104e, 107, 147, 147a, 147b,
147c, 147e, 152a, 152b, 163, 164h, 166b, 169a, 201, 201a, 206,
207a, 207b, 207c, 209, 210b, 217, 225, 226, 229, 229a, 230, 236,
236a, 236b, 236c, 241, 245, 251, 252, 256, 263, 264, 265, 265a,
267, 268, 269, 270, 274, 274c, 274d, 275b, 276, 277, 278, 279, 280,
281, 282, and 289 (MCL 388.1606, 388.1611, 388.1611a, 388.1611j,
388.1611k, 388.1611m, 388.1611s, 388.1615, 388.1618, 388.1619,
388.1620, 388.1620d, 388.1620f, 388.1621f, 388.1621h, 388.1622a,
388.1622b, 388.1622d, 388.1622g, 388.1622m, 388.1622n, 388.1624,
388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1625g, 388.1626a,
388.1626b, 388.1626c, 388.1631a, 388.1631b, 388.1631d, 388.1631f,
388.1631j, 388.1632d, 388.1632p, 388.1632q, 388.1635a, 388.1639,
388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a,
388.1654, 388.1654b, 388.1655, 388.1656, 388.1661a, 388.1661b,
388.1661c, 388.1662, 388.1664b, 388.1664d, 388.1665, 388.1667,
388.1674, 388.1681, 388.1694, 388.1694a, 388.1695b, 388.1698,
388.1699h, 388.1699s, 388.1699t, 388.1699u, 388.1702d, 388.1704,
388.1704b, 388.1704c, 388.1704d, 388.1704e, 388.1707, 388.1747,
388.1747a, 388.1747b, 388.1747c, 388.1747e, 388.1752a, 388.1752b,
388.1763, 388.1764h, 388.1766b, 388.1769a, 388.1801, 388.1801a,
388.1806, 388.1807a, 388.1807b, 388.1807c, 388.1809, 388.1810b,
388.1817, 388.1825, 388.1826, 388.1829, 388.1829a, 388.1830,
388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1841, 388.1845,
388.1851, 388.1852, 388.1856, 388.1863, 388.1864, 388.1865,
388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1874,
388.1874c, 388.1874d, 388.1875b, 388.1876, 388.1877, 388.1878,
388.1879, 388.1880, 388.1881, 388.1882, and 388.1889), sections 6,
11a, 11j, 11k, 11m, 11s, 15, 18, 20, 20d, 20f, 22a, 22b, 22d, 22g,
24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31b, 31d, 31f, 32p, 32q, 39,
39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 55, 56, 61a, 61b, 62, 64b,
65, 67, 74, 81, 94, 94a, 98, 99s, 104, 104d, 147, 147b, 147c, 152a,
152b, 201, 201a, 206, 207a, 207b, 207c, 209, 210b, 217, 225, 226,
229, 229a, 230, 236, 236a, 236b, 236c, 241, 245, 251, 252, 256,
263, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 276, 277, 278,
279, 280, 281, and 282 as amended and sections 21h, 22m, 22n, 147e,
164h, and 274d as added by 2017 PA 108, sections 11, 21f, 25e, 31a,
31j, 32d, 35a, 61c, 64d, 95b, 99h, 99t, 102d, 104c, 107, 147a, and
166b as amended and sections 99u and 104e as added by 2017 PA 143,
section 19 as amended by 2016 PA 533, section 104b as amended by
2016 PA 249, section 163 as amended by 2015 PA 85, section 169a as
amended by 1997 PA 93, section 275b as added by 2015 PA 44, and
section 289 as amended by 2013 PA 60, and by adding sections 17c,
22p, 25h, 31m, 35b, 54d, 61d, 61e, 99v, 167b, 209a, 210f, 215,
236f, 245a, 265b, 265c, 265d, and 265e; 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, 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 immediately preceding 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 after the pupil
membership count day in a strict discipline academy operating under
sections 1311b to 1311m of the revised school code, MCL 380.1311b
to 380.1311m. However, for a district that is a community district,
"membership" means 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 in the community district on the pupil
membership count day for the current school year, plus the product
of .10 times the sum of the final audited count from the
supplemental count day of pupils in grades K to 12 actually
enrolled and in regular daily attendance in the community district
for the immediately preceding school year plus the final audited
count from the supplemental count day of pupils in grades K to 12
actually enrolled and in regular daily attendance in the education
achievement system for the immediately preceding school year. All
pupil counts used in this subsection are as determined by the
department and calculated by adding the number of pupils registered
for attendance plus pupils received by transfer and minus pupils
lost as defined by rules promulgated by the superintendent, and as
corrected by a subsequent department audit. 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, or an intermediate district:
(a) Except as otherwise provided in this subsection, and
pursuant to subsection (6), a pupil shall be counted in membership
in the pupil's educating district or districts. An individual pupil
shall not be counted for more than a total of 1.0 full-time equated
membership.
(b) If a pupil is educated in a district other than the
pupil's district of residence, if the pupil is not being educated
as part of a cooperative education program, if the pupil's district
of residence does not give the educating district its approval to
count the pupil in membership in the educating district, and if the
pupil is not covered by an exception specified in subsection (6) to
the requirement that the educating district must have the approval
of the pupil's district of residence to count the pupil in
membership, the pupil shall not be counted in membership in any
district.
(c) A special education pupil educated by the intermediate
district shall be counted in membership in the intermediate
district.
(d) A pupil placed by a court or state agency in an on-grounds
program of a juvenile detention facility, a child caring
institution, or a mental health institution, or a pupil funded
under section 53a, shall be counted in membership in the district
or intermediate district approved by the department to operate the
program.
(e) A pupil enrolled in the Michigan Schools for the Deaf and
Blind shall be counted in membership in the pupil's intermediate
district of residence.
(f) A pupil enrolled in a career and technical education
program supported by a millage levied over an area larger than a
single district or in an area vocational-technical education
program established pursuant to section 690 of the revised school
code, MCL 380.690, shall be counted only in the pupil's district of
residence.
(g) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(h) For the purposes of this section and section 6a, for a
cyber school, as defined in section 551 of the revised school code,
MCL 380.551, that is in compliance with section 553a of the revised
school code, MCL 380.553a, a pupil's participation in the cyber
school's educational program is considered regular daily
attendance, and for a district or public school academy, a pupil's
participation in a virtual course as defined in section 21f is
considered regular daily attendance. For the purposes of this
subdivision, for a pupil enrolled in a cyber school and utilizing
sequential learning, participation means that term as defined in
the pupil accounting manual, section 5-o-d: requirements for
counting pupils in membership-subsection 10.
(i) For a new district or public school academy beginning its
operation after December 31, 1994, membership for the first 2 full
or partial fiscal years of operation shall be determined as
follows:
(i) If operations begin before the pupil membership count day
for the fiscal year, membership is the average number of full-time
equated pupils in grades K to 12 actually enrolled and in regular
daily attendance on the pupil membership count day for the current
school year and on the supplemental count day for the current
school year, as determined by the department and calculated by
adding the number of pupils registered for attendance on the pupil
membership count day plus pupils received by transfer and minus
pupils lost as defined by rules promulgated by the superintendent,
and as corrected by a subsequent department audit, plus the final
audited count from the supplemental count day for the current
school year, and dividing that sum by 2.
(ii) If operations begin after the pupil membership count day
for the fiscal year and not later than the supplemental count day
for the fiscal year, membership is the final audited count of the
number of full-time equated pupils in grades K to 12 actually
enrolled and in regular daily attendance on the supplemental count
day for the current school year.
(j) If a district is the authorizing body for a public school
academy, then, in the first school year in which pupils are counted
in membership on the pupil membership count day in the public
school academy, the determination of the district's membership
shall exclude from the district's pupil count for the immediately
preceding supplemental count day any pupils who are counted in the
public school academy on that first pupil membership count day who
were also counted in the district on the immediately preceding
supplemental count day.
(k) For 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 in membership.
(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 pupils with extreme barriers to education, such as being
homeless as defined under 42 USC 11302.
(B) Had dropped out of school.
(C) Is less than 22 years of age as of September 1 of the
current school year.
(iii) If a child does not meet the minimum age requirement to
be eligible to attend school for that school year under section
1147 of the revised school code, MCL 380.1147, but will be 5 years
of age not later than December 1 of that school year, the district
may count the child in membership for that school year if the
parent or legal guardian has notified the district in writing that
he or she intends to enroll the child in kindergarten for that
school year.
(m) An individual who has achieved a high school diploma shall
not be counted in membership. An individual who has achieved a high
school equivalency certificate shall not be counted in membership
unless the individual is a student with a disability as defined in
R 340.1702 of the Michigan Administrative Code. An individual
participating in a job training program funded under former section
107a or a jobs program funded under former section 107b,
administered by the department of talent and economic development,
or participating in any successor of either of those 2 programs,
shall not be counted in membership.
(n) If a pupil counted in membership in a public school
academy is also educated by a district or intermediate district as
part of a cooperative education program, the pupil shall be counted
in membership only in the public school academy unless a written
agreement signed by all parties designates the party or parties in
which the pupil shall be counted in membership, and the
instructional time scheduled for the pupil in the district or
intermediate district shall be included in the full-time equated
membership determination under subdivision (q) and section 101.
However, for pupils receiving instruction in both a public school
academy and in a district or intermediate district but not as a
part of a cooperative education program, the following apply:
(i) If the public school academy provides instruction for at
least 1/2 of the class hours required under section 101, the public
school academy shall receive as its prorated share of the full-time
equated membership for each of those pupils an amount equal to 1
times the product of the hours of instruction the public school
academy provides divided by the number of hours 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 provides instruction for
less than 1/2 of the class hours 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 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.
(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. In
determining full-time equated memberships for pupils who are
enrolled in a postsecondary institution or for pupils engaged in an
internship or work experience under section 1279h of the revised
school code, MCL 380.1279h, 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 or engagement in the internship
or work experience, including necessary travel time, on the number
of class hours provided by the district to the pupil.
(r) Full-time equated memberships for pupils in kindergarten
shall be determined by dividing the number of 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 or a public school academy that has pupils
enrolled in a grade level that was not offered by the district or
public school academy in the immediately preceding school year, the
number of pupils enrolled in that grade level to be counted in
membership is the average of the number of those pupils enrolled
and in regular daily attendance on the pupil membership count day
and the supplemental count day of the current school year, as
determined by the department. Membership shall be calculated by
adding the number of pupils registered for attendance in that grade
level on the pupil membership count day plus pupils received by
transfer and minus pupils lost as defined by rules promulgated by
the superintendent, and as corrected by subsequent department
audit, plus the final audited count from the supplemental count day
for the current school year, and dividing that sum by 2.
(t) A pupil enrolled in a cooperative education program may be
counted in membership in the pupil's district of residence with the
written approval of all parties to the cooperative agreement.
(u) If, as a result of a disciplinary action, a district
determines through the district's alternative or disciplinary
education program that the best instructional placement for a pupil
is in the pupil's home or otherwise apart from the general school
population, if that placement is authorized in writing by the
district superintendent and district alternative or disciplinary
education supervisor, and if the district provides appropriate
instruction as described in this subdivision to the pupil at the
pupil's home or otherwise apart from the general school population,
the district may count the pupil in membership on a pro rata basis,
with the proration based on the number of hours of instruction the
district actually provides to the pupil divided by the number of
hours 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
within 45 days after the pupil membership count day, the department
shall adjust the district's pupil count for the pupil membership
count day to include the pupil in the count.
(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 who is enrolled in an intermediate district program that
begins before Labor Day shall not be considered to be less than a
full-time pupil solely due to instructional time scheduled but not
attended by the pupil before Labor Day.
(aa) For the first year in which a pupil is counted in
membership on the pupil membership count day in a middle college
program, the membership is the average of the full-time equated
membership on the pupil membership count day and on the
supplemental count day for the current school year, as determined
by the department. If a pupil described in this subdivision was
counted in membership by the operating district on the immediately
preceding supplemental count day, the pupil shall be excluded from
the district's immediately preceding supplemental count for the
purposes of determining the district's membership.
(bb) A district or public school academy that educates a pupil
who attends a United States Olympic Education Center may count the
pupil in membership regardless of whether or not the pupil is a
resident of this state.
(cc) 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.
(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 25g. 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 30
days after the end of the 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 a virtual course under section
21f shall be counted in membership in the district enrolling the
pupil.
(ff) If a public school academy that is not in its first or
second year of operation closes at the end of a school year and
does not reopen for the next school year, the department shall
adjust the membership count of the district or other public school
academy in which a former pupil of the closed public school academy
enrolls and is in regular daily attendance for the next school year
to ensure that the district or other public school academy receives
the same amount of membership aid for the pupil as if the pupil
were counted in the district or other public school academy on the
supplemental count day of the preceding school year.
(gg) If a special education pupil is expelled under section
1311 or 1311a of the revised school code, MCL 380.1311 and
380.1311a, and is not in attendance on the pupil membership count
day because of the expulsion, and if the pupil remains enrolled in
the district and resumes regular daily attendance during that
school year, the district's membership shall be adjusted to count
the pupil in membership as if he or she had been in attendance on
the pupil membership count day.
(hh) A pupil enrolled in a community district shall be counted
in membership in the community district.
(ii) A part-time pupil enrolled in a nonpublic school in
grades K to 12 in accordance with section 166b shall not be counted
as more than 0.75 of a full-time equated membership.
(jj) A district that borders another state or a public school
academy that operates at least grades 9 to 12 and is located within
20 miles of a border with another state may count in membership a
pupil who is enrolled in a course at a college or university that
is located in the bordering state and within 20 miles of the border
with this state if all of the following are met:
(i) The pupil would meet the definition of an eligible student
under the postsecondary enrollment options act, 1996 PA 160, MCL
388.511 to 388.524, if the course were an eligible course under
that act.
(ii) The course in which the pupil is enrolled would meet the
definition of an eligible course under the postsecondary enrollment
options act, 1996 PA 160, MCL 388.511 to 388.524, if the course
were provided by an eligible postsecondary institution under that
act.
(iii) The department determines that the college or university
is an institution that, in the other state, fulfills a function
comparable to a state university or community college, as those
terms are defined in section 3 of the postsecondary enrollment
options act, 1996 PA 160, MCL 388.513, or is an independent
nonprofit degree-granting college or university.
(iv) The district or public school academy pays for a portion
of the pupil's tuition at the college or university in an amount
equal to the eligible charges that the district or public school
academy would pay to an eligible postsecondary institution under
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511
to 388.524, as if the course were an eligible course under that
act.
(v) The district or public school academy awards high school
credit to a pupil who successfully completes a course as described
in this subdivision.
(kk) A pupil enrolled in a middle college program may be
counted for more than a total of 1.0 full-time equated membership
if the pupil is enrolled in more than the minimum number of
instructional days and hours required under section 101 and the
pupil is expected to complete the 5-year program with both a high
school diploma and at least 60 transferable college credits or is
expected to earn an associate's degree in fewer than 5 years.
(ll) If a district's or public school academy's membership for
a particular fiscal year, as otherwise calculated under this
subsection, includes pupils counted in membership who are enrolled
under section 166b, all of the following apply for the purposes of
this subdivision:
(i) If the district's or public school academy's membership
for pupils counted under section 166b equals or exceeds 5% of the
district's or public school academy's membership for pupils not
counted in membership under section 166b in the immediately
preceding fiscal year, then the growth in the district's or public
school academy's membership for pupils counted under section 166b
must not exceed 10%.
(ii) If the district's or public school academy's membership
for pupils counted under section 166b is less than 5% of the
district's or public school academy's membership for pupils not
counted in membership under section 166b in the immediately
preceding fiscal year, then the district's or public school
academy's membership for pupils counted under section 166b must not
exceed the greater of the following:
(A) 5% of the district's or public school academy's membership
for pupils not counted in membership under section 166b.
(B) 10% more than the district's or public school academy's
membership for pupils counted under section 166b in the immediately
preceding fiscal year.
(iii) If 1 or more districts consolidate or are parties to an
annexation, then the calculations under subdivisions (i) and (ii)
must be applied to the combined total membership for pupils counted
in those districts for the fiscal year immediately preceding the
consolidation or annexation.
(mm) If a district, intermediate district, or public school
academy charges tuition for a pupil that resided out of state in
the immediately preceding school year, the pupil shall not be
counted in membership in the district, intermediate district, or
public school academy.
(5) "Public school academy" means that term as defined in
section 5 of the revised school code, MCL 380.5.
(6) "Pupil" means an individual 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 K to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.
(c) A pupil enrolled in a public school academy.
(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.
(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, or the every student succeeds act, Public
Law 114-95.
However, except for pupils enrolled in the youth challenge
program at the site at which the youth challenge program operated
for 2015-2016, if a district educates pupils who reside in another
district and if the primary instructional site for those pupils is
established by the educating district after 2009-2010 and is
located within the boundaries of that other district, the educating
district must have the approval of that other district to count
those pupils in membership.
(7) "Pupil membership count day" of a district or intermediate
district means:
(a) Except as provided in subdivision (b), the first Wednesday
in October each school year or, for a district or building in which
school is not in session on that Wednesday due to conditions not
within the control of school authorities, with the approval of the
superintendent, the immediately following day on which school is in
session in the district or building.
(b) For a district or intermediate district maintaining school
during the entire school year, the following days:
(i) Fourth Wednesday in July.
(ii) First Wednesday in October.
(iii) Second Wednesday in February.
(iv) Fourth Wednesday in April.
(8) "Pupils in grades K to 12 actually enrolled and in regular
daily attendance" means pupils in grades K to 12 in attendance and
receiving instruction in all classes for which they are enrolled on
the pupil membership count day or the supplemental count day, as
applicable. Except as otherwise provided in this subsection, a
pupil who is absent from any of the classes in which the pupil is
enrolled on the pupil membership count day or supplemental count
day and who does not attend each of those classes during the 10
consecutive school days immediately following the pupil membership
count day or supplemental count day, except for a pupil who has
been excused by the district, shall not be counted as 1.0 full-time
equated membership. A pupil who is excused from attendance on the
pupil membership count day or supplemental count day and who fails
to attend each of the classes in which the pupil is enrolled within
30 calendar days after the pupil membership count day or
supplemental count day shall not be counted as 1.0 full-time
equated membership. In addition, a pupil who was enrolled and in
attendance in a district, intermediate district, or public school
academy before the pupil membership count day or supplemental count
day of a particular year but was expelled or suspended on the pupil
membership count day or supplemental count day shall only be
counted as 1.0 full-time equated membership if the pupil resumed
attendance in the district, intermediate district, or public school
academy within 45 days after the pupil membership count day or
supplemental count day of that particular year. Pupils not counted
as 1.0 full-time equated membership due to an absence from a class
shall be counted as a prorated membership for the classes the pupil
attended. For purposes of this subsection, "class" means a period
of
time in 1 day when pupils and a certificated teacher or legally
qualified
an individual working under a
valid substitute teacher
permit, authorization, or approval issued by the department, 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 (o), 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 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 this article.
Sec.
11. (1) For the fiscal year ending September 30, 2017,
there
is appropriated for the public schools of this state and
certain
other state purposes relating to education the sum of
$12,069,644,300.00
from the state school aid fund, the sum of
$179,100,000.00
from the general fund, an amount not to exceed
$72,000,000.00
from the community district education trust fund
created
under section 12 of the Michigan trust fund act, 2000 PA
489,
MCL 12.262, and an amount not to exceed $100.00 from the water
emergency
reserve fund. For the fiscal year
ending September 30,
2018, there is appropriated for the public schools of this state
and certain other state purposes relating to education the sum of
$12,547,270,300.00
$12,682,127,200.00 from the state school aid
fund,
the sum of $215,000,000.00 $78,500,000.00
from the general
fund, an amount not to exceed $72,000,000.00 from the community
district education trust fund created under section 12 of the
Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not to
exceed $23,100,000.00 from the MPSERS retirement obligation reform
reserve fund, and an amount not to exceed $100.00 from the water
emergency reserve fund. For the fiscal year ending September 30,
2019, there is appropriated for the public schools of this state
and certain other state purposes relating to education the sum of
$12,876,825,200.00 from the state school aid fund, the sum of
$60,000,000.00 from the general fund, an amount not to exceed
$72,000,000.00 from the community district education trust fund
created under section 12 of the Michigan trust fund act, 2000 PA
489, MCL 12.262, an amount not to exceed $31,900,000.00 from the
MPSERS retirement obligation reform reserve fund, and an amount not
to exceed $100.00 from the water emergency reserve fund. In
addition, all available federal funds are appropriated each fiscal
year
for the fiscal years ending September 30, 2017 2018 and
September
30, 2018.2019.
(2) The appropriations under this section shall be allocated
as provided in this article. Money appropriated under this section
from the general fund shall be expended to fund the purposes of
this article before the expenditure of money appropriated under
this section from the state school aid fund.
(3) Any general fund allocations under this article that are
not expended by the end of the state fiscal year are transferred to
the school aid stabilization fund created under section 11a.
Sec. 11a. (1) The school aid stabilization fund is created as
a separate account within the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school aid stabilization fund. The
state treasurer shall deposit into the school aid stabilization
fund all of the following:
(a) Unexpended and unencumbered state school aid fund revenue
for a fiscal year that remains in the state school aid fund as of
the bookclosing for that fiscal year.
(b) Money statutorily dedicated to the school aid
stabilization fund.
(c) Money appropriated to the school aid stabilization fund.
(3) Money available in the school aid stabilization fund may
not be expended without a specific appropriation from the school
aid stabilization fund. Money in the school aid stabilization fund
shall be expended only for purposes for which state school aid fund
money may be expended.
(4) The state treasurer shall direct the investment of the
school aid stabilization fund. The state treasurer shall credit to
the school aid stabilization fund interest and earnings from fund
investments.
(5) Money in the school aid stabilization fund at the close of
a fiscal year shall remain in the school aid stabilization fund and
shall not lapse to the unreserved school aid fund balance or the
general fund.
(6) If the maximum amount appropriated under section 11 from
the state school aid fund for a fiscal year exceeds the amount
available for expenditure from the state school aid fund for that
fiscal year, there is appropriated from the school aid
stabilization fund to the state school aid fund an amount equal to
the projected shortfall as determined by the department of
treasury, but not to exceed available money in the school aid
stabilization fund. If the money in the school aid stabilization
fund is insufficient to fully fund an amount equal to the projected
shortfall, the state budget director shall notify the legislature
as required under section 296(2) and state payments in an amount
equal to the remainder of the projected shortfall shall be prorated
in the manner provided under section 296(3).
(7)
For 2016-2017 and for 2017-2018, 2018-2019, 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 $125,500,000.00 for 2017-2018
2018-2019 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 2017-2018, 2018-2019,
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 2016-2017 an amount not to exceed $5,500,000.00 and
there is allocated for 2017-2018 an amount not to exceed
$6,500,000.00
$18,000,000.00 and there is
allocated for 2018-2019
an amount not to exceed $24,000,000.00 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. 11s. (1) From the general fund appropriation in section
11,
there is allocated $10,142,500.00 for 2016-2017 and there is
allocated
$8,730,000.00 for 2017-2018 $3,230,000.00
for 2018-2019
for the purpose of providing services and programs to children who
reside within the boundaries of a district with the majority of its
territory located within the boundaries of a city for which an
executive proclamation of emergency is issued in the current or
immediately
preceding 2 3 fiscal years under the emergency
management act, 1976 PA 390, MCL 30.401 to 30.421. From the funding
appropriated
in section 11, there is allocated for each fiscal year
for
2016-2017 and for 2017-2018 2018-2019
$100.00 from the water
emergency reserve fund for the purposes of this section.
(2) From the allocation in subsection (1), there is allocated
to a district with the majority of its territory located within the
boundaries of a city in which an executive proclamation of
emergency
is issued in the current or immediately preceding 2 3
fiscal years and that has at least 4,500 pupils in membership for
the 2016-2017 fiscal year or has at least 4,000 pupils in
membership for a fiscal year after 2016-2017, an amount not to
exceed
$1,292,500.00 for 2016-2017 and an amount not to exceed
$2,625,000.00
for 2017-2018 $2,625,000.00
for 2018-2019 for the
purpose of employing school nurses, classroom aides, and school
social workers. The district shall provide a report to the
department in a form, manner, and frequency prescribed by the
department. The department shall provide a copy of that report to
the governor, the house and senate school aid subcommittees, the
house and senate fiscal agencies, and the state budget director
within 5 days after receipt. The report shall provide at least the
following information:
(a) How many personnel were hired using the funds allocated
under this subsection.
(b) A description of the services provided to pupils by those
personnel.
(c) How many pupils received each type of service identified
in subdivision (b).
(d) Any other information the department considers necessary
to ensure that the children described in subsection (1) received
appropriate levels and types of services.
(3)
From the allocation in subsection (1), there is allocated
to
an intermediate district that has a constituent district
described
in subsection (2) an amount not to exceed $1,195,000.00
for
2016-2017 and an amount not to exceed $2,500,000.00 for 2017-
2018
to augment staff for the purpose of providing additional early
childhood
services and for nutritional services to children
described
in subsection (1), regardless of location of school of
attendance.
For 2016-2017, the early childhood services to be
provided
under this subsection are state early intervention
services
as described in subsection (4) and early literacy
services.
Beginning with 2017-2018, the early childhood services to
be
provided under this subsection are state early intervention
services
that are similar to the services described in the early on
Michigan
state plan, including ensuring that all children described
in
subsection (1) who are less than 4 years of age as of September
1,
2016 are assessed and evaluated at least twice annually. In
addition,
funds allocated under this subsection may also be
expended
to provide informational resources to parents, educators,
and
the community, and to coordinate services with other local
agencies.
The intermediate district shall provide a report to the
department
in a form, manner, and frequency approved by the
department.
The department shall provide a copy of that report to
the
governor, the house and senate school aid subcommittees, the
house
and senate fiscal agencies, and the state budget director
within
5 days after receipt. The report shall provide at least the
following
information:
(a)
How many personnel were hired using the funds appropriated
in
this subsection.
(b)
A description of the services provided to children by
those
personnel.
(c)
What types of additional nutritional services were
provided.
(d)
How many children received each type of service identified
in
subdivisions (b) and (c).
(e)
What types of informational resources and coordination
efforts
were provided.
(f)
Any other information the department considers necessary
to
ensure that the children described in subsection (1) received
appropriate
levels and types of services.
(3) (4)
For 2016-2017 2018-2019 only, from the allocation in
subsection (1), there is allocated an amount not to exceed
$6,155,000.00
$0.00 to an intermediate districts described in
subsection
(3) district that has a
constituent district described
in subsection (2) to provide state early intervention services for
children described in subsection (1) who are less than 4 years of
age as of September 1, 2016. The intermediate district shall use
these funds to provide state early intervention services that are
similar to the services described in the early on Michigan state
plan, including ensuring that all children described in subsection
(1) who are less than 4 years of age as of September 1, 2016 are
assessed and evaluated at least twice annually.
(5)
From the allocation in subsection (1), there is allocated
an
amount not to exceed $1,500,000.00 for 2016-2017 and an amount
not
to exceed $3,000,000.00 for 2017-2018 to intermediate districts
described
in subsection (3) to enroll children described in
subsection
(1) in school-day great start readiness programs,
regardless
of household income eligibility requirements contained
in
section 39. The department shall administer this funding
consistent
with all other provisions of the great start readiness
programs
contained in section 32d and section 39.
(4) (6)
For 2017-2018, 2018-2019, from the allocation in
subsection (1), there is allocated an amount not to exceed
$605,000.00 for nutritional services to children described in
subsection (1).
(5) (7)
In addition to other funding
allocated and
appropriated in this section, there is appropriated an amount not
to
exceed $15,000,000.00 each fiscal year for 2016-2017 and 2017-
2018
for fiscal year 2018-2019 for state restricted contingency
funds. These contingency funds are not available for expenditure
until they have been transferred to a section within this article
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
(6) (8)
Notwithstanding section 17b,
payments under this
section shall be paid on a schedule determined by the department.
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 9 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.
At the request of a district and upon the district
presenting
evidence satisfactory to the department of the hardship,
the
department may waive all or a portion of the adjustments under
this
subsection if the department determines that all of the
following
apply:
(a)
The district would otherwise experience a significant
hardship
in satisfying its financial obligations.
(b)
The district would otherwise experience a significant
hardship
in satisfying its responsibility to provide instruction to
its
pupils.
(c)
The district has taken sufficient corrective action to
ensure
that the circumstance or circumstances that necessitated the
adjustment
under this subsection do not recur.
(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 year
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)
The department shall not deduct any funds from a district
due
to a pupil being counted in membership before the effective
date
of the amendatory act that added section 6(4)(jj), or
otherwise
reduce an allocation under this article to a district
relative
to the counting of a pupil in membership as provided under
section
6(4)(jj), if the district substantially complied with the
requirements
under section 6(4)(jj) in a previous fiscal year as if
section
6(4)(jj) had been in effect in the previous fiscal year.
(6) (7)
In addition to funds appropriated
in section 11 for
all
programs and services, there is appropriated for 2017-2018
2018-2019 for obligations in excess of applicable appropriations an
amount equal to the collection of overpayments, but not to exceed
amounts available from overpayments.
Sec. 17c. (1) Except as otherwise provided under this article,
the department shall do both of the following for funds
appropriated under this article for grants distributed by the
department to districts, intermediate districts, and eligible
entities:
(a) Not later than September 1 of each fiscal year, open the
grant application for funds appropriated for the subsequent fiscal
year. The department shall also provide to districts, intermediate
districts, and eligible entities, and post on its publicly
accessible website, the grant application and award process
schedule and the list of state grants and contracts available in
the subsequent fiscal year.
(b) Not later than December 1 of each fiscal year, publish
grant awards for funds appropriated in that fiscal year.
(2) Information for grants awarded from funds appropriated
under this article must be placed on the state board agenda in
August of the preceding fiscal year.
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 district board adopts its annual operating budget for the
following school fiscal year, or after a district board adopts a
subsequent revision to that budget, the district shall make all of
the following available through a link on its website homepage, or
may make the information available through a link on its
intermediate district's website 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:visual
displays:
(i) A chart of personnel expenditures, broken into the
following subcategories:
(A) Salaries and wages.
(B) Employee benefit costs, including, but not limited to,
medical, dental, vision, life, disability, and long-term care
benefits.
(C) Retirement benefit costs.
(D) All other personnel costs.
(ii) A chart of all district expenditures, broken into the
following subcategories:
(A) Instruction.
(B) Support services.
(C) Business and administration.
(D) Operations and maintenance.
(c) Links to all of the following:
(i) The current collective bargaining agreement for each
bargaining unit.
(ii) Each health care benefits plan, including, but not
limited to, medical, dental, vision, disability, long-term care, or
any other type of benefits that would constitute health care
services, offered to any bargaining unit or employee in the
district.
(iii) The audit report of the audit conducted under subsection
(4) for the most recent fiscal year for which it is available.
(iv) The bids required under section 5 of the public employees
health
benefits benefit 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 the
revised school code.
(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%.
(c) A district's or intermediate district's annual financial
audit shall include an analysis of the financial and pupil
accounting data used as the basis for distribution of state school
aid.
(d) The pupil and financial accounting records and reports,
audits, and management letters are subject to requirements
established in the auditing and accounting manuals approved and
published by the department.
(e) All of the following shall be done not later than November
1 each year for reporting the prior fiscal year data:
(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 1 each fiscal year, each district and
intermediate district shall submit to the center, in a manner
prescribed by the center, annual comprehensive financial data
consistent with the district's or intermediate district's audited
financial statements and 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 center the
special education actual cost report, known as "SE-4096", on a form
and
in the manner prescribed by the department.center. An
intermediate district shall perform the audit of a district's
report.
(7) By October 7 of each year, each district and intermediate
district shall file with the center the audited transportation
expenditure report, known as "SE-4094", on a form and in the manner
prescribed by the center. An intermediate district shall perform
the audit of a district's report.
(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), and (12), or if the
department determines that the financial data required under
subsection (5) are not consistent with audited financial
statements, 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),
and (12). If the district or
intermediate district does not comply with subsections (4), (5),
(6),
and (7), and (12) 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
total 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 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) By November 1 of each year, if a district or intermediate
district offers virtual learning under section 21f, or for a school
of excellence that is a cyber school, as defined in section 551 of
the revised school code, MCL 380.551, the district or intermediate
district shall submit to the department a report that details the
per-pupil costs of operating the virtual learning by vendor type
and
virtual learning model. The report
shall include at least all
of
the following information
concerning the operation of virtual
learning
for the immediately preceding school fiscal year:
(a)
The name of the district operating the virtual learning
and
of each district that enrolled students in the virtual
learning.
(b)
The total number of students enrolled in the virtual
learning
and the total number of membership pupils enrolled in the
virtual
learning.
(c)
For each pupil who is enrolled in a district other than
the
district offering virtual learning, the name of that district.
(d)
The district in which the pupil was enrolled before
enrolling
in the district offering virtual 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,
virtual instruction and instructional support, personnel,
hardware
and software, payment to each virtual learning provider,
and
other costs associated with operating virtual learning.
(h)
The name of each virtual education provider contracted by
the
district and the state in which each virtual education provider
is
headquartered.year, including
information concerning summer
programming. Information must be collected in a form and manner
determined by the department and must be collected in the most
efficient manner possible to reduce the administrative burden on
reporting entities.
(13) By March 31 of each year, 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
virtual courses available under section 21f and virtual 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.
(14) As used in subsections (12) and (13), "vendor type" means
the following:
(a) Virtual courses provided by the Michigan Virtual
University.
(b) Virtual courses provided by a school of excellence that is
a cyber school, as defined in section 551 of the revised school
code, MCL 380.551.
(c) Virtual courses provided by third party vendors not
affiliated with a Michigan public school.
(d) Virtual courses created and offered by a district or
intermediate district.
(15) An allocation to a district or another entity under this
article is contingent upon the district's or entity's compliance
with this section.
(16)
Beginning October 1, 2017, and not less than once every 3
months
after that date, the 2018,
and annually thereafter, the
department shall submit to the senate and house subcommittees on
school aid and to the senate and house standing committees on
education an itemized list of allocations under this article to any
association or consortium consisting of associations in the
immediately preceding fiscal year. The report shall detail the
recipient or recipients, the amount allocated, and the purpose for
which the funds were distributed.
Sec. 19. (1) A district or intermediate district shall comply
with all applicable reporting requirements specified in state and
federal law. Data provided to the center, in a form and manner
prescribed by the center, shall be aggregated and disaggregated as
required by state and federal law. In addition, a district or
intermediate district shall cooperate with all measures taken by
the center to establish and maintain a statewide P-20 longitudinal
data system.
(2) Each district shall furnish to the center not later than 5
weeks
after the pupil membership count day and by June 30 the last
business day in June of the school fiscal year ending in the fiscal
year, in a manner prescribed by the center, the information
necessary for the preparation of the district and high school
graduation report and for the preparation of the state and federal
accountability reports. This information shall meet requirements
established in the pupil auditing manual approved and published by
the department. The center shall calculate an annual graduation and
pupil dropout rate for each high school, each district, and this
state, in compliance with nationally recognized standards for these
calculations. The center shall report all graduation and dropout
rates to the senate and house education committees and
appropriations committees, the state budget director, and the
department not later than 30 days after the publication of the list
described in subsection (5). Before reporting these graduation and
dropout rates, the department shall allow a school or district to
appeal the calculations. The department shall consider and act upon
the appeal within 30 days after it is submitted and shall not
report these graduation and dropout rates until after all appeals
have been considered and decided.
(3)
By the first business day in December and by June 30 the
last business day in June of each year, a district shall furnish to
the center, in a manner prescribed by the center, information
related to educational personnel as necessary for reporting
required by state and federal law. For the purposes of this
subsection, the center shall only require districts and
intermediate districts to report information that is not already
available from the office of retirement services in the department
of technology, management, and budget.
(4) If a district or intermediate district fails to meet the
requirements of this section, the department shall withhold 5% of
the total funds for which the district or intermediate district
qualifies under this article until the district or intermediate
district complies with all of those subsections. If the district or
intermediate district does not comply with all of those subsections
by the end of the fiscal year, the department shall place the
amount withheld in an escrow account until the district or
intermediate district complies with all of those subsections.
(5) Before publishing a list of school or district
accountability designations as required by the no child left behind
act of 2001, Public Law 107-110, or the every student succeeds act,
Public Law 114-95, and utilizing data that were certified as
accurate and complete after districts and intermediate districts
adhered to deadlines, data quality reviews, and correction
processes leading to local certification of final student data in
subsection (2), the department shall allow a school or district to
appeal
that determination. any
calculation errors used in the
preparation of accountability metrics. The department shall
consider and act upon the appeal within 30 days after it is
submitted and shall not publish the list until after all appeals
have been considered and decided.
(6) Beginning in 2016-2017, the department shall implement
statewide standard reporting requirements for education data
approved by the department in conjunction with the center. The
department shall work with the center, intermediate districts,
districts, and other interested stakeholders to implement this
policy change. A district or intermediate district shall implement
the statewide standard reporting requirements not later than 2017-
2018 or when a district or intermediate district updates its
education data reporting system, whichever is later.
Sec.
20. (1) For 2017-2018, 2018-2019,
both of the following
apply:
(a)
The basic foundation allowance is $8,289.00.$8,409.00.
(b)
The minimum foundation allowance is $7,631.00.$7,871.00.
(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 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 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
$20.00)
$40.00) 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.
(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 2017-
2018
2018-2019 in an amount equal to the basic foundation allowance
for
2017-2018.2018-2019.
(c) For a district that had a foundation allowance for the
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 foundation allowance
supplemental payment calculated under section 20m and paid under
section
22b for 2016-2017, 2017-2018,
the district's 2016-2017
2017-2018 foundation allowance is considered to have been an amount
equal
to the sum of the district's actual 2016-2017 2017-2018
foundation allowance as otherwise calculated under this section
plus the lesser of the per pupil amount of the district's
supplemental
payment for 2016-2017 2017-2018
as calculated under
section 20m 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.
(4) Except as otherwise provided in this subsection, beginning
in 2014-2015, 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. For a district described in subsection
(3)(c), beginning in 2014-2015, 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. 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. For a community district, if school
operating taxes continue to be levied by a qualifying school
district under section 12b of the revised school code, MCL 380.12b,
with the same geographic area as the community district, the
taxable value per membership pupil of property in the community
district to be used for the purposes of this subsection does not
include the taxable value of property within the geographic area of
the community 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. The calculation under this subsection shall take into
account a district's per-pupil allocation under section 20m.
(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. Except as otherwise provided in this subsection,
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 in membership, other than special education pupils, in a
community district, the allocation calculated under this section is
an amount per membership pupil other than special education pupils
in the community district equal to the foundation allowance of the
qualifying school district, as described in section 12b of the
revised school code, MCL 380.12b, that is located within the same
geographic area as the community district.
(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.
The calculation under this subsection shall take into account a
district's per-pupil allocation under section 20m.
(9) Each fraction used in making calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(10) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(11) To assist the legislature in determining the basic
foundation allowance for the subsequent state fiscal year, each
revenue estimating conference conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by
dividing the sum of the estimated total state school aid fund
revenue for the subsequent state fiscal year plus the estimated
total state school aid fund revenue for the current state fiscal
year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money
transferred into that fund from the countercyclical budget and
economic stabilization fund under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated
total school aid fund revenue for the current state fiscal year
plus the estimated total state school aid fund revenue for the
immediately preceding state fiscal year, adjusted for any change in
the rate or base of a tax the proceeds of which are deposited in
that fund. If a consensus revenue factor is not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus
index is not determined at the revenue estimating conference, the
principals of the revenue estimating conference shall report their
estimates to the house and senate subcommittees responsible for
school aid appropriations not later than 7 days after the
conclusion of the revenue conference.
(12) Payments to districts and public school academies shall
not be made under this section. Rather, the calculations under this
section shall be used to determine the amount of state payments
under section 22b.
(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.
(c) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(g) "Local portion of the district's foundation allowance"
means an amount that is equal to the difference between (the sum of
the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills) and (the quotient of the
product of the captured assessed valuation under tax increment
financing acts times the district's certified mills divided by the
district's membership excluding special education pupils).
(h) "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 allowance 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 allowance for the
immediately
preceding state fiscal year minus $20.00) $40.00) 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 2017-
2018,
2018-2019, the maximum public school academy allocation is
$7,631.00.$7,871.00.
(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, 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,
125.2670, 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 2017-2018, 2018-2019,
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 sections 51 to 56, 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 $18,000,000.00 for 2017-2018
2018-2019 for payments to eligible districts under this section.
(2) The funding under this subsection is from the allocation
under subsection (1). A district is eligible for funding under this
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
former section 22c for 2013-2014.
(c) The quotient of the district's allocation under section
147a for 2012-2013 divided by the district's membership pupils for
2012-2013 minus the quotient of the district's allocation under
section 147a for 2013-2014 divided by the district's membership
pupils for 2013-2014.
(3) The amount allocated to each eligible district under
subsection (2) is an amount per membership pupil equal to the
amount per membership pupil the district received under this
section in 2013-2014.
(4) The funding under this subsection is from the allocation
under subsection (1). 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 decrease in the district's best practices per-pupil
funding under former section 22f from 2014-2015 to 2015-2016.
(c) The decrease in the district's pupil performance per-pupil
funding under former section 22j from 2014-2015 to 2015-2016.
(d) The quotient of the district's allocation under section
31a for 2015-2016 divided by the district's membership pupils for
2015-2016 minus the quotient of the district's allocation under
section 31a for 2014-2015 divided by the district's membership
pupils for 2014-2015.
(5) The amount allocated to each eligible district under
subsection (4) 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 decrease in the district's best practices per-pupil
funding under former section 22f from 2014-2015 to 2015-2016.
(c) The decrease in the district's pupil performance per-pupil
funding under former section 22j from 2014-2015 to 2015-2016.
(d) The quotient of the district's allocation under section
31a for 2015-2016 divided by the district's membership pupils for
2015-2016 minus the quotient of the district's allocation under
section 31a for 2014-2015 divided by the district's membership
pupils for 2014-2015.
(6) If the allocation under subsection (1) is insufficient to
fully fund payments under subsections (3) and (5) as otherwise
calculated under this section, the department shall prorate
payments under this section on an equal per-pupil basis.
Sec. 21f. (1) A primary district shall enroll an eligible
pupil in virtual courses in accordance with the provisions of this
section. A primary district shall not offer a virtual course to an
eligible pupil unless the virtual course is published in the
primary district's catalog of board-approved courses or in the
statewide catalog of virtual courses maintained by the Michigan
Virtual University pursuant to section 98. The primary district
shall also provide on its publicly accessible website a link to the
statewide catalog of virtual courses maintained by the Michigan
Virtual University. Unless the pupil is at least age 18 or is an
emancipated minor, a pupil shall not be enrolled in a virtual
course without the consent of the pupil's parent or legal guardian.
(2) Subject to subsection (3), a primary district shall enroll
an eligible pupil in up to 2 virtual courses as requested by the
pupil during an academic term, semester, or trimester.
(3) A pupil may be enrolled in more than 2 virtual courses in
a specific academic term, semester, or trimester if all of the
following conditions are met:
(a) The primary district has determined that it is in the best
interest of the pupil.
(b) The pupil agrees with the recommendation of the primary
district.
(c) The primary district, in collaboration with the pupil, has
developed an education development plan, in a form and manner
specified by the department, that is kept on file by the district.
Beginning October 1, 2016, this subdivision does not apply to a
pupil enrolled as a part-time pupil under section 166b.
(4) If the number of applicants eligible for acceptance in a
virtual course does not exceed the capacity of the provider to
provide the virtual course, the provider shall accept for
enrollment all of the applicants eligible for acceptance. If the
number of applicants exceeds the provider's capacity to provide the
virtual course, the provider shall use a random draw system,
subject to the need to abide by state and federal
antidiscrimination laws and court orders. A primary district that
is also a provider shall determine whether or not it has the
capacity to accept applications for enrollment from nonresident
applicants in virtual courses and may use that limit as the reason
for refusal to enroll a nonresident applicant.
(5) A primary district may not establish additional
requirements beyond those specified in this subsection that would
prohibit a pupil from taking a virtual course. A pupil's primary
district may deny the pupil enrollment in an online course if any
of the following apply, as determined by the district:
(a) The pupil is enrolled in any of grades K to 5.
(b) The pupil has previously gained the credits that would be
provided from the completion of the virtual course.
(c) The virtual course is not capable of generating academic
credit.
(d) The virtual course is inconsistent with the remaining
graduation requirements or career interests of the pupil.
(e) The pupil has not completed the prerequisite coursework
for the requested virtual course or has not demonstrated
proficiency in the prerequisite course content.
(f) The pupil has failed a previous virtual course in the same
subject during the 2 most recent academic years.
(g) The virtual course is of insufficient quality or rigor. A
primary district that denies a pupil enrollment request for this
reason shall enroll the pupil in a virtual course in the same or a
similar subject that the primary district determines is of
acceptable rigor and quality.
(h) The cost of the virtual course exceeds the amount
identified
in subsection (9), (10), unless the pupil or the pupil's
parent or legal guardian agrees to pay the cost that exceeds this
amount.
(i) The request for a virtual course enrollment did not occur
within the same timelines established by the primary district for
enrollment and schedule changes for regular courses.
(j) The request for a virtual course enrollment was not made
in the academic term, semester, trimester, or summer preceding the
enrollment. This subdivision does not apply to a request made by a
pupil who is newly enrolled in the primary district.
(6) If a pupil is denied enrollment in a virtual course by the
pupil's primary district, the primary district shall provide
written notification to the pupil of the denial, the reason or
reasons for the denial pursuant to subsection (5), and a
description of the appeal process. The pupil may appeal the denial
by submitting a letter to the superintendent of the intermediate
district in which the pupil's primary district is located. The
letter of appeal shall include the reason provided by the 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 primary district shall enroll the pupil in the
virtual course.
(7) To provide a virtual course to an eligible pupil under
this section, a provider shall do all of the following:
(a) Ensure that the virtual course has been published in the
pupil's primary district's catalog of board-approved courses or
published in the statewide catalog of virtual courses maintained by
the Michigan Virtual University.
(b) Assign to each pupil a teacher of record and provide the
primary district with the personnel identification code assigned by
the center for the teacher of record. If the provider is a
community college, the virtual course must be taught by an
instructor employed by or contracted through the providing
community college.
(c) Offer the virtual course on an open entry and exit method,
or aligned to a semester, trimester, or accelerated academic term
format.
(d) If the virtual course is offered to eligible pupils in
more than 1 district, the following additional requirements must
also be met:
(i) Provide the Michigan Virtual University with a course
syllabus that meets the definition under subsection (14)(g) in a
form and manner prescribed by the Michigan Virtual University for
inclusion in a statewide catalog of virtual courses.
(ii) Not later than October 1 of each fiscal year, provide the
Michigan Virtual University with an aggregated count of enrollments
for each virtual course the provider delivered to pupils pursuant
to this section during 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 virtual course.
(8) To provide an online course under this section, a
community college shall ensure that each online course it provides
under this section generates postsecondary credit.
(9) For any virtual course a pupil enrolls in under this
section, the pupil's primary district must assign to the pupil a
mentor and shall supply the provider with the mentor's contact
information.
(10) For a pupil enrolled in 1 or more virtual courses, the
primary district shall use foundation allowance or per-pupil funds
calculated under section 20 to pay for the expenses associated with
the virtual course or courses. A primary district is not required
to pay toward the cost of a virtual course an amount that exceeds
6.67% of the minimum foundation allowance for the current fiscal
year as calculated under section 20.
(11) A virtual 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. The department shall establish standards for hardware,
software,
and Internet internet access for pupils who are enrolled
in more than 2 virtual courses in an academic term, semester, or
trimester taken at a location other than a school facility.
(12) If a pupil successfully completes a virtual 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 virtual course title as it
appears in the virtual course syllabus.
(13) The enrollment of a pupil in 1 or more virtual courses
shall not result in a pupil being counted as more than 1.0 full-
time equivalent pupils under this article. The minimum requirements
to count the pupil in membership are those established by the pupil
accounting manual as it was in effect for the 2015-2016 school year
or as subsequently amended by the department if the department
notifies the legislature about the proposed amendment at least 60
days before the amendment becomes effective.
(14) As used in this section:
(a) "Instructor" means an individual who is employed by or
contracted through a community college.
(b) "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 primary district is the provider for
the virtual course and the mentor meets the requirements under
subdivision (e).
(c) "Primary district" means the district that enrolls the
pupil and reports the pupil for pupil membership purposes.
(d) "Provider" means the district, intermediate district, or
community college that the primary district pays to provide the
virtual course or the Michigan Virtual University if it is
providing the virtual course.
(e) "Teacher of record" means a teacher who meets all of the
following:
(i) Holds a valid Michigan teaching certificate or a teaching
permit recognized by the department.
(ii) If applicable, is endorsed in the subject area and grade
of the virtual course.
(iii) Is responsible for providing instruction, determining
instructional methods for each pupil, diagnosing learning needs,
assessing pupil learning, prescribing intervention strategies and
modifying lessons, reporting outcomes, and evaluating the effects
of instruction and support strategies.
(iv) Has a personnel identification code provided by the
center.
(v) If the provider is a community college, is an instructor
employed by or contracted through the providing community college.
(f) "Virtual course" means a course of study that is capable
of generating a credit or a grade and that is provided in an
interactive learning environment where the majority of the
curriculum
is delivered using the Internet internet
and in which
pupils may be separated from their instructor or teacher of record
by time or location, or both.
(g) "Virtual course syllabus" means a document that includes
all of the following:
(i) An alignment document detailing how the course meets
applicable state standards or, if the state does not have state
standards, nationally recognized standards.
(ii) The virtual course content outline.
(iii) The virtual course required assessments.
(iv) The virtual course prerequisites.
(v) Expectations for actual instructor or teacher of record
contact time with the virtual learning pupil and other
communications between a pupil and the instructor or teacher of
record.
(vi) Academic support available to the virtual learning pupil.
(vii) The virtual course learning outcomes and objectives.
(viii) The name of the institution or organization providing
the virtual content.
(ix) The name of the institution or organization providing the
instructor or teacher of record.
(x) The course titles assigned by the provider and the course
titles and course codes from the National Center for Education
Statistics (NCES) school codes for the exchange of data (SCED).
(xi) The number of eligible pupils that will be accepted by
the provider in the virtual course. A primary district that is also
the provider may limit the enrollment to those pupils enrolled in
the primary district.
(xii) The results of the virtual course quality review using
the guidelines and model review process published by the Michigan
Virtual University.
(h) "Virtual learning pupil" means a pupil enrolled in 1 or
more virtual courses.
Sec. 21h. (1) From the appropriation in section 11, there is
allocated
$6,000,000.00 $7,000,000.00
for 2017-2018 2018-2019 for
assisting districts assigned by the superintendent to participate
in a partnership to improve student achievement. The purpose of the
partnership is to identify district needs, develop intervention
plans, and partner with public, private, and nonprofit
organizations to coordinate resources and improve student
achievement. Assignment of a district to a partnership is at the
sole discretion of the superintendent.
(2) A district assigned to a partnership by the superintendent
is eligible for funding under this section if the district includes
at least 1 school that has been rated with a grade of "F", or
comparable performance rating, in the most recent state
accountability system rating, that is not under the supervision of
the state school reform/redesign office, and that does all of the
following:
(a) Completes a comprehensive needs evaluation in
collaboration with an intermediate school district, community
members, education organizations, and postsecondary institutions,
as applicable and approved by the superintendent, within 90 days of
assignment to the partnership described in this section. The
comprehensive needs evaluation shall include at least all of the
following:
(i) A review of the district's implementation and utilization
of a multi-tiered system of supports to ensure that it is used to
appropriately inform instruction.
(ii) A review of the district and school building leadership
and educator capacity to substantially improve student outcomes.
(iii) A review of classroom, instructional, and operational
practices and curriculum to ensure alignment with research-based
instructional practices and state curriculum standards.
(b) Develops an intervention plan that has been approved by
the superintendent and that addresses the needs identified in the
comprehensive needs evaluation completed under subdivision (a). The
intervention plan shall include at least all of the following:
(i) Specific actions that will be taken by the district and
each of its partners to improve student achievement.
(ii) Specific measurable benchmarks that will be met within 18
months to improve student achievement and identification of
expected student achievement outcomes to be attained within 3 years
after assignment to the partnership.
(c) Crafts academic goals that put pupils on track to meet or
exceed grade level proficiency.
(3) Upon approval of the intervention plan developed under
subsection (2), the department shall assign a team of individuals
with expertise in comprehensive school and district reform to
partner with the district, the intermediate district, community
organizations, education organizations, and postsecondary
institutions identified in the intervention plan to review the
district's use of existing financial resources to ensure that those
resources are being used as efficiently and effectively as possible
to improve student academic achievement. The superintendent of
public instruction may waive burdensome administrative rules for a
partnership district for the duration of the partnership agreement.
(4) Funds allocated under this section may be used to pay for
district expenditures approved by the superintendent to improve
student achievement. Funds may be used for professional development
for teachers or district or school leadership, increased
instructional time, teacher mentors, or other expenditures that
directly impact student achievement and cannot be paid from
existing district financial resources. An eligible district shall
not receive funds under this section for more than 3 years.
Notwithstanding section 17b, payments to eligible districts under
this section shall be paid on a schedule determined by the
department.
(5) The department shall annually report in person to the
legislature on the activities funded under this section and how
those activities impacted student achievement in eligible districts
that received funds under this section. To the extent possible,
participating districts receiving funding under this section shall
participate in the report.
Sec.
22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,207,000,000.00 for 2016-2017
and
there is allocated an amount not to
exceed $5,181,800,000.00
$5,176,000,000.00 for 2017-2018 and there is allocated an amount
not to exceed $5,107,000,000.00 for 2018-2019 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. For a
community district, the allocation as otherwise calculated under
this section shall be reduced by an amount equal to the amount of
local school operating tax revenue that would otherwise be due to
the community district if not for the operation of section 386 of
the revised school code, MCL 380.386, and the amount of this
reduction shall be offset by the increase in funding under section
22b(2).
(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 25g.
(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.
(c) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(d) "Current year hold harmless school operating taxes per
pupil" means the per pupil revenue generated by multiplying a
district's 1994-95 hold harmless millage by the district's current
year taxable value per membership pupil. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved
district that has been attached in whole or in part to the
receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12,
taxable value per membership pupil does not include the taxable
value of property within the geographic area of the dissolved
district.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal
property, 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, 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, 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, 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) For discretionary nonmandated payments to
districts
under this section, there is allocated for 2016-2017 an
amount
not to exceed $3,841,000,000.00 from the state school aid
fund
and general fund appropriations in section 11 and an amount
not
to exceed $72,000,000.00 from the community district education
trust
fund appropriation in section 11, and there is allocated for
2017-2018
an amount not to exceed $3,965,500,000.00
$3,957,000,000.00 from the state school aid fund and general fund
appropriations in section 11 and an amount not to exceed
$72,000,000.00 from the community district education trust fund
appropriation in section 11, and there is allocated for 2018-2019
an amount not to exceed $4,252,000,000.00 from the state school aid
fund and general fund appropriations in section 11 and an amount
not to exceed $72,000,000.00 from the community district education
trust fund appropriation in section 11. Except for money allocated
from the community district trust fund, money allocated under this
section that is not expended in the state fiscal year for which it
was 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, 20m, 51a(2),
51a(3), and 51a(11), minus the sum of the allocations to the
district under sections 22a and 51c. For a community district, the
allocation as otherwise calculated under this section shall be
increased by an amount equal to the amount of local school
operating tax revenue that would otherwise be due to the community
district if not for the operation of section 386 of the revised
school code, MCL 380.386, and this increase shall be paid from the
community district education trust fund allocation in subsection
(1) in order to offset the absence of local school operating
revenue in a community district in the funding of the state portion
of the foundation allowance under section 20(4).
(3) In order to receive an allocation under subsection (1),
each district shall do all of the following:
(a) Comply with section 1280b of the revised school code, MCL
380.1280b.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner
specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL
380.1230g.
(e) Comply with section 21f.
(f) For a district or public school academy that has entered
into a partnership agreement with the department, comply with
section 22p.
(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.1396w-5.
Sec. 22d. (1) From the appropriation in section 11, an amount
not
to exceed $5,000,000.00 $6,000,000.00
is allocated for 2017-
2018
2018-2019 for supplemental payments to rural districts under
this section.
(2) From the allocation under subsection (1), there is
allocated
for 2017-2018 2018-2019 an amount not to exceed
$957,300.00 for payments under this subsection to districts that
meet all of the following:
(a) Operates grades K to 12.
(b) Has fewer than 250 pupils in membership.
(c) Each school building operated by the district meets at
least 1 of the following:
(i) Is located in the Upper Peninsula at least 30 miles from
any other public school building.
(ii) Is located on an island that is not accessible by bridge.
(3) The amount of the additional funding to each eligible
district under subsection (2) shall be determined under a spending
plan developed as provided in this subsection and approved by the
superintendent of public instruction. The spending plan shall be
developed cooperatively by the intermediate superintendents of each
intermediate district in which an eligible district is located. The
intermediate superintendents shall review the financial situation
of each eligible district, determine the minimum essential
financial needs of each eligible district, and develop and agree on
a spending plan that distributes the available funding under
subsection (2) to the eligible districts based on those financial
needs. The intermediate superintendents shall submit the spending
plan to the superintendent of public instruction for approval. Upon
approval by the superintendent of public instruction, the amounts
specified for each eligible district under the spending plan are
allocated under subsection (2) and shall be paid to the eligible
districts in the same manner as payments under section 22b.
(4) Subject to subsection (6), from the allocation in
subsection
(1), there is allocated for 2017-2018 2018-2019 an
amount
not to exceed $4,042,700.00 $5,042,700.00
for payments under
this
subsection to districts that have 7.3 7.7 or fewer pupils per
square mile as determined by the department.
(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 2016-2017 2017-2018
only an amount not to exceed
$500,000.00
$2,800,000.00 for competitive assistance grants to
districts
and intermediate districts.that
were awarded funds under
this section in 2016-2017 but did not receive those funds.
(2) Funds received under this section may be used for
reimbursement of transition costs associated with the dissolution,
consolidation,
or annexation of districts. or intermediate
districts.
Grant funding shall be available
for dissolutions,
consolidations, or annexations that occur on or after June 1, 2016.
Districts
may spend funds allocated under this section over 3
fiscal
years.
(3)
In addition to the amount allocated under subsection (1),
from
the funds appropriated in section 11, there is allocated for
2016-2017
an amount not to exceed $2,500,000.00 for grants to
districts
or intermediate districts that received a grant under
this
section as it was in effect for 2015-2016 for reimbursement of
remaining
transition costs associated with a dissolution,
consolidation,
or annexation that was approved during 2015-2016 by
the
school electors of the applicable district or intermediate
district.
(4)
Notwithstanding section 17b, grant payments under this
section
shall be paid on a schedule determined by the department.
Sec. 22m. (1) From the appropriations in section 11, there is
allocated
for 2017-2018 2018-2019 an amount not to exceed
$2,200,000.00 for supporting the integration of local data systems
into the Michigan data hub network based on common standards and
applications that are in compliance with section 19(6).
(2) An entity that is the fiscal agent for no more than 5
consortia of intermediate districts that previously received
funding from the technology readiness infrastructure grant under
former section 22i for the purpose of establishing regional data
hubs that are part of the Michigan data hub network is eligible for
funding under this section.
(3) The center shall work with an advisory committee composed
of representatives from intermediate districts within each of the
data hub regions to coordinate the activities of the Michigan data
hub network.
(4) The center, in collaboration with the Michigan data hub
network, shall determine the amount of funds distributed under this
section to each participating regional data hub within the network,
based upon a competitive grant process. Entities receiving funding
under this section shall represent geographically diverse areas in
this state.
(5) Notwithstanding section 17b, payments under this section
shall be made on a schedule determined by the center.
(6) To receive funding under this section, a regional data hub
must have a governance model that ensures local control of data,
data security, and student privacy issues. The integration of data
within each of the regional data hubs shall provide for the
actionable use of data by districts and intermediate districts
through common reports and dashboards and for efficiently providing
information to meet state and federal reporting purposes.
(7) Participation in a data hub region in the Michigan data
hub network under this section is voluntary and is not required.
(8) Entities receiving funding under this section shall use
the funds for all of the following:
(a) Creating an infrastructure that effectively manages the
movement of data between data systems used by intermediate
districts, districts, and other educational organizations in
Michigan based on common data standards to improve student
achievement.
(b) Utilizing the infrastructure to put in place commonly
needed integrations, reducing cost and effort to do that work while
increasing data accuracy and usability.
(c) Promoting the use of a more common set of applications by
promoting systems that integrate with the Michigan data hub
network.
(d) Promoting 100% district adoption of the Michigan data hub
network
by September 30, 2018.2020.
(e) Ensuring local control of data, data security, and student
data privacy.
(f) Utilizing the infrastructure to promote the actionable use
of data through common reports and dashboards that are consistent
statewide.
(g) Creating a governance model to facilitate sustainable
operations of the infrastructure in the future, including
administration, legal agreements, documentation, staffing, hosting,
and funding.
(h) Evaluating future data initiatives at all levels to
determine whether the initiatives can be enhanced by using the
standardized environment in the Michigan data hub network.
(9)
Not later than January 1 , 2018, of
each fiscal year, the
center shall prepare a summary report of information provided by
each entity that received funds under this section that includes
measurable outcomes based on the objectives described under this
section. The report shall include a summary of compiled data from
each entity to provide a means to evaluate the effectiveness of the
project. The center shall submit the report to the house and senate
appropriations subcommittees on state school aid and to the house
and senate fiscal agencies.
Sec. 22n. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $11,000,000.00 for 2017 2018
2018-2019 for additional payments to districts for the higher
instructional costs of educating high school pupils.
(2) A district is eligible for a payment under this section if
it educates pupils in 1 or more of grades 9 to 12.
(3) The payment to each eligible district under this section
shall be an amount equal to $25.00 multiplied by the district's
total pupil membership in grades 9 to 12 as calculated under
section 6 for the current fiscal year. If the allocation under
subsection (1) is insufficient to fully fund payments under this
subsection, the department shall prorate payments under this
section on an equal per-pupil basis.
Sec. 22p. In order to receive funding under section 22b, a
district or public school academy that has a signed partnership
agreement with the department must meet both of the following:
(a) Amends the partnership agreement to include measurable
academic outcomes that will be achieved after 18 months and after
36 months from the date the agreement was originally signed.
Measurable academic outcomes under this subdivision must include
outcomes that put pupils on track to meet or exceed grade level
proficiency.
(b) Amends the partnership agreement to include accountability
measures to be imposed if the district or public school academy
does not achieve the measurable academic outcomes under subdivision
(a) for a school subject to a partnership agreement. Accountability
measures under this subdivision may include either the closure of
the school at the end of the current school year or the
reconstitution of the school in a final attempt to improve student
educational performance or to avoid interruption of the educational
process. For a public school academy that amends a partnership
agreement under this subdivision, the amended agreement must
include a requirement that if reconstitution is imposed on a school
that is operated by the public school academy and that is subject
to the partnership agreement, the school shall be reconstituted as
described in section 507 of the revised school code, MCL 380.507.
For a district that amends a partnership agreement under this
subdivision, the amended agreement must include a requirement that
if reconstitution is imposed on a school that is operated by the
district and that is subject to the partnership agreement, all of
the following apply:
(i) The district shall make significant changes to the
instructional and noninstructional programming of the school based
on the needs identified through a comprehensive review of data.
(ii) The district shall replace at least 25% of the faculty
and staff of the school.
(iii) The district shall replace the principal of the school,
unless the current principal has been in place for less than 3
years and the board of the district determines that it is in the
best interests of the district to retain current school leadership.
(iv) The reconstitution plan for the school shall require the
adoption of goals similar to the goals included in a partnership
agreement, with a limit of 5 years to achieve the goals. If the
goals are not achieved within 5 years, the superintendent of public
instruction shall either impose a second reconstitution plan on the
school or close the school.
Sec. 24. (1) From the appropriation in section 11, there is
allocated each fiscal year for 2017-2018 and for 2018-2019 an
amount
not to exceed $8,000,000.00 $7,150,000.00
for payments to
the educating district or intermediate district for educating
pupils assigned by a court or the department of health and human
services to reside in or to attend a juvenile detention facility or
child caring institution licensed by the department of health and
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
health and human services to reside in or to attend a juvenile
detention facility or child caring institution licensed by the
department of health and 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 $1,339,000.00 for 2017-2018
$1,355,700.00 for 2018-2019 for payments to intermediate districts
for pupils who are placed in juvenile justice service facilities
operated by the department of health and 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 health and
human services to ensure that all funding allocated under this
section is utilized by the intermediate district and department of
health and 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 health and
human services to a district or intermediate district unless the
district or intermediate district consents to the transfer.
Sec. 24c. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $1,528,400.00 for 2017-2018 for
2018-2019 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.
(2) In addition to the funds allocated under subsection (1),
from the appropriation in section 11, there is allocated an amount
not to exceed $80,000.00 for 2018-2019 to a district for pupils who
enrolled in the youth challenge program but dropped out before the
pupil membership count day. The district shall use these funds to
support the youth challenge program.
Sec. 25e. (1) The pupil membership transfer application and
pupil transfer process administered by the center under this
section shall be used for processing pupil transfers.
(2) If a pupil counted in membership for the pupil membership
count day transfers from a district or intermediate district to
enroll in another district or intermediate district after the pupil
membership count day and before the supplemental count day and, due
to the pupil's enrollment and attendance status as of the pupil
membership count day, the pupil was not counted in membership in
the educating district or intermediate district, the educating
district or intermediate district may report the enrollment and
attendance information to the center through the pupil transfer
process within 30 days after the transfer or within 30 days after
the pupil membership count certification date, whichever is later.
Pupil transfers may be submitted no earlier than the first day
after the certification deadline for the pupil membership count day
and before the supplemental count day. Upon receipt of the transfer
information under this subsection indicating that a pupil has
enrolled and is in attendance in an educating district or
intermediate district as described in this subsection, the pupil
transfer process shall do the following:
(a) Notify the district in which the pupil was previously
enrolled.
(b) Notify both the pupil auditing staff of the intermediate
district in which the educating district is located and the pupil
auditing staff of the intermediate district in which the district
that previously enrolled the pupil is located. The pupil auditing
staff shall investigate a representative sample based on required
audit sample sizes in the pupil auditing manual and may deny the
pupil membership transfer.
(c) Aggregate the districtwide changes and notify the
department for use in adjusting the state aid payment system.
(3) The department shall do all of the following:
(a) Adjust the membership calculation for each district or
intermediate district in which the pupil was previously counted in
membership or that previously received an adjustment in its
membership calculation under this section due to a change in the
pupil's enrollment and attendance so that the district's or
intermediate district's membership is prorated to allow the
district or intermediate district to receive for each school day,
as determined by the financial calendar furnished by the center, in
which the pupil was enrolled and in attendance in the district or
intermediate district an amount equal to 1/105 of a full-time
equated membership claimed in the fall pupil membership count. The
district or intermediate district shall receive a prorated
foundation allowance in an amount equal to the product of the
adjustment under this subdivision for the district or intermediate
district multiplied by the foundation allowance or per-pupil
payment as calculated under section 20 for the district or
intermediate district. The foundation allowance or per-pupil
payment shall be adjusted by the pupil's full-time equated status
as affected by the membership definition under section 6(4).
(b) Adjust the membership calculation for the educating
district or intermediate district in which the pupil is enrolled
and is in attendance so that the district's or intermediate
district's membership is increased to allow the district or
intermediate district to receive an amount equal to the difference
between the full-time equated membership claimed in the fall pupil
membership count and the sum of the adjustments calculated under
subdivision (a) for each district or intermediate district in which
the pupil was previously enrolled and in attendance. The educating
district or intermediate district shall receive a prorated
foundation allowance in an amount equal to the product of the
adjustment under this subdivision for the educating district or
intermediate district multiplied by the per-pupil payment as
calculated under section 20 for the educating district or
intermediate district. The foundation allowance or per-pupil
payment shall be adjusted by the pupil's full-time equated status
as affected by the membership definition under section 6(4).
(4) The changes in calculation of state school aid required
under subsection (3) shall take effect as of the date that the
pupil becomes enrolled and in attendance in the educating district
or intermediate district, and the department shall base all
subsequent payments under this article for the fiscal year to the
affected districts or intermediate districts on this recalculation
of state school aid.
(5) If a pupil enrolls in an educating district or
intermediate district as described in subsection (2), the district
or intermediate district in which the pupil is counted in
membership or another educating district or intermediate district
that received an adjustment in its membership calculation under
subsection (3), if any, and the educating district or intermediate
district shall provide to the center and the department all
information they require to comply with this section.
(6) The portion of the full-time equated pupil membership for
which a pupil is enrolled in 1 or more online courses under section
21f that is representative of the amount that the primary district
paid in course costs to the course provider shall not be counted or
transferred under the pupil transfer process under this section.
(7) It is the intent of the legislature that the center
determine the number of pupils who did not reside in this state as
of the 2018-2019 pupil membership count day but who newly enrolled
in a district or intermediate district after that pupil membership
count day and before the 2018-2019 supplemental count day. It is
the intent of the legislature that the center further determine the
number of pupils who were counted in membership for the 2018-2019
pupil membership count day but who left this state before the 2018-
2019 supplemental count day. In 2019-2020, the center shall provide
a report to the senate and house appropriations subcommittees on
state school aid, and to the senate and house fiscal agencies,
detailing
the number of pupils transferring in from another state
or
transferring out from this state outside
the public school
system of this state and the number of pupils transferring out of
the public school system in this state between the pupil membership
count day and supplemental count day as described in this
subsection.
The center shall include in the report a discussion of
benefits
and obstacles to developing a pupil enrollment process for
pupils
who newly enroll in a district or intermediate district
after
the pupil membership count day and before the supplemental
count
day, and developing a process for deducting pupils who were
counted
on the pupil membership count day and transfer out of this
state
before the supplemental count day.
(8) As used in this section:
(a) "Educating district or intermediate district" means the
district or intermediate district in which a pupil enrolls after
the pupil membership count day or after an adjustment was made in
another district's or intermediate district's membership
calculation under this section due to the pupil's enrollment and
attendance.
(b) "Pupil" means that term as defined under section 6 and
also children receiving early childhood special education programs
and services.
Sec. 25f. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to
exceed
$750,000.00 $1,600,000.00 each
fiscal year for 2017-2018 and
for 2018-2019 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.
(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) The total amount allocated to a strict discipline academy
under
this section is an amount equal to shall first be distributed
as the lesser of the strict discipline academy's added cost or the
department's approved per-pupil allocation for the strict
discipline academy. Any funds remaining after the first
distribution shall be distributed by prorating on an equal per-
pupil membership basis, not to exceed a strict discipline academy's
added cost. However, the sum of the amounts received by a strict
discipline academy under this section and under section 24 shall
not exceed the product of the strict discipline academy's per-pupil
allocation calculated under section 20 multiplied by the strict
discipline academy's full-time equated membership. The department
shall allocate funds to strict discipline academies under this
section on a monthly basis. For the purposes of this subsection:
(a) "Added cost" means 100% of the added cost each fiscal year
for educating all pupils enrolled and in regular daily attendance
at a strict discipline academy. Added cost shall be computed by
deducting all other revenue received under this article for pupils
described in this subsection from total costs, as approved by the
department, in whole or in part, for educating those pupils in a
strict discipline academy. The department shall include all costs
including, but not limited to, educational costs, insurance,
management fees, technology costs, legal fees, auditing fees,
interest, pupil accounting costs, and any other administrative
costs necessary to operate the program or to comply with statutory
requirements. Costs reimbursed by federal funds are not included.
(b) "Department's approved per-pupil allocation" for a strict
discipline academy shall be determined by dividing the total amount
allocated under this subsection for a fiscal year by the full-time
equated membership total for all pupils approved by the department
to be funded under this subsection for that fiscal year for the
strict discipline academy.
(4) Special education pupils funded under section 53a shall
not be funded under this section.
(5) If the funds allocated under this section are insufficient
to fully fund the adjustments under subsection (3), payments under
this section shall be prorated on an equal per-pupil basis.
(6) Payments to districts under this section shall be made
according to the payment schedule under section 17b.
Sec. 25g. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to
exceed
$750,000.00 for 2017-2018 2018-2019
for the purposes of this
section. 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.
(2) Special education pupils funded under section 53a shall
not be funded under this section.
(3) If the funds allocated under this section are insufficient
to fully fund the adjustments under subsection (1), payments under
this section shall be prorated on an equal per-pupil basis.
(4) Payments to districts under this section shall be made
according to the payment schedule under section 17b.
Sec. 25h. (1) From the funds appropriated in section 11, there
is allocated for 2018-2019 an amount not to exceed $100,000.00 to
an eligible district for a program to reduce the number of high
school dropouts.
(2) A district is eligible for funds under this section if the
district meets all of the following:
(a) Has a pupil membership greater than 15,000.
(b) Is located in an intermediate district for which the
combined pupil memberships of all of its constituent districts is
greater than 100,000 and less than 120,000.
(c) Collaborates with a program aligned with the goals and
strategies of the department's top ten in ten and the
recommendations of the career pathway alliance to increase district
graduation rates, attendance rates, and career readiness for at-
risk youth.
Sec. 26a. From the funds appropriated in section 11, there is
allocated
an amount not to exceed $17,000,000.00 each fiscal year
for
2016-2017 and $15,000,000.00 for 2017-2018 and there is
allocated an amount not to exceed $15,000,000.00 for 2018-2019 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 2016 and 2017 2017
and 2018, as applicable. 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 2017-2018 2018-2019 an amount not to exceed
$4,405,100.00 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
under 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 $1,500,000.00 $1,600,000.00 for
2017-2018 and there is allocated an amount not to exceed
$3,000,000.00 for 2018-2019 to the promise zone fund created in
subsection (3). The funds allocated under this section reflect the
amount of revenue from the collection of the state education tax
captured under section 17(2) of the Michigan promise zone authority
act, 2008 PA 549, MCL 390.1677.
(2) Funds allocated to the promise zone fund under this
section shall be used solely for payments to eligible districts and
intermediate districts, in accordance with section 17(3) of the
Michigan promise zone authority act, 2008 PA 549, MCL 390.1677,
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. Eligible districts and
intermediate districts shall use payments made under this section
for reimbursement for qualified educational expenses as defined in
section 3 of the Michigan promise zone authority act, 2008 PA 549,
MCL 390.1663.
(3) The promise zone fund is created as a separate account
within the state school aid fund to be used solely for the purposes
of the Michigan promise zone authority act, 2008 PA 549, MCL
390.1661 to 390.1679. All of the following apply to the promise
zone fund:
(a) The state treasurer shall direct the investment of the
promise zone fund. The state treasurer shall credit to the promise
zone fund interest and earnings from fund investments.
(b) Money in the promise zone fund at the close of a fiscal
year shall remain in the promise zone fund and shall not lapse to
the general fund.
(4) Subject to subsection (2), the state treasurer may make
payments from the promise zone fund to eligible districts and
intermediate districts pursuant to the Michigan promise zone
authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used
for the purposes of a promise zone authority created under that
act.
(5) Notwithstanding section 17b, payments under this section
shall be paid on a schedule determined by the department.
Sec. 31a. (1) From the state school aid fund money
appropriated
in section 11, there is allocated for 2017-2018 2018-
2019 an amount not to exceed $510,207,300.00 for payments to
eligible districts and eligible public school academies for the
purposes of ensuring that pupils are proficient in English language
arts by the end of grade 3, that pupils are proficient in
mathematics by the end of grade 8, that pupils are attending school
regularly, that high school graduates are career and college ready,
and for the purposes under subsections (7) and (8).
(2) For a district that has combined state and local revenue
per membership pupil under sections 20 and 20m that is greater than
the basic foundation allowance under section 20 for the current
fiscal year, the allocation under this section shall be an amount
equal to 30% of the allocation for which it would otherwise be
eligible under this section before any proration under subsection
(14).
(3) For a district or public school academy to be eligible to
receive funding under this section, other than funding under
subsection (7) or (8), the district or public school academy, for
grades
K to 3, 12, shall comply with the requirements under section
1280f of the revised school code, MCL 380.1280f, and shall use
resources to address early literacy and numeracy, and for at least
grades
4 K to 8 12
or, if the district or public school
academy
does
not operate all of grades 4 K
to 8, 12, for
all of the grades
it operates, must implement a multi-tiered system of supports that
is
an evidence-based model framework
that uses data-driven problem
solving to integrate academic and behavioral instruction and that
uses intervention delivered to all pupils in varying intensities
based
on pupil needs. This The multi-tiered system of supports
described in this subsection must provide at least all of the
following
essential elements:components:
(a)
Implements effective instruction for all learners.Team-
based leadership.
(b)
Intervenes early.A tiered
delivery system.
(c)
Provides a multi-tiered model of instruction and
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.
(c) Selection and implementation of instruction,
interventions, and supports.
(d)
Monitors pupil progress to inform instruction.A
comprehensive screening and assessment system.
(e)
Uses data to make instructional decisions.Continuous data-
based decision making.
(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) Except as otherwise provided in this subsection, an
eligible district or eligible public school academy shall receive
under this section for each membership pupil in the district or
public school academy who is determined to be economically
disadvantaged, as reported to the center in the form and manner
prescribed by the center not later than the fifth Wednesday after
the pupil membership count day of the immediately preceding fiscal
year, an amount per pupil equal to 11.5% of the statewide weighted
average foundation allowance. However, a public school academy that
began operations as a public school academy after the pupil
membership count day of the immediately preceding school year shall
receive under this section for each membership pupil in the public
school academy, who is determined to be economically disadvantaged,
as reported to the center in the form and manner prescribed by the
center not later than the fifth Wednesday after the pupil
membership count day of the current fiscal year, an amount per
pupil equal to 11.5% of the statewide weighted average foundation
allowance.
(5) Except as otherwise provided in this section, a district
or public school academy receiving funding under this section shall
use that money only to provide instructional programs and direct
noninstructional services, including, but not limited to, medical,
mental health, or counseling services, for at-risk pupils; for
school health clinics; and for the purposes of subsection (6), (7),
or (8). 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 were determined to be
economically disadvantaged in the immediately preceding state
fiscal year, as determined and reported as described in subsection
(4), may use not more than 20% of the funds it receives under this
section for school security. A district or public school academy
shall not use any of that money for administrative costs. 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. Funds spent on school
security under this subsection must be counted toward required
spending under subsection (16)(b).
(6) A district or public school academy that receives funds
under this section and that operates a school breakfast program
under section 1272a of the revised school code, MCL 380.1272a,
shall use from the funds received under this section an amount, not
to exceed $10.00 per pupil for whom the district or public school
academy receives funds under this section, necessary to pay for
costs associated with the operation of the school breakfast
program.
(7) From the funds allocated under subsection (1), there is
allocated
for 2017-2018 2018-2019 an amount not to exceed
$6,057,300.00 to support primary health care services provided to
children and adolescents up to age 21. These funds shall be
expended in a form and manner determined jointly by the department
and the department of health and human services. 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.
(8) From the funds allocated under subsection (1), there is
allocated
for 2017-2018 2018-2019 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 health and
human services. Notwithstanding section 17b, payments to eligible
entities under this subsection shall be paid on a schedule
determined by the department.
(9) Each district or public school academy receiving funds
under this section shall submit to the department by July 15 of
each fiscal year a report, in the form and manner prescribed by the
department, that includes a brief description of each program
conducted or services performed by the district or public school
academy using funds under this section, the amount of funds under
this section allocated to each of those programs 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 health and human services to verify matching funds
for the temporary assistance for needy families program. In
prescribing the form and manner of the report, the department shall
ensure that districts are allowed to expend funds received under
this section on any activities that are permissible under this
section. If a district or public school academy does not comply
with this subsection, the department shall withhold an amount equal
to the August payment due under this section until the district or
public school academy complies with this subsection. If the
district or public school academy does not comply with this
subsection by the end of the state fiscal year, the withheld funds
shall be forfeited to the school aid fund.
(10) In order to receive funds under this section, a district
or public school academy shall allow access for the department or
the department's designee to audit all records related to the
program for which it receives those funds. The district or public
school academy shall reimburse the state for all disallowances
found in the audit.
(11) Subject to subsections (6), (7), and (8), for schools in
which more than 40% of pupils are identified as at-risk, a district
or
public school academy 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 instructional or noninstructional services
consistent
with the school improvement plan.reforms
that are guided
by the district's comprehensive needs assessment and are included
in the district improvement plan. Schoolwide reforms must include
parent and community supports, activities, and services, that may
include the pathways to potential program created by the department
of health and human services or the communities in schools program.
(12) A district or public school academy that receives funds
under
this section may use up to 3% 5%
of those funds to provide
research-based professional development and to implement a coaching
model that supports the multi-tiered system of supports framework.
Professional development may be provided to district and school
leadership
and teachers that is and
must be aligned to professional
learning
standards; is integrated into district, school building,
and
classroom practices; and is solely related to the following:
(a) Implementing the multi-tiered system of supports required
in subsection (3) with fidelity and utilizing the data from that
system to inform curriculum and instruction.
(b) Implementing section 1280f of the revised school code, MCL
380.1280f, as required under subsection (3), with fidelity.
(13) A district or public school academy that receives funds
under this section may use funds received under this section to
support instructional or behavioral coaches. Funds used for this
purpose are not subject to the cap under subsection (12).
(14) If necessary, and before any proration required under
section 296, the department shall prorate payments under this
section by reducing the amount of the allocation as otherwise
calculated under this section by an equal percentage per district.
(15) 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 are economically disadvantaged and
that are 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.
(16)
Beginning in 2018-2019, 2019-2020,
if a district or
public school academy does not demonstrate to the satisfaction of
the department that at least 50% of at-risk pupils are proficient
in English language arts by the end of grade 3 as measured by the
state assessment for the immediately preceding school year or have
achieved at least 1 year's growth in English language arts during
grade 3 as measured by a local benchmark assessment for the
immediately preceding school year, demonstrate to the satisfaction
of the department that at least 50% of at-risk pupils are
proficient in mathematics by the end of grade 8 as measured by the
state assessment for the immediately preceding school year or have
achieved at least 1 year's growth in mathematics during grade 8 as
measured by a local benchmark assessment for the immediately
preceding school year, and demonstrate to the satisfaction of the
department improvement over each of the 3 immediately preceding
school years in the percentage of at-risk pupils that are career-
and college-ready as determined by proficiency on the English
language arts, mathematics, and science content area assessments on
the grade 11 summative assessment under section 1279g(2)(a) of the
revised school code, MCL 380.1279g, the district or public school
academy shall ensure all of the following:
(a) The district or public school academy shall determine the
proportion of total at-risk pupils that represents the number of
pupils in grade 3 that are not proficient in English language arts
by the end of grade 3 or that did not achieve at least 1 year's
growth in English language arts during grade 3, and the district or
public school academy shall expend that same proportion multiplied
by
1/2 1/3 of its total at-risk funds under this section on
tutoring and other methods of improving grade 3 English language
arts proficiency or growth.
(b) The district or public school academy shall determine the
proportion of total at-risk pupils that represents the number of
pupils in grade 8 that are not proficient in mathematics by the end
of grade 8 or that did not achieve at least 1 year's growth in
mathematics during grade 8, and the district or public school
academy shall expend that same proportion multiplied by 1/3 of its
total at-risk funds under this section on tutoring and other
methods of improving grade 8 mathematics proficiency or growth.
(c) (b)
The district or public school academy
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 the English language arts,
mathematics, and science content area assessments on the grade 11
summative assessment under section 1279g(2)(a) of the revised
school code, MCL 380.1279g, and the district or public school
academy
shall expend that same proportion multiplied by 1/2 1/3 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.
(17) As used in subsection (16), "total at-risk pupils" means
the
sum of the number of pupils in grade 3 that are not proficient
in
English language arts by the end of third grade as measured on
the
state assessment at-risk and
the number of pupils in grade 8
that
are at-risk and the number of pupils in
grade 11 that are not
career-
and college-ready as measured by the student's score on the
English
language arts, mathematics, and science content area
assessments
on the grade 11 summative assessment under section
1279g(2)(a)
of the revised school code, MCL 380.1279g.at-risk.
(18) A district or public school academy that receives funds
under this section may use funds received under this section to
provide an anti-bullying or crisis intervention program.
(19) The department shall collaborate with the department of
health and human services to prioritize assigning Pathways to
Potential Success coaches to elementary schools that have a high
percentage of pupils in grades K to 3 who are not proficient in
English language arts, based upon state assessments for pupils in
those grades.
(20)
For the purpose of determining the number of economically
disadvantaged
pupils enrolled in a community district for 2017-
2018,
disadvantaged pupils who were enrolled in the education
achievement
system for 2016-2017 shall be considered to have been
enrolled
in the community district for 2016-2017.
(20) (21)
As used in this section:
(a) "At-risk pupil" means a pupil in grades K to 12 for whom
the district has documentation that the pupil meets any of the
following criteria:
(i) The pupil is economically disadvantaged.
(ii) The pupil is an English language learner.
(iii) The pupil is chronically absent as defined by and
reported to the center.
(iv) The pupil is a victim of child abuse or neglect.
(v) The pupil is a pregnant teenager or teenage parent.
(vi) The pupil has a family history of school failure,
incarceration, or substance abuse.
(vii) The pupil is an immigrant who has immigrated within the
immediately preceding 3 years.
(viii) 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.
(ix) For pupils for whom the results of the state summative
assessment have been received, is a pupil who did not achieve
proficiency on the English language arts, mathematics, science, or
social studies content area assessment.
(x) Is a pupil who is at risk of not meeting the district's or
public school academy's core academic curricular objectives in
English language arts or mathematics, as demonstrated on local
assessments.
(b) "Economically disadvantaged" means a pupil who has been
determined eligible for free or reduced-price meals as determined
under the Richard B. Russell national school lunch act, 42 USC 1751
to 1769j; who is in a household receiving supplemental nutrition
assistance program or temporary assistance for needy families
assistance; or who is homeless, migrant, or in foster care, as
reported to the center.
(c) "English language learner" means limited English
proficient pupils who speak a language other than English as their
primary language and have difficulty speaking, reading, writing, or
understanding English as reported to the center.
(d) "Statewide weighted average foundation allowance" means
the number that is calculated by adding together the result of each
district's or public school academy's foundation allowance or per
pupil payment calculated under section 20 multiplied by the number
of pupils in membership in that district or public school academy,
and then dividing that total by the statewide number of pupils in
membership. For the purposes of this calculation, a district's
foundation allowance shall not exceed the basic foundation
allowance under section 20 for the current state fiscal year.
Sec. 31b. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $1,500,000.00 $750,000.00 for
2017-2018
2018-2019 for grants to at-risk districts for
implementing a balanced calendar instructional program for at least
1 of its schools.
(2) The department shall select districts for grants under
this section from among applicant districts that meet both of the
following:
(a) The district meets 1 or both of the following:
(i) Is eligible in 2017-2018 2018-2019 for the community
eligibility option for free and reduced price lunch under 42 USC
1759a.
(ii) At least 50% of the pupils in membership in the district
met the income eligibility criteria for free breakfast, lunch, or
milk in the immediately preceding state fiscal year, as determined
under the Richard B. Russell national school lunch act, 42 USC 1751
to 1769j.
(b) The board of the district has adopted a resolution stating
that the district will implement for the first time a balanced
calendar
instructional program that will begin in 2018-2019 2019-
2020 for at least 1 school operated by the district and committing
to providing the balanced calendar instructional program in each of
those schools for at least 3 school years.
(3) A district seeking a grant under this section shall apply
to the department in the form and manner prescribed by the
department
not later than December 1, 2017. 2018. The department
shall select districts for grants and make notification not later
than
February 1, 2018.2019.
(4) The department shall award grants under this section on a
competitive basis, but shall give priority based solely on
consideration of the following criteria:
(a) Giving priority to districts that, in the immediately
preceding fiscal year, had lower general fund balances as a
percentage of revenues.
(b) Giving priority to districts that operate at least 1
school that has been identified by the department as either a
priority school or a focus school.
(c) Ensuring that grant funding includes both rural and urban
districts.
(5) The amount of a grant under this section to any 1 district
shall not exceed $750,000.00.
(6) A grant payment under this section to a district shall be
used for necessary modifications to instructional facilities and
other nonrecurring costs of preparing for the operation of a
balanced calendar instructional program as approved by the
department.
(7) A district receiving a grant under this section is not
required to provide more than the minimum number of days and hours
of pupil instruction prescribed under section 101, but shall spread
at least those minimum amounts of pupil instruction over the entire
year in each of its schools in which a balanced calendar
instructional calendar is implemented. The district shall commit to
providing the balanced calendar instructional calendar in each of
those schools for at least 3 school years.
(8) For a district receiving a grant under this section,
excessive heat is considered to be a condition not within the
control of school authorities for the purpose of days or hours
being counted as days or hours of pupil instruction under section
101(4).
(9) Notwithstanding section 17b, grant payments to districts
under this section shall be paid on a schedule determined by the
department.
Sec. 31d. (1) From the appropriations in section 11, there is
allocated
an amount not to exceed $22,495,100.00 $22,802,000.00 for
2017-2018 and there is allocated an amount not to exceed
$23,144,000.00 for 2018-2019 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, Durant v State of Michigan, 456
Mich
175 (1997).
(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 2017-2018 2018-2019
all available federal funding,
estimated at $520,000,000.00 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 $4,500,000.00 each fiscal year
for
2016-2017 and for 2017-2018 for
2018-2019 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. 31j. (1) From the general fund money appropriated in
section
11, there is allocated an amount not to exceed $375,000.00
$575,000.00
for 2017-2018 2018-2019 for a pilot project to support
districts in the purchase of locally grown fruits and vegetables as
described in this section.
(2) The department shall provide funding in an amount equal to
$125,000.00 per region to districts in prosperity regions 2, 4, 6,
and 9 for the pilot project described under this section. In
addition, the department shall provide funding in an amount equal
to $75,000.00 to districts in prosperity region 8 for the pilot
project described under this section. From the funding to districts
in subsection (1), funding retained by prosperity regions that
administer the project shall not exceed 10%, and funding retained
by the department for administration shall not exceed 6%. A
prosperity region may enter into a memorandum of understanding with
the department or another prosperity region, or both, to administer
the project. If the department administers the project for a
prosperity region, the department may retain up to 10% of that
prosperity region's funding for administration.
(3) The department shall develop and implement a competitive
grant program for districts within the identified prosperity
regions to assist in paying for the costs incurred by the district
to purchase or increase purchases of whole or minimally processed
fruits, vegetables, and legumes grown in this state. The maximum
amount that may be drawn down on a grant to a district shall be
based on the number of meals served by the school district during
the previous school year under the Richard B. Russell national
school lunch act, 42 USC 1751 to 1769j. The department shall
collaborate with the Michigan department of agriculture and rural
development to provide training to newly participating schools and
electronic information on Michigan agriculture.
(4) The goals of the pilot project include improving daily
nutrition and eating habits for children through the school
settings while investing in Michigan's agricultural and related
food business economy.
(5) A district that receives a grant under this section shall
use those funds for the costs incurred by the school district to
purchase whole or minimally processed fruits, vegetables, and
legumes that meet all of the following:
(a) Are purchased on or after the date the district received
notification from the department of the amount to be distributed to
the district under this subsection, including purchases made to
launch
meals in September 2017 2018
for the 2017-2018 2018-2019
school year.
(b) Are grown in this state and, if minimally processed, are
also processed in this state.
(c) Are used for meals that are served as part of the United
States Department of Agriculture's child nutrition programs.
(6) For Michigan-grown fruits, vegetables, and legumes that
satisfy the requirements of subsection (5), matching reimbursements
shall be made in an amount not to exceed 10 cents for every school
meal that is served as part of the United States Department of
Agriculture's child nutrition programs and that uses Michigan-grown
fruits, vegetables, and legumes.
(7) A district that receives a grant for reimbursement under
this section shall use the grant to purchase whole or minimally
processed fruits, vegetables, and legumes that are grown in this
state and, if minimally processed, are also processed in this
state.
(8) In awarding grants under this section, the department
shall work in conjunction with prosperity region offices, in
consultation with Michigan-based farm to school resource
organizations, to develop scoring criteria that assess an
applicant's ability to procure Michigan-grown products, prepare and
menu Michigan-grown products, promote and market Michigan-grown
products, and submit letters of intent from districts on plans for
educational activities that promote the goals of the program.
(9) The department shall give preference to districts that
propose educational activities that meet 1 or more of the
following: promote healthy food activities; have clear educational
objectives;
involve parents or the community; and connect to a
school's farm-to-school procurement activities; and market and
promote the program, leading to increased pupil knowledge and
consumption of Michigan—grown products. Applications with robust
marketing and promotional activities shall receive stronger
weighting and consideration.
(10) In awarding grants, the department shall also consider
all of the following: the percentage of children who qualify for
free or reduced price school meals under the Richard B. Russell
national school lunch act, 42 USC 1751 to 1769j; the variety of
school sizes and geographic locations within the identified
prosperity regions; and existing or future collaboration
opportunities between more than 1 district in a prosperity region.
(11) As a condition of receiving a grant under this section, a
district shall provide or direct its vendors to provide to
prosperity region offices copies of monthly receipts that show the
quantity of different Michigan-grown fruits, vegetables, and
legumes purchased, the amount of money spent on each of these
products,
and the name and Michigan location of the farm that grew
the products, and the methods or plans to market and promote the
program. The district shall also provide to the prosperity region
monthly lunch numbers and lunch participation rates, and calendars
or monthly menus noting when and how Michigan-grown products were
used in meals. The district and school food service director or
directors also shall agree to respond to brief online surveys and
to provide a report that shows the percentage relationship of
Michigan spending compared to total food spending. Not later than
March
1, 2018, 2019, each prosperity region office, either on its
own or in conjunction with another prosperity region, shall submit
a report to the department on expected outcomes and related
measurements for economic development and children's nutrition and
readiness to learn based on progress so far. The report shall
include at least all of the following:
(a) The extent to which farmers and related businesses,
including distributors and processors, see an increase in market
opportunities and income generation through sales of Michigan or
local products to districts. All of the following apply for
purposes of this subdivision:
(i) The data used to determine the amount of this increase
shall be the total dollar amount of Michigan or local fruits,
vegetables, and legumes purchased by schools, along with the number
of different types of products purchased; school food purchasing
trends identified along with products that are of new and growing
interest among food service directors; the number of businesses
impacted; and the percentage of total food budget spent on
Michigan-grown fruits, vegetables, and legumes.
(ii) The prosperity region office shall use purchasing data
collected for the project and surveys of school food service
directors on the impact and success of the project as the source
for the data described in subparagraph (i).
(b) The ability to which pupils can access a variety of
healthy Michigan-grown foods through schools and increase their
consumption of those foods. All of the following apply for purposes
of this subdivision:
(i) The data used to determine whether this subparagraph is
met shall be the number of pupils exposed to Michigan-grown fruits,
vegetables, and legumes at schools; the variety of products served;
new items taste-tested or placed on menus; and the increase in
pupil willingness to try new local, healthy foods.
(ii) The prosperity region office shall use purchasing data
collected for the project, meal count and enrollment numbers,
school menu calendars, and surveys of school food service directors
as the source for the data described in subparagraph (i).
(12) The department shall compile the reports provided by
prosperity region offices under subsection (11) into 1 legislative
report. The department shall provide this report not later than
April
1, 2018 2019 to the house and senate subcommittees
responsible for school aid, the house and senate fiscal agencies,
and the state budget director.
Sec. 31m. (1) The school mental health and support services
fund is created as a separate account within the state school aid
fund.
(2) The state treasurer may receive money or other assets from
any source for deposit into the school mental health and support
services fund. The state treasurer shall direct the investment of
the school mental health and support services fund and shall credit
to the school mental health and support services fund interest and
earnings from the school mental health and support services fund.
(3) Money available in the school mental health and support
services fund shall not be expended without a specific
appropriation.
(4) Money in the school mental health and support services
fund at the close of the fiscal year shall remain in the school
mental health and support services fund and shall not lapse to the
state school aid fund or to the general fund. The department of
treasury shall be the administrator of the school mental health and
support services fund for auditing purposes.
(5) For the fiscal year ending September 30, 2018,
$30,000,000.00 from the state school aid fund shall be deposited
into the school mental health and support services fund to be used
to support efforts to improve mental health and support services
for K-12 pupils in this state, including, but not limited to,
improved access to counseling services, educational awareness
programs, and enhanced mental health and clinical services.
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 $243,600,000.00 for 2017-2018. 2018-2019. 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 September 1 of the school year in which the
program is offered and shall meet those eligibility and
prioritization guidelines. A child who is not 4 years of age as of
September 1, but who will be 4 years of age not later than December
1, is eligible to participate if the child's parent or legal
guardian seeks a waiver from the September 1 eligibility date by
submitting a request for enrollment in a program to the responsible
intermediate district, if the program has capacity on or after
September 1 of the school year, and if the child meets eligibility
and prioritization guidelines.
(2)
Funds From the funds allocated under subsection (1), shall
be
an amount not to exceed
$242,600,000.00 is 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 2017-2018 2018-
2019 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, including, at
least, the Connect4Learning curriculum.
(c) Nutritional services for all program participants
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 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 and shall be prioritized for enrollment within the
lowest quintile.
(c) Ensure that the applicant only uses qualified personnel
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 or higher degree in child
development or early childhood education 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 education, 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