HOUSE BILL No. 5757

 

 

March 22, 2018, Introduced by Rep. Cox and referred to the Committee on Appropriations.

 

       A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 11a, 11j, 11k, 11m, 11s, 15, 18, 19, 20, 20d, 20f, 20m,

 

21f, 21h, 22a, 22b, 22d, 22m, 22n, 24, 24a, 24c, 25e, 25f, 25g, 26a, 26b, 26c, 31a,

 

31d, 31f, 32d, 32p, 35a, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b, 62,

 

64b, 67, 74, 81, 94, 94a, 98, 99h, 99r, 99s, 104c, 107, 147, 147a, 147b, 147c, 147e,

 

152a, 160, 163, 166b, 201, 206, 207a, 207b, 207c, 209, 210b, 217, 225, 226, 229a, 236,

 

236b, 236c, 241, 242, 245, 252, 256, 263, 264, 265, 265a, 267, 268, 269, 270, 274c,

 

276, 277, 278, 279, 280, 281, 282, 289, and 296 (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, 388.1620m, 388.1621f, 388.1621h, 388.1622a, 388.1622b,

 

388.1622d, 388.1622m, 388.1622n, 388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f,

 


388.1625g, 388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f,

 

388.1632d, 388.1632p, 388.1635a, 388.1639, 388.1639a, 388.1641, 388.1651a, 388.1651c,

 

388.1651d, 388.1653a, 388.1654, 388.1654b, 388.1656, 388.1661a, 388.1661b, 388.1662,

 

388.1664b, 388.1667, 388.1674, 388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h,

 

388.1699r, 388.1699s, 388.1704c, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c,

 

388.1747e, 388.1752a, 388.1760, 388.1763, 388.1766b, 388.1801, 388.1806, 388.1807a,

 

388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1817, 388.1825, 388.1826, 388.1829a,

 

388.1836, 388.1836b, 388.1836c, 388.1841, 388.1842, 388.1845, 388.1852, 388.1856,

 

388.1863, 388.1864, 388.1865, 388.1865a, 388.1867, 388.1868, 388.1869, 388.1870,

 

388.1874c, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880, 388.1881, 388.1882,

 

388.1889, and 388.1896) sections 6, 11a, 11j, 11k, 11m, 11s, 15, 18, 20, 20d, 20f,

 

20m, 22a, 22b, 22d, 24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31d, 31f, 32p, 39, 39a, 41,

 

51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b, 62, 64b, 67, 74, 81, 94, 94a, 98, 99s, 147,

 

147b, 147c, 152a, 201, 206, 207a, 207b, 207c, 209, 210b, 217, 225, 226, 229a, 236,

 

236b, 236c, 241, 245, 252, 256, 263, 264, 265, 265a, 267, 268, 269, 270, 274c, 276,

 

277, 278, 279, 280, 281, and 282 as amended and 21h, 22m, 22n, 147e, and 160 as added

 

by 2017 PA 108, sections 11, 21f, 25e, 31a, 32d, 35a, 99h, 99r, 104c, 107, 147a, and

 

166b as amended by 2017 PA 143, section 19 as amended by 2016 PA 533, section 163 as

 

amended by 2015 PA 85, section 242 as amended by 2012 PA 201, section 289 as amended

 

by 2013 PA 60, section 296 as added by 2011 PA 62, and by adding sections 23f, 54c,

 

54d, 61d, 210e, and 265b; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

ARTICLE I

 

       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.

 

       (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, a pupil shall not be

 

considered to be less than a full-time equated pupil solely because of the effect of

 

his or her postsecondary enrollment, including necessary travel time, on the number of

 

class hours provided by the district to the pupil.

 

       (r) 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.

 

       (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 1 to 12 in accordance with

 

section 166b.

 

       (b) A pupil receiving 1/2 or less of his or her instruction in a district other

 

than the pupil's district of residence.

 

       (c) A pupil enrolled in a public school academy.

 

       (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, 2019, 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 $12,762,325,200.00 from the state

 

school aid fund, the sum of $215,000,000.00 $45,000,000.00 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 $23,100,000.00 $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 YEAR ending September 30, 2017 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 2018-2019


an amount not to exceed $6,500,000.00 $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

 

$3,230,000.00 for 2017-2018 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, AND FOR

 

THE DEPARTMENT TO IMPLEMENT AND ADMINISTER GRANTS AWARDED FOR, OR TO PROVIDE SERVICES

 

FOR THESE CHILDREN. 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 $2,375,000.00 for 2017-2018 2018-2019 for the purpose of employing

 

school nurses 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.

 

       (4) For 2016-2017 only, from the allocation in subsection (1), there is allocated

 

an amount not to exceed $6,155,000.00 to intermediate districts described in

 

subsection (3) 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.

 

       (3) (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).

 

       (4) (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.

 

       (5) (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 4 years for the adjustment and may advance payments to the

 

district otherwise authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial obligations. 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.

 

       © 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

 

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. 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

 

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.

 

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

 

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

 

and in the manner prescribed by the center.

 

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

 

at least annually and shall periodically update those manuals to reflect changes in

 

this article.

 

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

 

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

 

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

 

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

 

(5), (6), and (7), 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, 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:

 

YEAR, INCLUDING INFORMATION CONCERNING SUMMER PROGRAMMING. INFORMATION SHALL BE

 

COLLECTED IN A FORM AND MANNER AS DETERMINED BY THE DEPARTMENT AND SHALL BE COLLECTED

 

IN THE MOST EFFICIENT MANNER POSSIBLE IN ORDER TO REDUCE THE ADMINISTRATIVE BURDEN ON

 

REPORTING ENTITIES.

 

       (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.

 

       (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 OR VIRTUAL COURSES PROVIDED

 

BY A SCHOOL OF EXCELLENCE THAT IS A CYBER SCHOOL, AS DEFINED IN SECTION 551 OF THE

 

REVISED SCHOOL CODE, MCD 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 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. 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 PREPARATION OF THE STATE OR 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 WAS CERTIFIED AS

 

ACCURATE AND COMPLETE AFTER DISTRICTS AND INTERMEDIATE SCHOOL DISTRICTS HAVE ADHERED

 

TO DEADLINES, DATA QUALITY REVIEWS AND CORRECTION PROCESSES LEADING TO LOCAL

 

CERTIFICATION OF FINAL STUDENT DATA IN SUBSECTION 2 OF THIS SECTION, the department

 

shall allow a school or district to appeal ANY CALCULATION ERRORS USED IN THE

 

PREPARATION OF ACCOUNTABILITY METRICS. that determination. The department shall

 

consider and act upon the appeal within 30 days after it is submitted and shall not

 

publish the list until after all appeals have been considered and decided.

 

       (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. BEGINNING IN 2018-2019, FOR PUPILS IN MEMBERSHIP IN A PUBLIC

 

SCHOOL ACADEMY THAT WAS ISSUED A CONTRACT UNDER SECTION 552 OF THE REVISED SCHOOL

 

CODE, MCL 380.552, TO OPERATE AS A SCHOOL OF EXCELLENCE THAT IS A CYBER SCHOOL, THE

 

ALLOCATION CALCULATED UNDER THIS SECTION SHALL BE AN AMOUNT EQUAL TO 75% OF THE AMOUNT

 

AS WOULD OTHERWISE BE CALCULATED UNDER THIS SUBSECTION FOR A PUBLIC SCHOOL ACADEMY.

 

       (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, 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. 20m. (1) Foundation allowance supplemental payments for 2017-2018 2018-2019

 

to districts that in the 2015-2016 fiscal year had a foundation allowance greater than

 

$8,169.00 shall be calculated under this section.

 

       (2) The per-pupil allocation to each district under this section shall be the

 

difference between the dollar amount of the adjustment from the 2015-2016 state fiscal

 

year to the current state fiscal year in the basic foundation allowance minus the

 

dollar amount of the adjustment from the 2015-2016 fiscal year to the current state

 

fiscal year in a qualifying district's foundation allowance.


       (3) If a district's local revenue per pupil does not exceed the sum of its

 

foundation allowance under section 20 plus the per-pupil allocation under subsection

 

(2), the total payment to the district calculated under this section shall be the

 

product of the per-pupil allocation under subsection (2) multiplied by the district's

 

membership excluding special education pupils. If a district's local revenue per pupil

 

exceeds the foundation allowance under section 20 but does not exceed the sum of the

 

foundation allowance under section 20 plus the per-pupil allocation under subsection

 

(2), the total payment to the district calculated under this section shall be the

 

product of the difference between the sum of the foundation allowance under section 20

 

plus the per-pupil allocation under subsection (2) minus the local revenue per pupil

 

multiplied by the district's membership excluding special education pupils. If a

 

district's local revenue per pupil exceeds the sum of the foundation allowance under

 

section 20 plus the per-pupil allocation under subsection (2), there is no payment

 

calculated under this section for the district.

 

       (4) Payments to districts shall not be made under this section. Rather, the

 

calculations under this section shall be made and used to determine the amount of

 

state payments under section 22b.

 

       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. PARENTAL CONSENT SHALL BE OBTAINED IN A FORM AND MANNER SPECIFIED BY


THE DEPARTMENT AND KEPT ON FILE BY THE PRIMARY DISTRICT.

 

       (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 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 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 $8,000,000.00 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.

 

       (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.

 

       (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 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.

 

       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 $5,048,000,000.00 for 2017-2018 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, 23F, 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) PAYMENTS TO DISTRICTS OR PUBLIC SCHOOL ACADEMIES SHALL NOT BE MADE UNDER THIS

 

SECTION FOR PUPILS ENROLLED PURSUANT TO SECTION 166B AND COUNTED IN MEMBERSHIP UNDER

 

SECTION 6. RATHER, THE PAYMENTS FOR SUCH PUPILS SHALL BE MADE UNDER SECTION 23F.

 

       (8) (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 2018-2019 an amount

 

not to exceed $3,965,500,000.00 $4,156,600,000.00 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, 23F, 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.

 

       (4) Districts are encouraged to use funds allocated under this section for the

 

purchase and support of payroll, human resources, and other business function software

 

that is compatible with that of the intermediate district in which the district is

 

located and with other districts located within that intermediate district.

 

       (5) From the allocation in subsection (1), the department shall pay up to

 

$1,000,000.00 in litigation costs incurred by this state related to commercial or

 

industrial property tax appeals, including, but not limited to, appeals of

 

classification, that impact revenues dedicated to the state school aid fund.

 

       (6) From the allocation in subsection (1), the department shall pay up to

 

$1,000,000.00 in litigation costs incurred by this state associated with lawsuits

 

filed by 1 or more districts or intermediate districts against this state. If the


allocation under this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be made in full before

 

any proration of remaining payments under this section.

 

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

 

this state have been fully funded under sections 22a, 31d, 51a, 51c, and 152a. If a

 

claim is made by an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or alleges that there exists

 

an unfunded constitutional requirement, the state budget director may escrow or

 

allocate from the discretionary funds for nonmandated payments under this section the

 

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

 

districts under subsection (2). If funds are escrowed, the escrowed funds are a work

 

project appropriation and the funds are carried forward into the following fiscal

 

year. The purpose of the work project is to provide for any payments that may be

 

awarded to districts as a result of litigation. The work project shall be completed

 

upon resolution of the litigation.

 

       (8) If the local claims review board or a court of competent jurisdiction makes a

 

final determination that this state is in violation of section 29 of article IX of the

 

state constitution of 1963 regarding state payments to districts, the state budget

 

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

 

discretionary funds for nonmandated payments under this section the amount as may be

 

necessary to satisfy the amount owed to districts before making any payments to

 

districts under subsection (2).

 

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

 

the adequacy of funding for this state's constitutional obligations or alleges that

 

there exists an unfunded constitutional requirement, any interested party may seek an

 

expedited review of the claim by the local claims review board. If the claim exceeds

 

$10,000,000.00, this state may remove the action to the court of appeals, and the


court of appeals shall have and shall exercise jurisdiction over the claim.

 

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

 

board or a court of competent jurisdiction that there has been a violation of section

 

29 of article IX of the state constitution of 1963 exceed the amount allocated for

 

discretionary nonmandated payments under this section, the legislature shall provide

 

for adequate funding for this state's constitutional obligations at its next

 

legislative session.

 

       (11) If a lawsuit challenging payments made to districts related to costs

 

reimbursed by federal title XIX Medicaid funds is filed against this state, then, for

 

the purpose of addressing potential liability under such a lawsuit, the state budget

 

director may place funds allocated under this section in escrow or allocate money from

 

the funds otherwise allocated under this section, up to a maximum of 50% of the amount

 

allocated in subsection (1). If funds are placed in escrow under this subsection,

 

those funds are a work project appropriation and the funds are carried forward into

 

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

 

payments that may be awarded to districts as a result of the litigation. The work

 

project shall be completed upon resolution of the litigation. In addition, this state

 

reserves the right to terminate future federal title XIX Medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed funds is challenged in

 

the lawsuit. As used in this subsection, "title XIX" means title XIX of the social

 

security act, 42 USC 1396 to 1396v.

 

       (12) PAYMENTS TO DISTRICTS OR PUBLIC SCHOOL ACADEMIES SHALL NOT BE MADE UNDER

 

THIS SECTION FOR PUPILS ENROLLED PURSUANT TO SECTION 166B AND COUNTED IN MEMBERSHIP

 

UNDER SECTION 6. RATHER, THE PAYMENTS FOR SUCH PUPILS SHALL BE MADE UNDER SECTION 23F.

 

       Sec. 22d. (1) From the appropriation in section 11, an amount not to exceed

 

$5,000,000.00 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 for payments

 

under this subsection to districts that have 7.3 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. 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.

 

       (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. 23F. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED FOR 2018-

 

2019 AN AMOUNT NOT TO EXCEED $64,100,000.00 FOR STATE FOUNDATION ALLOWANCE PAYMENTS AS

 

CALCULATED UNDER SECTION 20 TO DISTRICTS FOR NONPUBLIC PART-TIME PUPILS ENROLLED IN

 

DISTRICTS IN ACCORDANCE WITH SECTION 166B AND COUNTED IN MEMBERSHIP UNDER SECTION 6.

 

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, 22B, AND 51C IN ORDER TO FULLY FUND THOSE CALCULATED

 

ALLOCATIONS FOR THE SAME FISCAL YEAR.

 

       (2) PAYMENTS TO DISTRICTS UNDER THIS SECTION SHALL BE EQUAL TO THE AMOUNT THAT

 

WOULD OTHERWISE BE PAID IN SECTION 22A AND SECTION 22B IF THE DISTRICT’S MEMBERSHIP

 

USED TO CALCULATE THOSE PAYMENTS WERE EQUAL TO THE NUMBER OF NONPUBLIC PUPILS IN


MEMBERSHIP, AS DEFINED IN THIS SECTION.

 

       (3) IN ORDER TO RECEIVE AN ALLOCATION UNDER SUBSECTION (1), DISTRICTS SHALL DO

 

ALL OF THE FOLLOWING:

 

       (A) THE DISTRICT SHALL ENSURE THAT ALL INDIVIDUALS THAT HAVE CONTACT WITH

 

STUDENTS AS PART OF A COURSE PROVIDING SERVICES TO PUPILS ENROLLED IN THE DISTRICT

 

UNDER SECTION 166B AND COUNTED IN MEMBERSHIP UNDER SECTION 6 HAVE NOT BEEN CONVICTED

 

OF SEXUAL MISCONDUCT. THE DISTRICT SHALL ENSURE THAT ANY PERSON WHO PROVIDES DIRECT OR

 

INDIRECT CURRICULAR OFFERINGS TO PUPILS AS PART OF AN OPTIONAL OR REQUIRED PORTION OF

 

A COURSE PROVIDING SERVICES TO PUPILS ENROLLED IN THE DISTRICT UNDER SECTION 166B AND

 

COUNTED IN MEMBERSHIP UNDER SECTION 6, OR WHO HAS UNSUPERVISED CONTACT WITH PUPILS AS

 

PART OF SUCH COURSE, RECEIVE THE SAME CRIMINAL HISTORY AND CRIMINAL RECORDS CHECKS AS

 

EMPLOYEES OF THE DISTRICT, AS REQUIRED IN SECTION 1230, 1230A, 1230B, 1230C, 1230D,

 

1230E, AND 1230G OF THE REVISED SCHOOL CODE, 380.1230, 380.1230A, 380.1230B,

 

380.1230C, 380.1230D, 380.1230E, AND 380.1230G.

 

       (B) IF A COURSE PROVIDING SERVICES TO PUPILS ENROLLED IN THE DISTRICT UNDER

 

SECTION 166B AND COUNTED IN MEMBERSHIP UNDER SECTION 6 HAS AN ASSOCIATED OPTIONAL

 

EXPERIENCE, THE DISTRICT SHALL ENSURE THAT THE OPTIONAL EXPERIENCE IS OFFERED ON A

 

SCHEDULE THAT WOULD MAKE IT FULLY AVAILABLE TO THE MAJORITY OF FULL-TIME PUPILS IN

 

MEMBERSHIP IN THE DISTRICT IN THE SAME GRADE LEVEL OR AGE GROUP AS STUDENTS

 

PARTICIPATING IN THE COURSE AND ENROLLING IN THE DISTRICT UNDER SECTION 166B.

 

       (C) THE DISTRICT SHALL PROVIDE THE DEPARTMENT, IN A FORM AND MANNER PRESCRIBED BY

 

THE DEPARTMENT IN CONJUNCTION WITH THE CENTER, INFORMATION NECESSARY TO QUANTIFY THE

 

FOLLOWING:

 

       (i) A COMPLETE LISTING OF ALL COURSES IN WHICH STUDENTS REPORTED FOR MEMBERSHIP

 

IN THE DISTRICT HAVE BEEN SERVED.

 

       (ii) COURSE ENROLLMENTS BY EACH PARTICIPANT USING LOCAL CODING AND THE SCHOOL

 

CODES FOR THE EXCHANGE OF DATA (SCED).


       (iii) IDENTIFICATION OF THE COURSE TEACHER OR MENTOR.

 

       (iv) OUTCOMES FOR EACH STUDENT IN EACH COURSE.

 

       (4) AS USED IN THIS SECTION "NONPUBLIC PUPILS IN MEMBERSHIP" MEANS THE NUMBER OF

 

FULL-TIME EQUATED NONPUBLIC SCHOOL PUPILS ENROLLED IN THE DISTRICT IN ACCORDANCE WITH

 

SECTION 166B AND COUNTED IN MEMBERSHIP UNDER SECTION 6. THIS NUMBER SHALL NOT EXCEED

 

AN AMOUNT EQUAL TO 5% OF THE AMOUNT CALCULATED BY SUBSTRACTING THE DISTRICT’S

 

MEMBERSHIP UNDER SECTION 6 BY THE NUMBER OF FULL-TIME EQUATED NONPUBLIC SCHOOL PUPILS

 

ENROLLED IN THE DISTRICT IN ACCORDANCE WITH SECTION 166B AND COUNTED IN MEMBERSHIP

 

UNDER SECTION 6.

 

       Sec. 24. (1) From the appropriation in section 11, there is allocated for 2017-

 

2018 2018-2019 an amount not to exceed $8,000,000.00 for payments to the educating

 

district or intermediate district for educating pupils assigned by a court or the

 

department of 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 $1,355,700.00 for 2017-2018 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. From the appropriation in section 11, there is allocated an amount not

 

to exceed $1,528,400.00 $1,545,400.00 for 2017-2018 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.

 

       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

 

MICHIGAN PUBLIC EDUCATION SYSTEM AND THE NUMBER OF PUPILS TRANSFERRING OUT OF THE

 

MICHIGAN PUBLIC EDUCATION SYSTEM 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 for 2017-2018 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 the lesser of the strict discipline academy's added cost or the

 

department's approved per-pupil allocation for the strict discipline academy. 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. 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 for 2017-2018

 

$15,000,000.00 FOR FISCAL YEAR 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 as applicable 2018. 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 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 $3,000,000.00 for 2017-2018 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,

 

THAT DISTRICTS IMPLEMENT WITH FIDELITY A MULTI-TIERED SYSTEM OF SUPPORTS, 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 or, if the

 

district or public school academy does not operate all of grades 4 K to 8, 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. FOR ENGLISH LEARNERS, THE DISTRICT SHALL

 

IMPLEMENT CULTURALLY AND LINGUISTICALLY RESPONSIVE TEACHING STRATEGIES FOCUSED ON

 

ACADEMIC LANGUAGE DEVELOPMENT ALIGNED WITH STATE ENGLISH LANGUAGE PROFICIENCY

 

STANDARDS. This THE multi-tiered system of supports DESCRIBED UNDER 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. TIERED DELIVERY SYSTEM.

 

       (c) Provides a multi-tiered model of instruction and intervention that provides

 

the following: SELECTION AND IMPLEMENTATION OF INSTRUCTION, INTERVENTIONS, AND

 

SUPPORTS.

 

       (i) A core curriculum and classroom interventions available to all pupils that

 

meet the needs of most pupils.

 

       (ii) Targeted group interventions.

 

       (iii) Intense individual interventions.

 

       (d) Monitors pupil progress to inform instruction. 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.

 

       (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), IN SCHOOLS WHERE GREATER THAN 50%

 

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 BY PROVIDING INSTRUCTIONAL OR NONINSTRUCTIONAL SERVICES CONSISTENT WITH

 

THE SCHOOL IMPROVEMENT PLAN THAT ARE TIER 1 EVIDENCE BASED, HIGH QUALITY ACADEMIC,

 

BEHAVIORAL, AND SOCIAL-EMOTIONAL INSTRUCTION, AND PART OF THE DISTRICT’S MULTI-TIERED

 

SYSTEM OF SUPPORT. DECISIONS ON IMPLEMENTING SCHOOLWIDE REFORMS SHALL BE GUIDED BY THE

 

DISTRICT’S COMPREHENSIVE NEEDS ASSESSMENT AND SHALL BE INCLUDED IN THE DISTRICT

 

IMPROVEMENT PLAN. SCHOOLWIDE REFORMS SHALL FEATURE PARENT AND COMMUNITY SUPPORTS,

 

ACTIVITIES, AND SERVICES, WHICH 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 PERCENT 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 AND SHALL BE that is 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, 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 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, and the district or public school

 

academy shall expend that same proportion multiplied by 1/2 of its total at-risk funds

 

under this section on tutoring and other methods of improving grade 3 English language

 

arts proficiency.

 

       (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 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.

 

ALL OF THE FOLLOWING APPLY FOR DISTRICTS AND PUBLIC SCHOOL ACADEMIES RECEIVING FUNDS

 

UNDER THIS SECTION:

 

       (A) IF A DISTRICT OR PUBLIC SCHOOL ACADEMY IS DETERMINED BY THE DEPARTMENT TO BE

 

BELOW THE STATEWIDE AVERAGE IN THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED PUPILS WHO

 

ARE PROFICIENT IN ENGLISH LANGUAGE ARTS BY THE END OF GRADE 3, AS MEASURED ON THE


2017-2018 ENGLISH LANGUAGE ARTS STATE ASSESSMENT, THE DISTRICT OR PUBLIC SCHOOL

 

ACADEMY SHALL COMPLY WITH THE REQUIREMENTS DESCRIBED UNDER SUBDIVISION (D).

 

       (B) IF A DISTRICT OR PUBLIC SCHOOL ACADEMY IS DETERMINED BY THE DEPARTMENT TO BE

 

BELOW THE STATEWIDE AVERAGE IN THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED PUPILS WHO

 

ARE PROFICIENT IN MATHEMATICS AT THE END OF GRADE 8, AS MEASURED ON THE 2017-2018

 

MATHEMATICS STATE ASSESSMENT, THE DISTRICT OR PUBLIC SCHOOL ACADEMY SHALL COMPLY WITH

 

THE REQUIREMENTS DESCRIBED UNDER SUBDIVISION (D).

 

       (C) IF A DISTRICT OR PUBLIC SCHOOL ACADEMY IS DETERMINED BY THE DEPARTMENT TO BE

 

BELOW THE STATEWIDE AVERAGE IN THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED 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 COMPLY WITH THE REQUIREMENTS

 

DESCRIBED UNDER SUBDIVISION (D).

 

       (D) FOR DISTRICTS AND PUBLIC SCHOOL ACADEMIES BELOW THE STATEWIDE AVERAGES

 

DESCRIBED IN SUBDIVISION (A), SUBDIVISION (B), OR SUBDIVISION (C), THE DISTRICT OR

 

PUBLIC SCHOOL ACADEMY SHALL ACHIEVE AT LEAST ONE OF THE FOLLOWING BY OCTOBER 1, 2021

 

ON EACH OF THE GRADE-LEVEL AND SUBJECT-AREA ASSESSMENTS DESCRIBED IN THIS SUBSECTION:

 

       (i) THE DISTRICT OR PUBLIC SCHOOL ACADEMY HAS ATTAINED THE STATEWIDE AVERAGE IN

 

THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED PUPILS WHO ARE PROFICIENT IN THE 2020-

 

2021 GRADE-LEVEL AND SUBJECT-AREA ASSESSMENTS DESCRIBED IN THIS SUBSECTION, AS

 

APPLICABLE. FOR THE PURPOSES OF COMPLYING WITH THIS SUBDIVISION, THE STATEWIDE AVERAGE

 

IN THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED PUPILS WHO ARE PROFICIENT SHALL BE

 

DETERMINED BY THE DEPARTMENT USING DATA FROM THE 2017-18 STATE ASSESSMENTS FOR GRADE-

 

LEVEL AND SUBJECT-AREA ASSESSMENTS DESCRIBED IN THIS SUBSECTION.

 

       (ii) THE DISTRICT OR PUBLIC SCHOOL ACADEMY HAS ATTAINED AN IMPROVEMENT OF AT

 

LEAST 10 PERCENTAGE POINTS IN THE PERCENT OF ECONOMICALLY DISADVANTAGED PUPILS WHO ARE


PROFICIENT IN THE GRADE-LEVEL AND SUBJECT-AREA ASSESSMENTS DESCRIBED IN THIS

 

SUBSECTION ON THE 2020-2021 STATE ASSESSMENT COMPARED TO THE DISTRICT'S RESULTS ON THE

 

2017-2018 STATE ASSESSMENT IN THE APPLICABLE GRADES AND SUBJECT-AREAS.

 

       (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 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. FOR A DISTRICT OR PUBLIC SCHOOL ACADEMY NOT MEETING THE REQUIREMENTS

 

DESCRIBED IN SUBDIVISION (16)(D), THE SUPERINTENDENT SHALL ASSIGN A TEAM OF PERSONS

 

WITH EXPERTISE IN COMPREHENSIVE SCHOOL AND DISTRICT REFORM TO PARTNER WITH THE

 

DISTRICT OR PUBLIC SCHOOL ACADEMY, THE INTERMEDIATE DISTRICT, COMMUNITY ORGANIZATIONS,

 

LOCAL EMPLOYERS, EDUCATION ORGANIZATIONS, AND POSTSECONDARY INSTITUTIONS AS DETERMINED

 

BY THE SUPERINTENDENT TO CONDUCT AN EVALUATION THAT INCLUDES AT LEAST ALL OF THE

 

FOLLOWING:

 

       (A) A REVIEW OF THE DISTRICT’S OR PUBLIC SCHOOL ACADEMY’S IMPLEMENTATION AND

 

UTILIZATION OF ITS MULTI-TIERED SYSTEM OF SUPPORTS TO ENSURE IT IS BEING USED TO

 

APPROPRIATELY INFORM INSTRUCTION OF AT-RISK PUPILS AND MAKE RECOMMENDATIONS FOR

 

CHANGES.

 

       (B) AN ACADEMIC PERFORMANCE AUDIT THAT REVIEWS AT LEAST ALL OF THE FOLLOWING AND

 

INCLUDES RECOMMENDATIONS FOR CHANGES IF NECESSARY:

 

       (i) DISTRICT AND BUILDING LEADERSHIP AND EDUCATOR CAPACITY TO SUBSTANTIALLY

 

IMPROVE STUDENT OUTCOMES.

 

       (ii) CLASSROOM, INSTRUCTIONAL, AND OPERATIONAL PRACTICES AND CURRICULUM TO ENSURE

 

ALIGNMENT WITH RESEARCH-BASED INSTRUCTIONAL PRACTICES AND STATE CURRICULUM STANDARDS.

 

       (iii) A REVIEW OF THE DISTRICT’S OR PUBLIC SCHOOL ACADEMY’S USE OF FINANCIAL


RESOURCES WITH RECOMMENDATIONS TO MORE EFFECTIVELY USE THOSE RESOURCES TO IMPROVE

 

ACADEMIC ACHIEVEMENT FOR AT-RISK PUPILS. THESE RECOMMENDATIONS MUST INCLUDE A PLAN FOR

 

USING FUNDS RECEIVED UNDER THIS SECTION.

 

       (D) THE DISTRICT OR PUBLIC SCHOOL ACADEMY AND THE SUPERINTENDENT SHALL BECOME AN

 

EARLY WARNING DISTRICT AND MUST ADOPT A DISTRICT IMPROVEMENT PLAN THAT INCORPORATES AT

 

LEAST ALL OF THE RECOMMENDATIONS RESULTING FROM THE EVALUATION UNDER SUBDIVISION (A),

 

SPECIFIES THE ROLES AND RESPONSIBILITIES OF THE PARTNERS, ESTABLISHES 18-MONTH

 

BENCHMARKS, AND IS SIGNED BY THE PARTNERS AND APPROVED BY THE SUPERINTENDENT.

 

       (E) THE DISTRICT OR PUBLIC SCHOOL ACADEMY MUST SPEND FUNDS RECEIVED UNDER THIS

 

SECTION ONLY IN ACCORDANCE WITH THE PLAN INCLUDED UNDER SUBDIVISION (B)(III) AND SHALL

 

IMPLEMENT TIER 1 EVIDENCE BASED, HIGH QUALITY ACADEMIC AND SOCIAL-EMOTIONAL

 

INSTRUCTION AS A PART OF THEIR MULTI-TIERED SYSTEM OF SUPPORT.

 

       (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. 31d. (1) From the appropriations in section 11, there is allocated an amount

 

not to exceed $22,495,100.00 $23,144,000.00 for 2017-2018 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, 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

 

FISCAL YEAR 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. 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 allocated under subsection (1) shall be allocated to intermediate

 

districts or consortia of intermediate districts based on the formula in section 39.

 

An intermediate district or consortium of intermediate districts receiving funding

 

under this section shall act as the fiduciary for the great start readiness programs.

 

In order to be eligible to receive funds allocated under this subsection from an

 

intermediate district or consortium of intermediate districts, a district, a

 

consortium of districts, or a public or private for-profit or nonprofit legal entity

 

or agency shall comply with this section and section 39.

 

       (3) In addition to the allocation under subsection (1), from the general fund

 

money appropriated under section 11, there is allocated an amount not to exceed

 

$300,000.00 for 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 supplement other

 

federal, state, local, or private funds. Funds received under this section shall not

 

be used to supplant any federal funds received by the applicant to serve children

 

eligible for a federally funded preschool program that has the capacity to serve those

 

children.

 

       (6) For a grant recipient that enrolls pupils in a school-day program funded

 

under this section, each child enrolled in the school-day program shall be counted as

 

described in section 39 for purposes of determining the amount of the grant award.

 

       (7) For a grant recipient that enrolls pupils in a GSRP/Head Start blended

 

program, the grant recipient shall ensure that all Head Start and GSRP policies and

 

regulations are applied to the blended slots, with adherence to the highest standard

 

from either program, to the extent allowable under federal law.

 

       (8) An intermediate district or consortium of intermediate districts receiving a

 

grant under this section shall designate an early childhood coordinator, and may

 

provide services directly or may contract with 1 or more districts or public or

 

private for-profit or nonprofit providers that meet all requirements of subsections

 

(4) and (5).

 

       (9) An intermediate district or consortium of intermediate districts may retain

 

for administrative services provided by the intermediate district or consortium of

 

intermediate districts an amount not to exceed 4% of the grant amount. Expenses

 

incurred by subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program shall be

 

considered program costs or a contracted program fee for service.

 

       (10) An intermediate district or consortium of intermediate districts may expend

 

not more than 2% of the total grant amount for outreach, recruiting, and public

 

awareness of the program.

 

       (11) Each grant recipient shall enroll children identified under subsection


(5)(b) according to how far the child's household income is below 250% of the federal

 

poverty level by ranking each applicant child's household income from lowest to

 

highest and dividing the applicant children into quintiles based on how far the