Bill Text: MI HB4313 | 2017-2018 | 99th Legislature | Engrossed

Michigan House Bill 4313 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Appropriations; zero budget; fiscal year 2017-2018 omnibus appropriations for school aid, higher education, and community colleges; provide for. Amends, adds & repeals (See bill).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2017-09-06 - Disapproved Line Item(s) Re-referred To Committee On Appropriations [HB4313 Detail]

Download: Michigan-2017-HB4313-Engrossed.html

HB-4313, As Passed House, May 2, 2017

SUBSTITUTE FOR

HOUSE BILL NO. 4313

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 3, 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11r, 11s,

15, 18, 18c, 20, 20d, 20f, 20m, 21g, 22a, 22b, 22d, 22g, 24, 24a,

24c, 25f, 25g, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 32d, 32p, 35a,

39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 56, 61a, 61b, 61c, 62,

64b, 67, 74, 81, 94, 94a, 98, 99h, 99s, 99t, 102d, 104, 104c, 104d,

107, 147, 147a, 147c, 152a, 152b, 166b, 201, 201a, 203, 206, 207a,

207b, 207c, 209, 210b, 210e, 217, 223, 224, 225, 226, 229, 229a,

230, 236, 236a, 236b, 236c, 237b, 241, 244, 245, 251, 252, 254,

256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274, 274c, 275,

276, 277, 278, 279, 280, 281, 282, 283, 284, and 286a (MCL

388.1603, 388.1604, 388.1606, 388.1608b, 388.1611, 388.1611a,

388.1611j, 388.1611k, 388.1611m, 388.1611r, 388.1611s, 388.1615,

388.1618, 388.1618c, 388.1620, 388.1620d, 388.1620f, 388.1620m,

388.1621g, 388.1622a, 388.1622b, 388.1622d, 388.1622g, 388.1624,

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

388.1626c, 388.1631a, 388.1631b, 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, 388.1661c, 388.1662, 388.1664b, 388.1667,

388.1674, 388.1681, 388.1694, 388.1694a, 388.1698, 388.1699h,

388.1699s, 388.1699t, 388.1702d, 388.1704, 388.1704c, 388.1704d,

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

388.1766b, 388.1801, 388.1801a, 388.1803, 388.1806, 388.1807a,

388.1807b, 388.1807c, 388.1809, 388.1810b, 388.1810e, 388.1817,

388.1823, 388.1824, 388.1825, 388.1826, 388.1829, 388.1829a,

388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c, 388.1837b,

388.1841, 388.1844, 388.1845, 388.1851, 388.1852, 388.1854,

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

388.1867, 388.1868, 388.1869, 388.1870, 388.1874, 388.1874c,

388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880,

388.1881, 388.1882, 388.1883, 388.1884, and 388.1886a), sections 3,

4, 6, 11, 11a, 11j, 11k, 11m, 11r, 15, 18, 20d, 20f, 22a, 22b, 22d,

22g, 24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31a, 31d, 31f, 32d,

32p, 35a, 39, 39a, 41, 51c, 51d, 53a, 54, 56, 61b, 62, 64b, 67, 74,

81, 94, 94a, 99s, 102d, 104, 104d, 107, 147, 147a, 147c, 152a,

166b, 201, 201a, 203, 206, 207a, 207b, 207c, 209, 210b, 217, 223,

224, 225, 226, 229a, 230, 236, 236a, 236b, 236c, 237b, 241, 251,

252, 254, 256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 274,

274c, 275, 276, 277, 278, 279, 280, 281, 282, 283, and 284 as

amended and sections 11s, 20m, 21g, 31b, 54b, 152b, 210e, and 286a

as added by 2016 PA 249, sections 8b, 229, and 244 as amended by

2015 PA 85, section 18c as amended by 2012 PA 201, sections 20,

61a, 61c, 98, 99h, 99t, and 104c as amended by 2016 PA 313, section

51a as amended by 2016 PA 534, and section 245 as amended by 2014

PA 196, and by adding sections 22m, 64d, 95b, 164g, 164h, 239b,

249, 250, and 274d; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. ~~(1) "Achievement authority" means the education~~

~~achievement authority, the public body corporate and special~~

~~authority initially created under section 5 of article III and~~

~~section 28 of article VII of the state constitution of 1963 and the~~

~~urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to~~

~~124.512, by an interlocal agreement effective August 11, 2011,~~

~~between the school district of the city of Detroit and the board of~~

~~regents of Eastern Michigan University, a state public university.~~

~~(2) "Achievement school" means a public school within the~~

~~education achievement system operated, managed, authorized,~~

~~established, or overseen by the achievement authority.~~

(1) ~~(3)~~ "Average daily attendance", for the purposes of

complying with federal law, means 92% of the pupils counted in

membership on the pupil membership count day, as defined in section

6(7).

(2) ~~(4)~~ "Board" means the governing body of a district or

public school academy.

(3) ~~(5)~~ "Center" means the center for educational performance

and information created in section 94a.

(4) ~~(6)~~ "Community district" means a school district organized

under part 5b of the revised school code.

(5) ~~(7)~~ "Cooperative education program" means a written

voluntary agreement between and among districts to provide certain

educational programs for pupils in certain groups of districts. The

written agreement shall be approved by all affected districts at

least annually and shall specify the educational programs to be

provided and the estimated number of pupils from each district who

will participate in the educational programs.

(6) ~~(8)~~ "Department", except in section 107, means the

department of education.

(7) ~~(9)~~ "District" means a local school district established

under the revised school code or, except in sections 6(4), 6(6),

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school

academy. ~~Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,~~

~~105, 105c, and 166b, district also includes the education~~

~~achievement system.~~ Except in section 20, district also includes a

community district.

(8) ~~(10)~~ "District of residence", except as otherwise provided

in this subsection, means the district in which a pupil's custodial

parent or parents or legal guardian resides. For a pupil described

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

in which the pupil enrolls under that section. For a pupil

described in section 6(4)(d), the pupil's district of residence

shall be considered to be the district or intermediate district in

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

pupil under court jurisdiction who is placed outside the district

in which the pupil's custodial parent or parents or legal guardian

resides, the pupil's district of residence shall be considered to

be the educating district or educating intermediate district.

(9) ~~(11)~~ "District superintendent" means the superintendent of

a district , or the chief administrator of a public school academy.

~~, or the chancellor of the achievement authority.~~

Sec. 4. ~~(1) "Education achievement system" means the~~

~~achievement authority and all achievement schools.~~

(1) ~~(2)~~ "Elementary pupil" means a pupil in membership in

grades K to 8 in a district not maintaining classes above the

eighth grade or in grades K to 6 in a district maintaining classes

above the eighth grade. For the purposes of calculating universal

service fund (e-rate) discounts, "elementary pupil" includes

children enrolled in a preschool program operated by a district in

its facilities.

(2) ~~(3)~~ "Extended school year" means an educational program

conducted by a district in which pupils must be enrolled but not

necessarily in attendance on the pupil membership count day in an

extended year program. The mandatory clock hours shall be completed

by each pupil not more than 365 calendar days after the pupil's

first day of classes for the school year prescribed. The department

shall prescribe pupil, personnel, and other reporting requirements

for the educational program.

(3) ~~(4)~~ "Fiscal year" means the state fiscal year that

commences October 1 and continues through September 30.

(4) ~~(5)~~ "High school equivalency certificate" means a

certificate granted for the successful completion of a high school

equivalency test.

(5) ~~(6)~~ "High school equivalency test" means the G.E.D. test

developed by the GED Testing Service, the Test Assessing Secondary

Completion (TASC) developed by CTS/McGraw-Hill, the HISET test

developed by the Education Testing Service (ETS), or another

comparable test approved by the department of talent and economic

development.

(6) ~~(7)~~ "High school equivalency test preparation program"

means a program that has high school level courses in English

language arts, social studies, science, and mathematics and that

prepares an individual to successfully complete a high school

equivalency test.

(7) ~~(8)~~ "High school pupil" means a pupil in membership in

grades 7 to 12, except in a district not maintaining grades above

the eighth grade.

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

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either shall serve all constituent districts within an intermediate

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

pupils residing in the operating district. In addition, special

education center program pupils placed part-time in noncenter

programs to comply with the least restrictive environment

provisions of section 612 of part B of the individuals with

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

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

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

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

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

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

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

the district or high school, who leave high school with a diploma

or other credential of equal status.

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

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

~~education achievement system,~~ or an intermediate district the sum

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

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

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

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

supplemental count day for the 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 in its first year of~~

~~operation, "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 final audited count from the~~

~~supplemental count day of pupils in grades K to 12 actually~~

~~enrolled and in regular daily attendance in a qualifying school~~

~~district as defined in section 5 of the revised school code, MCL~~

~~380.5, for the immediately preceding school year.~~ All pupil counts

used in this subsection are as determined by the department and

calculated by adding the number of pupils registered for attendance

plus pupils received by transfer and minus pupils lost as defined

by rules promulgated by the superintendent, and as corrected by a

subsequent department audit. ~~For the purposes of this section and~~

~~section 6a, for a school of excellence that is a cyber school, as~~

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

~~is in compliance with section 553a of the revised school code, MCL~~

~~380.553a, a pupil's participation in the cyber school's educational~~

~~program is considered regular daily attendance; for the education~~

~~achievement system, a pupil's participation in a virtual~~

~~educational program of the education achievement system or of an~~

~~achievement school is considered regular daily attendance; and for~~

~~a district a pupil's participation in a virtual course as defined~~

~~in section 21f is considered regular daily attendance.~~ The amount

of the foundation allowance for a pupil in membership is determined

under section 20. In making the calculation of membership, all of

the following, as applicable, apply to determining the membership

of a district, a public school academy, ~~the education achievement~~

~~system,~~ or an intermediate district:

(a) Except as otherwise provided in this subsection, and

pursuant to subsection (6), a pupil shall be counted in membership

in the pupil's educating district or districts. An Except as

otherwise provided in this subsection, an individual pupil shall

not be counted for more than a total of 1.0 full-time equated

membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil shall not be counted in membership in any

district.

district shall be counted in membership in the intermediate

district.

(d) A pupil placed by a court or state agency in an on-grounds

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, shall be counted in membership in the district

or intermediate district approved by the department to operate the

program.

(e) A pupil enrolled in the Michigan ~~schools for the deaf and~~

~~blind~~ Schools for the Deaf and Blind shall be counted in membership

in the pupil's intermediate district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established pursuant to section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

(g) A pupil enrolled in a public school academy shall be

counted in membership in the public school academy.

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

~~in membership in the education achievement system.~~For the purposes

of this section and section 6a, for a school of excellence that is

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

code, MCL 380.551, and is in compliance with section 553a of the

revised school code, MCL 380.553a, a pupil's participation in the

cyber school's educational program is considered regular daily

attendance, 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, ~~or for the education achievement~~

~~system or an achievement school,~~ membership for the first 2 full or

partial fiscal years of operation shall be determined as follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

shall exclude from the district's pupil count for the immediately

preceding supplemental count day any pupils who are counted in the

public school academy on that first pupil membership count day who

were also counted in the district on the immediately preceding

supplemental count day.

(k) ~~In a district, a public school academy, the education~~

~~achievement system, or an intermediate district operating~~ 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.

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.~~ 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 ~~or the education achievement system~~ is also educated by a

district or intermediate district as part of a cooperative

education program, the pupil shall be counted in membership only in

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

unless a written agreement signed by all parties designates the

party or parties in which the pupil shall be counted in membership,

and the instructional time scheduled for the pupil in the district

or intermediate district shall be included in the full-time equated

membership determination under subdivision (q) and section 101.

However, for pupils receiving instruction in both a public school

academy ~~or the education achievement system~~ and in a district or

intermediate district but not as a part of a cooperative education

program, the following apply:

(i) If the public school academy ~~or the education achievement~~

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

required under section 101, the public school academy ~~or the~~

~~education achievement system~~ shall receive as its prorated share of

the full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy ~~or the education achievement system~~ provides divided

by the number of hours required under section 101 for full-time

equivalency, and the remainder of the full-time membership for each

of those pupils shall be allocated to the district or intermediate

district providing the remainder of the hours of instruction.

(ii) If the public school academy ~~or the education achievement~~

~~system~~ provides instruction for less than 1/2 of the class hours

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. ~~or the education achievement system.~~

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

of the current school year who is being educated in an alternative

education program shall not be counted in membership if there are

also adult education participants being educated in the same

program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

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

equated memberships shall be consistent with section 101. 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 ~~, or the~~

~~education achievement system~~ that has pupils enrolled in a grade

level that was not offered by the district ~~, the~~ or public school

academy ~~, or the education achievement system~~ in the immediately

preceding school year, the number of pupils enrolled in that grade

level to be counted in membership is the average of the number of

those pupils enrolled and in regular daily attendance on the pupil

membership count day and the supplemental count day of the current

school year, as determined by the department. Membership shall be

calculated by adding the number of pupils registered for attendance

in that grade level on the pupil membership count day plus pupils

received by transfer and minus pupils lost as defined by rules

promulgated by the superintendent, and as corrected by subsequent

department audit, plus the final audited count from the

supplemental count day for the current school year, and dividing

that sum by 2.

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

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

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

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

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

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

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

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours required under section 101 for full-time equivalency. For the

purposes of this subdivision, a district shall be considered to be

providing appropriate instruction if all of the following are met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

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

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

~~or the education achievement system~~ within 45 days after the pupil

membership count day, the department shall adjust the district's or

~~the education achievement system's~~ pupil count for the pupil

membership count day to include the pupil in the count.

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

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

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

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

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

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

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

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(x) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d(2), the district's membership

shall be considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

membership pupils in grades 9 to 12 who reside in a contiguous

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

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

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

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

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

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

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

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

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

otherwise calculated under this subsection.

(y) Full-time equated memberships for special education pupils

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan ~~administrative~~

~~code~~ 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~~ 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 ~~, a~~ or public school academy ~~, or the~~

~~education achievement system~~ that educates a pupil who attends a

United States Olympic Education Center may count the pupil in

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

this state.

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

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

school code, MCL 380.1148, shall be counted in the educating

district. ~~or the education achievement system.~~

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

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

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

district operating the program reports that the pupil was enrolled

in the program and was in full attendance. However, if the special

membership counting provisions under this subdivision and the

operation of the other membership counting provisions under this

subsection result in a pupil being counted as more than 1.0 FTE in

a fiscal year, the payment made for the pupil under sections 22a

and 22b shall not be based on more than 1.0 FTE for that pupil, and

any portion of an FTE for that pupil that exceeds 1.0 shall instead

be paid under section 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 ~~the education~~

~~achievement system~~ 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 ~~the education achievement system~~ other public school

academy receives the same amount of membership aid for the pupil as

if the pupil were counted in the district or ~~the education~~

~~achievement system~~ 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. ~~For a community district~~

~~in its first fiscal year of operations only, until the department~~

~~is able to calculate the community district's membership, the~~

~~department shall consider the community district's membership to be~~

~~the same as the membership for the immediately preceding fiscal~~

~~year for a district with the same boundaries as the community~~

~~district that had membership for that fiscal year.~~

(ii) 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 a person in membership in a public school. A

district must have the approval of the pupil's district of

residence to count the pupil in membership, except approval by the

pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades K to 12 in

accordance with section 166b.

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

a district other than the pupil's district of residence.

~~education achievement system.~~

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

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

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

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

at school or that the assault was committed by 1 or more other

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

Michigan penal code, 1931 PA 328, MCL 750.81a.

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

(ii) The pupil had previously dropped out of school.

(iii) The pupil is pregnant or is a parent.

(iv) The pupil has been referred to the program by a court.

(i) A pupil enrolled in the Michigan Virtual School, for the

pupil's enrollment in the Michigan Virtual School.

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

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

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

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

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

or legal ward.

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

expelling district and is reinstated by another school board under

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

380.1311a.

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

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

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

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

district of residence who attends a United States Olympic Education

Center.

(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, an intermediate district, a or public

school academy ~~, or the education achievement system~~ before the

pupil membership count day or supplemental count day of a

particular year but was expelled or suspended on the pupil

membership count day or supplemental count day shall only be

counted as 1.0 full-time equated membership if the pupil resumed

attendance in the district, intermediate district, or public school

academy ~~, or education achievement system~~ within 45 days after the

pupil membership count day or supplemental count day of that

particular year. Pupils not counted as 1.0 full-time equated

membership due to an absence from a class shall be counted as a

prorated membership for the classes the pupil attended. For

purposes of this subsection, "class" means a period of time in 1

day when pupils and a certificated teacher or legally qualified

substitute teacher are together and instruction is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to

380.1852.

(11) "School district of the first class", "first class school

district", and "district of the first class" mean, for the purposes

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

membership for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

(13) "State board" means the state board of education.

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

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

pupil, a pupil described in subsection (6)(c) to (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 ~~or, for an~~

~~achievement school, by the chancellor of the achievement authority~~

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

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

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

that forms the basis of classroom instruction.

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

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

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

article.

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

each public school academy that is authorized under the revised

school code and is eligible to receive funding under this article

within 30 days after a contract is submitted to the department by

the authorizing body of a public school academy.

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

public school academy within the 30-day period described in

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

payments under this article to the newly authorized public school

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

district code assigned to a public school academy located in the

same county as the newly authorized public school academy plus 1.

However, if there is not an existing public school academy located

in the same county as the newly authorized public school academy,

then the district code the department shall use to make payments

under this article to the newly authorized public school academy

shall be a 5-digit number that has the county code in which the

public school academy is located as its first 2 digits, 9 as its

third digit, 0 as its fourth digit, and 1 as its fifth digit. If

the number of public school academies in a county grows to exceed

100, the third digit in this 5-digit number shall then be 7 for the

public school academies in excess of 100.

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

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

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

community college other than a federal tribally controlled

community college, or other authorizing body that is not empowered

to authorize a school of excellence to operate statewide and is

eligible to receive funding under this article, ~~the~~ all of the

following apply:

(a) The department shall assign a district code that includes

as the first 2 digits the county code in which the authorizing body

is located.

(b) If the cyber school does not provide instruction at a

specific location, the intermediate district that would normally

provide programs and services to the school district in which the

administrative office of cyber school is located shall provide

programs and services to the cyber school. The intermediate school

district required to provide programs and services to a cyber

school under this subdivision remains the same for as long as that

cyber school is in operation.

Sec. 11. (1) ~~For the fiscal year ending September 30, 2016,~~

~~there is appropriated for the public schools of this state and~~

~~certain other state purposes relating to education the sum of~~

~~$11,905,439,300.00 from the state school aid fund and the sum of~~

~~$55,100,000.00 from the general fund.~~ 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 ~~$12,052,309,300.00~~ $12,035,809,300.00 from the state

school aid fund, the sum of $218,900,000.00 from the general fund,

an amount not to exceed $72,000,000.00 from the community district

education trust fund created under section 12 of the Michigan trust

fund act, 2000 PA 489, MCL 12.262, and an amount not to exceed

$100.00 from the water emergency reserve fund. For the fiscal year

ending September 30, 2018, there is appropriated for the public

schools of this state and certain other state purposes relating to

education the sum of $12,295,507,100.00 from the state school aid

fund, the sum of $215,000,000.00 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, and an amount not to exceed $100.00 from

the water emergency reserve fund. In addition, all ~~other~~ available

federal funds are appropriated each fiscal year for the fiscal

years ending ~~September 30, 2016 and~~ September 30, 2017 and

September 30, 2018.

(2) The appropriations under this section shall be allocated

as provided in this article. Money appropriated under this section

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

this article before the expenditure of money appropriated under

this section from the state school aid fund.

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

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

the school aid stabilization fund created under section 11a.

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

a separate account within the state school aid fund established by

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

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

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

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

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

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

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

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

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

money may be expended.

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

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

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

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

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

general fund.

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

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

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

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

the projected shortfall as determined by the department of

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

stabilization fund. If the money in the school aid stabilization

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

shortfall, the state budget director shall notify the legislature

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

equal to the remainder of the projected shortfall shall be prorated

in the manner provided under section 296(3).

(7) For 2016-2017 and for 2017-2018, 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 $10,500,000.00 for 2015-2016 and~~

there is allocated an amount not to exceed ~~$126,500,000.00~~

$125,500,000.00 for ~~2016-2017~~ 2017-2018 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 ~~2016-2017,~~ 2017-2018, 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 2015-2016 an amount not to exceed $1,000,000.00 and~~

there is allocated for 2016-2017 an amount not to exceed

~~$3,000,000.00~~ $5,500,000.00 and there is allocated for 2017-2018 an

amount not to exceed $6,500,000.00 for fiscal year cash-flow

borrowing costs solely related to the state school aid fund

established by section 11 of article IX of the state constitution

of 1963.

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

allocated for 2014-2015 an amount not to exceed $4,000,000.00 to be

deposited into the distressed districts emergency grant fund

created under this section for the purpose of funding grants under

this section.

(2) The distressed districts emergency grant fund is created

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

treasurer may receive money or other assets from any source for

deposit into the distressed districts emergency grant fund. The

state treasurer shall direct the investment of the distressed

districts emergency grant fund and shall credit to the distressed

districts emergency grant fund interest and earnings from the fund.

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

receive a grant from the distressed districts emergency grant fund

if either of the following applies:

(a) The district has adopted a resolution authorizing the

voluntary dissolution of the district approved by the state

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

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

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

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

pupils who were previously enrolled in a district that was

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

in the immediately preceding school year.

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

eligible to receive funds under this section.

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

determined by the state treasurer after consultation with the

superintendent of public instruction, but shall not exceed the

estimated amount of remaining district costs in excess of available

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

retirement system contributions, pupil transportation, food

services, special education, building security, and other costs

necessary to allow the district to operate schools directly and

provide public education services until the end of the current

school fiscal year. For a district that meets the eligibility

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

determined in the same manner as transition costs under section

20g.

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

treasurer shall notify the house and senate appropriations

subcommittees on school aid and the house and senate fiscal

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

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

funds awarded under this section, an explanation of the district

conditions that necessitate funding under this section, and the

intended use of funds disbursed under this section.

(7) Except as otherwise provided in subsection (8), money in

the distressed districts emergency grant fund at the close of a

fiscal year shall remain in the distressed districts emergency

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

the general fund.

(8) For ~~2015-2016 only, an amount not to exceed $2,800,000.00~~

2016-2017 only, the remaining balance in the work project that was

established under this section for 2014-2015, estimated at

$1,000,000.00, shall be lapsed from the distressed districts

emergency grant fund to the state school aid fund.

Sec. 11s. (1) From the general fund appropriation in section

11, there is allocated $10,142,500.00 for 2016-2017 and there is

allocated $8,730,000.00 for 2017-2018 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 ~~fiscal~~

~~year~~ 2 fiscal years under the emergency management act, 1976 PA

390, MCL 30.401 to 30.421. From the funding appropriated in section

11, there is allocated $100.00 from the water emergency reserve

fund for each fiscal year for 2016-2017 and for 2017-2018 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 ~~fiscal~~

~~year~~ 2 fiscal years and that has at least ~~5,000~~ 4,500 pupils in

membership for the ~~current~~ 2016-2017 fiscal year or has at least

4,000 pupils in membership for a fiscal year after 2016-2017, an

amount not to exceed $1,292,500.00 for 2016-2017 and an amount not

to exceed $2,625,000.00 for 2017-2018 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

~~approved~~ 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.

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. ~~The~~ 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.

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) ~~From~~ 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.

(6) For 2017-2018 only, 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).

(7) ~~(6)~~ 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 for

2017-2018 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.

(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 4 9 years for the

adjustment and may advance payments to the district otherwise

authorized under this article if the district would otherwise

experience a significant hardship in satisfying its financial

obligations. At the request of a district and upon the district

presenting evidence satisfactory to the department of the hardship,

the department may waive all or a portion of the adjustments under

this subsection if the department determines that all of the

following apply:

(a) The district would otherwise experience a significant

hardship in satisfying its financial obligations.

(b) The district would otherwise experience a significant

hardship in satisfying its responsibility to provide instruction to

its pupils.

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) In addition to funds appropriated in section 11 for all

programs and services, there is appropriated for ~~2016-2017~~ 2017-

2018 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:

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

following subcategories:

(A) Salaries and wages.

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

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

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

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee in the

district.

(iii) The audit report of the audit conducted under subsection

(4) for the most recent fiscal year for which it is available.

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

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 the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the department.

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

district shall file with the center the transportation expenditure

report, known as "SE-4094", on a form and in the manner prescribed

by the center.

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

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

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

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

(10) If a district or intermediate district does not comply

with subsections (4), (5), (6), and (7), 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). If the district or intermediate district

does not comply with subsections (4), (5), (6), and (7) by the end

of the fiscal year, the district or intermediate district forfeits

the amount withheld.

(11) If a district or intermediate district does not comply

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

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) ~~Not later than~~ By November 1 ~~, 2016,~~ of each year, if a

district or intermediate district offers virtual learning under

section 21f, the district or intermediate district shall submit to

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

operating the virtual learning by vendor type. The report shall

include at least all of the following information concerning the

operation of virtual learning for the immediately preceding school

fiscal year: ~~ending June 30, 2016:~~

(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.

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) ~~Not later than~~ By March 31 ~~, 2017,~~ 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.

(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.

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.

Sec. 18c. Any contract, mortgage, loan, or other instrument of

indebtedness entered into by a public school academy ~~, the~~

~~achievement authority, or an achievement school~~ receiving funds

under this ~~act~~ article and a third party does not constitute an

obligation, either general, special, or moral, of this state or of

an authorizing body. The full faith and credit or the taxing power

of this state or any agency of this state, or the full faith and

credit of an authorizing body, shall not be pledged for the payment

of any contract, mortgage, loan, or other instrument of

indebtedness entered into by a public school academy, the

achievement authority, or an achievement school.

Sec. 20. (1) For ~~2016-2017,~~ 2017-2018, both of the following

apply:

(a) The basic foundation allowance is ~~$8,229.00.~~$8,329.00.

(b) The minimum foundation allowance is ~~$7,511.00.~~$7,611.00.

(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,~~

subsection, 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)~~ $17.00) times (the difference between the district's

foundation allowance for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

state fiscal year.] However, the foundation allowance for a

district that had less than the basic foundation allowance for the

immediately preceding state fiscal year shall not exceed the basic

foundation allowance for the current state fiscal year. For 2017-

2018, 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 fiscal year, the district shall receive a

foundation allowance in an amount equal to the district's

foundation allowance for 2016-2017 plus $100.00.

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

district that in the immediately preceding state fiscal year had a

foundation allowance in an amount equal to the amount of the basic

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for ~~2016-~~

~~2017~~ 2017-2018 in an amount equal to the basic foundation allowance

for ~~2016-2017.~~2017-2018.

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. For 2017-

2018, 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 shall receive a foundation allowance in

an amount equal to the district's foundation allowance for 2016-

2017 plus $100.00.

(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.

(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. ~~For~~ Except as otherwise provided in this

subsection, for pupils in membership, other than special education

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

authorized by a school district, the allocation calculated under

this section is an amount per membership pupil other than special

education pupils in the public school academy equal to the

foundation allowance of the district that authorized the public

school academy or the state maximum public school academy

allocation, whichever is less. However, a public school academy

that had an allocation under this subsection before 2009-2010 that

was equal to the sum of the local school operating revenue per

membership pupil other than special education pupils for the

district in which the public school academy is located and the

state portion of that district's foundation allowance shall not

have that allocation reduced as a result of the 2010 amendment to

this subsection. Notwithstanding section 101, for a public school

academy that begins operations after the pupil membership count

day, the amount per membership pupil calculated under this

subsection shall be adjusted by multiplying that amount per

membership pupil by the number of hours of pupil instruction

provided by the public school academy after it begins operations,

as determined by the department, divided by the minimum number of

hours of pupil instruction required under section 101(3). The

result of this calculation shall not exceed the amount per

membership pupil otherwise calculated under this subsection.

~~(7) Except as otherwise provided in this subsection, for~~

~~pupils attending an achievement school and in membership in the~~

~~education achievement system, other than special education pupils,~~

~~the allocation calculated under this section is an amount per~~

~~membership pupil other than special education pupils equal to the~~

~~foundation allowance of the district in which the achievement~~

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

~~Notwithstanding section 101, for an achievement school that begins~~

~~operation after the pupil membership count day, the amount per~~

~~membership pupil calculated under this subsection shall be adjusted~~

~~by multiplying that amount per membership pupil by the number of~~

~~hours of pupil instruction provided by the achievement school after~~

~~it begins operations, as determined by the department, divided by~~

~~the minimum number of hours of pupil instruction required under~~

~~section 101(3). The result of this calculation shall not exceed the~~

~~amount per membership pupil otherwise calculated under this~~

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

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

~~district or the achievement authority under section 1280c of the~~

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

~~considered to be an achievement school within the education~~

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

~~a pupil attending that public school is considered to be in~~

~~membership in the education achievement system and not in~~

~~membership in the district that operated the school before the~~

~~transfer.~~

(7) ~~(8)~~ 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) ~~(9)~~ 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) ~~(10)~~ 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) ~~(11)~~ 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) ~~(12)~~ To assist the legislature in determining the ~~basic~~

minimum foundation allowance for the subsequent state fiscal year,

each revenue estimating conference conducted under section 367b of

the management and budget act, 1984 PA 431, MCL 18.1367b, shall

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

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

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

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

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(12) ~~(13)~~ Payments to districts , and public school academies

~~, or the education achievement system~~ shall not be made under this

section. Rather, the calculations under this section shall be used

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

(13) ~~(14)~~ If an amendment to section 2 of article VIII of the

state constitution of 1963 allowing state aid to some or all

nonpublic schools is approved by the voters of this state, each

foundation allowance or per-pupil payment calculation under this

section may be reduced.

(15) As used in this section:

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

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

1993-94.

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

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

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)~~ $17.00) 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 ~~2016-~~

~~2017,~~ 2017-2018, the maximum public school academy allocation is

~~$7,511.00.~~$7,611.00.

(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 ~~2016-2017,~~ a subsequent fiscal year, the department

and the department of treasury shall comply with all of the

following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

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

state school aid received by or paid on behalf of the district

pursuant to this act in 1993-94 shall exclude payments made under

former section 146 and under section 147 on behalf of the

district's employees who provided direct services to the area

vocational education center. Not later than June 30, 1996, the

department shall make an adjustment under this subdivision to the

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

the 1994-95 state fiscal year and the department of treasury shall

make a final certification of the number of mills that may be

levied by the district under section 1211 of the revised school

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

subdivision.

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

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under ~~article 5,~~ 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 ~~2016-2017~~

2017-2018 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.

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 ~~for 2016-2017~~ 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.

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.

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

~~2016-2017~~ 2017-2018 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 ~~immediately preceding~~ 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

~~immediately preceding~~ 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. 21g. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed ~~$500,000.00 for~~

~~2016-2017~~ $100.00 for 2017-2018 for a grant to a public-private

partnership, led by the Michigan Center of Innovation in Education,

a Michigan-based nonprofit organization that is exempt from federal

taxes under section 501(c)(3) of the internal revenue code, 26 USC

501(c)(3), in partnership with the Michigan Association of

Intermediate School Administrators, and in coordination with the

department and the center, ~~to develop and pilot a competency-based~~

~~transcript and marketplace~~ to expand competency-based education

programs to provide enhanced choice to pupils and parents for the

completion of the requirements for kindergarten through a high

school diploma under the Michigan merit standard under sections

1278a and 1278b of the revised school code, MCL 380.1278a and

380.1278b.

(2) The partnership under subsection (1) shall do all of the

following:

~~(a) Establish an articulation framework for Michigan academic,~~

~~technical, and global competencies of prekindergarten through high~~

~~school diploma requirements, including providing for career and~~

~~technical and dual enrollment opportunities.~~

~~(b) Establish assessment criteria for measuring these~~

~~competencies and awarding universally recognized credentials,~~

~~micro-credentials, credits, and micro-credits for demonstrated~~

~~competencies independent of state-administered assessments.~~

~~(c) Identify a means of accrediting education service~~

~~providers as competency-based credentialing organizations to~~

~~facilitate any-time, any-pace, any-way, any-place learning such~~

~~that credentials, micro-credentials, credits, and micro-credits can~~

~~be earned inside and outside traditional classroom settings.~~

~~(d) Develop and pilot a pupil-owned transcript that satisfies~~

~~postsecondary institution requirements for admission and allows~~

~~pupils to accumulate credentials, micro-credentials, credits, and~~

~~micro-credits required for high school graduation, postsecondary~~

~~matriculation, and early career success.~~

~~(e) Establish and pilot a marketplace of accredited education~~

~~service providers to provide enhanced choice for pupils and parents~~

~~when selecting credentials, micro-credentials, credits, and micro-~~

~~credits needed to satisfy Michigan high school diploma~~

~~requirements, including career and technical and dual enrollment~~

~~opportunities.~~

~~(3) Accredited education service providers shall include, but~~

~~are not limited to, the following:~~

~~(a) Districts and public career and technical programs.~~

~~(b) Preschool, after-school, and other qualifying programs.~~

~~(c) Museums, historical societies, science centers, and other~~

~~community education organizations.~~

~~(d) Business and civic organizations and other institutions~~

~~providing internship and apprenticeship opportunities.~~

~~(e) Community colleges, trade schools, and universities~~

~~offering dual enrollment opportunities.~~

~~(4) The transcript and marketplace shall do all of the~~

~~following:~~

~~(a) Use Michigan-specific academic standards when defining~~

~~academic competencies.~~

~~(b) Use industry standards for the competency assessment.~~

~~(c) Use industry standards for articulating and transcripting~~

~~of credentials, micro-credentials, credits, and micro-credits.~~

~~(d) Offer its services at no cost to pupils or parents.~~

~~(5) Not more than 50% of the funds awarded to a grantee under~~

~~this section shall be initially distributed to the grantee. To~~

~~receive the remaining distribution of funds, the grantee shall~~

~~provide to the department a progress report on the development and~~

~~piloting of the competency-based transcript and marketplace~~

~~described in this section, and the department shall only release~~

~~the remaining funds if, upon review of this progress report, the~~

~~department determines that sufficient progress has been made by the~~

~~grantee.~~

(a) Work with the center to transform the transcript system

funded under this section as it was in effect for 2016-2017 into a

talent transcript that properly represents career-ready

competencies.

(b) Work with Workforce Intelligence Network and Talent 2025

to facilitate the expansion of the MI Bright Future Marketplace to

additional prosperity regions.

Principals Association and the department to implement a top 10

early literacy challenge and data dashboard.

(d) Work with the department and a consortium of districts and

intermediate districts to demonstrate the potential of a student

progress assessment program to facilitate a statewide shift to

competency-based education.

(3) ~~(6) Upon completion of the pilot described in this~~

~~section,~~ Not later than March 31, 2018, the grantee shall provide a

report to the house and senate appropriations subcommittees on

school aid detailing the project's expenditures, pupils served,

successes and challenges, and feasibility for expanding the project

statewide.

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

allocated ~~an amount not to exceed $5,260,000,000.00 for 2015-2016~~

~~and~~ an amount not to exceed ~~$5,205,000,000.00~~ $5,199,000,000.00 for

2016-2017 and there is allocated an amount not to exceed

$5,178,000,000.00 for 2017-2018 for payments to districts and

qualifying public school academies to guarantee each district and

qualifying public school academy an amount equal to its 1994-95

total state and local per pupil revenue for school operating

purposes under section 11 of article IX of the state constitution

of 1963. Pursuant to section 11 of article IX of the state

constitution of 1963, this guarantee does not apply to a district

in a year in which the district levies a millage rate for school

district operating purposes less than it levied in 1994. However,

subsection (2) applies to calculating the payments under this

section. Funds allocated under this section that are not expended

in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22b and 51c in order to fully fund those

calculated allocations for the same fiscal year.

(2) To ensure that a district receives an amount equal to the

district's 1994-95 total state and local per pupil revenue for

school operating purposes, there is allocated to each district a

state portion of the district's 1994-95 foundation allowance in an

amount calculated as follows:

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

portion of a district's 1994-95 foundation allowance is an amount

equal to the district's 1994-95 foundation allowance or $6,500.00,

whichever is less, minus the difference between the sum of the

product of the taxable value per membership pupil of all property

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

certified mills and, for a district with certified mills exceeding

12, the product of the taxable value per membership pupil of

property in the district that is commercial personal property times

the certified mills minus 12 mills and the quotient of the ad

valorem property tax revenue of the district captured under tax

increment financing acts divided by the district's membership. For

a district that has a millage reduction required under section 31

of article IX of the state constitution of 1963, the state portion

of the district's foundation allowance shall be calculated as if

that reduction did not occur. For a receiving district, if school

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

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

district to satisfy debt obligations of the dissolved district

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

value per membership pupil of all property in the receiving

district that is nonexempt property and taxable value per

membership pupil of property in the receiving district that is

commercial personal property do not include property within the

geographic area of the dissolved district; ad valorem property tax

revenue of the receiving district captured under tax increment

financing acts does not include ad valorem property tax revenue

captured within the geographic boundaries of the dissolved district

under tax increment financing acts; and certified mills do not

include the certified mills of the dissolved district. For a

community district, the allocation as otherwise calculated under

this section shall be reduced by an amount equal to the amount of

local school operating tax revenue that would otherwise be due to

the community district if not for the operation of section 386 of

the revised school code, MCL 380.386, and the amount of this

reduction shall be offset by the increase in funding under section

22b(2) 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 22b.

(b) For a district that had a 1994-95 foundation allowance

greater than $6,500.00, the state payment under this subsection

shall be the sum of the amount calculated under subdivision (a)

plus the amount calculated under this subdivision. The amount

calculated under this subdivision shall be equal to the difference

between the district's 1994-95 foundation allowance minus $6,500.00

and the current year hold harmless school operating taxes per

pupil. If the result of the calculation under subdivision (a) is

negative, the negative amount shall be an offset against any state

payment calculated under this subdivision. If the result of a

calculation under this subdivision is negative, there shall not be

a state payment or a deduction under this subdivision. The taxable

values per membership pupil used in the calculations under this

subdivision are as adjusted by ad valorem property tax revenue

captured under tax increment financing acts divided by the

district's membership. For a receiving district, if school

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

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

district to satisfy debt obligations of the dissolved district

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

property tax revenue captured under tax increment financing acts do

not include ad valorem property tax revenue captured within the

geographic boundaries of the dissolved district under tax increment

financing acts.

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

qualifying public school academy, there is allocated under this

section to the authorizing body that is the fiscal agent for the

qualifying public school academy for forwarding to the qualifying

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

payment to the qualifying public school academy under section 20.

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

funds allocated under this section in conjunction with any federal

funds for which the district or qualifying public school academy

otherwise would be eligible.

(5) Except as otherwise provided in this subsection, for a

district that is formed or reconfigured after June 1, 2000 by

consolidation of 2 or more districts or by annexation, the

resulting district's 1994-95 foundation allowance under this

section beginning after the effective date of the consolidation or

annexation shall be the average of the 1994-95 foundation

allowances of each of the original or affected districts,

calculated as provided in this section, weighted as to the

percentage of pupils in total membership in the resulting district

in the state fiscal year in which the consolidation takes place who

reside in the geographic area of each of the original districts. If

an affected district's 1994-95 foundation allowance is less than

the 1994-95 basic foundation allowance, the amount of that

district's 1994-95 foundation allowance shall be considered for the

purpose of calculations under this subsection to be equal to the

amount of the 1994-95 basic foundation allowance. This subsection

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

consolidation or annexation that affects the district.

(6) Payments under this section are subject to section

~~25f.~~25g.

(7) As used in this section:

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

foundation allowance calculated and certified by the department of

treasury or the superintendent under former section 20a as enacted

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

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

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

1993-94.

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 from the~~

~~appropriation in section 11 an amount not to exceed~~

~~$3,692,000,000.00 for 2015-2016, and~~ there is allocated for 2016-

2017 an amount not to exceed ~~$3,828,000,000.00~~ $3,844,000,000.00

from the state school aid fund and general fund appropriations in

section 11 and an amount not to exceed $72,000,000.00 from the

community district education trust fund appropriation in section

11, and there is allocated for 2017-2018 an amount not to exceed

$3,953,000,000.00 from the state school aid fund and general fund

appropriations in section 11 and an amount not to exceed

$72,000,000.00 from the community district education trust fund

appropriation in section 11. Except for money allocated from the

community district trust fund, money allocated under this section

that is not expended in the state fiscal year for which it was

allocated, as determined by the department, may be used to

supplement the allocations under sections 22a and 51c in order to

fully fund those calculated allocations for the same fiscal year.

(2) Subject to subsection (3) and section 296, the allocation

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

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

51a(3), and 51a(11), minus the sum of the allocations to the

district under sections 22a and 51c. For a community district, the

allocation as otherwise calculated under this section shall be

increased by an amount equal to the amount of local school

operating tax revenue that would otherwise be due to the community

district if not for the operation of section 386 of the revised

school code, MCL 380.386, and this increase shall be paid from the

community district education trust fund allocation in subsection

(1) in order to offset the absence of local school operating

revenue in a community district in the funding of the state portion

of the foundation allowance under section 20(4).

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

each district shall do all of the following:

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

380.1280b.

(b) Comply with sections 1278a and 1278b of the revised school

code, MCL 380.1278a and 380.1278b.

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.

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

not to exceed $5,000,000.00 is allocated for ~~2016-2017~~ 2017-2018

for supplemental payments to rural districts under this section.

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

allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

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

meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

least 1 of the following:

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

any other public school building.

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

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

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

plan developed as provided in this subsection and approved by the

superintendent of public instruction. The spending plan shall be

developed cooperatively by the intermediate superintendents of each

intermediate district in which an eligible district is located. The

intermediate superintendents shall review the financial situation

of each eligible district, determine the minimum essential

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

a spending plan that distributes the available funding under

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

needs. The intermediate superintendents shall submit the spending

plan to the superintendent of public instruction for approval. Upon

approval by the superintendent of public instruction, the amounts

specified for each eligible district under the spending plan are

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

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

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

subsection (1), there is allocated for ~~2016-2017~~ 2017-2018 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. 22g. (1) From the funds appropriated in section 11, there

is allocated for 2016-2017 ~~only~~ an amount not to exceed $500,000.00

and for 2017-2018 an amount not to exceed $1,000,000.00 for

competitive assistance grants to districts and intermediate

districts.

(2) Funds received under this section may be used for

reimbursement of transition costs associated with the dissolution,

consolidation, or annexation of districts or intermediate

districts. Grant funding shall be available for dissolutions,

consolidations, or annexations that occur on or after June 1, 2016.

Districts may spend funds allocated under this section over 3

fiscal years.

(3) In addition to the amount allocated under subsection (1),

from the funds appropriated in section 11, there is allocated for

2016-2017 only an amount not to exceed $2,500,000.00 for grants to

districts or intermediate districts that received a grant under

this section as it was in effect for 2015-2016 for reimbursement of

remaining transition costs associated with a dissolution,

consolidation, or annexation that was approved during 2015-2016 by

the school electors of the applicable district or intermediate

district.

(4) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 22m. (1) From the appropriations in section 11, there is

allocated for 2017-2018 an amount not to exceed $1,200,000.00 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(7).

(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 regional data hub within the network, based upon

documented need provided to the center in a form and manner

determined by the center.

(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 by a data hub region or an intermediate

district in the Michigan data hub network under this section is

voluntary and is not required.

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

allocated for ~~2016-2017~~ 2017-2018 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 $1,301,000.00 for 2015-2016 and~~

there is allocated an amount not to exceed ~~$1,328,100.00 for 2016-~~

~~2017~~ $1,339,000.00 for 2017-2018 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 ~~$1,632,400.00 for 2016-2017~~

$1,528,400.00 for 2017-2018 for payments to districts for pupils

who are enrolled in a nationally administered community-based

education and youth mentoring program, known as the youth challenge

program, that is administered by the department of military and

veterans affairs. Both of the following apply to a district

receiving payments under this section:

(a) The district shall contract with the department of

military and veterans affairs to ensure that all funding allocated

under this section is utilized by the district and the department

of military and veterans affairs for the youth challenge program.

(b) The district may retain for its administrative expenses an

amount not to exceed 3% of the amount of the payment the district

receives under this section.

Sec. 25f. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed $750,000.00 for ~~2016-2017~~ 2017-2018 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 ~~2016-2017~~ 2017-2018 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 $20,000,000.00 for 2015-2016 and~~

there is allocated an amount not to exceed ~~$20,000,000.00~~

$18,000,000.00 each fiscal year for 2016-2017 and for 2017-2018 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 ~~2015 and~~ 2016 and 2017 as applicable. The

allocations shall be made not later than 60 days after the

department of treasury certifies to the department and to the state

budget director that the department of treasury has received all

necessary information to properly determine the amounts due to each

eligible recipient.

Sec. 26b. (1) From the appropriation in section 11, there is

allocated for ~~2016-2017~~ 2017-2018 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 $278,000.00 for 2015-2016 and~~

there is allocated an amount not to exceed ~~$1,000,000.00 for 2016-~~

~~2017~~ $1,500,000.00 for 2017-2018 to the promise zone fund created

in subsection (3).

(2) Funds allocated to the promise zone fund under this

section shall be used solely for payments to eligible districts and

intermediate districts that have a promise zone development plan

approved by the department of treasury under section 7 of the

Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

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

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal

year shall remain in the promise zone fund and shall not lapse to

the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts pursuant to the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

(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 ~~2016-2017~~ 2017-

2018 an amount not to exceed ~~$389,695,500.00~~ $518,807,300.00 for

payments to eligible districts , and eligible public school

academies ~~, and the education achievement system~~ for the purposes

of ensuring that pupils are proficient in ~~reading~~ English language

arts by the end of grade 3, ~~and~~ that pupils are proficient in

mathematics by the end of grade 8, that pupils are attending school

regularly, that high school graduates are career and college ready,

and for the purposes under subsections ~~(7) and (8).~~(8) and (9).

~~(2) For a district or public school academy, or the education~~

~~achievement system, to be eligible to receive funding under this~~

~~section, other than funding under subsection (7) or (8), the sum of~~

~~the district's or public school academy's or the education~~

~~achievement system's combined state and local revenue per~~

~~membership pupil in the current state fiscal year, as calculated~~

~~under section 20, must be less than or equal to the basic~~

~~foundation allowance under section 20 for the current state fiscal~~

~~year.~~

(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 50% of the allocation for which it would otherwise be

eligible under this section before any proration under subsection

(13).

(3) For a district or public school academy ~~that operates~~

~~grades K to 3, or the education achievement system,~~ to be eligible

to receive funding under this section, other than funding under

subsection ~~(7) or (8),~~ (8) or (9), the district or public school

academy ~~, or the education achievement system,~~ must implement, for

at least grades ~~K to 3,~~ K to 8 or, if the district or public school

academy does not operate all of grades K to 8, for all of the

grades it operates, a multi-tiered system of supports that is an

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

integrate academic and behavioral instruction and that uses

intervention delivered to all pupils in varying intensities based

on pupil needs. This multi-tiered system of supports must provide

at least all of the following essential elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

intervention that provides the following:

(i) A core curriculum and classroom interventions available to

all pupils that meet the needs of most pupils.

(ii) Targeted group interventions.

(iii) Intense individual interventions.

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated,

instruction and intervention.

(i) Implements instruction and intervention practices with

fidelity.

(j) Uses a collaborative problem-solving model.

(4) Except as otherwise provided in this subsection, an

eligible district or eligible public school academy ~~or the~~

~~education achievement system~~ shall receive under this section for

each membership pupil in the district or public school academy or

~~the education achievement system who met the income eligibility~~

~~criteria for free breakfast, lunch, or milk, as determined under~~

~~the Richard B. Russell national school lunch act, 42 USC 1751 to~~

~~1769, and~~ who is determined to be economically disadvantaged, as

reported to the ~~department~~ center in the form and manner prescribed

by the ~~department~~ center not later than the fifth Wednesday after

the pupil membership count day of the immediately preceding fiscal

year, ~~and adjusted not later than December 31 of the immediately~~

~~preceding fiscal year,~~ an amount per pupil equal to 11.5% of the

~~sum of the district's~~ statewide weighted average foundation

allowance. ~~or the public school academy's or the education~~

~~achievement system's per pupil amount calculated under section 20~~

~~plus the amount of the district's per-pupil allocation under~~

~~section 20m, not to exceed the basic foundation allowance under~~

~~section 20 for the current state fiscal year, or of the public~~

~~school academy's or the education achievement system's per~~

~~membership pupil amount calculated under section 20 for the current~~

~~state fiscal year.~~ However, a public school academy that began

operations as a public school academy ~~, an achievement school that~~

~~began operations as an achievement school, or a community district~~

~~that first enrolls pupils,~~ 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, in

~~the education achievement system, or in the community district who~~

~~met the income eligibility criteria for free breakfast, lunch, or~~

~~milk, as determined under the Richard B. Russell national school~~

~~lunch act and~~ who is determined to be economically disadvantaged,

as reported to the ~~department~~ 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, ~~and~~

~~adjusted not later than December 31 of the current fiscal year,~~ an

amount per pupil equal to 11.5% of the ~~public school academy's, the~~

~~education achievement system's, or the community district's per~~

~~membership pupil amount calculated under section 20 for the current~~

~~state fiscal year.~~statewide weighted average foundation allowance.

(5) Except as otherwise provided in this section, a district

or public school academy receiving funds under this section shall

use those funds for programs and activities designed to achieve all

of the following:

(a) The chronic absenteeism rate for economically

disadvantaged pupils and English language learners enrolled in the

district or public school academy is not more than the chronic

absenteeism rate for pupils enrolled in the district or public

school academy who are not in either of these categories, as

defined and calculated by the center.

(b) The proportion of economically disadvantaged pupils and

English language learners who are in the bottom 30% in performance

on the grade 3 English language arts state assessment among pupils

enrolled in the district or public school academy does not exceed

the proportion of pupils who are not in either of these categories

who are in the bottom 30% in performance on the grade 3 English

language arts state assessment among pupils enrolled in the

district or public school academy, as calculated and reported by

the department in the top 30-bottom 30 analysis report under

subsection (10).

English language learners who are in the bottom 30% in performance

on the grade 8 mathematics state assessment among pupils enrolled

in the district or public school academy does not exceed the

proportion of pupils who are not in either of these categories who

are in the bottom 30% in performance on the grade 8 mathematics

state assessment among pupils enrolled in the district or public

school academy, as calculated and reported by the department in the

top 30-bottom 30 analysis report under subsection (10).

(d) At least 65% of pupils in grades 9 to 12 have enrolled in

career and technical education programming, advanced placement or

international baccalaureate courses, or dual enrollment or

concurrent enrollment courses described in section 64b and at least

80% of those pupils have successfully completed the courses.

(6) ~~(5)~~ Except as otherwise provided in this section, a

district or public school academy ~~, or the education achievement~~

~~system,~~ receiving funding under this section shall use that money

only to provide instructional programs and direct noninstructional

services, including, but not limited to, medical, mental health, or

counseling services, for at-risk pupils; for school health clinics;

and for the purposes of subsection ~~(6),~~ (7), (8), or ~~(11).~~ (9) and

only in a way that is consistent with subsection (5). In addition,

a district that is a school district of the first class or a

district or public school academy in which at least 50% of the

pupils in membership ~~met the income eligibility criteria for free~~

~~breakfast, lunch, or milk~~ were determined to be economically

disadvantaged in the immediately preceding state fiscal year, as

determined and reported as described in subsection ~~(4), or the~~

~~education achievement system if it meets this requirement,~~ (3), may

use not more than 20% of the funds it receives under this section

for school security. A district ~~, the~~ or public school academy ~~, or~~

~~the education achievement system~~ shall not use any of that money

for administrative costs. The instruction or direct

noninstructional services provided under this section may be

conducted before or after regular school hours or by adding extra

school days to the school year.

(7) ~~(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, ~~or the education achievement system if it operates a~~

~~school breakfast program,~~ shall use from the funds received under

this section an amount, not to exceed $10.00 per pupil for whom the

district or public school academy ~~or the education achievement~~

~~system~~ receives funds under this section, necessary to pay for

costs associated with the operation of the school breakfast

program.

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

is allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

$5,557,300.00 to support child and adolescent health centers. These

grants shall be awarded for 5 consecutive years beginning with

2003-2004 in a form and manner approved jointly by the department

and the department of health and human services. Each grant

recipient shall remain in compliance with the terms of the grant

award or shall forfeit the grant award for the duration of the 5-

year period after the noncompliance. To continue to receive funding

for a child and adolescent health center under this section a grant

recipient shall ensure that the child and adolescent health center

has an advisory committee and that at least one-third of the

members of the advisory committee are parents or legal guardians of

school-aged children. A child and adolescent health center program

shall recognize the role of a child's parents or legal guardian in

the physical and emotional well-being of the child. Funding under

this subsection shall be used to support child and adolescent

health center services provided to children up to age 21. If any

funds allocated under this subsection are not used for the purposes

of this subsection for the fiscal year in which they are allocated,

those unused funds shall be used that fiscal year to avoid or

minimize any proration that would otherwise be required under

subsection ~~(12)~~ (13) for that fiscal year.

(9) ~~(8)~~ From the funds allocated under subsection (1), there

is allocated for ~~2016-2017~~ 2017-2018 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.~~ 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.

(10) The department shall calculate and publish a top 30-

bottom 30 analysis report annually to determine each district's

performance in the metrics described in subsection (5)(b) and (c).

In addition, the department shall publish each district's

performance for each of the metrics described in subsection (5) no

later than December 30 of each year or 1 month after fully audited

state assessment data is received by the department, whichever is

later.

(11) ~~(9)~~ Each district or public school academy receiving

funds under this section ~~and the education achievement system~~ shall

submit to the department by July 15 of each fiscal year a report,

~~not to exceed 10 pages, on the usage by the district or public~~

~~school academy or the education achievement system of funds under~~

~~this section, which report shall include~~ 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 ~~or the education achievement system~~ using

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

allocated to each of those programs or services, the total number

of at-risk pupils served by each of those programs or services, and

the data necessary for the department and the department of 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. From these

reports, the department shall publish a summary of programs

conducted or services performed in districts and public school

academies that demonstrate significant improvements on the metrics

described in subsection (5), as determined by the department. If a

district or public school academy ~~or the education achievement~~

~~system~~ does not comply with this subsection, the department shall

withhold an amount equal to the August payment due under this

section until the district or public school academy ~~or the~~

~~education achievement system~~ complies with this subsection. If the

district or public school academy ~~or the education achievement~~

~~system~~ does not comply with this subsection by the end of the state

fiscal year, the withheld funds shall be forfeited to the school

aid fund.

(12) ~~(10)~~ In order to receive funds under this section, a

district or public school academy ~~or the education achievement~~

~~system~~ shall allow access for the department or the department's

designee to audit all records related to the program for which it

receives those funds. The district or public school academy ~~or the~~

~~education achievement system~~ shall reimburse the state for all

disallowances found in the audit.

~~(11) Subject to subsections (6), (7), and (8), a district may~~

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

~~implement schoolwide reform in schools with 40% or more of their~~

~~pupils identified as at-risk pupils by providing instructional or~~

~~noninstructional services consistent with the school improvement~~

~~plan.~~

(13) ~~(12)~~ If necessary, and before any proration required

under section 296, the department shall prorate payments under this

section by reducing the amount of the ~~per pupil payment under this~~

~~section by a dollar amount calculated by determining the amount by~~

~~which the amount necessary to fully fund the requirements of this~~

~~section exceeds the maximum amount allocated under this section and~~

~~then dividing that amount by the total statewide number of pupils~~

~~who met the income eligibility criteria for free breakfast, lunch,~~

~~or milk in the immediately preceding fiscal year, as described in~~

~~subsection (4).~~allocation as otherwise calculated under this

section by an equal percentage per district.

(14) ~~(13) If a district is formed by consolidation after June~~

~~1, 1995, and if 1 or more of the original districts were not~~

~~eligible before the consolidation for an additional allowance under~~

~~this section, the amount of the additional allowance under this~~

~~section for the consolidated district shall be based on the number~~

~~of pupils described in subsection (1) enrolled in the consolidated~~

~~district who reside in the territory of an original district that~~

~~was eligible before the consolidation for an additional allowance~~

~~under this section. In addition, if~~ If a district is dissolved

pursuant to section 12 of the revised school code, MCL 380.12, the

intermediate district to which the dissolved school district was

constituent shall determine the estimated number of pupils that

~~meet the income eligibility criteria for free breakfast, lunch, or~~

~~milk, as described under subsection (4),~~ 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.

~~(14) As used in this section, "at-risk pupil" means a pupil~~

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

~~the following criteria:~~

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

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

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

~~substance abuse.~~

~~(d) For pupils for whom the results of the 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.~~

~~(e) Is a pupil who is at risk of not meeting the district's~~

~~core academic curricular objectives in English language arts or~~

~~mathematics, as demonstrated on local assessments.~~

~~(f) The pupil is enrolled in a priority or priority-successor~~

~~school, as defined in the elementary and secondary education act of~~

~~2001 flexibility waiver approved by the United States Department of~~

~~Education.~~

~~(g) In the absence of state or local assessment data, the~~

~~pupil meets at least 2 of the following criteria, as documented in~~

~~a form and manner approved by the department:~~

(i~~) The pupil is eligible for free or reduced price breakfast,~~

~~lunch, or milk.~~

(ii~~) The pupil is absent more than 10% of enrolled days or 10~~

~~school days during the school year.~~

(~~iii~~~~) The pupil is homeless.~~

(iv~~) The pupil is a migrant.~~

(v~~) The pupil is an English language learner.~~

(vi~~) The pupil is an immigrant who has immigrated within the~~

~~immediately preceding 3 years.~~

(~~vii~~~~) The pupil did not complete high school in 4 years and is~~

~~still continuing in school as identified in the Michigan cohort~~

~~graduation and dropout report.~~

~~(15) Beginning in 2018-2019, if a district, public school~~

~~academy, or the education achievement system does not demonstrate~~

~~to the satisfaction of the department that at least 50% of at-risk~~

~~pupils are 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, public school academy, or~~

~~education achievement system shall ensure all of the following:~~

~~(a) The district, public school academy, or the education~~

~~achievement system shall determine the proportion of total at-risk~~

~~pupils that represents the number of pupils in grade 3 that are not~~

~~proficient in English language arts by the end of grade 3, and the~~

~~district, public school academy, or the education achievement~~

~~system shall expend that same proportion multiplied by 1/2 of its~~

~~total at-risk funds under this section on tutoring and other~~

~~methods of improving grade 3 English language arts proficiency.~~

~~(b) The district, public school academy, or the education~~

~~achievement system shall determine the proportion of total at-risk~~

~~pupils that represent the number of pupils in grade 11 that are not~~

~~career- and college-ready as measured by the student's score on 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, public school academy, or the education achievement~~

~~system shall expend that same proportion multiplied by 1/2 of its~~

~~total at-risk funds under this section on tutoring and other~~

~~activities to improve scores on the college entrance examination~~

~~portion of the Michigan merit examination.~~

~~(16) As used in subsection (15), "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.~~

(15) Beginning in 2018-2019, if a district or public school

academy has not achieved all of the metrics in subsection (5) or

made satisfactory progress as determined by the superintendent, 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 in

which it is located, 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) Reviewing the district's or public school academy's

implementation and utilization of its multi-tiered system of

supports and ensuring that the system is being used to

appropriately inform instruction of at-risk pupils and make

recommendations for changes.

(b) Conducting an academic performance audit that includes

recommendations for changes if necessary for at least all of the

following:

(i) District and school building leadership and educator

capacity to substantially improve student outcomes.

(ii) Classroom, instructional, and operational practices and

curriculum and alignment with research-based instructional

practices and state curriculum standards.

recommendations to more effectively use those resources to improve

academic achievement for at-risk pupils.

(d) Assurance that evaluation costs will be paid from the

funds received under this section only after an agreement

specifying the roles and responsibilities of the partners and

establishing 18-month benchmarks has been signed by the partners

and approved by the state superintendent.

(16) ~~(17)~~ A district or public school academy that receives

funds under this section ~~or the education achievement system~~ may

use funds received under this section to provide an anti-bullying

or crisis intervention program.

(17) ~~(18)~~ 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 ~~reading at grade~~

~~level.~~proficient in English language arts, based upon state

assessments for pupils in those grades.

(18) It is the intent of the legislature that beginning in

2018-2019, a portion of the funds allocated under this section

shall be used to reimburse districts that provide transportation or

transportation vouchers or passes to pupils enrolled in a district

other than their resident district or a public school academy.

(19) As used in this section:

(a) "At-risk pupil" means a pupil who is economically

disadvantaged or an English language learner for whom the district

has documentation that the pupil meets any of the following

criteria:

(i) The pupil did not achieve proficiency on the English

language arts state assessment for grade 3 or is at risk of not

achieving proficiency, as determined by the district or public

school academy using data provided as part of the multi-tiered

system of supports described in subsection (2).

(ii) The pupil did not achieve proficiency on the mathematics

state assessment for grade 8 or is at risk of not achieving

proficiency, as determined by the district or public school academy

using data provided as part of the multi-tiered system of supports

described in subsection (2).

(iii) The pupil is chronically absent as defined by and

reported to the center.

(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 1769; 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.

proficient pupils who speak a language other than English as their

primary language and have difficulty speaking, reading, writing, or

understanding English as reported to the center.

(d) "Statewide weighted average foundation allowance" means

the number that is calculated by adding together the result of each

district's or public school academy's foundation allowance or per

pupil payment calculated under section 20 multiplied by the number

of pupils in membership in that district or public school academy,

and then dividing that total by the statewide number of pupils in

membership. For the purposes of this calculation, a district's

foundation allowance shall not exceed the basic foundation

allowance under section 20 for the current state fiscal year.

Sec. 31b. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $1,500,000.00 for ~~2016-2017~~ 2017-

2018 for grants to at-risk districts for implementing a ~~year-round~~

balanced calendar instructional program for at least 1 of its

schools.

(2) The department shall select districts for grants under

this section from among applicant districts that meet both of the

following:

(a) The district meets 1 or both of the following:

(i) Is eligible in ~~2016-2017~~ 2017-2018 for the community

eligibility option for free and reduced price lunch under 42 USC

1759a.

(ii) At least 50% of the pupils in membership in the district

met the income eligibility criteria for free breakfast, lunch, or

milk in the immediately preceding state fiscal year, as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769i.

(b) The board of the district has adopted a resolution stating

that the district will implement for the first time a ~~year-round~~

balanced calendar instructional ~~calendar~~ program that will begin in

~~2017-2018~~ 2018-2019 for at least 1 school operated by the district

and committing to providing the ~~year-round~~ balanced calendar

instructional ~~calendar~~ program in each of those schools for at

least 3 school years.

(3) A district seeking a grant under this section shall apply

to the department in the form and manner prescribed by the

department not later than December 1, ~~2016.~~ 2017. The department

shall select districts for grants and make notification not later

than February 1, ~~2017.~~2018.

(4) The department shall award grants under this section on a

competitive basis, but shall give priority based solely on

consideration of the following criteria:

(a) Giving priority to districts that, ~~as of June 30, 2016,~~ in

the immediately preceding fiscal year, had lower general fund

balances as a percentage of revenues.

(b) Giving priority to districts that operate at least 1

school that has been identified by the department as either a

priority school or a focus school.

districts.

(5) The amount of a grant under this section to any 1 district

shall not exceed $750,000.00.

(6) A grant payment under this section to a district shall be

used for necessary modifications to instructional facilities and

other nonrecurring costs of preparing for the operation of a ~~year-~~

~~round~~ balanced calendar instructional program as approved by the

department.

(7) A district receiving a grant under this section is not

required to provide more than the minimum number of days and hours

of pupil instruction prescribed under section 101, but shall spread

at least those minimum amounts of pupil instruction over the entire

year in each of its schools in which a ~~year-round~~ balanced calendar

instructional calendar is implemented. The district shall commit to

providing the ~~year-round~~ balanced calendar instructional calendar

in each of those schools for at least 3 school years.

(8) For a district receiving a grant under this section,

excessive heat is considered to be a condition not within the

control of school authorities for the purpose of days or hours

being counted as days or hours of pupil instruction under section

101(4).

(9) Notwithstanding section 17b, grant payments to districts

under this section shall be paid on a schedule determined by the

department.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $22,495,100.00 for ~~2016-2017~~

2017-2018 for the purpose of making payments to districts and other

eligible entities under this section.

(2) The amounts allocated from state sources under this

section shall be used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The amount due to each district under this section shall be

computed by the department using the methods of calculation adopted

by the Michigan supreme court in the consolidated cases known as

Durant v State of Michigan, ~~Michigan supreme court docket no.~~

~~104458-104492.~~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 ~~2016-2017~~ 2017-2018 all available federal funding,

estimated at ~~$510,000,000.00~~ $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 $2,500,000.00 for 2015-2016 and~~

there is allocated an amount not to exceed ~~$2,500,000.00 for 2016-~~

~~2017~~ $4,500,000.00 each fiscal year for 2016-2017 and for 2017-2018

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 ~~2016-2017.~~ 2017-2018. Funds

allocated under this section for great start readiness programs

shall be used to provide part-day, school-day, or ~~GSRP/head start~~

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.

(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 ~~2016-2017~~ 2017-

2018 for a competitive grant to continue a longitudinal evaluation

of children who have participated in great start readiness

programs. An entity that has an approved great start readiness

program curriculum is not eligible for a grant under this

subsection.

(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~~ 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, but

not limited to, the Connect4Learning curriculum.

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%~~ all of the children participating in an eligible

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

families with a household income that is equal to or less than 250%

of the federal poverty level. ~~If the intermediate district~~

~~determines that all eligible children are being served and that~~

~~there are no children on the waiting list under section 39(1)(d)~~

~~who live with families with a household income that is equal to or~~

~~less than 250% of the federal poverty level, the intermediate~~

~~district may then enroll children who live with families with a~~

~~household income that is equal to or less than 300% of the federal~~

~~poverty level.~~ The enrollment process shall consider income and

risk factors, such that children determined with higher need are

enrolled before children with lesser need. For purposes of this

subdivision, all age-eligible children served in foster care or who

are experiencing homelessness or who have individualized education

plans recommending placement in an inclusive preschool setting

shall be considered to live with families with household income

equal to or less than 250% of the federal poverty level regardless

of actual family income and shall be prioritized for enrollment

within the lowest quintile.

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~~ GSRP/Head Start blended program, the grant recipient shall

ensure that all ~~head start~~ 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

child's household income is below 250% of the federal poverty

level, and then enrolling children in the quintile with the lowest

household income before enrolling children in the quintile with the

next lowest household income. ~~until slots are completely filled. If~~

~~the grant recipient determines that all eligible children are being~~

~~served and that there are no children on the waiting list under~~

~~section 39(1)(d) who live with families with a household income~~

~~that is equal to or less than 250% of the federal poverty level,~~

~~the grant recipient may then enroll children who live with families~~

~~with a household income that is equal to or less than 300% of the~~

~~federal poverty level.~~ The enrollment process shall consider income

and risk factors, such that children determined with higher need

are enrolled before children with lesser need. For purposes of this

subdivision, all age-eligible children served in foster care or who

are experiencing homelessness or who have individualized education

plans recommending placement in an inclusive preschool setting

shall be considered to live with families with household income

equal to or less than 250% of the federal poverty level regardless

of actual family income and shall be prioritized for enrollment

within the lowest quintile.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall enter into a written agreement

regarding payment, in a manner prescribed by the department.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total ~~slot~~ allocation. For the purposes of this 30% allocation, an

intermediate district or consortium of intermediate districts may

count children served by a ~~head start~~ Head Start grantee or

delegate in a blended ~~head start~~ Head Start and great start

readiness school-day program. Children served in a program funded

only through ~~head start~~ Head Start shall not be counted toward this

30% allocation. The intermediate district or consortium shall

report to the department, in a manner prescribed by the department,

a detailed list of community-based providers by provider type,

including private for-profit, private nonprofit, community college

or university, ~~head start~~ Head Start grantee or delegate, and

district or intermediate district, and the number and proportion of

its total ~~slot~~ allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not

able to contract for at least 30% of its total ~~slot~~ allocation, the

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

contract for at least 30% of its total ~~slot~~ allocation and was not

able to do so, then the intermediate district or consortium may

retain and use all of its ~~allocated slots~~ allocation as provided

under this section. To be able to use this exemption, the

intermediate district or consortium shall demonstrate to the

department that the intermediate district or consortium increased

the percentage of its total ~~slot~~ allocation for which it contracts

with a community-based provider and the intermediate district or

consortium shall submit evidence satisfactory to the department,

and the department must be able to verify this evidence,

demonstrating that the intermediate district or consortium took

measures to contract for at least 30% of its total ~~slot~~ allocation

as required under this subsection, including, but not limited to,

at least all of the following measures:

(a) The intermediate district or consortium notified each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium regarding the

center's eligibility to participate, in a manner prescribed by the

department.

(b) The intermediate district or consortium provided to each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total ~~slot~~ allocation, as required under

subsection (1), the department shall reduce the ~~slots allocated~~

allocation to the intermediate district or consortium by a

percentage equal to the difference between the percentage of an

intermediate district's or consortium's total ~~slot~~ allocation

awarded to community-based providers and 30% of its total ~~slot~~

allocation.

(15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

providers for at least 30% of their total ~~slot~~ allocation, the

department shall do all of the following:

(a) Ensure that a great start resource center or the

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

(b) Provide, or ensure that an organization with which the

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

provider's having submitted a request and self-assessment.

college or university, ~~head start~~ Head Start grantee or delegate,

private for-profit, and private nonprofit providers are subject to

a single great start to quality rating system. The rating system

shall ensure that regulators process all prospective providers at

the same pace on a first-come, first-served basis and shall not

allow 1 type of provider to receive a great start to quality rating

ahead of any other type of provider.

(d) Not later than December 1 of each year, compile the

results of the information reported by each intermediate district

or consortium under subsection (10) and report to the legislature a

list by intermediate district or consortium with the number and

percentage of each intermediate district's or consortium's total

~~slot~~ allocation allocated to community-based providers by provider

type, including private for-profit, private nonprofit, community

college or university, ~~head start~~ Head Start grantee or delegate,

and district or intermediate district.

(16) A recipient of funds under this section shall report to

the department in a form and manner prescribed by the department

the number of children participating in the program who meet the

income eligibility criteria under subsection (5)(b) and the total

number of children participating in the program. For children

participating in the program who meet the income eligibility

criteria specified under subsection (5)(b), a recipient shall also

report whether or not a parent is available to provide care based

on employment status. For the purposes of this subsection,

"employment status" shall be defined by the department of health

and human services in a manner consistent with maximizing the

amount of spending that may be claimed for temporary assistance for

needy families maintenance of effort purposes.

(17) As used in this section:

(a) ~~"GSRP/head start~~ "GSRP/Head Start blended program" means a

part-day program funded under this section and a head start

program, which are combined for a school-day program.

(b) "Part-day program" means a program that operates at least

4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish and

charge tuition according to a sliding scale of tuition rates based

upon household income for children participating in an eligible

great start readiness program who live with families with a

household income that is more than 250% of the federal poverty

level to be used by all of its providers, as approved by the

department. ~~A grant recipient shall charge tuition according to~~

~~that sliding scale of tuition rates on a uniform basis for any~~

~~child who does not meet the income eligibility requirements under~~

~~this section.~~

(19) From the amount appropriated in subsection (1), there is

allocated an amount not to exceed $10,000,000.00 for reimbursement

of transportation costs for children attending great start

readiness programs funded under this section. To receive

reimbursement under this subsection, not later than November 1,

~~2016,~~2017, a program funded under this section that provides

transportation shall submit to the intermediate district that is

the fiscal agent for the program a projected transportation budget.

The amount of the reimbursement for transportation under this

subsection shall be no more than the projected transportation

budget or ~~$150.00~~ $300.00 multiplied by the number of ~~slots~~

children funded for the program under this section. If the amount

allocated under this subsection is insufficient to fully reimburse

the transportation costs for all programs that provide

transportation and submit the required information, the

reimbursement shall be prorated in an equal amount per ~~slot~~ child

funded. Payments shall be made to the intermediate district that is

the fiscal agent for each program, and the intermediate district

shall then reimburse the program provider for transportation costs

as prescribed under this subsection.

Sec. 32p. (1) From the ~~school aid fund~~ appropriation in

section 11, there is allocated an amount not to exceed

$13,400,000.00 to intermediate districts for ~~2016-2017~~ 2017-2018

for the purpose of providing early childhood funding to

intermediate school districts to support the activities under

subsection (2) and subsection (4), and to provide early childhood

programs for children from birth through age 8. The funding

provided to each intermediate district under this section shall be

determined by the distribution formula established by the

department's office of great start to provide equitable funding

statewide. In order to receive funding under this section, each

intermediate district shall provide an application to the office of

great start not later than September 15 of the immediately

preceding fiscal year indicating the activities planned to be

provided.

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. The goal of

each great start collaborative and parent coalition shall be to

ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community

to achieve the following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene workgroups to make recommendations about community

services designed to achieve the outcomes described in subsection

(2) and to ensure that its local great start system includes the

following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education.

(e) Early education, including the child's ~~vocabulary~~

development of skills linked to success in foundational literacy,

and care.

(4) From the funds allocated in subsection (1), at least

$2,500,000.00 shall be used for the purpose of providing home

visits to at-risk children and their families. The home visits

shall be conducted as part of a locally coordinated, family-

centered, evidence-based, data-driven home visit strategic plan

that is approved by the department. The goals of the home visits

funded under this subsection shall be to improve school readiness

using evidence-based methods, including ~~vocabulary development,~~ a

focus on developmentally appropriate outcomes for early literacy,

to reduce the number of pupils retained in grade level, and to

reduce the number of pupils requiring special education services.

The department shall coordinate the goals of the home visit

strategic plans approved under this subsection with other state

agency home visit programs in a way that strengthens Michigan's

home visiting infrastructure and maximizes federal funds available

for the purposes of at-risk family home visits. The coordination

among departments and agencies is intended to avoid duplication of

state services and spending, and should emphasize efficient service

delivery of home visiting programs.

(5) Not later than December 1 of each year, each intermediate

district shall provide a report to the department detailing the

activities actually provided during the immediately preceding

school year and the families and children actually served. At a

minimum, the report shall include an evaluation of the services

provided with additional funding under subsection (4) for home

visits, using the goals identified in subsection (4) as the basis

for the evaluation, including the degree to which school readiness

was improved, any change in the number of pupils retained at grade

level, and any change in the number of pupils receiving special

education services. The department shall compile and summarize

these reports and submit its summary to the house and senate

appropriations subcommittees on school aid and to the house and

senate fiscal agencies not later than February 15 of each year.

(6) An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section into the next

fiscal year and may expend those unused funds through June 30 of

the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

Sec. 35a. (1) ~~From the appropriations in section 11, there is~~

~~allocated for 2015-2016 for the purposes of this section an amount~~

~~not to exceed $19,000,000.00 from the state school aid fund~~

~~appropriation and an amount not to exceed $1,500,000.00 from the~~

~~general fund appropriation.~~ From the appropriations in section 11,

there is allocated for ~~2016-2017 for the purposes of this section~~

2017-2018 an amount not to exceed ~~$22,900,000.00 from the state~~

~~school aid fund and an amount not to exceed $1,000,000.00 from the~~

~~general fund.~~$25,400,000.00 for programs to ensure pupils are

reading at grade level by the end of grade 3.

~~(2) From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $950,000.00 each fiscal year for~~

~~2015-2016 and for 2016-2017 for professional development purposes~~

~~under this subsection. The 2016-2017 allocation represents the~~

~~second of 2 years of funding for the purposes of this subsection.~~

~~All of the following apply to funding under this subsection:~~

(2) ~~(a) The department shall award grants to districts~~ A

district that receives funds under this section may use funds to

support professional development for educators in a department-

approved research-based training program related to current state

literacy standards for pupils in grades K to 3. The professional

development shall also include training in the use of screening and

diagnostic tools, progress monitoring, and intervention methods

used to address barriers to learning and delays in learning that

are diagnosed through the use of these tools. ~~The department shall~~

~~determine the amount of the grant awards.~~

~~(b) In addition to other methods of professional development~~

~~delivery, the department shall collaborate with the Michigan~~

~~Virtual University to provide this training online to all educators~~

~~of pupils in grades K to 3.~~

~~(c) The funds allocated under this subsection for 2015-2016~~

~~are a work project appropriation, and any unexpended funds for~~

~~2015-2016 are carried forward into 2016-2017. The purpose of the~~

~~work project is to continue to implement the professional~~

~~development training described in this subsection. The estimated~~

~~completion date of the work project is September 30, 2017.~~

~~(d) The funds allocated under this subsection for 2016-2017~~

~~are a work project appropriation, and any unexpended funds for~~

~~2016-2017 are carried forward into 2017-2018. The purpose of the~~

~~work project is to continue to implement the professional~~

~~development training described in this subsection. The estimated~~

~~completion date of the work project is September 30, 2018.~~

~~(3) From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $1,450,000.00 each fiscal year~~

~~for 2015-2016 and for 2016-2017 for grants under this subsection.~~

~~The 2016-2017 allocation represents the second of 2 years of~~

~~funding. All of the following apply to grants under this~~

~~subsection:~~

(3) ~~(a) The department shall award grants to districts~~ A

district that receives funds under this section may use the funds

to administer department-approved screening and diagnostic tools to

monitor the development of early literacy and early reading skills

of pupils in grades K to 3 and to support research-based

professional development for educators in administering screening

and diagnostic tools and in data interpretation of the results

obtained through the use of those tools for the purpose of

implementing a multi-tiered system of support to improve reading

proficiency among pupils in grades K to 3. ~~The department shall~~

~~award grants to eligible districts in an amount determined by the~~

~~department.~~

~~(b)~~ A department-approved screening and diagnostic tool

administered by a district using funding under this section must

include all of the following components: phonemic awareness,

phonics, fluency, and comprehension. Further, all of the following

sub-skills must be assessed within each of these components:

(a) (i) Phonemic awareness - segmentation, blending, and sound

manipulation (deletion and substitution).

(b) (ii) Phonics - decoding (reading) and encoding (spelling).

(d) (iv) Comprehension - making meaning of text.

~~(c) In addition to other methods of professional development~~

~~delivery, the department shall collaborate with the Michigan~~

~~Virtual University to provide this training online to all educators~~

~~of pupils in grades K to 3.~~

~~(d) The funds allocated under this subsection for 2015-2016~~

~~are a work project appropriation, and any unexpended funds for~~

~~2015-2016 are carried forward into 2016-2017. The purpose of the~~

~~work project is to continue to implement the professional~~

~~development training described in this subsection. The estimated~~

~~completion date of the work project is September 30, 2017.~~

~~(e) The funds allocated under this subsection for 2016-2017~~

~~are a work project appropriation, and any unexpended funds for~~

~~2016-2017 are carried forward into 2017-2018. The purpose of the~~

~~work project is to continue to implement the professional~~

~~development training described in this subsection. The estimated~~

~~completion date of the work project is September 30, 2018.~~

(4) ~~From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $3,000,000.00 each fiscal year~~

~~for 2015-2016 and for 2016-2017~~ A district that receives funds

under this section may use the funds for the purpose of providing

early literacy coaches ~~at intermediate districts~~ to assist teachers

in developing and implementing instructional strategies for pupils

in grades K to 3 so that pupils are reading at grade level by the

end of grade 3. ~~All of the following apply to funding under this~~

~~subsection:~~

~~(a) The department shall develop an application process~~

~~consistent with the provisions of this subsection. An application~~

~~shall provide assurances that literacy~~ Literacy coaches funded

under this ~~subsection are~~ section must be knowledgeable about at

least the following:

(a) (i) Current state literacy standards for pupils in grades

K to 3.

(b) (ii) Implementing an instructional delivery model based on

frequent use of formative, screening, and diagnostic tools, known

as a multi-tiered system of support, to determine individual

progress for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3.

the necessary additional supports and interventions needed by

individual pupils in grades K to 3 in order to be reading at grade

level.

~~(b) From the allocation under this subsection, the department~~

~~shall award grants to intermediate districts for the support of~~

~~early literacy coaches. An intermediate district must provide~~

~~matching funds for at least 50% of the cost of the literacy coach.~~

~~The department shall provide this funding in the following manner:~~

(i~~) Each intermediate district shall be awarded grant funding~~

~~to support the cost of 1 early literacy coach in an equal amount~~

~~per early literacy coach, not to exceed $37,500.00.~~

(ii~~) After distribution of the grant funding under~~

~~subparagraph (~~i~~), the department shall distribute the remainder of~~

~~grant funding for additional early literacy coaches in an amount~~

~~not to exceed $37,500.00 per early literacy coach. The number of~~

~~funded early literacy coaches for each intermediate district shall~~

~~be based on the percentage of the total statewide number of pupils~~

~~in grades K to 3 who meet the income eligibility standards for the~~

~~federal free and reduced-price lunch programs who are enrolled in~~

~~districts in the intermediate district. For each additional early~~

~~literacy coach funded under this subparagraph, the department shall~~

~~not make an award to an intermediate district under this~~

~~subparagraph in an amount that is less than the amount necessary to~~

~~pay 1/2 of the total cost of that additional early literacy coach.~~

~~(c) The funds allocated under this subsection for 2015-2016~~

~~are a work project appropriation, and any unexpended funds for~~

~~2015-2016 are carried forward into 2016-2017. The purpose of the~~

~~work project is to continue to provide early literacy coaches as~~

~~described in this subsection. The estimated completion date of the~~

~~work project is September 30, 2017.~~

~~(d) The funds allocated under this subsection for 2016-2017~~

~~are a work project appropriation, and any unexpended funds for~~

~~2016-2017 are carried forward into 2017-2018. The purpose of the~~

~~work project is to continue to implement the professional~~

~~development training described in this subsection. The estimated~~

~~completion date of the work project is September 30, 2018.~~

(5) ~~From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $13,600,000.00 for 2015-2016 and~~

~~an amount not to exceed $17,500,000.00 for 2016-2017 to districts~~

~~that~~ A district that receives funding under this section may use

the funds to provide additional instructional time to those pupils

in grades K to 3 who have been identified by using department-

approved screening and diagnostic tools as needing additional

supports and interventions in order to be reading at grade level by

the end of grade 3. Additional instructional time may be provided

before, during, and after regular school hours or as part of a

year-round balanced school calendar. ~~All of the following apply to~~

~~funding under this subsection:~~

(6) ~~(a)~~ In order to be eligible to receive funding under this

section, a district shall demonstrate to the satisfaction of the

department that the district has done all of the following:

(a) (i) Implemented a multi-tiered system of support

instructional delivery model that is an evidence-based model 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. The multi-

tiered system of supports must provide at least all of the

following essential elements:

(i) ~~(A)~~ Implements effective instruction for all learners.

(ii) ~~(B)~~ Intervenes early.

(iii) ~~(C)~~ Provides a multi-tiered model of instruction and

intervention that provides the following: a core curriculum and

classroom interventions available to all pupils that meet the needs

of most pupils; targeted group interventions; and intense

individual interventions.

(iv) ~~(D)~~ Monitors pupil progress to inform instruction.

(v) ~~(E)~~ Uses data to make instructional decisions.

(vi) ~~(F)~~ Uses assessments including universal screening,

diagnostics, and progress monitoring.

(vii) ~~(G)~~ Engages families and the community.

(viii) ~~(H)~~ Implements evidence-based, scientifically

validated, instruction and intervention.

(ix) ~~(I)~~ Implements instruction and intervention practices

with fidelity.

(x) ~~(J)~~ Uses a collaborative problem-solving model.

(b) (ii) Used department-approved research-based diagnostic

tools to identify individual pupils in need of additional

instructional time.

the 5 fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

(d) (iv) Provided teachers of pupils in grades K to 3 with

research-based professional development in diagnostic data

interpretation.

(7) ~~(b)~~ Funding allocated under this ~~subsection~~ section shall

be distributed to eligible districts by multiplying the number of

full-time-equivalent pupils in grade 1 in the district by

~~$165.00.~~$245.00.

(8) ~~(c)~~ If the funds allocated under this ~~subsection~~ section

are insufficient to fully fund the payments under this subsection,

payments under this subsection shall be prorated on an equal per-

pupil basis based on grade 1 pupils.

~~(6) From the general fund money allocated in subsection (1),~~

~~the department shall allocate the amount of $1,000,000.00 each~~

~~fiscal year for 2015-2016 and for 2016-2017 to the Michigan~~

~~Education Corps. All of the following apply to funding under this~~

~~subsection:~~

~~(a) By August 1 of the applicable fiscal year, the Michigan~~

~~Education Corps shall provide a report concerning its use of the~~

~~funding to the senate and house appropriations subcommittees on~~

~~state school aid, the senate and house fiscal agencies, and the~~

~~senate and house caucus policy offices on outcomes and performance~~

~~measures of the Michigan Education Corps, including, but not~~

~~limited to, the degree to which the Michigan Education Corps's~~

~~replication of the Michigan Reading Corps program is demonstrating~~

~~sufficient efficacy and impact. The report must include data~~

~~pertaining to at least all of the following:~~

(i~~) The current impact of the Michigan Reading Corps on this~~

~~state in terms of numbers of children and programs receiving~~

~~support. This portion of the report shall specify the number of~~

~~children tutored, including dosage and completion, and the~~

~~demographics of those children.~~

(ii~~) Whether the assessments and interventions are implemented~~

~~with fidelity. This portion of the report shall include details on~~

~~the total number of assessments and interventions completed and the~~

~~range, median, mean, and standard deviation for all assessments.~~

(~~iii~~~~) Whether the literacy improvement of children~~

~~participating in the Michigan Reading Corps is consistent with~~

~~expectations. This portion of the report shall detail at least all~~

~~of the following:~~

~~(A) Growth rate by grade level, in comparison to targeted~~

~~growth rate.~~

~~(B) Average linear growth rates.~~

~~(C) Exit rates.~~

~~(D) Percentage of children who exit who also meet or exceed~~

~~spring benchmarks.~~

(iv~~) The impact of the Michigan Reading Corps on organizations~~

~~and stakeholders, including, but not limited to, school~~

~~administrators, internal coaches, and AmeriCorps members.~~

~~(b) If the department determines that the Michigan Education~~

~~Corps has misused the funds allocated under this subsection, the~~

~~Michigan Education Corps shall reimburse this state for the amount~~

~~of state funding misused.~~

~~(7) From the general fund money allocated under subsection~~

~~(1), there is allocated to the department an amount not to exceed~~

~~$500,000.00 for 2015-2016 for the adoption of a certification test~~

~~to ensure that all newly certificated elementary teachers have the~~

~~skills to deliver evidence-based literacy instruction.~~

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit an application, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. The application

shall include ~~a comprehensive needs assessment using aggregated~~

~~data from the applicant's entire service area and a community~~

~~collaboration plan that is endorsed by the local great start~~

~~collaborative and is part of the community's great start strategic~~

~~plan that includes, but is not limited to, great start readiness~~

~~program and head start providers, and shall identify~~ all of the

following:

(a) The estimated total number of children in the community

who meet the criteria of section 32d, ~~and how that calculation was~~

~~made.~~as provided to the applicant by the department utilizing the

most recent population data available from the American community

survey conducted by the United States Census Bureau for 2017-2018

calculations. Beginning in 2018-2019, the department shall ensure

that it provides updated American community survey population data

at least once every 3 years.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served ~~by other early~~

~~childhood development programs operating in the community, and how~~

~~that calculation was made.~~exclusively by Head Start programs

operating in the community.

~~able to fill with children~~ has the capacity to serve who meet the

criteria of section 32d including a verification of physical

facility and staff resources capacity.

~~(d) The estimated number of slots that will remain unfilled~~

~~and children who meet the criteria of section 32d who will remain~~

~~unserved after the applicant and community early childhood programs~~

~~have met their funded enrollments. The applicant shall maintain a~~

~~waiting list of identified unserved eligible children who would be~~

~~served when openings are available.~~

(2) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit an

implementation plan for approval, in a form and manner prescribed

by the department, by a date specified by the department, that

details how the applicant complies with the program components

established by the department pursuant to section 32d.

~~(3) The number of prekindergarten children construed to be in~~

~~need of special readiness assistance under section 32d shall be~~

~~calculated for each applicant in the following manner: 1/2 of the~~

~~percentage of the applicant's pupils in grades 1 to 5 in all~~

~~districts served by the applicant who are eligible for free lunch,~~

~~as determined using the district's pupil membership count as of the~~

~~pupil membership count day in the school year prior to the fiscal~~

~~year for which the calculation is made, under the Richard B.~~

~~Russell national school lunch act, 42 USC 1751 to 1769i, shall be~~

~~multiplied by the average kindergarten enrollment of the districts~~

~~served by the applicant on the pupil membership count day of the 2~~

~~immediately preceding fiscal years. Each child construed to be in~~

~~need constitutes 1 slot.~~

(3) ~~(4)~~ The initial allocation ~~for each fiscal year~~ to each

eligible applicant under section 32d shall be ~~determined by~~

~~multiplying the number of slots determined by the formula under~~

~~subsection (3) or the number of slots the applicant indicates it~~

~~will be able to fill under subsection (1)(c), whichever is less, by~~

~~$3,625.00 and shall be distributed among applicants in decreasing~~

~~order of concentration of eligible children as determined by the~~

~~formula under subsection (3). If the number of slots an applicant~~

~~indicates it will be able to fill under subsection (1)(c) includes~~

~~children able to be served in a school-day program, then the number~~

~~of slots for a school-day program shall be doubled for the purposes~~

~~of making this calculation. A district may contract with a head~~

~~start agency to serve children enrolled in head start with a~~

~~school-day program by blending head start funds with a part-day~~

~~great start readiness program allocation. All head start and great~~

~~start readiness program policies and regulations apply to the~~

~~blended program.~~the lesser of the following:

(a) The sum of the number of children served in a school-day

program in the preceding school year multiplied by $7,250.00 and

the number of children served in a GSRP/Head Start blended program

or a part-day program in the preceding school year multiplied by

$3,625.00.

(b) The sum of the number of children the applicant has the

capacity to serve in 2017-2018 in a school-day program multiplied

by $7,250.00 and the number of children served in a GSRP/Head Start

blended program or a part-day program the applicant has the

capacity to serve in 2017-2018 multiplied by $3,625.00.

~~(5) If funds allocated for eligible applicants under section~~

~~32d remain after the initial allocation under subsection (4), the~~

~~allocation under this subsection shall be distributed to each~~

~~eligible applicant under section 32d in decreasing order of~~

~~concentration of eligible children as determined by the formula~~

~~under subsection (3). The allocation shall be determined by~~

~~multiplying the number of slots in each district within the~~

~~applicant's service area filled in the immediately preceding fiscal~~

~~year or the number of slots the applicant indicates it will be able~~

~~to fill under subsection (1)(c), whichever is less, minus the~~

~~number of slots for which the applicant received funding in~~

~~subsection (4) by $3,625.00.~~

(4) ~~(6)~~ If funds ~~allocated for eligible applicants under~~

~~section 32d~~ remain after the allocations under ~~subsections (4) and~~

~~(5), remaining funds shall be distributed to each eligible~~

~~applicant under section 32d in decreasing order of concentration of~~

~~eligible children as determined by the formula under subsection~~

~~(3). If the number of slots the applicant indicates it will be able~~

~~to fill under subsection (1)(c) exceeds the number of slots for~~

~~which funds have been received under subsections (4) and (5), the~~

~~allocation under this subsection shall be determined by multiplying~~

~~the number of slots the applicant indicates it will be able to fill~~

~~under subsection (1)(c) less the number of slots for which funds~~

~~have been received under subsections (4) and (5) by $3,625.00 until~~

~~the funds allocated for eligible applicants in section 32d are~~

~~distributed.~~subsection (3), the department shall distribute the

remaining funds to each intermediate district or consortium of

intermediate districts that serves less than the state percentage

benchmark determined under subsection (5). These remaining funds

shall be distributed to each eligible applicant based upon each

applicant's proportionate share of the remaining unserved children

necessary to meet the statewide percentage benchmark in

intermediate districts or consortia of intermediate districts

serving less than the state percentage benchmark. When all

applicants have been given the opportunity to reach the statewide

percentage benchmark, the statewide percentage benchmark may be

reset, as determined by the department, until greater equity of

opportunity to serve eligible children across all intermediate

school districts has been achieved.

(5) For the purposes of subsection (4), the department shall

calculate a percentage of children served by each intermediate

district or consortium of intermediate districts by dividing the

number of children served in the immediately preceding year by that

intermediate district or consortium by the total number of children

within the intermediate district or consortium of intermediate

districts who meet the criteria of section 32d as determined by the

department utilizing the most recent population data available from

the American community survey conducted by the United States Census

Bureau for the 2017-2018 program year. The department shall compare

the resulting percentage of eligible children served to a statewide

percentage benchmark to determine if the intermediate district or

consortium is eligible for additional funds under subsection (4).

For 2017-2018, the statewide percentage benchmark is 60%.

(6) ~~(7)~~ If, taking into account the total amount to be

allocated to the applicant as calculated under this section, an

applicant determines that it is able to include additional eligible

children in the great start readiness program without additional

funds under section 32d, the applicant may include additional

eligible children but shall not receive additional funding under

section 32d for those children.

(7) The department shall review the program components under

section 32d and under this section at least biennially. The

department also shall convene a committee of internal and external

stakeholders at least once every 5 years to ensure that the funding

structure under this section reflects current system needs under

section 32d.

(8) As used in this section, "school-day program", "GSRP/Head

Start blended program", and "part-day program" mean those terms as

defined in section 32d.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated each fiscal year for 2016-2017 and for 2017-

2018 to districts, intermediate districts, and other eligible

entities all available federal funding, estimated at

~~$821,939,900.00~~ $744,039,900.00 for 2016-2017 and $731,600,000.00

for 2017-2018 for the federal programs under the no child left

behind act of 2001, Public Law 107-110, or the every student

succeeds act, Public Law 114-95. These funds are allocated as

follows:

(a) An amount estimated at ~~$2,000,000.00~~ $1,200,000.00 each

fiscal year to provide students with drug- and violence-prevention

programs and to implement strategies to improve school safety,

funded from DED-OESE, drug-free schools and communities funds.

(b) An amount estimated at $111,111,900.00 for 2016-2017 and

$100,000,000.00 for 2017-2018 for the purpose of preparing,

training, and recruiting high-quality teachers and class size

reduction, funded from DED-OESE, improving teacher quality funds.

$11,000,000.00 for 2017-2018 for programs to teach English to

limited English proficient (LEP) children, funded from DED-OESE,

language acquisition state grant funds.

(d) An amount estimated at $250,000.00 for 2016-2017 only for

the Michigan charter school subgrant program, funded from DED-OESE,

charter school funds.

(e) An amount estimated at $3,000,000.00 for 2016-2017 and

$2,800,000.00 for 2017-2018 for rural and low income schools,

funded from DED-OESE, rural and low income school funds.

(f) An amount estimated at ~~$565,000,000.00~~ $535,000,000.00

each fiscal year to provide supplemental programs to enable

educationally disadvantaged children to meet challenging academic

standards, funded from DED-OESE, title I, disadvantaged children

funds. It is the intent of the legislature that beginning in 2018-

2019, a portion of the funds allocated under this subdivision shall

be used to reimburse districts that provide transportation or

transportation vouchers or passes to pupils enrolled in a district

other than their resident district or a public school academy.

(g) An amount estimated at $8,878,000.00 for 2016-2017 and

$9,200,000.00 for 2017-2018 for the purpose of identifying and

serving migrant children, funded from DED-OESE, title I, migrant

education funds.

(h) An amount estimated at $39,000,000.00 each fiscal year for

the purpose of providing high-quality extended learning

opportunities, after school and during the summer, for children in

low-performing schools, funded from DED-OESE, twenty-first century

community learning center funds.

(i) An amount estimated at ~~$24,600,000.00~~ $18,000,000.00 each

fiscal year to help support local school improvement efforts,

funded from DED-OESE, title I, local school improvement grants.

(j) An amount estimated at ~~$55,900,000.00~~ $15,400,000.00 each

fiscal year to improve the academic achievement of students, funded

from DED-OESE, title IV, student support and academic enrichment

grants.

(2) From the federal funds appropriated in section 11, there

is allocated for 2016-2017 and for 2017-2018 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at $30,800,000.00 for 2016-2017 and

$30,000,000.00 for 2017-2018 for the following programs that are

funded by federal grants:

(a) An amount estimated at $200,000.00 for 2016-2017 and

$100,000.00 for 2017-2018 for acquired immunodeficiency syndrome

education grants, funded from HHS � Centers for Disease Control and

Prevention, AIDS funding.

(b) An amount estimated at $2,600,000.00 for 2016-2017 and

$1,900,000.00 for 2017-2018 to provide services to homeless

children and youth, funded from DED-OVAE, homeless children and

youth funds.

provide mental health, substance abuse, or violence prevention

services to students, funded from HHS-SAMHSA.

(d) An amount estimated at $24,000,000.00 each fiscal year for

providing career and technical education services to pupils, funded

from DED-OVAE, basic grants to states.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) For the purposes of funding federal title I grants under

this article, in addition to any other federal grants for which a

strict discipline academy is eligible, the department shall

allocate to strict discipline academies out of title I, part A

funds equal to what a strict discipline academy would have received

if included and calculated under title I, part D, or what it would

receive under the formula allocation under title I, part A,

whichever is greater.

(6) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Education.

(d) "HHS" means the United States Department of Health and

Human Services.

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

Health Services Administration.

Sec. 41. From the appropriation in section 11, there is

allocated an amount not to exceed $1,200,000.00 for ~~2016-2017~~ 2017-

2018 to applicant districts and intermediate districts offering

programs of instruction for pupils of limited English-speaking

ability under section 1153 of the revised school code, MCL

380.1153. Reimbursement shall be on a per-pupil basis and shall be

based on the number of pupils of limited English-speaking ability

in membership on the pupil membership count day. Funds allocated

under this section shall be used solely for instruction in

speaking, reading, writing, or comprehension of English. A pupil

shall not be counted under this section or instructed in a program

under this section for more than 3 years.

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

allocated ~~an amount not to exceed $945,246,100.00 for 2015-2016 and~~

an amount not to exceed ~~$973,046,100.00~~ $945,046,100.00 for 2016-

2017 and there is allocated an amount not to exceed $963,146,100.00

for 2017-2018 from state sources and all available federal funding

under sections 611 to 619 of part B of the individuals with

disabilities education act, 20 USC 1411 to 1419, estimated at

$370,000,000.00 each fiscal year ~~for 2015-2016 and~~ for 2016-2017

and for 2017-2018, plus any carryover federal funds from previous

year appropriations. The allocations under this subsection are for

the purpose of reimbursing districts and intermediate districts for

special education programs, services, and special education

personnel as prescribed in article 3 of the revised school code,

MCL 380.1701 to 380.1766; net tuition payments made by intermediate

districts to the Michigan ~~schools for the deaf and blind;~~Schools

for the Deaf and Blind; and special education programs and services

for pupils who are eligible for special education programs and

services according to statute or rule. For meeting the costs of

special education programs and services not reimbursed under this

article, a district or intermediate district may use money in

general funds or special education funds, not otherwise restricted,

or contributions from districts to intermediate districts, tuition

payments, gifts and contributions from individuals or other

entities, or federal funds that may be available for this purpose,

as determined by the intermediate district plan prepared pursuant

to article 3 of the revised school code, MCL 380.1701 to 380.1766.

Notwithstanding section 17b, payments of federal funds to

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(2) From the funds allocated under subsection (1), there is

allocated the amount necessary, ~~estimated at $263,500,000.00 for~~

~~2015-2016 and~~ estimated at ~~$271,600,000.00~~ $261,400,000.00 for

2016-2017 and estimated at $266,000,000.00 for 2017-2018, for

payments toward reimbursing districts and intermediate districts

for 28.6138% of total approved costs of special education,

excluding costs reimbursed under section 53a, and 70.4165% of total

approved costs of special education transportation. Allocations

under this subsection shall be made as follows:

(a) The initial amount allocated to a district under this

subsection toward fulfilling the specified percentages shall be

calculated by multiplying the district's special education pupil

membership, excluding pupils described in subsection (11), times

the foundation allowance under section 20 of the pupil's district

of residence plus the amount of the district's per-pupil allocation

under section 20m, not to exceed the basic foundation allowance

under section 20 for the current fiscal year, or, for a special

education pupil in membership in a district that is a public school

academy, times an amount equal to the amount per membership pupil

calculated under section 20(6) or, until the end of the 2016-2017

fiscal year, for a pupil described in this subsection who is

counted in membership in the education achievement system, times an

amount equal to the amount per membership pupil under section

20(7). For an intermediate district, the amount allocated under

this subdivision toward fulfilling the specified percentages shall

be an amount per special education membership pupil, excluding

pupils described in subsection (11), and shall be calculated in the

same manner as for a district, using the foundation allowance under

section 20 of the pupil's district of residence, not to exceed the

basic foundation allowance under section 20 for the current fiscal

year, and that district's per-pupil allocation under section 20m.

(b) After the allocations under subdivision (a), districts and

intermediate districts for which the payments calculated under

subdivision (a) do not fulfill the specified percentages shall be

paid the amount necessary to achieve the specified percentages for

the district or intermediate district.

(3) From the funds allocated under subsection (1), ~~there is~~

~~allocated for 2015-2016 an amount not to exceed $1,000,000.00 and~~

there is allocated each fiscal year for 2016-2017 and for 2017-2018

an amount not to exceed ~~$1,100,000.00~~ $1,000,000.00 to make

payments to districts and intermediate districts under this

subsection. If the amount allocated to a district or intermediate

district for a fiscal year under subsection (2)(b) is less than the

sum of the amounts allocated to the district or intermediate

district for 1996-97 under sections 52 and 58, there is allocated

to the district or intermediate district for the fiscal year an

amount equal to that difference, adjusted by applying the same

proration factor that was used in the distribution of funds under

section 52 in 1996-97 as adjusted to the district's or intermediate

district's necessary costs of special education used in

calculations for the fiscal year. This adjustment is to reflect

reductions in special education program operations or services

between 1996-97 and subsequent fiscal years. Adjustments for

reductions in special education program operations or services

shall be made in a manner determined by the department and shall

include adjustments for program or service shifts.

(4) If the department determines that the sum of the amounts

allocated for a fiscal year to a district or intermediate district

under subsection (2)(a) and (b) is not sufficient to fulfill the

specified percentages in subsection (2), then the shortfall shall

be paid to the district or intermediate district during the fiscal

year beginning on the October 1 following the determination and

payments under subsection (3) shall be adjusted as necessary. If

the department determines that the sum of the amounts allocated for

a fiscal year to a district or intermediate district under

subsection (2)(a) and (b) exceeds the sum of the amount necessary

to fulfill the specified percentages in subsection (2), then the

department shall deduct the amount of the excess from the

district's or intermediate district's payments under this article

for the fiscal year beginning on the October 1 following the

determination and payments under subsection (3) shall be adjusted

as necessary. However, if the amount allocated under subsection

(2)(a) in itself exceeds the amount necessary to fulfill the

specified percentages in subsection (2), there shall be no

deduction under this subsection.

(5) State funds shall be allocated on a total approved cost

basis. Federal funds shall be allocated under applicable federal

requirements, except that an amount not to exceed $3,500,000.00 may

be allocated by the department each fiscal year ~~for 2015-2016 and~~

for 2016-2017 and for 2017-2018 to districts, intermediate

districts, or other eligible entities on a competitive grant basis

for programs, equipment, and services that the department

determines to be designed to benefit or improve special education

on a statewide scale.

(6) From the amount allocated in subsection (1), there is

allocated an amount not to exceed $2,200,000.00 each fiscal year

~~for 2015-2016 and~~ for 2016-2017 and for 2017-2018 to reimburse 100%

of the net increase in necessary costs incurred by a district or

intermediate district in implementing the revisions in the

administrative rules for special education that became effective on

July 1, 1987. As used in this subsection, "net increase in

necessary costs" means the necessary additional costs incurred

solely because of new or revised requirements in the administrative

rules minus cost savings permitted in implementing the revised

rules. Net increase in necessary costs shall be determined in a

manner specified by the department.

(7) For purposes of sections 51a to 58, all of the following

apply:

(a) "Total approved costs of special education" shall be

determined in a manner specified by the department and may include

indirect costs, but shall not exceed 115% of approved direct costs

for section 52 and section 53a programs. The total approved costs

include salary and other compensation for all approved special

education personnel for the program, including payments for social

security and Medicare and public school employee retirement system

contributions. The total approved costs do not include salaries or

other compensation paid to administrative personnel who are not

special education personnel as defined in section 6 of the revised

school code, MCL 380.6. Costs reimbursed by federal funds, other

than those federal funds included in the allocation made under this

article, are not included. Special education approved personnel not

utilized full time in the evaluation of students or in the delivery

of special education programs, ancillary, and other related

services shall be reimbursed under this section only for that

portion of time actually spent providing these programs and

services, with the exception of special education programs and

services provided to youth placed in child caring institutions or

juvenile detention programs approved by the department to provide

an on-grounds education program.

(b) Beginning with the 2004-2005 fiscal year, a district or

intermediate district that employed special education support

services staff to provide special education support services in

2003-2004 or in a subsequent fiscal year and that in a fiscal year

after 2003-2004 receives the same type of support services from

another district or intermediate district shall report the cost of

those support services for special education reimbursement purposes

under this article. This subdivision does not prohibit the transfer

of special education classroom teachers and special education

classroom aides if the pupils counted in membership associated with

those special education classroom teachers and special education

classroom aides are transferred and counted in membership in the

other district or intermediate district in conjunction with the

transfer of those teachers and aides.

fiscal year that the amounts allocated for that fiscal year under

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

will exceed expenditures for that fiscal year under subsections

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

district or intermediate district whose reimbursement for that

fiscal year would otherwise be affected by subdivision (b),

subdivision (b) does not apply to the calculation of the

reimbursement for that district or intermediate district and

reimbursement for that district or intermediate district shall be

calculated in the same manner as it was for 2003-2004. If the

amount of the excess allocations under subsections (2), (3), (6),

and (11) and sections 53a, 54, and 56 is not sufficient to fully

fund the calculation of reimbursement to those districts and

intermediate districts under this subdivision, then the

calculations and resulting reimbursement under this subdivision

shall be prorated on an equal percentage basis. Beginning in 2015-

2016, the amount of reimbursement under this subdivision for a

fiscal year shall not exceed $2,000,000.00 for any district or

intermediate district.

(d) Reimbursement for ancillary and other related services, as

defined by R 340.1701c of the Michigan Administrative Code, shall

not be provided when those services are covered by and available

through private group health insurance carriers or federal

reimbursed program sources unless the department and district or

intermediate district agree otherwise and that agreement is

approved by the state budget director. Expenses, other than the

incidental expense of filing, shall not be borne by the parent. In

addition, the filing of claims shall not delay the education of a

pupil. A district or intermediate district shall be responsible for

payment of a deductible amount and for an advance payment required

until the time a claim is paid.

(e) Beginning with calculations for 2004-2005, if an

intermediate district purchases a special education pupil

transportation service from a constituent district that was

previously purchased from a private entity; if the purchase from

the constituent district is at a lower cost, adjusted for changes

in fuel costs; and if the cost shift from the intermediate district

to the constituent does not result in any net change in the revenue

the constituent district receives from payments under sections 22b

and 51c, then upon application by the intermediate district, the

department shall direct the intermediate district to continue to

report the cost associated with the specific identified special

education pupil transportation service and shall adjust the costs

reported by the constituent district to remove the cost associated

with that specific service.

(8) A pupil who is enrolled in a full-time special education

program conducted or administered by an intermediate district or a

pupil who is enrolled in the Michigan ~~schools for the deaf and~~

~~blind~~ Schools for the Deaf and Blind shall not be included in the

membership count of a district, but shall be counted in membership

in the intermediate district of residence.

(9) Special education personnel transferred from 1 district to

another to implement the revised school code shall be entitled to

the rights, benefits, and tenure to which the person would

otherwise be entitled had that person been employed by the

receiving district originally.

(10) If a district or intermediate district uses money

received under this section for a purpose other than the purpose or

purposes for which the money is allocated, the department may

require the district or intermediate district to refund the amount

of money received. Money that is refunded shall be deposited in the

state treasury to the credit of the state school aid fund.

(11) From the funds allocated in subsection (1), there is

allocated the amount necessary, estimated at ~~$3,800,000.00 for~~

~~2015-2016 and estimated at $3,700,000.00 for 2016-2017,~~

$3,600,000.00 each fiscal year for 2016-2017 and for 2017-2018, to

pay the foundation allowances for pupils described in this

subsection. The allocation to a district under this subsection

shall be calculated by multiplying the number of pupils described

in this subsection who are counted in membership in the district

times the sum of the foundation allowance under section 20 of the

pupil's district of residence plus the amount of the district's

per-pupil allocation under section 20m, not to exceed the basic

foundation allowance under section 20 for the current fiscal year,

or, for a pupil described in this subsection who is counted in

membership in a district that is a public school academy, times an

amount equal to the amount per membership pupil under section 20(6)

or, until the end of the 2016-2017 fiscal year, for a pupil

described in this subsection who is counted in membership in the

education achievement system, times an amount equal to the amount

per membership pupil under section 20(7). The allocation to an

intermediate district under this subsection shall be calculated in

the same manner as for a district, using the foundation allowance

under section 20 of the pupil's district of residence, not to

exceed the basic foundation allowance under section 20 for the

current fiscal year, and that district's per-pupil allocation under

section 20m. This subsection applies to all of the following

pupils:

(a) Pupils described in section 53a.

(b) Pupils counted in membership in an intermediate district

who are not special education pupils and are served by the

intermediate district in a juvenile detention or child caring

facility.

by an intermediate district and provided educational services by

the department of health and human services.

(12) If it is determined that funds allocated under subsection

(2) or (11) or under section 51c will not be expended, funds up to

the amount necessary and available may be used to supplement the

allocations under subsection (2) or (11) or under section 51c in

order to fully fund those allocations. After payments under

subsections (2) and (11) and section 51c, the remaining

expenditures from the allocation in subsection (1) shall be made in

the following order:

(a) 100% of the reimbursement required under section 53a.

(b) 100% of the reimbursement required under subsection (6).

(d) 100% of the payment required under subsection (3).

(e) 100% of the payments under section 56.

(13) The allocations under subsections (2), (3), and (11)

shall be allocations to intermediate districts only and shall not

be allocations to districts, but instead shall be calculations used

only to determine the state payments under section 22b.

(14) If a public school academy enrolls pursuant to this

section a pupil who resides outside of the intermediate district in

which the public school academy is located and who is eligible for

special education programs and services according to statute or

rule, or who is a child with disabilities, as defined under the

individuals with disabilities education act, Public Law 108-446,

the provision of special education programs and services and the

payment of the added costs of special education programs and

services for the pupil are the responsibility of the district and

intermediate district in which the pupil resides unless the

enrolling district or intermediate district has a written agreement

with the district or intermediate district in which the pupil

resides or the public school academy for the purpose of providing

the pupil with a free appropriate public education and the written

agreement includes at least an agreement on the responsibility for

the payment of the added costs of special education programs and

services for the pupil.

(15) Beginning in 2016-2017, a district, public school

academy, or intermediate district that fails to comply with

subsection (14) or with the requirements of federal regulations

regarding the treatment of public school academies and public

school academy pupils for the purposes of special education, 34 CFR

300.209, forfeits from its total state aid an amount equal to 10%

of its total state aid.

(16) For the purposes of this section, the department or the

center shall only require a district or intermediate district to

report information that is not already available from the financial

information database maintained by the center.

Sec. 51c. As required by the court in the consolidated cases

known as Durant v State of Michigan, ~~Michigan supreme court docket~~

~~no. 104458-104492,~~ 456 Mich 175 (1997) from the allocation under

section 51a(1), there is allocated each fiscal year for ~~2015-2016~~

~~and for~~ 2016-2017 and for 2017-2018 the amount necessary, estimated

at ~~$624,800,000.00 for 2015-2016 and estimated at $644,500,000.00~~

$626,900,000.00 for 2016-2017 and $640,400,000.00 for 2017-2018,

for payments to reimburse districts for 28.6138% of total approved

costs of special education excluding costs reimbursed under section

53a, and 70.4165% of total approved costs of special education

transportation. Funds allocated under this section that are not

expended in the state fiscal year for which they were allocated, as

determined by the department, may be used to supplement the

allocations under sections 22a and 22b in order to fully fund those

calculated allocations for the same fiscal year.

Sec. 51d. (1) From the federal funds appropriated in section

11, there is allocated each fiscal year for 2016-2017 and for 2017-

2018, all available federal funding, estimated at ~~$71,000,000.00,~~

$61,000,000.00 each fiscal year, for special education programs and

services that are funded by federal grants. All federal funds

allocated under this section shall be distributed in accordance

with federal law. Notwithstanding section 17b, payments of federal

funds to districts, intermediate districts, and other eligible

entities under this section shall be paid on a schedule determined

by the department.

(2) From the federal funds allocated under subsection (1), the

following amounts are allocated each fiscal year for 2016-2017 and

for 2017-2018:

(a) An amount estimated at $14,000,000.00 each fiscal year for

handicapped infants and toddlers, funded from DED-OSERS,

handicapped infants and toddlers funds.

(b) An amount estimated at $12,000,000.00 each fiscal year for

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

handicapped preschool incentive funds.

fiscal year for special education programs funded by DED-OSERS,

handicapped program, individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States Department of Education Office of Special Education and

Rehabilitative Services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) shall be 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1766, minus the district's foundation allowance

calculated under section 20 and minus the district's per-pupil

allocation under section 20m. For intermediate districts,

reimbursement for pupils described in subsection (2) shall be

calculated in the same manner as for a district, using the

foundation allowance under section 20 of the pupil's district of

residence, not to exceed the basic foundation allowance under

section 20 for the current fiscal year, and that district's per-

pupil allocation under section 20m.

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of health and human services.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation shall be funded under this

section and shall not be reimbursed under section 58.

(5) Not more than $10,500,000.00 of the allocation for ~~2016-~~

~~2017~~ 2017-2018 in section 51a(1) shall be allocated under this

section.

Sec. 54. Each intermediate district shall receive an amount

per-pupil for each pupil in attendance at the Michigan ~~schools for~~

~~the deaf and blind.~~ Schools for the Deaf and Blind. The amount

shall be proportionate to the total instructional cost at each

school. Not more than $1,688,000.00 of the allocation for ~~2016-2017~~

2017-2018 in section 51a(1) shall be allocated under this section.

Sec. 54b. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed ~~$1,125,000.00 for~~

~~2016-2017 to begin~~ $1,600,000.00 for 2017-2018 to continue the

implementation of the recommendations of the special education

reform task force published in January 2016.

(2) ~~From the allocation in subsection (1), there is allocated~~

~~for 2016-2017 an amount not to exceed $625,000.00~~ Except as

provided in subsection (3), the department shall use funds

allocated under this section for the purpose of piloting statewide

implementation of the Michigan Integrated Behavior and Learning

Support Initiative (MiBLSI), a nationally recognized program that

includes positive behavioral intervention and supports and provides

a statewide structure to support local initiatives for an

integrated behavior and reading program. With the assistance of the

intermediate districts involved in MiBLSI, the department shall

identify ~~at least 3~~ a number of intermediate districts to

participate in the pilot that is sufficient to ensure that MiBLSI

can be implemented statewide with fidelity and sustainability. In

addition, the department shall identify an intermediate district to

act as a fiscal agent for these funds.

(3) ~~From the allocation in subsection (1), there is allocated~~

~~for 2016-2017 an amount not to exceed $500,000.00~~ In addition to

the purpose under subsection (2), the department shall use funds

allocated under this section for the purpose of providing training

to intermediate districts and districts related to the safe

implementation of emergency restraints and seclusion. The

department shall develop and implement a training program that is

based on the state board's adopted standards and on any other

legislation enacted by the legislature regarding the emergency use

of seclusion and restraint.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1743, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1743, membership and taxable value

of the district shall not be included in the membership and taxable

value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated an amount not to exceed $37,758,100.00 each fiscal year

~~for 2015-2016 and~~ for 2016-2017 and for 2017-2018 to reimburse

intermediate districts levying millages for special education

pursuant to part 30 of the revised school code, MCL 380.1711 to

380.1743. The purpose, use, and expenditure of the reimbursement

shall be limited as if the funds were generated by these millages

and governed by the intermediate district plan adopted pursuant to

article 3 of the revised school code, MCL 380.1701 to 380.1766. As

a condition of receiving funds under this section, an intermediate

district distributing any portion of special education millage

funds to its constituent districts shall submit for departmental

approval and implement a distribution plan.

~~(3) Reimbursement for those millages levied in 2014-2015 shall~~

~~be made in 2015-2016 at an amount per 2014-2015 membership pupil~~

~~computed by subtracting from $175,300.00 the 2014-2015 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2014-2015 millage levied.~~

(3) ~~(4)~~ Reimbursement for those millages levied in 2015-2016

shall be made in 2016-2017 at an amount per 2015-2016 membership

pupil computed by subtracting from ~~$179,600.00~~ $180,900.00 the

2015-2016 taxable value behind each membership pupil and

multiplying the resulting difference by the 2015-2016 millage

levied.

(4) Reimbursement for those millages levied in 2016-2017 shall

be made in 2017-2018 at an amount per 2016-2017 membership pupil

computed by subtracting from $182,600.00 the 2016-2017 taxable

value behind each membership pupil and multiplying the resulting

difference by the 2016-2017 millage levied, and then subtracting

from that amount the 2016-2017 local community stabilization share

revenue for special education purposes behind each membership pupil

for reimbursement of personal property exemption loss under the

local community stabilization authority act, 2014 PA 86, MCL

123.1341 to 123.1362.

(5) The amount paid to a single intermediate district under

this section shall not exceed 62.9% of the total amount allocated

under subsection (2).

(6) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $36,611,300.00 for ~~2016-2017~~

2017-2018 to reimburse on an added cost basis districts, except for

a district that served as the fiscal agent for a vocational

education consortium in the 1993-94 school year and that has a

foundation allowance as calculated under section 20 greater than

the minimum foundation allowance under that section, and secondary

area vocational-technical education centers for secondary-level

career and technical education programs according to rules approved

by the superintendent. Applications for participation in the

programs shall be submitted in the form prescribed by the

department. The department shall determine the added cost for each

career and technical education program area. The allocation of

added cost funds shall be prioritized based on the capital and

program expenditures needed to operate the career and technical

education programs provided; the number of pupils enrolled; the

advancement of pupils through the instructional program; the

existence of an articulation agreement with at least 1

postsecondary institution that provides pupils with opportunities

to earn postsecondary credit during the pupil's participation in

the career and technical education program and transfers those

credits to the postsecondary institution upon completion of the

career and technical education program; and the program rank in

student placement, job openings, and wages, and shall not exceed

75% of the added cost of any program. Notwithstanding any rule or

department determination to the contrary, when determining a

district's allocation or the formula for making allocations under

this section, the department shall include the participation of

pupils in grade 9 in all of those determinations and in all

portions of the formula. With the approval of the department, the

board of a district maintaining a secondary career and technical

education program may offer the program for the period from the

close of the school year until September 1. The program shall use

existing facilities and shall be operated as prescribed by rules

promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year,

districts and intermediate districts shall be reimbursed for local

career and technical education administration, shared time career

and technical education administration, and career education

planning district career and technical education administration.

The definition of what constitutes administration and reimbursement

shall be pursuant to guidelines adopted by the superintendent. Not

more than $800,000.00 of the allocation in subsection (1) shall be

distributed under this subsection.

(3) A career and technical education program funded under this

section may provide an opportunity for participants who are

eligible to be funded under section 107 to enroll in the career and

technical education program funded under this section if the

participation does not occur during regular school hours.

~~(4) In addition to the money allocated under subsection (1),~~

~~from the general fund money appropriated in section 11, there is~~

~~allocated for 2016-2017 an amount not to exceed $79,000.00 to an~~

~~eligible Michigan-approved 501(c)(3) organization for the purposes~~

~~of teaching or training restaurant management and culinary arts for~~

~~career and professional development. The department shall oversee~~

~~funds distributed to an eligible grantee under this section. As~~

~~used in this subsection, "eligible Michigan-approved 501(c)(3)~~

~~organization" means an organization that is exempt from taxation~~

~~under section 501(c)(3) of the internal revenue code of 1986, 26~~

~~USC 501, that provides the ProStart curriculum and training to~~

~~state-approved career and technical education programs with~~

~~classification of instructional programs (CIP) codes in the 12.05xx~~

~~category, and that administers national certification for the~~

~~purpose of restaurant management and culinary arts for career and~~

~~professional development.~~

(4) In addition to the funds allocated under subsection (1),

from the funds appropriated in section 11, there is allocated an

amount not to exceed $1,000,000.00 for competitive grants to

intermediate districts to hire career and technical education

counselors. All of the following apply to this funding:

(a) An intermediate district seeking a grant under this

subsection shall apply to the department in a form and manner

specified by the department.

(b) The department shall award grants under this subsection on

a competitive basis to no more than 3 intermediate districts but

shall give priority to the intermediate district that has the

greatest number of pupils enrolled in its constituent districts and

shall ensure that grants are equitably distributed to the various

geographic areas of this state and to urban and rural areas.

intermediate district shall do all of the following:

(i) Catalog all available K-12 and other workforce development

programs and services, including job search, job training, pre-

employment certifications, career awareness programs, career and

technical education programs, and other related programs and

services offered by districts or intermediate districts,

postsecondary institutions, and other private or public service

organizations.

(ii) Develop an outreach program that educates students about

career and technical education options and connects students to the

services cataloged under subparagraph (i).

(iii) Track student placement and report on student placement

to the house and senate appropriations subcommittees on school aid

no later than June 30, 2018 in the form and manner prescribed by

the department.

Sec. 61b. (1) From the appropriation in section 11, there is

allocated ~~an amount not to exceed $1,000,000.00 for 2015-2016 and~~

~~there is allocated~~ an amount not to exceed ~~$9,000,000.00~~

$8,000,000.00 for 2016-2017 and an amount not to exceed $0.00 for

2017-2018 for CTE early/middle college and CTE dual enrollment

programs authorized under this section and for planning grants for

the development or expansion of CTE early/middle college programs.

The purpose of these programs is to increase the number of Michigan

residents with high-quality degrees or credentials, and to increase

the number of students who are college and career ready upon high

school graduation.

(2) From the funds allocated under subsection (1), an amount

as determined under this subsection shall be allocated to each

intermediate district serving as a fiscal agent for state-approved

CTE early/middle college and CTE dual enrollment programs in each

of the prosperity regions and subregions identified by the

department. An intermediate district shall not use more than 5% of

the funds allocated under this subsection for administrative costs

for serving as the fiscal agent.

(3) To be an eligible fiscal agent, an intermediate district

must agree to do all of the following in a form and manner

determined by the department:

(a) Distribute funds to eligible CTE early/middle college and

CTE dual enrollment programs in a prosperity region or subregion as

described in this section.

(b) Collaborate with the talent district career council that

is located in the prosperity region or subregion to develop a

regional strategic plan under subsection (4) that aligns CTE

programs and services into an efficient and effective delivery

system for high school students.

the prosperity region or subregion as described under subsection

(4). Regional processes shall be approved by the department before

the ranking of career clusters.

(d) Report CTE early/middle college and CTE dual enrollment

program and student data and information as prescribed by the

department.

(4) A regional strategic plan must be approved by the talent

district career council before submission to the department. A

regional strategic plan shall include, but not be limited to, the

following:

(a) An identification of regional employer need based on a

ranking of all career clusters in the prosperity region or

subregion ranked by 10-year job openings projections and median

wage for each standard occupational code in each career cluster as

obtained from the United States Bureau of Labor Statistics.

Standard occupational codes within high-ranking clusters also may

be further ranked by median wage. The rankings shall be reviewed by

the talent district career council located in the prosperity region

or subregion and modified if necessary to accurately reflect

employer demand for talent in the prosperity region or subregion. A

talent district career council shall document that it has conducted

this review and certify that it is accurate. These career cluster

rankings shall be determined and updated once every 4 years.

(b) An identification of educational entities in the

prosperity region or subregion that will provide eligible CTE

early/middle college and CTE dual enrollment programs including

districts, intermediate districts, postsecondary institutions, and

noncredit occupational training programs leading to an industry-

recognized credential.

early/middle college and CTE dual enrollment programs in the

prosperity region or subregion.

(d) Any other requirements as defined by the department.

(5) An eligible CTE program is a program that meets all of the

following:

(a) Has been identified in the highest 5 career cluster

rankings in any of the 10 regional strategic plans jointly approved

by the Michigan talent investment agency in the department of

talent and economic development and the department.

(b) Has a coherent sequence of courses that will allow a

student to earn a high school diploma and achieve at least 1 of the

following in a specific career cluster:

(i) An associate degree.

(ii) An industry-recognized technical certification approved

by the Michigan talent investment agency in the department of

talent and economic development.

(iii) Up to 60 transferable college credits.

(iv) Participation in a registered apprenticeship.

(d) Has an articulation agreement with at least 1

postsecondary institution that provides students with opportunities

to receive postsecondary credits during the student's participation

in the CTE early/middle college or CTE dual enrollment program and

transfers those credits to the postsecondary institution upon

completion of the CTE early/middle college or CTE dual enrollment

program.

(e) Provides instruction that is supervised, directed, or

coordinated by an appropriately certificated CTE teacher or, for

concurrent enrollment courses, a postsecondary faculty member.

(f) Provides for highly integrated student support services

that include at least the following:

(i) Teachers as academic advisors.

(ii) Supervised course selection.

(iii) Monitoring of student progress and completion.

(iv) Career planning services provided by a local one-stop

service center as described in the Michigan works one-stop service

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

high school counselor or advisor.

(g) Has courses that are taught on a college campus, are

college courses offered at the high school and taught by college

faculty, or are courses taught in combination with online

instruction.

(6) Funds to eligible CTE early/middle college and CTE dual

enrollment programs shall be distributed as follows:

(a) The department shall ~~calculate~~ determine statewide average

CTE costs per pupil for each CIP code program by ~~dividing total~~

~~prior year~~ calculating statewide average costs for each CIP code

program ~~by prior year pupils for each CIP code program.~~for the 3

most recent fiscal years.

(b) Distribution to each eligible CTE early/middle college or

CTE dual enrollment program shall be the product of 50% of CTE

costs per pupil times the current year pupil enrollment of each

eligible CTE early/middle college or CTE dual enrollment program.

(7) In order to receive funds under this section, a CTE

early/middle college or CTE dual enrollment program shall furnish

to the intermediate district that is the fiscal agent identified in

subsection (1), in a form and manner determined by the department,

all information needed to administer this program and meet federal

reporting requirements; shall allow the department or the

department's designee to review all records related to the program

for which it receives funds; and shall reimburse the state for all

disallowances found in the review, as determined by the department.

(8) There is allocated from the funds under subsection (1) an

amount not to exceed $500,000.00 ~~each fiscal year for 2015-2016 and~~

~~for 2016-2017~~ for 2017-2018 for grants to intermediate districts or

consortia of intermediate districts for the purpose of planning for

new or expanded early middle college programs. Applications for

grants shall be submitted in a form and manner determined by the

department. The amount of a grant under this subsection shall not

exceed $50,000.00. To be eligible for a grant under this

subsection, an intermediate district or consortia of intermediate

districts must provide matching funds equal to the grant received

under this subsection. Notwithstanding section 17b, payments under

this subsection may be made as determined by the department.

(9) Funds distributed under this section may be used to fund

program expenditures that would otherwise be paid from foundation

allowances. A program receiving funding under section 61a may

receive funding under this section for allowable costs that exceed

the reimbursement the program received under section 61a. The

combined payments received by a program under section 61a and this

section shall not exceed the total allowable costs of the program.

A program provider shall not use more than 5% of the funds

allocated under this section to the program for administrative

costs.

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

fully fund payments as otherwise calculated under this section, the

department shall prorate payments under this section on an equal

percentage basis.

(11) If pupils enrolled in a career cluster in an eligible CTE

early/middle college or CTE dual enrollment program qualify to be

reimbursed under this section, those pupils continue to qualify for

reimbursement until graduation, even if the career cluster is no

longer identified as being in the highest 5 career cluster

rankings.

~~(12) It is the intent of the legislature to provide funds in~~

~~2017-2018 to reimburse districts with early/middle college programs~~

~~for the added costs of providing both a high school diploma and an~~

~~associate's degree, industry-recognized certification, up to 60~~

~~transferable college credits, or participation in a registered~~

~~apprenticeship in less than 5 years.~~

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

(a) "Allowable costs" means those costs directly attributable

to the program as jointly determined by the Michigan talent

investment agency and the department.

(b) "CIP" means classification of instructional programs.

(d) "CTE dual enrollment program" means a 4-year high school

program of postsecondary courses offered by eligible postsecondary

educational institutions that leads to an industry-recognized

certification or degree.

(e) "Early/middle college program" means a 5-year high school

program.

(f) "Eligible postsecondary educational institution" means

that term as defined in section 3 of the career and technical

preparation act, 2000 PA 258, MCL 388.1903.

(g) "Talent district career council" means an advisory council

to the local workforce development boards located in a prosperity

region consisting of educational, employer, labor, and parent

representatives.

Sec. 61c. (1) From the ~~general fund~~ appropriation in section

11, there is allocated for ~~2016-2017~~ 2017-2018 an amount not to

exceed ~~$3,000,000.00 to career education planning districts~~

$10,000,000.00 for payments to districts and intermediate districts

or consortia of districts and intermediate districts for the CTE

~~skilled trades initiative~~ equipment and innovation competitive

grant program funded under this section.

(2) To be eligible to receive ~~funding~~ a competitive grant

under this section, ~~each CEPD~~ an applicant shall apply in a form

and manner determined by the department. ~~Funding to each CEPD shall~~

~~be equal to the quotient of the allocation under subsection (1) and~~

~~the sum of the number of career education planning districts~~

~~applying for funding under this section.~~The amount of a grant

awarded under this section shall be at least $250,000.00 but shall

not exceed $1,000,000.00 and shall be used for the purchase or

lease from private industry partners of equipment and for related

capacity building activities. A grant application for a grant under

this section shall include at least all of the following

information:

(a) A description of how the proposed capital infrastructure

initiative will provide increased career opportunities for students

and adult learners in high-wage, high-skill, and high-demand

occupations.

(b) Demonstrated evidence of employer demand for the

initiative and related CTE training including documentation of

industry involvement in the initiative that will allow for work-

based learning opportunities, apprenticeships, teacher externships,

or a combination of these.

commitment of local or regional partners to sustain the initiative

beyond the initial grant funding.

(d) A description of how the proposed initiative aligns with

other CTE and community college programs and how the equipment will

be utilized by initiative partners.

(e) Other information as requested by the department and the

department of talent and economic development.

~~(3) The funding allocated to each CEPD shall be used to update~~

~~equipment in current CTE programs that are supporting and driving~~

~~economic development in their individual communities, or for new~~

~~and emerging certified CTE programs to allow CEPD administrators to~~

~~provide programming in communities that will enhance economic~~

~~development. The funding for equipment should be used to support~~

~~and enhance community areas that have sustained job growth, and act~~

~~as a commitment to build a more qualified and skilled workforce.~~

~~(4) The allocation of funds at the local level shall be~~

~~determined by CEPD administrators using data from the state,~~

~~region, and local sources to make well-informed decisions on~~

~~program equipment improvements. Grants awarded by CEPD~~

~~administrators for capital infrastructure shall be used to ensure~~

~~that CTE programs can deliver educational programs in high-wage,~~

~~high-skill, and high-demand occupations. Each CEPD shall continue~~

~~to ensure that program advisory boards make recommendations on~~

~~needed improvements for equipment that support job growth and job~~

~~skill development and retention for both the present and the~~

~~future.~~

(3) The department shall evaluate grant applications under

this section in collaboration with the department of talent and

economic development. A member of the governor's talent investment

board may serve in an advisory capacity in the evaluation process

as determined by the department of talent and economic development.

The department shall give priority to grant applications for the

lease of equipment from private industry partners to encourage the

use of the most advanced equipment.

(4) ~~(5)~~ Not later than ~~September~~ December 15 of each fiscal

year, each ~~CEPD~~ grant recipient receiving funding under this

section shall ~~annually~~ report to the department, the department of

talent and economic development, the senate and house

appropriations subcommittees on state school aid, ~~and~~ the senate

and house fiscal agencies, and ~~legislature~~ the state budget

director on equipment purchased under this section in the

immediately preceding school year. ~~In addition, the~~ The report

shall identify growth data on program involvement, retention, and

development of student and adult learner skills.

(5) ~~(6) In addition to the funds allocated~~ From the allocation

under subsection (1), ~~from the funds appropriated under section 11,~~

there is allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

~~$200,000.00~~ $1,000,000.00 to ~~a district with fewer than 1,200~~

~~pupils in membership to support a~~ districts for a competitive grant

to mechatronics ~~program~~ programs that operated in ~~2015-2016~~ 2016-

2017 for updating mechatronics program equipment. ~~To be eligible to~~

~~receive a grant under this subsection, a program shall be a~~

~~flexible learning program that offered in 2015-2016 both classroom~~

~~and hands-on training in mechatronics in at least 2 sites.~~

(6) ~~(7)~~ As used in this section, ~~"CEPD" means a career~~

~~education planning district described in this section.~~"CTE" means

career and technology education.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district shall not be included in the membership and

taxable value of the intermediate district. However, the membership

and taxable value of a district that has elected not to come under

sections 681 to 690 of the revised school code, MCL 380.681 to

380.690, shall be included in the membership and taxable value of

the intermediate district if the district meets both of the

following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the

operation of the program that is commensurate with the revenue that

would have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,190,000.00 each fiscal year for ~~2015-~~

~~2016 and for~~ 2016-2017 and for 2017-2018 to reimburse intermediate

districts and area vocational-technical education programs

established under section 690(3) of the revised school code, MCL

380.690, levying millages for area vocational-technical education

pursuant to sections 681 to 690 of the revised school code, MCL

380.681 to 380.690. The purpose, use, and expenditure of the

reimbursement shall be limited as if the funds were generated by

those millages.

~~(3) Reimbursement for the millages levied in 2014-2015 shall~~

~~be made in 2015-2016 at an amount per 2014-2015 membership pupil~~

~~computed by subtracting from $192,200.00 the 2014-2015 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2014-2015 millage levied.~~

(3) ~~(4)~~ Reimbursement for the millages levied in 2015-2016

shall be made in 2016-2017 at an amount per 2015-2016 membership

pupil computed by subtracting from ~~$196,300.00~~ $198,400.00 the

2015-2016 taxable value behind each membership pupil and

multiplying the resulting difference by the 2015-2016 millage

levied.

(4) Reimbursement for those millages levied in 2016-2017 shall

be made in 2017-2018 at an amount per 2016-2017 membership pupil

computed by subtracting from $198,400.00 the 2016-2017 taxable

value behind each membership pupil and multiplying the resulting

difference by the 2016-2017 millage levied, and then subtracting

from that amount the 2016-2017 local community stabilization share

revenue for area vocational-technical education behind each

membership pupil for reimbursement of personal property exemption

loss under the local community stabilization authority act, 2014 PA

86, MCL 123.1341 to 123.1362.

(5) The amount paid to a single intermediate district under

this section shall not exceed 38.4% of the total amount allocated

under subsection (2).

(6) The amount paid to a single intermediate district under

this section shall not be less than 75% of the amount allocated to

the intermediate district under this section for the immediately

preceding fiscal year.

Sec. 64b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $1,750,000.00 ~~each fiscal year~~

~~for 2015-2016 and for 2016-2017~~ for 2017-2018 for supplemental

payments to districts that support the attendance of district

pupils in grades 9 to 12 under the postsecondary enrollment options

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

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

consistent with section 21b, or that support the attendance of

district pupils in a concurrent enrollment program if the district

meets the requirements under subsection (3). Programs funded under

this section are intended to increase the number of pupils who are

college- and career-ready upon high school graduation.

(2) To be eligible for payments under this section for

supporting the attendance of district pupils under the

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

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

258, MCL 388.1901 to 388.1913, a district shall do all of the

following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution before the enrollment of district pupils.

(d) Award high school credit for the postsecondary course if

the pupil successfully completes the course.

(3) To be eligible for payments under this section for pupils

enrolled in a concurrent enrollment program, a district shall do

all of the following:

(a) Provide information to all high school pupils on

postsecondary enrollment options, including enrollment eligibility,

the institutions and types of courses that are eligible for

participation, the decision-making process for granting academic

credit, and an explanation of eligible charges that will be paid by

the district.

(b) Enter into a written agreement with a postsecondary

institution establishing the concurrent enrollment program before

the enrollment of district pupils in a postsecondary course through

the postsecondary institution.

teacher or postsecondary faculty pursuant to standards established

by the postsecondary institution with which the district has

entered into a written agreement to operate the concurrent

enrollment program.

(d) Ensure that the written agreement provides that the

postsecondary institution agrees not to charge the pupil for any

cost of the program.

(e) Ensure that the course is taught in the local district or

intermediate district.

(f) Ensure that the pupil is awarded both high school and

college credit at a community college or state public university in

this state upon successful completion of the course as outlined in

the agreement with the postsecondary institution.

(4) Funds shall be awarded to eligible districts under this

section in the following manner:

(a) A payment of $10.00 per credit, for up to 3 credits, for a

credit-bearing course in which a pupil enrolls during the ~~2015-2016~~

~~or 2016-2017~~ current school year, ~~as applicable,~~ as described under

either subsection (2) or (3).

(b) An additional payment of $30.00 per-pupil per course

identified in subdivision (a), if the pupil successfully completes,

and is awarded both high school and postsecondary credit for, the

course during the ~~2015-2016 or 2016-2017~~ current school year. ~~, as~~

~~applicable.~~

(5) A district requesting payment under this section shall

submit an application to the department in the form and manner

prescribed by the department. Notwithstanding section 17b, payments

under this section shall be made on a schedule determined by the

department.

Sec. 64d. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

$1,000,000.00 for 2017-2018 for a competitive grant to provide

information technology education opportunities to students

attending schools in grades K-12, career and technical centers and

career academies, and community colleges and universities. Funds

allocated under this section shall be awarded to a single provider

and used for instruction in information technology skills and

competencies that are essential for the workplace and requested by

employers and shall allow participating students and faculties to

secure broad-based information technology certifications and, if

applicable, college credit.

(2) The department shall select the provider using a

competitive request for proposals process. Proposals submitted

under this subsection shall include at least the following

components:

(a) Research- and skill-development-based information

technology curriculum.

(b) Online access to the curriculum.

(d) A program that includes coding curriculum and materials

that are aligned to the computer science AP examination and grants

a certificate upon completion of the program.

(e) Components for elementary and middle schools on

computational thinking skills development using the latest gaming

software.

(f) A process for students to obtain certifications of skills

and competencies in a broad base of information-technology-related

skill areas.

(g) Professional development for faculty.

(h) Implementation and program support, including, but not

limited to, integration with current curriculum standards.

(i) Methods for students to earn college credit.

(3) The department shall give priority to proposals by

providers that have previously demonstrated success in this state

in providing high-quality information technology education

opportunities to students.

(4) The funds allocated under this section for 2017-2018 are a

work project appropriation, and any unexpended funds for 2017-2018

are to be carried forward into 2018-2019. The purpose of the work

project is to continue to provide information technology education

opportunities described in this section. The estimated completion

date of the work project is September 30, 2020.

Sec. 67. (1) From the general fund amount appropriated in

section 11, there is allocated an amount not to exceed

~~$3,050,000.00 for 2016-2017~~ $3,000,000.00 for 2017-2018 for college

~~and career preparation activities.~~ access programs. The programs

funded under this section are intended to inform students of

college and career options and to provide ~~a wide array of tools and~~

resources intended to increase the number of pupils who are

adequately prepared with the information needed to make informed

decisions on college and career. The funds appropriated under this

section are intended to be used to increase the number of Michigan

residents with high-quality degrees or credentials. Funds

appropriated under this section shall not be used to supplant

funding for counselors already funded by districts.

(2) ~~From the amount allocated in subsection (1), an amount not~~

~~to exceed $3,000,000.00 shall be used for the college access~~

~~program.~~ The talent investment agency of the department of talent

and economic development shall administer ~~these~~ funds allocated

under this section in collaboration with the Michigan college

access network. These funds may be used for any of the following

purposes:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

to place trained, recently graduated college advisors in high

schools that serve significant numbers of low-income and first-

generation college-going pupils. State funds used for this purpose

may not exceed 33% of the total funds available under this

subsection.

(d) Subgrants of up to $5,000.00 to districts with

comprehensive high schools that establish a college access team and

implement specific strategies to create a college-going culture in

a high school in a form and manner approved by the Michigan college

access network and the Michigan talent investment agency.

(e) The Michigan college access portal, an online one-stop

portal to help pupils and families plan and apply for college.

(f) Public awareness and outreach campaigns to encourage low-

income and first-generation college-going pupils to take necessary

steps toward college and to assist pupils and families in

completing a timely and accurate free application for federal

student aid.

(g) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school pupils in navigating the postsecondary planning and

enrollment process.

~~(3) From the amount allocated in subsection (1), an amount not~~

~~to exceed $50,000.00 shall be used for an outreach program to~~

~~provide information to pupils, parents, and educators on dual~~

~~enrollment and other opportunities available to high school pupils~~

~~to earn postsecondary credits, industry-recognized technical~~

~~certifications, and participation in registered apprenticeships at~~

~~no cost.~~

(3) ~~(4)~~ For the purposes of this section, "college" means any

postsecondary educational opportunity that leads to a career,

including, but not limited to, a postsecondary degree, industry-

recognized technical certification, or registered apprenticeship.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,320,600.00 for 2016-2017~~

$3,330,300.00 for 2017-2018 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction pursuant to section

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

payments shall be in an amount determined by the department not to

exceed the actual cost of instruction and driver compensation for

each public or nonpublic school bus driver attending a course of

instruction. For the purpose of computing compensation, the hourly

rate allowed each school bus driver shall not exceed the hourly

rate received for driving a school bus. Reimbursement compensating

the driver during the course of instruction shall be made by the

department to the college or university or intermediate district

providing the course of instruction.

(3) From the allocation in subsection (1), there is allocated

for ~~2016-2017~~ 2017-2018 the amount necessary to pay the reasonable

costs of nonspecial education auxiliary services transportation

provided pursuant to section 1323 of the revised school code, MCL

380.1323. Districts funded under this subsection shall not receive

funding under any other section of this article for nonspecial

education auxiliary services transportation.

(4) From the funds allocated in subsection (1), there is

allocated an amount not to exceed ~~$1,695,600.00 for 2016-2017~~

$1,705,300.00 for 2017-2018 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection shall not exceed

the amount allocated under this subsection. Notwithstanding section

17b, payments to eligible entities under this subsection shall be

paid on a schedule prescribed by the department.

Sec. 81. (1) From the appropriation in section 11, there is

allocated for ~~2016-2017~~ 2017-2018 to the intermediate districts the

sum necessary, but not to exceed $67,108,000.00 to provide state

aid to intermediate districts under this section.

(2) ~~From the allocation in subsection (1), there is allocated~~

~~for 2016-2017 an amount not to exceed $67,108,000.00 for~~

~~allocations~~ The amount allocated under this section to each

intermediate district in is an amount equal to 100% of the amount

allocated to the intermediate district under this ~~subsection for~~

~~2015-2016.~~ section for 2016-2017. Funding provided under this

section shall be used to comply with requirements of this article

and the revised school code that are applicable to intermediate

districts, and for which funding is not provided elsewhere in this

article, and to provide technical assistance to districts as

authorized by the intermediate school board.

(3) Intermediate districts receiving funds under ~~subsection~~

~~(2)~~ this section, shall collaborate with the department to develop

expanded professional development opportunities for teachers to

update and expand their knowledge and skills needed to support the

Michigan merit curriculum.

(4) From the allocation in subsection (1), there is allocated

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(5) In order to receive funding under ~~subsection (2),~~ this

section, an intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) Furnish data and other information required by state and

federal law to the center and the department in the form and manner

specified by the center or the department, as applicable.

(e) Comply with section 1230g of the revised school code, MCL

380.1230g.

(f) Comply with section 761 of the revised school code, MCL

380.761.

Sec. 94. (1) From the general fund appropriation in section

11, there is allocated to the department for ~~2016-2017~~ 2017-2018 an

amount not to exceed $250,000.00 for efforts to increase the number

of pupils who participate and succeed in advanced placement and

international baccalaureate programs.

(2) From the funds allocated under this section, the

department shall award funds to cover all or part of the costs of

advanced placement test fees or international baccalaureate test

fees and international baccalaureate registration fees for low-

income pupils who take an advanced placement or an international

baccalaureate test. Payments shall not exceed $20.00 per test

completed or $150.00 per international baccalaureate registration

fees per pupil registered.

(3) The department shall only award funds under this section

if the department determines that all of the following criteria are

met:

(a) Each pupil for whom payment is made meets eligibility

requirements of the federal advanced placement test fee program

under section 1701 of the no child left behind act of 2001, Public

Law 107-110, or under a corresponding provision of the every

student succeeds act, Public Law 114-95.

(b) The tests are administered by the college board, the

international baccalaureate organization, or another test provider

approved by the department.

toward the cost of each test for which payment is made.

(4) The department shall establish procedures for awarding

funds under this section.

(5) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, management, and budget the center

for educational performance and information. The center shall do

all of the following:

(a) Coordinate the collection of all data required by state

and federal law from districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data shall include, but are not

limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data ~~warehouses~~ hubs that, in combination with local data,

can improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public reports to the citizens of this state to

allow them to assess allocation of resources and the return on

their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). This subsection does not apply to information collected by the

department of treasury under the uniform budgeting and accounting

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education

data systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the

extent to which individual students transition successfully from

secondary school to postsecondary education, including, but not

limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$12,173,200.00 for 2016-2017~~

$14,216,000.00 for 2017-2018 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11 there

is allocated for ~~2016-2017~~ 2017-2018 the amount necessary,

estimated at $193,500.00, to support the operations of the center

and to establish a P-20 longitudinal data system necessary for

state and federal reporting purposes. The center shall cooperate

with the department to ensure that this state is in compliance with

federal law and is maximizing opportunities for increased federal

funding to improve education in this state.

(6) From the funds allocated in subsection (5), the center may

use an amount determined by the center for competitive grants for

~~2016-2017~~ 2017-2018 to support collaborative efforts on the P-20

longitudinal data system. All of the following apply to grants

awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant shall support the P-20

longitudinal data system portal and may include portal hosting,

hardware and software acquisition, maintenance, enhancements, user

support and related materials, and professional learning tools and

activities aimed at improving the utility of the P-20 longitudinal

data system.

for the immediately preceding fiscal year shall receive priority

for funding under this section. However, after 3 fiscal years of

continuous funding, an applicant is required to compete openly with

new applicants.

(7) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year and are appropriated for the

purposes for which the funds were originally allocated.

(8) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (5) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(9) As used in this section:

(a) "DED-OESE" means the United States Department of Education

Office of Elementary and Secondary Education.

(b) "State education agency" means the department.

Sec. 95b. (1) From the general fund appropriation under

section 11, there is allocated to the department an amount not to

exceed $2,500,000.00 for 2017-2018 for the department to develop a

model value-added growth and projection analytics system to support

educator and administrator evaluations as required under sections

1249, 1249a, and 1249b of the revised school code, MCL 380.1249 to

380.1249b. The adopted model shall do at least all of the

following:

(a) Report student growth measures at the district, school,

teacher, and subgroup levels.

(b) Recognize the growth of tested students, including those

who may have missing assessment data.

that meet inclusion criteria across grades, subjects, and state and

local assessments.

(d) Allow student growth results to be disaggregated.

(e) Provide individual student projections showing the

probability of a student reaching specific performance levels on

future assessments.

(f) Demonstrate any prior success with this state's

assessments through the Michigan council of educator effectiveness

teacher evaluation pilot.

(2) The department shall provide internet-based electronic

student growth and projection reporting based on the model adopted

under subsection (1) to educators at the school, district, and

state levels. The model shall include role-based permissions that

allow educators to access information about the performance of the

students within their immediate responsibility in accordance with

applicable privacy laws.

Sec. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

$7,387,500.00 for ~~2016-2017~~ 2017-2018 for the purposes described in

this section. The Michigan Virtual University shall provide a

report to the legislature not later than November 1, ~~2016~~ 2017 that

includes its mission, its plans, and proposed benchmarks it must

meet, which shall include a plan to achieve a 50% increase in

documented improvement in each requirement of the Michigan Virtual

Learning Research Institute and Michigan Virtual School, and all

other organizational priorities identified in this section, in

order to receive full funding for ~~2017-2018.~~ 2018-2019. Not later

than March 1, ~~2017,~~ 2018, the Michigan Virtual University shall

provide an update to the house and senate appropriations

subcommittees on school aid to show the progress being made to meet

the benchmarks identified.

(2) The Michigan Virtual University shall operate the Michigan

Virtual Learning Research Institute. The Michigan Virtual Learning

Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend virtual education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and virtual course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center for educational performance and

information from cyber schools and other virtual course providers

operating in this state, analyze the effectiveness of virtual

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

report shall be submitted to the house and senate appropriations

subcommittees on state school aid, the state budget director, the

house and senate fiscal agencies, the department, districts, and

intermediate districts not later than March 31, ~~2017.~~2018.

(v) ~~Before August 31, 2017, provide~~ Provide an extensive

professional development program to at least 30,000 educational

personnel, including teachers, school administrators, and school

board members, that focuses on the effective integration of virtual

learning into curricula and instruction. The Michigan Virtual

Learning Research Institute is encouraged to work with the MiSTEM

advisory council created under section 99s to coordinate

professional development of teachers in applicable fields. In

addition, the Michigan Virtual Learning Research Institute and

external stakeholders are encouraged to coordinate with the

department for professional development in this state. Not later

than December 1, ~~2017,~~ 2018, the Michigan Virtual Learning Research

Institute shall submit a report to the house and senate

appropriations subcommittees on state school aid, the state budget

director, the house and senate fiscal agencies, and the department

on the number and percentage of teachers, school administrators,

and school board members who have received professional development

services from the Michigan Virtual University. The report shall

also identify barriers and other opportunities to encourage the

adoption of virtual learning in the public education system.

(vi) Identify and share best practices for planning,

implementing, and evaluating virtual and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of virtual

learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

virtual learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to virtual

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for virtual teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective virtual learning instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich virtual

learning models.

(vi) Create a statewide network of school-based mentors

serving as liaisons between pupils, virtual instructors, parents,

and school staff, as provided by the department or the center, and

provide mentors with research-based training and technical

assistance designed to help more pupils be successful virtual

learners.

(vii) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to virtual learning.

(viii) Produce an annual consumer awareness report for schools

and parents about effective virtual education providers and

education delivery models, performance data, cost structures, and

research trends.

(ix) Research and establish an internet-based platform that

educators can use to create student-centric learning tools and

resources and facilitate a user network that assists educators in

using the platform. As part of this initiative, the Michigan

Virtual University shall work collaboratively with districts and

intermediate districts to establish a plan to make available

virtual resources that align to Michigan's K-12 curriculum

standards for use by students, educators, and parents.

(x) Create and maintain a public statewide catalog of virtual

learning courses being offered by all public schools and community

colleges in this state. The Michigan Virtual Learning Research

Institute shall identify and develop a list of nationally

recognized best practices for virtual learning and use this list to

support reviews of virtual course vendors, courses, and

instructional practices. The Michigan Virtual Learning Research

Institute shall also provide a mechanism for intermediate districts

to use the identified best practices to review content offered by

constituent districts. The Michigan Virtual Learning Research

Institute shall review the virtual course offerings of the Michigan

Virtual University, and make the results from these reviews

available to the public as part of the statewide catalog. The

Michigan Virtual Learning Research Institute shall ensure that the

statewide catalog is made available to the public on the Michigan

Virtual University website and shall allow the ability to link it

to each district's website as provided for in section 21f. The

statewide catalog shall also contain all of the following:

(A) The number of enrollments in each virtual course in the

immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the

total course points for each virtual course in the immediately

preceding school year.

(xi) Develop prototype and pilot registration, payment

services, and transcript functionality to the statewide catalog and

train key stakeholders on how to use new features.

(xii) Collaborate with key stakeholders to examine district

level accountability and teacher effectiveness issues related to

virtual learning under section 21f and make findings and

recommendations publicly available.

(xiii) Provide a report on the activities of the Michigan

Virtual Learning Research Institute.

(3) To further enhance its expertise and leadership in virtual

learning, the Michigan Virtual University shall continue to operate

the Michigan Virtual School as a statewide laboratory and quality

model of instruction by implementing virtual and blended learning

solutions for Michigan schools in accordance with the following

parameters:

(a) The Michigan Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for virtual courses.

virtual courses as provided for in this section, the Michigan

Virtual School shall follow the requirements to request and assess,

and the department of state police shall provide, a criminal

history check and criminal records check under sections 1230 and

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

the same manner as if the Michigan Virtual School were a school

district under those sections.

(4) From the funds allocated under subsection (1), the

Michigan Virtual University, working collaboratively with the

Michigan Association of Intermediate School Administrators, shall

allocate up to $500,000.00 to support the expansion of new online

and blended educator professional development programs.

(5) ~~(4)~~ If the course offerings are included in the statewide

catalog of virtual courses under subsection (2)(b)(ix), the

Michigan Virtual School operated by the Michigan Virtual University

may offer virtual course offerings, including, but not limited to,

all of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) High school equivalency test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school

administrators, other school employees, and school board members.

(6) ~~(5)~~ If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan Virtual School, the student may use the services provided

by the Michigan Virtual School to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

(7) ~~(6)~~ Not later than December 1 of each fiscal year, the

Michigan Virtual University shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department that includes at least all of the following information

related to the Michigan Virtual School for the preceding state

fiscal year:

(a) A list of the districts served by the Michigan Virtual

School.

(b) A list of virtual course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(8) ~~(7)~~ In addition to the information listed in subsection

~~(6),~~ (7), the report under subsection ~~(6)~~ (7) shall also include a

plan to serve at least 600 schools with courses from the Michigan

Virtual School or with content available through the internet-based

platform identified in subsection (2)(b)(ix).

(9) ~~(8)~~ The governor may appoint an advisory group for the

Michigan Virtual Learning Research Institute established under

subsection (2). The members of the advisory group shall serve at

the pleasure of the governor and shall serve without compensation.

The purpose of the advisory group is to make recommendations to the

governor, the legislature, and the president and board of the

Michigan Virtual University that will accelerate innovation in this

state's education system in a manner that will prepare elementary

and secondary students to be career and college ready and that will

promote the goal of increasing the percentage of citizens of this

state with high-quality degrees and credentials to at least 60% by

2025.

(10) ~~(9)~~ Not later than November 1, ~~2016,~~ 2017, the Michigan

Virtual University shall submit to the house and senate

appropriations subcommittees on state school aid, the state budget

director, and the house and senate fiscal agencies a detailed

budget for the ~~2016-2017~~ 2017-2018 fiscal year that includes a

breakdown on its projected costs to deliver virtual educational

services to districts and a summary of the anticipated fees to be

paid by districts for those services. Not later than March 1 each

year, the Michigan Virtual University shall submit to the house and

senate appropriations subcommittees on state school aid, the state

budget director, and the house and senate fiscal agencies a

breakdown on its actual costs to deliver virtual educational

services to districts and a summary of the actual fees paid by

districts for those services based on audited financial statements

for the immediately preceding fiscal year.

(11) ~~(10)~~ As used in this section:

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

model where pupils are provided content, instruction, and

assessment, in part at a supervised educational facility away from

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

certificate are in the same physical location and in part through

internet-connected learning environments with some degree of pupil

control over time, location, and pace of instruction.

(b) "Cyber school" means a full-time instructional program of

virtual courses for pupils that may or may not require attendance

at a physical school location.

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

interactive learning environment in which the majority of the

curriculum is delivered using the internet and in which pupils are

separated from their instructor or teacher of record by time or

location, or both.

Sec. 99h. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $2,500,000.00 for ~~2016-2017~~ 2017-

2018 for competitive grants to districts that provide pupils in

grades K to 12 with expanded opportunities to improve mathematics,

science, and technology skills by participating in events hosted by

a science and technology development program known as FIRST (for

inspiration and recognition of science and technology) Robotics,

including JR FIRST Lego League, FIRST Lego League, FIRST tech

challenge, and FIRST Robotics competition. Programs funded under

this section are intended to increase the number of pupils

demonstrating proficiency in science and mathematics on the state

assessments and to increase the number of pupils who are college-

and career-ready upon high school graduation. Notwithstanding

section 17b, grant payments to districts under this section shall

be paid on a schedule determined by the department. The department

shall set maximum grant awards for each different level of

competition in a manner that both maximizes the number of teams

that will be able to receive funds and expands the geographical

distribution of teams.

(2) A district applying for a grant under this section shall

submit an application in a form and manner determined by the

department. To be eligible for a grant, a district shall

demonstrate in its application that the district has established a

partnership for the purposes of the FIRST Robotics program with at

least 1 sponsor, business entity, higher education institution, or

technical school, shall submit a spending plan, and shall pay at

least 25% of the cost of the FIRST Robotics program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts to pay for stipends not to exceed

$1,500.00 for 1 coach per team.

(b) Grants to districts for event registrations, materials,

travel costs, and other expenses associated with the preparation

for and attendance at FIRST Robotics events and competitions. Each

grant recipient shall provide a local match from other private or

local funds for the funds received under this subdivision equal to

at least 50% of the costs of participating in an event.

the state and world championship competitions. The department shall

determine an equal amount per team for those teams that advance to

the state championship and a second equal award amount to those

teams that advance to the world championship.

~~(4) The funds allocated under this section are a work project~~

~~appropriation, and any unexpended funds for 2016-2017 are carried~~

~~forward into 2017-2018. The purpose of the work project is to~~

~~continue to implement the projects described under subsection (1).~~

~~The estimated completion date of the work project is September 30,~~

~~2019.~~

Sec. 99s. (1) From the funds appropriated under section 11,

there is allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

~~$3,000,000.00~~ $4,850,000.00 from the state school aid fund

appropriation and an amount not to exceed ~~$1,300,000.00~~ $950,000.00

from the general fund appropriation for Michigan science,

technology, engineering, and mathematics (MiSTEM) programs. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2016-2017~~ 2017-2018 an amount estimated at

~~$5,249,300.00~~ $4,700,000.00 from DED-OESE, title II, mathematics

and science partnership grants. Programs funded under this section

are intended to increase the number of pupils demonstrating

proficiency in science and mathematics on the state assessments and

to increase the number of pupils who are college- and career-ready

upon high school graduation. Notwithstanding section 17b, payments

under this section shall be paid on a schedule determined by the

department.

(2) From the general fund allocation in subsection (1), there

is allocated an amount not to exceed $50,000.00 to the department

for administrative, training, and travel costs related to the

MiSTEM advisory council. All of the following apply to the MiSTEM

advisory council funded under this subsection:

(a) The MiSTEM advisory council is created. The MiSTEM

advisory council shall provide to the governor, legislature,

department of talent and economic development, and department

recommendations designed to improve and promote innovation in STEM

education and to prepare students for careers in science,

technology, engineering, and mathematics.

(b) The MiSTEM advisory council created under subdivision (a)

shall consist of the following members:

(i) The governor shall appoint 11 voting members who are

representative of business sectors that are important to Michigan's

economy and rely on a STEM-educated workforce, nonprofit

organizations and associations that promote STEM education, K-12

and postsecondary education entities involved in STEM-related

career education, or other sectors as considered appropriate by the

governor. Each of these members shall serve at the pleasure of the

governor and for a term determined by the governor.

(ii) The senate majority leader shall appoint 2 members of the

senate to serve as nonvoting, ~~ex-officio~~ ex officio members of the

MiSTEM advisory council, including 1 majority party member and 1

minority party member.

(iii) The speaker of the house of representatives shall

appoint 2 members of the house of representatives to serve as

nonvoting, ~~ex-officio~~ ex officio members of the MiSTEM advisory

council, including 1 majority party member and 1 minority party

member.

without compensation.

(d) The MiSTEM advisory council annually shall ~~recommend~~

review and make recommendations to the governor, the legislature,

and the department a concerning changes to the statewide strategy

adopted by the council for delivering STEM education-related

opportunities to pupils. ~~and objective criteria for determining~~

~~preferred STEM programs.~~ The MiSTEM advisory council shall use

funds received under this subsection to ~~purchase training for~~

ensure that its members or their designees ~~from~~ are trained in the

Change the Equation STEMworks rating system program for the purpose

of rating STEM programs.

(e) ~~Not later than October 15 of each fiscal year, the MiSTEM~~

~~advisory council shall provide STEM quality ratings for programs~~

~~recommended for funding under subsection (3).~~ The MiSTEM advisory

council shall make specific funding recommendations for the funds

allocated under subsection (3) by December 15 of each fiscal year.

The amount of each grant recommended shall not exceed $250,000.00.

(f) If the MiSTEM advisory council is unable to make specific

funding recommendations by December 15 of a fiscal year, the

department shall distribute the funds allocated under subsection

(3) on a competitive grant basis that at least follows the ~~quality~~

~~guidelines and priority areas~~ statewide STEM strategy plan and

rating system recommended by the MiSTEM advisory council. Each

grant shall not exceed $250,000.00 and must provide STEM education-

related opportunities for pupils.

(g) The MiSTEM advisory council shall work with ~~directors of~~

~~mathematics and science centers~~ the executive director of the

MiSTEM centers network funded under subsection (4) to ~~connect~~

~~educators with businesses, workforce developers, economic~~

~~developers, community colleges, and universities.~~implement the

statewide STEM strategy adopted by the MiSTEM advisory council.

(3) From the ~~general~~ state school aid fund money allocated

under subsection (1), there is allocated for ~~2016-2017~~ 2017-2018 an

amount not to exceed ~~$1,000,000.00~~ $2,850,000.00 for the purpose of

funding programs under this section for ~~2016-2017,~~ 2017-2018, as

recommended by the MiSTEM advisory council.

(4) From the state school aid fund allocation under subsection

(1), there is allocated for ~~2016-2017~~ 2017-2018 an amount not to

exceed ~~$2,750,000.00~~ $2,000,000.00, and from the general fund

allocation under subsection (1), there is allocated for 2017-2018

an amount not to exceed $750,000.00, to support the activities and

programs of ~~mathematics and science centers.~~ the MiSTEM centers

network. In addition, from the federal funds allocated under

subsection (1), there is allocated for ~~2016-2017~~ 2017-2018 an

amount estimated at ~~$5,249,300.00~~ $4,700,000.00 from DED-OESE,

title II, mathematics and science partnership grants, for the

purposes of this subsection. All of the following apply to the

programs and funding under this subsection:

~~(a) Within a service area designated locally, approved by the~~

~~department, and consistent with the comprehensive master plan for~~

~~mathematics and science centers developed by the department and~~

~~approved by the state board, an established mathematics and science~~

~~center shall provide 2 or more of the following 6 basic services,~~

~~as described in the master plan, to constituent districts and~~

~~communities: leadership, pupil services, curriculum support,~~

~~community involvement, professional development, and resource~~

~~clearinghouse services.~~

~~(b) The department shall not award a state grant under this~~

~~subsection to more than 1 mathematics and science center located in~~

~~a designated region as prescribed in the 2007 master plan unless~~

~~each of the grants serves a distinct target population or provides~~

~~a service that does not duplicate another program in the designated~~

~~region.~~

~~(c) As part of the technical assistance process, the~~

~~department shall provide minimum standard guidelines that may be~~

~~used by the mathematics and science center for providing fair~~

~~access for qualified pupils and professional staff as prescribed in~~

~~this subsection.~~

~~(d) Allocations under this subsection to support the~~

~~activities and programs of mathematics and science centers shall be~~

~~continuing support grants to all 33 established mathematics and~~

~~science centers. For 2016-2017, each established mathematics and~~

~~science center shall receive state funding in an amount equal to~~

~~100% of the amount it was allocated under former section 99 for~~

~~2014-2015. If a center declines state funding or a center closes,~~

~~the remaining money available under this subsection shall be~~

~~distributed to the remaining centers, as determined by the~~

~~department.~~

~~(e) From the funds allocated under this subsection, the~~

~~department shall distribute for 2016-2017 an amount not to exceed~~

~~$750,000.00 in a form and manner determined by the department to~~

~~those centers able to provide curriculum and professional~~

~~development support to assist districts in implementing the~~

~~Michigan merit curriculum components for mathematics and science.~~

~~Funding under this subdivision is in addition to funding allocated~~

~~under subdivision (d).~~

(a) From the general fund money allocated under this

subsection, there is allocated an amount not to exceed $250,000.00

to the department to support the functions of the executive

director of the MiSTEM centers network. From these funds, the

superintendent shall employ an executive director of the MiSTEM

centers network with the advice of the MiSTEM advisory council. The

department shall assist the executive director in performing his or

her duties as necessary. The executive director shall do all of the

following:

(i) Coordinate the development of a new master plan for the

regional MiSTEM centers that is consistent with the statewide STEM

strategy developed by the MiSTEM advisory council and ensures

services to all districts.

(ii) Serve as a liaison among and between the department, the

MiSTEM advisory council, and the regional MiSTEM centers in a

manner that creates a robust statewide STEM culture, that empowers

STEM teachers, that integrates business and education into the STEM

network, and that ensures high-quality STEM experiences for pupils.

(iii) Coordinate a campaign to build STEM awareness and

communicate STEM needs and opportunities to pupils, parents,

educators, and the business community.

(iv) Distribute and monitor MiSTEM centers network grants to

the regional MiSTEM centers.

(v) Report to the governor, the legislature, and the MiSTEM

advisory council annually on the activities and performance of the

regional MiSTEM centers.

(b) From the general fund money allocated under this

subsection, there is allocated an amount not to exceed $500,000.00

to the department to pay for costs to transition from the existing

33 mathematics and science centers to a network of 10 regional

MiSTEM centers that are aligned with the prosperity regions. The

transition shall be completed no later than March 31, 2018. The

department shall develop and implement a transition plan for this

transition containing at least all of the following:

(i) Identification of a fiscal agent and location for each of

the regional MiSTEM centers. Subject to subsection (5), an

intermediate district, community college, or state public

university may serve as a fiscal agent.

(ii) Identification of at least 1 full-time employee position

at each of the regional MiSTEM centers to serve as the director of

the center.

allocated an amount not to exceed $2,000,000.00 to the MiSTEM

centers network for grants of up to $200,000.00 each to a total of

10 regional MiSTEM centers. A regional MiSTEM center shall do all

of the following:

(i) Collaborate with the talent district career council that

is located in the prosperity region to develop a regional strategic

plan for STEM education that creates a robust regional STEM

culture, that empowers STEM teachers, that integrates business and

education into the STEM network, and that ensures high-quality STEM

experiences for pupils. At a minimum, a regional STEM strategic

plan should do all of the following:

(A) Identify regional employer need for STEM using the

methodology described in section 61b(4)(a).

(B) Identify processes for regional employers and educators to

create guided pathways for STEM careers that include internships or

externships, apprenticeships, and other experiential engagements

for pupils.

including internships or externships and apprenticeships, that

integrate this state's science content standards into high-quality

STEM experiences that engage pupils.

(ii) Facilitate regional STEM events such as educator and

employer networking and STEM career fairs to raise STEM awareness.

(iii) Contribute to the MiSTEM website and engage in other

statewide functions to further the mission of STEM in this state.

(d) ~~(f)~~ In order to receive state or federal funds under this

subsection, a grant recipient shall allow access for the department

or the department's designee to audit all records related to the

program for which it receives those funds. The grant recipient

shall reimburse the state for all disallowances found in the audit.

~~(g) Not later than September 30, 2017, the department shall~~

~~work with the MiSTEM advisory council to revise the comprehensive~~

~~master plan described in subdivision (a) to ensure that the~~

~~comprehensive master plan is in compliance with the statewide~~

~~strategy developed by the council under subsection (2)(d). The~~

~~comprehensive master plan shall include a review of the feasibility~~

~~of consolidating and reducing the number of mathematics and science~~

~~centers.~~

~~(h) The department shall give preference in awarding the~~

~~federal grants allocated under this subsection to eligible existing~~

~~mathematics and science centers.~~

(e) ~~(i)~~ In order to receive state funds under this subsection,

a ~~grant recipient~~ regional MiSTEM center shall provide at least a

10% local match from local public or private resources for the

funds received under this subsection.

(f) ~~(j)~~ Not later than July 1, 2019 and July 1 of each year

thereafter, a ~~mathematics and science~~ regional MiSTEM center that

receives funds under this subsection shall report to the ~~department~~

executive director of the MiSTEM centers network in a form and

manner prescribed by the ~~department on the following performance~~

~~measures:~~

(i~~) Statistical change in pre- and post-assessment scores for~~

~~students who enrolled in mathematics and science activities~~

~~provided to districts by the mathematics and science center.~~

(ii~~) Statistical change in pre- and post-assessment scores for~~

~~teachers who enrolled in professional development activities~~

~~provided by the mathematics and science center.~~executive director

on performance measures developed by the regional MiSTEM centers

and approved by the executive director. The performance measures

shall be designed to ensure that the activities of the MiSTEM

centers network are improving student academic outcomes.

(5) ~~(k)~~ As used in this ~~subsection:~~section:

(a) (i) "DED" means the United States Department of Education.

(b) (ii) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

mathematics.

(d) "Talent district career council" means an advisory council

to the local workforce development boards located in a prosperity

region consisting of educational, employer, labor, and parent

representatives.

~~(5) From the allocations under subsection (1), there is~~

~~allocated an amount not to exceed $250,000.00 for 2016-2017 for~~

~~competitive grants to districts that provide pupils in grades K to~~

~~12 with expanded opportunities in science education and skills by~~

~~participating in events and competitions hosted by Science~~

~~Olympiad. All of the following apply to the grant funding under~~

~~this subsection:~~

~~(a) A district applying for a grant under this subsection~~

~~shall submit an application in the form and manner determined by~~

~~the department not later than November 15, 2016. The department~~

~~shall select districts for grants and make notification not later~~

~~than December 15, 2016. To be eligible for a grant, a district~~

~~shall pay at least 25% of the cost of participating in the Science~~

~~Olympiad program.~~

~~(b) The department shall distribute the grant funding~~

~~allocated under this subsection for the following purposes:~~

(i~~) Grants to districts of up to $800.00 per new elementary~~

~~team.~~

(ii~~) Grants to districts of up to $400.00 per established~~

~~elementary team.~~

(~~iii~~~~) Grants to districts of up to $1,600.00 per new secondary~~

~~team.~~

(iv~~) Grants to districts of up to $800.00 per established~~

~~secondary team.~~

(6) From the general fund allocation under subsection (1),

there is allocated an amount not to exceed ~~$250,000.00 for 2016-~~

~~2017~~ $150,000.00 for 2017-2018 for a grant to the Van Andel

Education Institute for the purposes of advancing and promoting

science education and increasing the number of students who choose

to pursue careers in science or science-related fields. Funds

allocated under this subsection shall be used to provide

professional development for science teachers in using student-

driven, inquiry-based instruction.

Sec. 99t. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

~~$1,500,000.00 for 2016-2017~~ $1,000,000.00 for 2017-2018 to purchase

statewide access to an online algebra tool that meets all of the

following:

(a) Provides students statewide with complete access to videos

aligned with state standards including study guides and workbooks

that are aligned with the videos.

(b) Provides students statewide with access to a personalized

online algebra learning tool including adaptive diagnostics.

assessments that emulate the state assessment with immediate

feedback and help solving problems.

(d) Provides students statewide with online access to algebra

help 24 hours a day and 7 days a week from study experts, teachers,

and peers on a moderated social networking platform.

(e) Provides an online algebra professional development

network for teachers.

(f) Is already provided under a statewide contract in at least

1 other state that has a population of at least 18,000,000 but not

more than 19,000,000 according to the most recent decennial census

and is offered in that state in partnership with a public

university.

(g) Is the online algebra tool chosen by the department under

this section as this section was in effect in 2016-2017.

~~(2) The department shall choose the online algebra tool by~~

~~October 1, 2016.~~

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

allocated for 2017-2018 an amount not to exceed $100.00 to purchase

statewide access to an online mathematics tool that meets all of

the following:

(a) Provides students statewide with complete access to

mathematics support aligned with state standards through a program

that has all of the following elements:

(i) Student motivation.

(ii) Valid and reliable assessments.

(iii) Personalized learning pathways.

(iv) Highly qualified, live teachers available all day and all

year.

(v) Twenty-four-hour reporting.

(vi) Content built for rigorous mathematics.

(b) Has a record of improving student mathematics scores in at

least 5 other states.

Sec. 102d. (1) From the funds appropriated in section 11,

there is allocated an amount not to exceed $1,500,000.00 for ~~2016-~~

~~2017~~ 2017-2018 for reimbursements to districts and intermediate

districts for the licensing of school data analytical tools as

described under this section. The reimbursement is for districts

and intermediate districts that choose to use a school data

analytical tool to assist the district or intermediate district and

that enter into a licensing agreement for a school data analytical

tool with 1 of the vendors approved by the department of

technology, management, and budget under subsection (2). Funds

allocated under this section are intended to provide districts and

intermediate districts with financial forecasting and transparency

reporting tools to help improve the financial health of districts

and to improve communication with the public, resulting in

increased fund balances for districts and intermediate districts.

(2) Not later than October 15, ~~2016,~~ 2017, the department of

technology, management, and budget shall review vendors for school

data analytical tools and provide districts and intermediate

districts with a list of up to 2 approved vendors that districts

and intermediate districts may use to be eligible for a

reimbursement paid under this section. In addition, a vendor

approved under this section for ~~2015-2016~~ 2016-2017 is considered

to be approved for use by a district or intermediate district and

for reimbursement for ~~2016-2017.~~ 2017-2018. An approved school data

analytical tool supplied by the vendor must meet at least all of

the following:

(a) Analyzes financial data.

(b) Analyzes academic data.

(d) Has the capability to provide peer district comparisons of

both financial and academic data.

(e) Has the capability to provide financial projections for at

least 3 subsequent fiscal years.

(3) Funds allocated under this section shall be paid to

districts and intermediate districts as a reimbursement for already

having a licensing agreement or for entering into a licensing

agreement not later than December 1, ~~2016~~ 2017 with a vendor

approved under subsection (2) to implement a school data analytical

tool. Reimbursement will be prorated for the portion of the state

fiscal year not covered by the licensing agreement. However, a

licensing agreement that takes effect after October 1, ~~2016~~ 2017

and before December 1, ~~2016~~ 2017 will not be prorated if the term

of the agreement is at least 1 year. Reimbursement under this

section shall be made as follows:

(a) All districts and intermediate districts seeking

reimbursement shall submit requests not later than December 1, ~~2016~~

2017 indicating the cost paid for the financial data analytical

tool.

(b) The department shall determine the sum of the funding

requests under subdivision (a) and, if there are sufficient funds,

shall pay 1/2 of the costs submitted under subdivision (a). If

there are insufficient funds to pay 1/2 of the costs submitted

under (a), then reimbursement shall be made on an equal percentage

basis.

subdivision (b) shall be distributed on an equal per-pupil basis,

with an intermediate district's pupils considered to be the sum of

the pupil memberships of the constituent districts for which the

intermediate district is purchasing the financial data analytical

tool.

(d) The reimbursement to a district or intermediate district

shall not be greater than the amount paid for a data analytics

application.

(e) A district or intermediate district shall not be

reimbursed for the purchase of more than 1 software application.

(4) Notwithstanding section 17b, payments under this section

shall be made on a schedule determined by the department.

Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

~~$33,894,400.00~~ $33,709,400.00 for payments on behalf of districts

for costs associated with complying with those provisions of law.

In addition, from the federal funds appropriated in section 11,

there is allocated for ~~2016-2017~~ 2017-2018 an amount estimated at

$6,250,000.00, funded from DED-OESE, title VI, state assessment

funds, and from DED-OSERS, section 504 of part B of the individuals

with disabilities education act, Public Law 94-142, plus any

carryover federal funds from previous year appropriations, for the

purposes of complying with the federal no child left behind act of

2001, Public Law 107-110, or the every student succeeds act, Public

Law 114-95.

(2) The results of each test administered as part of the

Michigan student test of educational progress (M-STEP), including

tests administered to high school students, shall include an item

analysis that lists all items that are counted for individual pupil

scores and the percentage of pupils choosing each possible

response. The department shall work with the center to identify the

number of students enrolled at the time assessments are given by

each district. In calculating the percentage of pupils assessed for

a district's scorecard, the department shall use only the number of

pupils enrolled in the district at the time the district

administers the assessments and shall exclude pupils who enroll in

the district after the district administers the assessments.

(3) All federal funds allocated under this section shall be

distributed in accordance with federal law and with flexibility

provisions outlined in Public Law 107-116, and in the education

flexibility partnership act of 1999, Public Law 106-25.

~~(4) From the allocation in subsection (1), there is allocated~~

~~an amount not to exceed $185,000.00 for the implementation of a~~

~~kindergarten readiness assessment pilot project in 2016-2017. The~~

~~funding would be allocated to an intermediate district located in a~~

~~prosperity region with 2 or more subregions to participate in the~~

~~Maryland-Ohio pilot and cover the cost of a contract with a~~

~~university for implementation of version 1.75 of the kindergarten~~

~~readiness assessment tool. The kindergarten readiness assessment~~

~~pilot shall assess an estimated 4,000 children, and the designated~~

~~intermediate district shall work with other intermediate districts~~

~~to implement the pilot project, engage with the office of great~~

~~start and the department, and provide a report to the legislature~~

~~on the efficacy and usefulness of a kindergarten readiness~~

~~assessment. Allowable costs under this pilot program include those~~

~~incurred in August and September 2016.~~

(4) ~~(5)~~ The department shall continue to make the kindergarten

entry assessment developed by the department and field tested in

2015-2016 available to districts in ~~2016-2017.~~2017-2018.

(5) ~~(6)~~ The department may recommend, but may not require,

districts to allow pupils to use an external keyboard with tablet

devices for online M-STEP testing, including, but not limited to,

open-ended test items such as constructed response or equation

builder items.

(6) ~~(7)~~ Notwithstanding section 17b, payments on behalf of

districts, intermediate districts, and other eligible entities

under this section shall be paid on a schedule determined by the

department.

(7) ~~(8) From the allocation in subsection (1), there is~~

~~allocated an amount not to exceed $3,200,000.00 for the development~~

~~or selection of~~ The department, in collaboration with the center,

shall develop or select an online reporting tool to provide

student-level assessment data in a secure environment to educators,

parents, and pupils immediately after assessments are scored and

shall ensure that assessment data are made accessible alongside

other education outcome data for use in professional development

activities for districts and intermediate districts through the

MiSchool data portal. The department and the center shall ensure

that any data collected by the online reporting tool do not provide

individually identifiable student data to the federal government.

~~(9) From the allocation in subsection (1), there is allocated~~

~~an amount not to exceed $5,600,000.00 for the purpose of~~

~~implementing a summative assessment system pursuant to section~~

~~104c.~~

(8) From the allocation in subsection (1), there is allocated

an amount not to exceed $1,100,000.00 for the implementation of an

assessment digital literacy preparation pilot project for pupils

enrolled in grades K to 8. The department shall ensure that a pilot

project funded under this subsection satisfies all of the

following:

(a) Is available to districts in the 2017-2018 school year.

(b) Focuses on ensuring pupils have the necessary skills

required for state online assessments by assessing pupil digital

literacy skill levels and providing teachers with a digital

curriculum targeted at areas of determined weakness.

independent or teacher-facilitated modality.

(d) Includes training and professional development for

teachers.

(e) Is implemented in at least 220 districts that operate

grades K to 8 and that represent a diverse geography and socio-

economic demographic.

(9) Funding under subsection (8) shall be allocated to a

district that operates at least grades K to 8 and has a partnership

with a third party that is experienced in the assessment of digital

literacy and the preparation of digital literacy skills and has

demonstrable experience serving districts in this state and local

education agencies in other states. The district, along with its

third-party partner, shall provide a report to the house and senate

appropriations subcommittees on school aid and the house and senate

fiscal agencies on the efficacy and usefulness of the assessment

digital literacy preparation pilot project no later than September

30, 2018.

(10) Notwithstanding section 17b, payments under subsection

(8) shall be made in a manner determined by the department.

(11) ~~(10)~~ As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Rehabilitative Services.

Sec. 104c. (1) In order to receive state aid under this

article, a district shall administer the state assessments

described in this section.

(2) For the purposes of this section, the department shall

develop for use in the spring of 2015-2016 the Michigan student

test of educational progress (M-STEP) assessments in English

language arts and mathematics. These assessments shall be aligned

to state standards.

(3) For the purposes of this section, the department shall

implement a summative assessment system that is proven to be valid

and reliable for administration to pupils as provided under this

subsection. The summative assessment system shall meet all of the

following requirements:

(a) The summative assessment system shall measure student

proficiency on the current state standards, shall measure student

growth for consecutive grade levels in which students are assessed

in the same subject area in both grade levels, and shall be capable

of measuring individual student performance.

(b) The summative assessments for English language arts and

mathematics shall be administered to all public school pupils in

grades 3 to 11, including those pupils as required by the federal

individuals with disabilities education act, Public Law 108-446,

and by title I of the federal elementary and secondary education

act.

administered to all public school pupils in at least grades 4 and

7, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal elementary and secondary education act.

(d) The summative assessments for social studies shall be

administered to all public school pupils in at least grades 5 and

8, including those pupils as required by the federal individuals

with disabilities education act, Public Law 108-446, and by title I

of the federal elementary and secondary education act.

(e) The content of the summative assessments shall be aligned

to state standards.

(f) The pool of questions for the summative assessments shall

be subject to a transparent review process for quality, bias, and

sensitive issues involving educator review and comment. The

department shall post samples from tests or retired tests featuring

questions from this pool for review by the public.

(g) The summative assessment system shall ensure that

students, parents, and teachers are provided with reports that

convey individual student proficiency and growth on the assessment

and that convey individual student domain-level performance in each

subject area, including representative questions, and individual

student performance in meeting state standards.

(h) The summative assessment system shall be capable of

providing, and the department shall ensure that students, parents,

teachers, administrators, and community members are provided with,

reports that convey aggregate student proficiency and growth data

by teacher, grade, school, and district.

(i) The summative assessment system shall ensure the

capability of reporting the available data to support educator

evaluations.

(j) The summative assessment system shall ensure that the

reports provided to districts containing individual student data

are available within 60 days after completion of the assessments.

(k) The summative assessment system shall ensure that access

to individually identifiable student data meets all of the

following:

(i) Is in compliance with 20 USC 1232g, commonly referred to

as the family educational rights and privacy act of 1974.

(ii) Except as may be provided for in an agreement with a

vendor to provide assessment services, as necessary to support

educator evaluations pursuant to subdivision (i), or for research

or program evaluation purposes, is available only to the student;

to the student's parent or legal guardian; and to a school

administrator or teacher, to the extent that he or she has a

legitimate educational interest.

(l) The summative assessment system shall ensure that the

assessments are pilot tested before statewide implementation.

(m) The summative assessment system shall ensure that

assessments are designed so that the maximum total combined length

of time that schools are required to set aside for a pupil to

answer all test questions on all assessments that are part of the

system for the pupil's grade level does not exceed that maximum

total combined length of time for the previous statewide assessment

system or 9 hours, whichever is less. This subdivision does not

limit the amount of time a district may allow a pupil to complete a

test.

(n) The total cost of executing the summative assessment

system statewide each year, including, but not limited to, the cost

of contracts for administration, scoring, and reporting, shall not

exceed an amount equal to 2 times the cost of executing the

previous statewide assessment after adjustment for inflation.

(4) In an effort to develop a cohesive state assessment

system, the department shall implement a request for information

process for a common formative assessment system that is fully

aligned to this state's content standards for English language arts

and mathematics. The department may use information compiled from a

request for proposal in 2016-2017 to satisfy this request.

(5) ~~(4)~~ Beginning in the 2015-2016 school year, the department

shall field test assessments in the fall and spring of each school

year to measure English language arts and mathematics in each of

grades K to 2 for full implementation when the assessments have

been successfully field tested. This full implementation shall

occur not later than the 2018-2019 school year. These assessments

are necessary to determine a pupil's proficiency level before grade

(6) In an effort to add and administer statewide benchmark

assessments in English language arts and mathematics to the current

assessment system, the department shall begin to develop and

implement pilot programs or field testing of test content for the

statewide use of benchmark assessments for grades 3 to 8 up to 3

times per year beginning in the 2018-2019 school year. These

benchmark assessments shall be fully aligned to this state's state

content standards for English language arts and mathematics and may

be computer-adaptive in nature.

(7) ~~(5)~~ This section does not prohibit districts from adopting

interim assessments.

(8) ~~(6)~~ As used in this section, "English language arts" means

that term as defined in section 104b.

Sec. 104d. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2016-2017~~ 2017-

2018 an amount not to exceed $4,000,000.00 for providing

reimbursement to districts that purchase a computer-adaptive test,

or that purchase 1 or more diagnostic tools, screening tools, or

benchmark assessments for pupils in grades K to 3 that are intended

to increase reading proficiency by grade 4.

(2) In order to receive reimbursement under this section for

the purchase of a computer-adaptive test, the computer-adaptive

test must provide for at least all of the following:

(a) Internet-delivered, standards-based assessment using a

computer-adaptive model to target the instructional level of each

pupil.

(b) Unlimited testing opportunities throughout the ~~2016-2017~~

2017-2018 school year.

(d) Adjustment of testing difficulty based on previous answers

to test questions.

(e) Immediate feedback to pupils and teachers.

(3) In order to receive reimbursement under this section for

the purchase of 1 or more diagnostic tools or screening tools for

pupils in grades K to 3, each of the tools must meet all of the

following:

(a) Be reliable.

(b) Be valid.

that a tool is easy to administer and requires a short time to

complete and that results are linked to intervention.

(4) In order to receive funding under this section for the

purchase of 1 or more benchmark assessments for pupils in grades K

to 3, each of the benchmark assessments must meet all of the

following:

(a) Be aligned to the state standards of this state.

(b) Complement this state's summative assessment system.

administration of any summative assessment to monitor pupil

progress.

(d) Provide information on pupil achievement with regard to

learning the content required in a given year or grade span.

(5) Reimbursement under this section shall be made to eligible

districts that purchase a computer-adaptive test or 1 or more

diagnostic tools, screening tools, or benchmark assessments

described in this section by October 15, ~~2016~~ 2017 and shall be

made on an equal per-pupil basis according to the available

funding, based on the number of pupils for whom assessments were

purchased.

(6) In order to receive reimbursement under this section, a

district shall demonstrate to the satisfaction of the department

that each qualifying computer-adaptive test, diagnostic tool,

screening tool, or benchmark assessment was purchased by the

district by December 1, ~~2016.~~2017.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $25,000,000.00 for ~~2016-2017~~

2017-2018 for adult education programs authorized under this

section. Except as otherwise provided under subsections (14) and

(15), funds allocated under this section are restricted for adult

education programs as authorized under this section only. A

recipient of funds under this section shall not use those funds for

any other purpose.

(2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this

section, an individual shall be enrolled in an adult basic

education program, an adult secondary education program, an adult

English as a second language program, a high school equivalency

test preparation program, or a high school completion program, that

meets the requirements of this section, and for which instruction

is provided, and shall meet either of the following:

(a) Has attained 20 years of age.

(b) Has attained 18 years of age and the individual's

graduating class has graduated.

(4) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection shall be allocated to each intermediate district serving

as a fiscal agent for adult education programs in each of the

prosperity regions or subregions identified by the department. An

intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

allocation provided to each intermediate district serving as a

fiscal agent shall be based on the proportion of total funding

formerly received by the adult education providers in that

prosperity region or subregion in 2013-2014, and 33% shall be

allocated based on the factors in subdivisions (a), (b), and (c).

For 2017-2018, 33% of the allocation provided to each intermediate

district serving as a fiscal agent shall be based upon the

proportion of total funding formerly received by the adult

education providers in that prosperity region in 2013-2014 and 67%

of the allocation shall be based upon the factors in subdivisions

(a), (b), and (c). Beginning in 2018-2019, 100% of the allocation

provided to each intermediate district serving as a fiscal agent

shall be based on the factors in subdivisions (a), (b), and (c).

The funding factors for this section are as follows:

(a) Sixty percent of this portion of the funding shall be

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(b) Thirty-five percent of this portion of the funding shall

be distributed based upon the proportion of the state population of

individuals age 25 or older who are not high school graduates that

resides in each of the prosperity regions or subregions, as

reported by the most recent 5-year estimates from the American

community survey (ACS) from the United States Census Bureau.

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American community survey (ACS) from the United States Census

Bureau.

(5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

(a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

(b) Collaborate with the talent district career council, which

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to develop

a regional strategy that aligns adult education programs and

services into an efficient and effective delivery system for adult

education learners, with special consideration for providing

contextualized learning and career pathways and addressing barriers

to education and employment.

is an advisory council of the workforce development boards located

in the prosperity region or subregion, or its successor, to create

a local process and criteria that will identify eligible adult

education providers to receive funds allocated under this section

based on location, demand for services, past performance, quality

indicators as identified by the department, and cost to provide

instructional services. The fiscal agent shall determine all local

processes, criteria, and provider determinations. However, the

local processes, criteria, and provider services must be approved

by the department before funds may be distributed to the fiscal

agent.

(d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

(e) Report adult education program and participant data and

information as prescribed by the department.

(6) An adult basic education program, an adult secondary

education program, or an adult English as a second language program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below twelfth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(d) A participant in an adult secondary education program is

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed above the twelfth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having at least 450 hours of instruction.

(e) A funding recipient enrolling a participant in an English

as a second language program is eligible for funding according to

subsection (9) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

(ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(7) A high school equivalency test preparation program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school

diploma or a high school equivalency certificate.

(b) The program shall administer a pre-test approved by the

department before enrolling an individual to determine the

individual's literacy levels, shall administer a high school

equivalency practice test to determine the individual's potential

for success on the high school equivalency test, and shall

administer a post-test upon completion of the program in compliance

with the state-approved assessment policy.

subsection (9) for a participant, and a participant may be enrolled

in the program until 1 of the following occurs:

(i) The participant achieves a high school equivalency

certificate.

(ii) The participant fails to show progress on 2 successive

department-approved assessments used to determine readiness to take

a high school equivalency test after having completed at least 450

hours of instruction.

(8) A high school completion program operated on a year-round

or school year basis may be funded under this section, subject to

all of the following:

(a) The program enrolls adults who do not have a high school

diploma.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

subsection (9) for a participant in a course offered under this

subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school

diploma.

(ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

(9) A funding recipient shall receive payments under this

section in accordance with all of the following:

(a) Statewide allocation criteria, including 3-year average

enrollments, census data, and local needs.

(b) Participant completion of the adult basic education

objectives by achieving an educational gain as determined by the

national reporting system levels; for achieving basic English

proficiency, as determined by the department; for achieving a high

school equivalency certificate or passage of 1 or more individual

high school equivalency tests; for attainment of a high school

diploma or passage of a course required for a participant to attain

a high school diploma; for enrollment in a postsecondary

institution, or for entry into or retention of employment, as

applicable.

the innovation and opportunity act.

(d) Allowable expenditures.

(10) A person who is not eligible to be a participant funded

under this section may receive adult education services upon the

payment of tuition. In addition, a person who is not eligible to be

served in a program under this section due to the program

limitations specified in subsection (6), (7), or (8) may continue

to receive adult education services in that program upon the

payment of tuition. The tuition level shall be determined by the

local or intermediate district conducting the program.

(11) An individual who is an inmate in a state correctional

facility shall not be counted as a participant under this section.

(12) A funding recipient shall not commingle money received

under this section or from another source for adult education

purposes with any other funds and shall establish a separate ledger

account for funds received under this section. This subsection does

not prohibit a district from using general funds of the district to

support an adult education or community education program.

(13) A funding recipient receiving funds under this section

may establish a sliding scale of tuition rates based upon a

participant's family income. A funding recipient may charge a

participant tuition to receive adult education services under this

section from that sliding scale of tuition rates on a uniform

basis. The amount of tuition charged per participant shall not

exceed the actual operating cost per participant minus any funds

received under this section per participant. A funding recipient

may not charge a participant tuition under this section if the

participant's income is at or below 200% of the federal poverty

guidelines published by the United States Department of Health and

Human Services.

(14) In order to receive funds under this section, a funding

recipient shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department. In addition, a funding recipient

shall agree to pay to a career and technical education program

under section 61a the amount of funding received under this section

in the proportion of career and technical education coursework used

to satisfy adult basic education programming, as billed to the

funding recipient by programs operating under section 61a.

(15) From the amount appropriated in subsection (1), an amount

not to exceed $500,000.00 shall be allocated for ~~2016-2017~~ 2017-

2018 to not more than 1 pilot program that is located in a

prosperity region with 2 or more subregions and that connects adult

education participants directly with employers by linking adult

education, career and technical skills, and workforce development.

To be eligible for funding under this subsection, a pilot program

shall provide a collaboration linking adult education programs

within the county, the area career/technical center, and local

employers, and shall meet the additional criteria in subsections

(16) and (17). Funding under this subsection for ~~2016-2017~~ 2017-

2018 is for the ~~second~~ third of 3 years of funding.

(16) A pilot program funded under subsection (15) shall

require adult education staff to work with Michigan works! agency

to identify a cohort of participants who are most prepared to

successfully enter the workforce. Participants identified under

this subsection shall be dually enrolled in adult education

programming and at least 1 technical course at the area

career/technical center.

(17) A pilot program funded under subsection (15) shall have

on staff an adult education navigator who will serve as a

caseworker for each participant identified under subsection (16).

The navigator shall work with adult education staff and potential

employers to design an educational program best suited to the

personal and employment needs of the participant, and shall work

with human service agencies or other entities to address any

barrier in the way of participant access.

(18) Not later than December 1, ~~2017,~~ 2018, the pilot program

funded under subsection (15) shall provide to the senate and house

appropriations subcommittees on school aid, ~~and~~ to the senate and

house fiscal agencies, and to the state budget director a report

detailing number of participants, graduation rates, and a measure

of transitioning to employment.

~~(19) The department shall develop an application process for a~~

~~pilot program to be funded under subsection (15) and shall award~~

~~funding not later than October 1, 2016. Funding allocated under~~

~~subsection (15) may be paid on a schedule other than that specified~~

~~under section 17b.~~

(19) ~~(20)~~ The department shall approve at least 3 high school

equivalency tests and determine whether a high school equivalency

certificate meets the requisite standards for high school

equivalency in this state.

(20) ~~(21)~~ As used in this section:

(a) "Career pathway" means a combination of rigorous and high-

quality education, training, and other services that comply with

all of the following:

(i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

(ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

(iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

(iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

(vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

(vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

(b) "Department" means the department of talent and economic

development.

intermediate district, a consortium of districts, a consortium of

intermediate districts, or a consortium of districts and

intermediate districts that is identified as part of the local

process described in subsection (5)(c) and approved by the

department.

Sec. 147. (1) The allocation for ~~2016-2017~~ 2017-2018 for the

public school employees' retirement system pursuant to the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1408, shall be made using the individual projected benefit

entry age normal cost method of valuation and risk assumptions

adopted by the public school employees retirement board and the

department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the ~~2016-2017~~ 2017-2018 fiscal year, as determined by the

retirement system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~36.64%,~~ 36.88%, with ~~24.94%~~

25.56% paid directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at ~~36.01%,~~ 35.60%, with

~~24.31%~~ 24.28% paid directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~35.79%,~~ 35.35%, with

~~24.09%~~ 24.03% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at ~~32.66%,~~ 32.28%, with 20.96% paid

directly by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at ~~32.88%,~~ 32.53%, with ~~21.18%~~ 21.21% paid directly by

the employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at ~~32.66%,~~ 32.28%, with 20.96% paid directly by the

employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~36.42%,~~ 36.63%, with

~~24.72%~~ 25.31% paid directly by the employer.

(3) In addition to the employer payments described in

subsection (2), the employer shall pay the applicable contributions

to the Tier 2 plan, as determined by the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408.

(4) The contribution rates in subsection (2) reflect an

amortization period of 22 21 years for ~~2016-2017.~~ 2017-2018. The

public school employees' retirement system board shall notify each

district and intermediate district by February 28 of each fiscal

year of the estimated contribution rate for the next fiscal year.

Sec. 147a. (1) From the appropriation in section 11, there is

allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

$100,000,000.00 for payments to participating districts. A district

that receives money under this section shall use that money solely

for the purpose of offsetting a portion of the retirement

contributions owed by the district for the fiscal year in which it

is received. The amount allocated to each participating district

under this ~~section~~ subsection shall be based on each participating

district's percentage of the total statewide payroll for all

participating districts for the immediately preceding fiscal year.

As used in this ~~section,~~ subsection, "participating district" means

a district that is a reporting unit of the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, and

that reports employees to the Michigan public school employees'

retirement system for the applicable fiscal year.

(2) In addition to the allocation in subsection (1), for 2017-

2018 there is allocated from the state school aid fund money

appropriated under section 11 an amount not to exceed

$48,940,000.00 for payments to participating districts and

intermediate districts, and from the general fund money

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

exceed $29,000.00 for payments to participating district libraries.

The amount allocated to each participating entity under this

subsection shall be based on each participating entity's percentage

of the total statewide payroll for that type of participating

entity for the immediately preceding fiscal year. A participating

entity that receives money under this subsection shall use that

money solely for the purpose of offsetting a portion of the normal

cost contribution rate. As used in this subsection:

(a) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

(b) "Participating entity" means a district, intermediate

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1408, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

Sec. 147c. (1) From the appropriation in section 11, there is

allocated for ~~2016-2017~~ 2017-2018 an amount not to exceed

~~$982,200,000.00~~ $960,130,000.00 from the state school aid fund for

payments to districts and intermediate districts that are

participating entities of the Michigan public school employees'

retirement system. In addition, from the general fund money

appropriated in section 11, there is allocated for ~~2016-2017~~ 2017-

2018 an amount not to exceed ~~$600,000.00~~ $654,000.00 for payments

to district libraries that are participating entities of the

Michigan public school employees' retirement system.

(2) For ~~2016-2017,~~ 2017-2018, the amounts allocated under

subsection (1) are estimated to provide an average MPSERS rate cap

per pupil amount of ~~$660.00~~ $640.00 and are estimated to provide a

rate cap per pupil for districts ranging between ~~$5.00 and~~

~~$3,100.00.~~$4.00 and $3,020.00.

(3) Payments made under this section shall be equal to the

difference between the unfunded actuarial accrued liability

contribution rate as calculated pursuant to section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341, as calculated without taking into account the maximum

employer rate of 20.96% included in section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

maximum employer rate of 20.96% included in section 41 of the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1341.

(4) The amount allocated to each participating entity under

this section shall be based on each participating entity's

proportion of the total covered payroll for the immediately

preceding fiscal year for the same type of participating entities.

A participating entity that receives funds under this section shall

use the funds solely for the purpose of retirement contributions as

specified in subsection (5).

(5) Each participating entity receiving funds under this

section shall forward an amount equal to the amount allocated under

subsection (4) to the retirement system in a form, manner, and time

frame determined by the retirement system.

(6) Funds allocated under this section should be considered

when comparing a district's growth in total state aid funding from

1 fiscal year to the next.

(7) Not later than December 20, ~~2016,~~ 2017, the department

shall publish and post on its website an estimated MPSERS rate cap

per pupil for each district.

(8) As used in this section:

(a) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

(b) ~~(a)~~ "MPSERS rate cap per pupil" means an amount equal to

the quotient of the district's payment under this section divided

by the district's pupils in membership.

district, or district library that is a reporting unit of the

Michigan public school employees' retirement system under the

public school employees retirement act of 1979, 1980 PA 300, MCL

38.1301 to 38.1437, and that reports employees to the Michigan

public school employees' retirement system for the applicable

fiscal year.

(d) ~~(c)~~ "Retirement board" means the board that administers

the retirement system under the public school employees retirement

act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

(e) ~~(d)~~ "Retirement system" means the Michigan public school

employees' retirement system under the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

Sec. 152a. (1) As required by the court in the consolidated

cases known as Adair v State of Michigan, ~~Michigan supreme court~~

~~docket nos. 137424 and 137453,~~ 486 Mich 468 (2010), from the state

school aid fund money appropriated in section 11 there is allocated

for ~~2016-2017~~ 2017-2018 an amount not to exceed $38,000,500.00 to

be used solely for the purpose of paying necessary costs related to

the state-mandated collection, maintenance, and reporting of data

to this state.

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

shall make payments to districts and intermediate districts in an

equal amount per-pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 152b. (1) From the general fund money appropriated under

section 11, there is allocated an amount not to exceed

$2,500,000.00 for ~~2016-2017~~ 2017-2018 to reimburse costs incurred

by nonpublic schools ~~as identified in the nonpublic school mandate~~

~~report published by the department on November 25, 2014 and under~~

~~subsection (2).~~in complying with a health, safety, or welfare

requirement mandated by state law.

(2) By January 1, ~~2017,~~ 2018, the department shall publish a

form containing ~~the requirements identified in the report under~~

~~subsection (1).~~ each health, safety, or welfare requirement with

which a nonpublic school must comply with a reference to the

relevant section of statute or administrative rule, or both, for

each mandated requirement. The department shall include other

health, safety, and welfare requirements ~~on the form that were~~

~~enacted into law after publication of the report.~~ applicable to

nonpublic schools and mandated by state law enacted after October

1, 2017. The form shall be posted on the department's website in

electronic form.

(3) By June ~~15, 2017,~~ 30, 2018, a nonpublic school seeking

reimbursement for costs incurred under subsection (1) of costs

incurred during the ~~2016-2017~~ 2017-2018 school year shall submit

the form described in subsection (2) to the department. This

section does not require or otherwise mandate a nonpublic school to

submit a form described in subsection (2). A nonpublic school is

not eligible for reimbursement under this section unless the

nonpublic school submits the form described in subsection (2) in a

timely manner.

(4) By August 15, ~~2017,~~ 2018, the department shall distribute

funds to nonpublic schools that submit a completed form described

under subsection (2) in a timely manner. The superintendent shall

determine the amount of funds to be paid to each nonpublic school

in an amount that does not exceed the nonpublic school's actual

cost to comply with requirements under subsections (1) and (2). The

superintendent shall calculate a nonpublic school's actual cost in

accordance with this section.

(5) If the funds allocated under this section are insufficient

to fully fund payments as otherwise calculated under this section,

the department shall distribute funds under this section on a

prorated or other equitable basis as determined by the

superintendent.

(6) The department has the authority to review the records of

a nonpublic school submitting a form described in subsection (2)

only for the limited purpose of verifying the nonpublic school's

compliance with this section. If a nonpublic school does not allow

the department to review records under this subsection for this

limited purpose, the nonpublic school is not eligible for

reimbursement under this section.

(7) The funds appropriated under this section are for purposes

related to education, are considered to be incidental to the

operation of a nonpublic school, are noninstructional in character,

and are intended for the public purpose of ensuring the health,

safety, and welfare of the children in nonpublic schools and to

reimburse nonpublic schools for costs described in this section.

(8) Funds allocated under this section are not intended to aid

or maintain any nonpublic school, support the attendance of any

student at a nonpublic school, employ any person at a nonpublic

school, support the attendance of any student at any location where

instruction is offered to a nonpublic school student, or support

the employment of any person at any location where instruction is

offered to a nonpublic school student.

(9) For purposes of this section, "actual cost" means the

hourly wage for the employee or employees performing the ~~reported~~

task or tasks required to comply with a section of statute or

administrative rules identified by the department under subsection

(2) and is to be calculated in accordance with the form published

by the department under subsection (2), which shall include a

detailed itemization of cost. The nonpublic school shall not charge

more than the hourly wage of its lowest-paid employee capable of

performing ~~the reported~~ a specific task regardless of whether that

individual is available and regardless of who actually performs ~~the~~

~~reported~~ a specific task. Labor costs under this subsection shall

be estimated and charged in increments of 15 minutes or more, with

all partial time increments rounded down. When calculating costs

under subsection (4), fee components shall be itemized in a manner

that expresses both the hourly wage and the number of hours

charged. The nonpublic school may not charge any applicable labor

charge amount to cover or partially cover the cost of health or

fringe benefits. A nonpublic school shall not charge any overtime

wages in the calculation of labor costs.

(10) For the purposes of this section, the cost incurred by a

nonpublic school for taking daily student attendance shall be

considered a cost in complying with a health, safety, and welfare

requirement mandated by state law.

(11) In addition to the amount allocated under subsection (1),

from the general fund money appropriated under section 11

there is allocated an amount not to exceed $250,000.00 for 2017-

2018 for competitive grants to nonpublic schools that provide

pupils with expanded opportunities to improve mathematics, science,

and technology skills by participating in FIRST Robotics, including

JR FIRST Lego League, FIRST Lego League, FIRST Tech Challenge, and

FIRST Robotics competition, as well as Science Olympiad programs.

The department shall set maximum grant awards that align with the

maximum grant awards determined for districts under section 99h.

(12) A nonpublic school applying for grant funding under

subsection (11) shall submit an application in a form and manner

determined by the department. To be eligible for funding under

subsection (11), a nonpublic school shall do all of the following:

(a) Establish a partnership with at least 1 sponsor, business

entity, higher education institution, or technical school.

(b) Submit a spending plan.

Sec. 164g. A district or intermediate district shall not use

funds appropriated under this act to pay an expense incurred

relating to any legal action initiated by the district or

intermediate district against this state. If a district or

intermediate district violates this section in a fiscal year, the

district or intermediate district forfeits from its funds due under

this act for that fiscal year an amount equal to the expenses paid

in violation of this section.

Sec. 164h. (1) Beginning October 1, 2017, a district or

intermediate district shall not enter into a collective bargaining

agreement that does any of the following:

(a) Establishes racial or religious preferences for employees.

(b) Automatically deducts union dues from employee

compensation.

district or intermediate district transparency.

(d) Includes a method of compensation that does not comply

with section 1250 of the revised school code, MCL 380.1250.

(2) A district or intermediate district that enters into a

collective bargaining agreement in violation of subsection (1)

shall forfeit an amount equal to 5% of the funds due to the

district or intermediate district under this article.

Sec. 166b. (1) This act does not prohibit a parent or legal

guardian of a minor who is enrolled in any of grades kindergarten

to 12 in a nonpublic school or who is being home-schooled from also

enrolling the minor in a district, public school academy, or

intermediate district in any curricular offering that is provided

by the district, public school academy, or intermediate district at

a public school site and is available to pupils in the minor's

grade level or age group, subject to compliance with the same

requirements that apply to a full-time pupil's participation in the

offering. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only for

curricular offerings that are offered to full-time pupils in the

minor's grade level or age group during regularly scheduled school

hours.

(2) This act does not prohibit a parent or legal guardian of a

minor who is enrolled in any of grades kindergarten to 12 in a

nonpublic school or who resides within the district and is being

home-schooled from also enrolling the minor in the district in a

curricular offering being provided by the district at the nonpublic

school site. However, state school aid shall be provided under this

act for a minor enrolled as described in this subsection only if

all of the following apply:

(a) Either of the following:

(i) The nonpublic school site is located, or the nonpublic

students are educated, within the geographic boundaries of the

district.

(ii) If the nonpublic school has submitted a written request

to the district in which the nonpublic school is located for the

district to provide certain instruction under this subsection for a

school year and the district does not agree to provide some or all

of that instruction by May 1 immediately preceding that school year

or, if the request is submitted after March 1 immediately preceding

that school year, within 60 days after the nonpublic school submits

the request, the instruction is instead provided by an eligible

other district. This subparagraph does not require a nonpublic

school to submit more than 1 request to the district in which the

nonpublic school is located for that district to provide

instruction under this subsection, and does not require a nonpublic

school to submit an additional request to the district in which the

nonpublic school is located for that district to provide additional

instruction under this subsection beyond the instruction requested

in the original request, before having the instruction provided by

an eligible other district. A public school academy that is located

in the district in which the nonpublic school is located or in an

eligible other district also may provide instruction under this

subparagraph under the same conditions as an eligible other

district. As used in this subparagraph, "eligible other district"

means a district that is located in the same intermediate district

as the district in which the nonpublic school is located or is

located in an intermediate district that is contiguous to that

intermediate district.

(b) The nonpublic school is registered with the department as

a nonpublic school and meets all state reporting requirements for

nonpublic schools.

school day.

(d) The instruction is provided directly by a certified

teacher at the district or public school academy or at an

intermediate district.

(e) The curricular offering is also available to full-time

pupils in the minor's grade level or age group in the district or

public school academy during the regular school day at a public

school site.

(f) The curricular offering is restricted to nonessential

elective courses for pupils in grades kindergarten to 12.

(3) A minor enrolled as described in this section is a part-

time pupil for purposes of state school aid under this act.

(4) A district that receives a written request to provide

instruction under subsection (2) shall reply to the request in

writing by May 1 immediately preceding the applicable school year

or, if the request is made after March 1 immediately preceding that

school year, within 60 days after the nonpublic school submits the

request. The written reply shall specify whether the district

agrees to provide or does not agree to provide the instruction for

each portion of instruction included in the request.

~~(5) The department shall establish a workgroup consisting of~~

~~staff from the department, staff from the center, pupil accounting~~

~~staff from districts and intermediate districts, other applicable~~

~~staff from districts and intermediate districts, representatives~~

~~from nonpublic schools, and representatives from home schools to~~

~~examine the issue of providing a uniform definition of nonessential~~

~~elective courses, and also to provide a uniform definition of a~~

~~part-time pupil for the purposes of this section.~~

Sec. 201. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

community colleges for the fiscal year ending September 30, ~~2017,~~

2018, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$395,925,600.00.~~

$395,142,600.00. After deducting total interdepartmental grants and

intradepartmental transfers in the amount of $0.00, the adjusted

gross appropriation is ~~$395,925,600.00.~~$395,142,600.00.

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, $0.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$260,414,800.00.~~$395,142,600.00.

(v) State general fund/general purpose money,

~~$135,510,800.00.~~$0.00.

(2) Subject to subsection (3), the amount appropriated for

community college operations is ~~$315,892,000.00,~~ $315,892,000.00,

allocated as follows:

(a) The appropriation for Alpena Community College is

~~$5,544,700.00, $5,464,400.00 for operations and $80,300.00 for~~

~~performance funding.~~$5,544,700.00.

(b) The appropriation for Bay de Noc Community College is

~~$5,560,900.00, $5,490,200.00 for operations and $70,700.00 for~~

~~performance funding.~~$5,560,900.00.

~~$14,704,000.00 for operations and $203,700.00 for performance~~

~~funding.~~$14,907,700.00.

(d) The appropriation for Glen Oaks Community College is

~~$2,586,900.00, $2,551,100.00 for operations and $35,800.00 for~~

~~performance funding.~~$2,586,900.00.

(e) The appropriation for Gogebic Community College is

~~$4,577,800.00, $4,509,900.00 for operations and $67,900.00 for~~

~~performance funding.~~$4,577,800.00.

(f) The appropriation for Grand Rapids Community College is

~~$18,450,500.00, $18,187,300.00 for operations and $263,200.00 for~~

~~performance funding.~~$18,450,500.00.

(g) The appropriation for Henry Ford College is

~~$22,176,000.00, $21,893,300.00 for operations and $282,700.00 for~~

~~performance funding.~~$22,176,000.00.

(h) The appropriation for Jackson College is ~~$12,397,600.00,~~

~~$12,245,300.00 for operations and $152,300.00 for performance~~

~~funding.~~$12,397,600.00.

(i) The appropriation for Kalamazoo Valley Community College

is ~~$12,873,900.00, $12,689,400.00 for operations and $184,500.00~~

~~for performance funding.~~$12,873,900.00.

(j) The appropriation for Kellogg Community College is

~~$10,087,500.00, $9,950,100.00 for operations and $137,400.00 for~~

~~performance funding.~~$10,087,500.00.

(k) The appropriation for Kirtland Community College is

~~$3,270,000.00, $3,221,500.00 for operations and $48,500.00 for~~

~~performance funding.~~$3,270,000.00.

(l) The appropriation for Lake Michigan College is

~~$5,492,800.00, $5,417,700.00 for operations and $75,100.00 for~~

~~performance funding.~~$5,492,800.00.

(m) The appropriation for Lansing Community College is

~~$31,677,300.00, $31,288,200.00 for operations and $389,100.00 for~~

~~performance funding.~~$31,677,300.00.

(n) The appropriation for Macomb Community College is

~~$33,681,800.00, $33,239,500.00 for operations and $442,300.00 for~~

~~performance funding.~~$33,681,800.00.

(o) The appropriation for Mid Michigan Community College is

~~$4,834,100.00, $4,757,700.00 for operations and $76,400.00 for~~

~~performance funding.~~$4,834,100.00.

(p) The appropriation for Monroe County Community College is

~~$4,636,700.00, $4,565,600.00 for operations and $71,100.00 for~~

~~performance funding.~~$4,636,700.00.

(q) The appropriation for Montcalm Community College is

~~$3,343,100.00, $3,280,600.00 for operations and $62,500.00 for~~

~~performance funding.~~$3,343,100.00.

(r) The appropriation for C.S. Mott Community College is

~~$16,115,500.00, $15,901,700.00 for operations and $213,800.00 for~~

~~performance funding.~~$16,115,500.00.

(s) The appropriation for Muskegon Community College is

~~$9,150,600.00, $9,020,700.00 for operations and $129,900.00 for~~

~~performance funding.~~$9,150,600.00.

(t) The appropriation for North Central Michigan College is

~~$3,290,400.00, $3,224,800.00 for operations and $65,600.00 for~~

~~performance funding.~~$3,290,400.00.

(u) The appropriation for Northwestern Michigan College is

~~$9,318,000.00, $9,200,500.00 for operations and $117,500.00 for~~

~~performance funding.~~$9,318,000.00.

(v) The appropriation for Oakland Community College is

~~$21,770,900.00, $21,429,400.00 for operations and $341,500.00 for~~

~~performance funding.~~$21,770,900.00.

(w) The appropriation for Schoolcraft College is

~~$12,909,300.00, $12,706,400.00 for operations and $202,900.00 for~~

~~performance funding.~~$12,909,300.00.

(x) The appropriation for Southwestern Michigan College is

~~$6,732,500.00, $6,657,600.00 for operations and $74,900.00 for~~

~~performance funding.~~$6,732,500.00.

(y) The appropriation for St. Clair County Community College

is ~~$7,259,300.00, $7,158,000.00 for operations and $101,300.00 for~~

~~performance funding.~~$7,259,300.00.

(z) The appropriation for Washtenaw Community College is

~~$13,534,000.00, $13,301,100.00 for operations and $232,900.00 for~~

~~performance funding.~~$13,534,000.00.

(aa) The appropriation for Wayne County Community College is

~~$17,234,200.00, $16,989,800.00 for operations and $244,400.00 for~~

~~performance funding.~~$17,234,200.00.

(bb) The appropriation for West Shore Community College is

~~$2,478,000.00, $2,446,200.00 for operations and $31,800.00 for~~

~~performance funding.~~$2,478,000.00.

(3) The amount appropriated in subsection (2) for community

college operations is appropriated from the following:

(a) State school aid fund, ~~$185,481,200.00.~~$315,892,000.00.

(b) State general fund/general purpose money,

~~$130,410,800.00.~~$0.00.

(4) From the appropriations described in subsection (1),

~~subject~~ both of the following apply:

(a) Subject to section 207a, the amount appropriated for

fiscal year ~~2016-2017~~ 2017-2018 to offset certain fiscal year ~~2016-~~

~~2017~~ 2017-2018 retirement contributions is ~~$1,733,600.00,~~

$1,733,600.00, appropriated from the state school aid fund.

(b) For fiscal year 2017-2018 only, from the appropriations

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

exceed $3,612,000.00 for payments to participating community

colleges, appropriated from the state school aid fund. A community

college that receives money under this subsection shall use that

money solely for the purpose of offsetting the normal cost

contribution rate.

(5) From the appropriations described in subsection (1),

subject to section 207b, the amount appropriated for payments to

community colleges that are participating entities of the

retirement system is ~~$73,200,000.00,~~ $70,805,000.00, appropriated

from the state school aid fund.

(6) From the appropriations described in subsection (1),

subject to section 207c, the amount appropriated for renaissance

zone tax reimbursements is ~~$5,100,000.00,~~ $3,100,000.00,

appropriated from ~~general fund/general purpose money.~~the state

school aid fund.

Sec. 201a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2018~~

2019 for the items listed in section 201. The fiscal year ~~2017-2018~~

2018-2019 appropriations are anticipated to be the same as those

for fiscal year ~~2016-2017,~~ 2017-2018, except that the amounts will

be adjusted for changes in retirement costs, caseload and related

costs, federal fund match rates, economic factors, and available

revenue. These adjustments will be determined after the January

~~2017~~ 2018 consensus revenue estimating conference.

Sec. 203. Unless otherwise specified, a community college that

receives appropriations in section 201, the workforce development

agency, and the center shall use the ~~Internet~~ internet to fulfill

the reporting requirements of this article. This requirement may

include transmission of reports via electronic mail to the

recipients identified for each reporting requirement or it may

include placement of reports on an ~~Internet~~ internet or ~~Intranet~~

intranet site.

Sec. 206. (1) The funds appropriated in section 201 are

appropriated for community colleges with fiscal years ending June

30, ~~2017~~ 2018 and shall be paid out of the state treasury and

distributed by the state treasurer to the respective community

colleges in 11 monthly installments on the sixteenth of each month,

or the next succeeding business day, beginning with October 16,

~~2016.~~ 2017. Each community college shall accrue its July and August

~~2017~~ 2018 payments to its institutional fiscal year ending June 30,

~~2017. However, if~~ 2018.

(2) If the state budget director determines that a community

college failed to submit ~~all verified Michigan community colleges~~

~~activities classification structure data for school year 2015-2016~~

~~to the center by November 1, 2016, or failed to submit its~~

~~longitudinal data system data set for school year 2015-2016 to the~~

~~center under section 219,~~ any of the information described in

subdivisions (a) to (f) in the form and manner specified by the

center, the state treasurer shall, subject to subdivision (g),

withhold the monthly installments from that community college until

those data are submitted: .

(a) All verified Michigan community colleges activities

classification structure data for the preceding academic year to

the center by November 1 of each year as specified in section 217.

(b) The college credit opportunity data set as specified in

section 209.

to the center as specified in section 219.

(d) The annual independent audit as specified in section 222.

(e) Tuition and mandatory fees information for the current

academic year as specified in section 225.

(f) The number and type of associate degrees and other

certificates awarded during the previous academic year as specified

in section 226.

(g) The state budget director shall notify the chairs of the

house and senate appropriations subcommittees on community colleges

at least 10 days before withholding funds from any community

college.

Sec. 207a. All of the following apply to the allocation of the

fiscal year ~~2016-2017~~ 2017-2018 appropriations described in section

201(4):

(a) A community college that receives money under section

201(4) shall use that money solely for the purpose of offsetting a

portion of the retirement contributions owed by the college for

that fiscal year.

(b) The amount allocated to each participating community

college under section 201(4) shall be based on each college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year.

Sec. 207b. All of the following apply to the allocation of the

fiscal year ~~2016-2017~~ 2017-2018 appropriations described in section

201(5) for payments to community colleges that are participating

entities of the retirement system:

(a) The amount of a payment under section 201(5) shall be the

difference between the unfunded actuarial accrued liability

contribution rate as calculated under section 41 of the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341,

as calculated without taking into account the maximum employer rate

of 20.96% included in section 41 of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum

employer rate of 20.96% under section 41 of the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

(b) The amount allocated to each community college under

section 201(5) shall be based on each community college's

percentage of the total covered payroll for all community colleges

that are participating colleges in the immediately preceding fiscal

year. A community college that receives funds under this

subdivision shall use the funds solely for the purpose of

retirement contributions under section 201(5).

section 201(5) shall forward an amount equal to the amount

allocated under subdivision (b) to the retirement system in a form

and manner determined by the retirement system.

Sec. 207c. All of the following apply to the allocation of the

appropriations described in section 201(6) to community colleges

described in section 12(3) of the Michigan renaissance zone act,

1996 PA 376, MCL 125.2692:

(a) The amount allocated to each community college under

section 201(6) for fiscal year ~~2016-2017~~ 2017-2018 shall be based

on that community college's proportion of total revenue lost by

community colleges as a result of the exemption of property taxes

levied in ~~2016~~ 2017 under the Michigan renaissance zone act, 1996

PA 376, MCL 125.2681 to 125.2696.

(b) The appropriations described in section 201(6) shall be

made to each eligible community college within 60 days after the

department of treasury certifies to the state budget director that

it has received all necessary information to properly determine the

amounts payable to each eligible community college under section 12

of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692.

Sec. 209. (1) Within 30 days after the board of a community

college adopts its annual operating budget for the following fiscal

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

budget, the community college shall make all of the following

available through a link on its website homepage:

(a) The annual operating budget and subsequent budget

revisions.

(b) A link to the most recent "Activities Classification

Structure Data Book and Companion".

current fiscal year ~~2016-2017~~ and the next fiscal year. ~~2017-2018.~~

(d) A listing of all debt service obligations, detailed by

project, anticipated fiscal year ~~2016-2017~~ payment of each project,

and total outstanding debt for the current fiscal year.

(e) The estimated cost to the community college resulting from

the patient protection and affordable care act, Public Law 111-148,

as amended by the health care and education reconciliation act of

2010, Public Law 111-152.

(f) Links to all of the following for the community college:

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee of the

community college.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) A copy of the board of trustees resolution regarding

compliance with best practices for the local strategic value

component described in section 230(2).

(2) For statewide consistency and public visibility, community

colleges must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each community college's homepage.

The size of the icon may be reduced to 150 x 150 pixels.

(3) The state budget director shall determine whether a

community college has complied with this section. The state budget

director may withhold a community college's monthly installments

described in section 206 until the community college complies with

this section. The state budget director shall notify the chairs of

the house and senate appropriations subcommittee on community

colleges at least 10 days before withholding funds from any

community college.

(4) Each community college shall report the following

information to the senate and house appropriations subcommittees on

community colleges, the senate and house fiscal agencies, and the

state budget office by November 15 of each fiscal year and post

that information on its website as required under subsection (1):

(a) Budgeted current fiscal year ~~2016-2017~~ general fund

revenue from tuition and fees.

(b) Budgeted current fiscal year ~~2016-2017~~ general fund

revenue from state appropriations.

revenue from property taxes.

(d) Budgeted current fiscal year ~~2016-2017~~ total general fund

revenue.

(e) Budgeted current fiscal year ~~2016-2017~~ total general fund

expenditures.

(5) By November 15 of each year, a community college shall

report the following information to the center and post the

information on its website under the budget transparency icon

badge:

(a) Opportunities for earning college credit through the

following programs:

(i) State approved career and technical education or a tech

prep articulated program of study.

(ii) Direct college credit or concurrent enrollment.

(iii) Dual enrollment.

(iv) An early college/middle college program.

(b) For each program described in subdivision (a) that the

community college offers, all of the following information:

(i) The number of high school students participating in the

program.

(ii) The number of school districts that participate in the

program with the community college.

(iii) Whether a college professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

(iv) The total cost to the community college to operate the

program.

(v) The cost per credit hour for the course or courses in the

program.

(vi) The location where the course or courses in the program

are held.

(vii) Instructional resources offered to the program

instructors.

(viii) Resources offered to the student in the program.

(ix) Transportation services provided to students in the

program.

Sec. 210b. By March 1, ~~2017,~~ 2018, the Michigan Community

College Association and the Michigan Association of State

Universities shall submit a report to the senate and house

appropriations subcommittees on community colleges, the senate and

house fiscal agencies, and the state budget director ~~that includes~~

on the activities and programs of the transfer steering committee

since the March 1, 2017 report required under this section,

including all of the following:

~~(a) A progress report on the implementation of the Michigan~~

~~transfer agreement developed by the study committee created under~~

~~former section 210a, including an update on progress made on~~

~~outstanding concerns identified in the March 1, 2016 implementation~~

~~update.~~

~~(b) A report on improvements to articulation and credit~~

~~transfer policies among and between all sectors of postsecondary~~

~~education in this state. The report shall identify areas of~~

~~progress since the March 1, 2016 report required by former section~~

~~210c, including all of the following:~~

(i~~) Identifying effective policies and practices developed by~~

~~other states.~~

(ii~~) Developing specific pathways, where advisable, that meet~~

~~program requirements for both associate's and bachelor's degree~~

~~programs.~~

(a) the alignment of learning outcomes in gateway mathematics

courses in the quantitative reasoning, college algebra, and

statistics pathways and the transferability of mathematics gateway

courses between and among community colleges and universities.

(b) The development of program-specific, statewide transfer

pathways that meet program requirements for both associate and

bachelor's degree programs.

communication tool to share information about postsecondary options

in Michigan, ~~particularly clearly articulating~~ course

equivalencies, and transfer pathways that are clearly articulated.

(d) (iv~~) Establishing~~ The establishment of clear timelines for

~~finalizing~~ developing and implementing transfer pathways.

(e) A progress report on the implementation of the Michigan

transfer agreement.

Sec. 210e. By February 1, ~~2017,~~ 2018, the Michigan Community

College Association, the Michigan Association of State

Universities, and the Michigan Independent Colleges and

Universities, on behalf of their member colleges and universities,

shall submit to the senate and house appropriations subcommittees

on higher education, the senate and house appropriations

subcommittees on community colleges, the senate and house fiscal

agencies, and the state budget director a comprehensive report

detailing the number of academic program partnerships between

public community colleges, public universities, and private

colleges and universities, including, but not limited to, the

following information:

(a) The names of the baccalaureate degree programs of study

offered by public and private universities on community college

campuses.

(b) The names of the articulation agreements for baccalaureate

degree programs of study between public community colleges, public

universities, and private colleges and universities.

awarded through articulation agreements, and the number of courses

offered, number of students enrolled, and number of degrees awarded

through on-campus programs named in subdivision (a) from July 1,

~~2015~~ 2016 through June 30, ~~2016.~~2017.

Sec. 217. (1) The center shall do all of the following:

(a) Establish, maintain, and coordinate the state community

college database commonly known as the "activities classification

structure" or "ACS" database.

(b) Collect data concerning community colleges and community

college programs in this state, including data required by law.

reliability of the data and the collection process.

(d) Develop model data collection policies, including, but not

limited to, policies that ensure the privacy of any individual

student data. Privacy policies shall ensure that student social

security numbers are not released to the public for any purpose.

(e) Provide data in a useful manner to allow state

policymakers and community college officials to make informed

policy decisions.

~~(f) Assist community colleges in complying with audits under~~

~~this section or federal law.~~

(2) There is created within the center the activities

classification structure advisory committee. The committee shall

provide advice to the director of the center regarding the

management of the state community college database, including, but

not limited to:

(a) Determining what data are necessary to collect and

maintain to enable state and community college officials to make

informed policy decisions.

(b) Defining the roles of all stakeholders in the data

collection system.

collection of data.

(d) Establishing and maintaining data definitions, data

transmission protocols, and system specifications and procedures

for the efficient and accurate transmission and collection of data.

(e) Establishing and maintaining a process for ensuring the

accuracy of the data.

(f) Establishing and maintaining policies related to data

collection, including, but not limited to, privacy policies related

to individual student data.

(g) Ensuring that the data are made available to state

policymakers and citizens of this state in the most useful format

possible.

(h) Addressing other matters as determined by the director of

the center or as required by law.

(3) The activities classification structure advisory committee

created in subsection (2) shall consist of the following members:

(a) One representative from the house fiscal agency, appointed

by the director of the house fiscal agency.

(b) One representative from the senate fiscal agency,

appointed by the director of the senate fiscal agency.

appointed by the director of the workforce development agency.

(d) One representative from the center appointed by the

director of the center.

(e) One representative from the state budget office, appointed

by the state budget director.

(f) One representative from the governor's policy office,

appointed by that office.

(g) Four representatives of the Michigan Community College

Association, appointed by the president of the association. From

the groupings of community colleges given in table 17 of the

activities classification structure database described in

subsection (1), the association shall appoint 1 representative each

from group 1, group 2, and group 3, and 1 representative from

either group 3 or 4.

Sec. 223. (1) By February 15 of each year, the department of

civil rights shall annually submit to the state budget director,

the house and senate appropriations subcommittees on community

colleges, and the house and senate fiscal agencies a report on

North American Indian tuition waivers for the preceding ~~fiscal~~

academic year that includes, but is not limited to, all of the

following information:

(a) The number of waiver applications received and the number

of waiver applications approved.

(b) For each community college submitting information under

subsection (2), all of the following:

(i) The number of North American Indian students enrolled each

term for the previous ~~fiscal~~ academic year.

(ii) The number of North American Indian waivers granted each

term, including continuing education students, and the monetary

value of the waivers for the previous ~~fiscal~~ academic year.

(iii) The number of students attending under a North American

Indian tuition waiver who withdrew from the college each term

during the previous ~~fiscal~~ academic year. For purposes of this

subparagraph, a withdrawal occurs when a student who has been

awarded the waiver withdraws from the institution at any point

during the term, regardless of enrollment in subsequent terms.

(iv) The number of students attending under a North American

Indian tuition waiver who successfully complete a degree or

certificate program, separated by degree or certificate level, and

the graduation rate for students attending under a North American

Indian tuition waiver who complete a degree or certificate within

150% of the normal time to complete, separated by the level of the

degree or certificate.

(2) A community college that receives funds under section 201

shall provide to the department of civil rights any information

necessary for preparing the report described in subsection (1),

using guidelines and procedures developed by the department of

civil rights.

(3) The department of civil rights may consolidate the report

required under this section with the report required under section

268, but a consolidated report must separately identify data for

universities and data for community colleges.

Sec. 224. ~~A community college~~ Using the data provided by the

community colleges as required under section 219 of this act, the

center shall use the P-20 longitudinal data system to inform

interested Michigan high schools and the public of the aggregate

academic status of its students for the previous academic year. ,

~~in a manner prescribed by~~ The center shall work with the Michigan

Community College Association and in cooperation with the Michigan

Association of Secondary School Principals. Community colleges

shall cooperate with the center to maintain a systematic approach

for accomplishing this work.

Sec. 225. Each community college shall report to ~~the house and~~

~~senate fiscal agencies, the state budget director, and~~ the center

by August 31 ~~, 2016,~~ of each year the tuition and mandatory fees

paid by a full-time in-district student and a full-time out-of-

district student as established by the college governing board for

the ~~2016-2017~~ current academic year. This report should also

include the annual cost of attendance based on a full-time course

load of 30 credits. Each community college shall also report any

revisions to the reported ~~2016-2017~~ current academic year tuition

and mandatory fees adopted by the college governing board to ~~the~~

~~house and senate fiscal agencies, the state budget director, and~~

the center within 15 days of being adopted. The center shall make

this information and any revisions available to the house and

senate fiscal agencies and the state budget director.

Sec. 226. Each community college shall report to the center

the numbers and type of associate degrees and other certificates

awarded by the community college during the previous fiscal year.

The report shall be made not later than November 15 of each year.

Community colleges shall work with the center to develop a

systematic approach for meeting this requirement using the P-20

longitudinal data system.

Sec. 229. (1) Each community college that receives an

appropriation in section 201 is expected to include in its

admission application process a specific question as to whether an

applicant for admission has ever served or is currently serving in

the United States ~~armed forces~~ Armed Forces or is the spouse or

dependent of an individual who has served or is currently serving

in the United States ~~armed forces,~~ Armed Forces, in order to more

quickly identify potential educational assistance available to that

applicant.

(2) It is expected that each public community college that

receives an appropriation in section 201 shall work with the house

and senate community college subcommittees, the Michigan Community

College Association, and veterans groups to review the issue of in-

district tuition for veterans of this state when determining

tuition rates and fees.

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to 3325.

Sec. 229a. Included in the fiscal year ~~2016-2017~~ 2017-2018

appropriations for the department of technology, management, and

budget are appropriations totaling ~~$30,879,600.00~~ $30,879,600.00 to

provide funding for the state share of costs for previously

constructed capital projects for community colleges. Those

appropriations for state building authority rent represent

additional state general fund support for community colleges, and

the following is an estimate of the amount of that support to each

community college:

(a) Alpena Community College, ~~$632,500.00.~~$630,000.00.

(b) Bay de Noc Community College,~~$685,100.00.~~$682,400.00.

(d) Glen Oaks Community College, ~~$124,500.00.~~$124,000.00.

(e) Gogebic Community College, ~~$56,700.00.~~$56,400.00.

(f) Grand Rapids Community College,

~~$2,083,500.00.~~$2,075,300.00.

(g) Henry Ford College, ~~$1,040,300.00.~~$1,036,200.00.

(h) Jackson College, ~~$2,273,800.00.~~$2,264,800.00.

(i) Kalamazoo Valley Community College,

~~$2,030,900.00.~~$1,957,400.00.

(j) Kellogg Community College, ~~$526,200.00.~~$524,100.00.

(k) Kirtland Community College, ~~$367,300.00.~~$365,900.00.

(l) Lake Michigan College, ~~$344,100.00.~~$342,700.00.

(m) Lansing Community College, ~~$1,154,600.00.~~$1,150,000.00.

(n) Macomb Community College, ~~$1,715,700.00.~~$1,662,100.00.

(o) Mid Michigan Community College,

~~$1,634,300.00.~~$1,627,800.00.

(p) Monroe County Community College,

~~$1,278,100.00.~~$1,273,000.00.

(q) Montcalm Community College, ~~$982,600.00.~~$978,700.00.

(r) C.S. Mott Community College, ~~$1,497,600.00.~~$1,817,300.00.

(s) Muskegon Community College, ~~$623,500.00.~~$570,500.00.

(t) North Central Michigan College, ~~$417,900.00.~~$416,300.00.

(u) Northwestern Michigan College,

~~$1,320,600.00.~~$1,315,400.00.

(v) Oakland Community College, ~~$470,500.00.~~$468,700.00.

(w) Schoolcraft College, ~~$1,564,400.00.~~$1,558,300.00.

(x) Southwestern Michigan College, ~~$574,800.00.~~$531,700.00.

(y) St. Clair County Community College,

~~$360,200.00.~~$358,800.00.

(z) Washtenaw Community College, ~~$1,696,000.00.~~$1,689,300.00.

(aa) Wayne County Community College,

~~$1,479,400.00.~~$1,473,600.00.

(bb) West Shore Community College, ~~$583,900.00.~~$581,600.00.

Sec. 230. (1) Money included in the appropriations for

community college operations under section 201(2) in fiscal year

~~2016-2017~~ 2017-2018 for performance funding is distributed based on

the following formula:

(a) Allocated proportionate to fiscal year ~~2015-2016~~ 2016-2017

base appropriations, 30%.

(b) Based on a weighted student contact hour formula as

provided for in the 2016 recommendations of the performance

indicators task force, 30%.

the 2016 recommendations of the performance indicators task force,

10%.

(d) Based on the performance completion number as provided for

in the 2016 recommendations of the performance indicators task

force, 10%.

(e) Based on the performance completion rate as provided for

in the 2016 recommendations of the performance indicators task

force, 10%.

(f) Based on administrative costs, 5%.

(g) Based on the local strategic value component, as developed

in cooperation with the Michigan Community College Association and

described in subsection (2), 5%.

(2) Money included in the appropriations for community college

operations under section 201(2) for local strategic value shall be

allocated to each community college that certifies to the state

budget director, through a board of trustees resolution on or

before October 15, ~~2016,~~ 2017, that the college has met 4 out of 5

best practices listed in each category described in subsection (3).

The resolution shall provide specifics as to how the community

college meets each best practice measure within each category. One-

third of funding available under the strategic value component

shall be allocated to each category described in subsection (3).

Amounts distributed under local strategic value shall be on a

proportionate basis to each college's fiscal year ~~2015-2016~~ 2016-

2017 operations funding. Payments to community colleges that

qualify for local strategic value funding shall be distributed with

the November installment payment described in section 206.

(3) For purposes of subsection (2), the following categories

of best practices reflect functional activities of community

colleges that have strategic value to the local communities and

regional economies:

(a) For Category A, economic development and business or

industry partnerships, the following:

(i) The community college has active partnerships with local

employers including hospitals and health care providers.

(ii) The community college provides customized on-site

training for area companies, employees, or both.

(iii) The community college supports entrepreneurship through

a small business assistance center or other training or consulting

activities targeted toward small businesses.

(iv) The community college supports technological advancement

through industry partnerships, incubation activities, or operation

of a Michigan technical education center or other advanced

technology center.

(v) The community college has active partnerships with local

or regional workforce and economic development agencies.

(b) For Category B, educational partnerships, the following:

(i) The community college has active partnerships with

regional high schools, intermediate school districts, and career-

tech centers to provide instruction through dual enrollment,

concurrent enrollment, direct credit, middle college, or academy

programs.

(ii) The community college hosts, sponsors, or participates in

enrichment programs for area K-12 students, such as college days,

summer or after-school programming, or Science Olympiad.

(iii) The community college provides, supports, or

participates in programming to promote successful transitions to

college for traditional age students, including grant programs such

as talent search, upward bound, or other activities to promote

college readiness in area high schools and community centers.

(iv) The community college provides, supports, or participates

in programming to promote successful transitions to college for new

or reentering adult students, such as adult basic education, a high

school equivalency test preparation program and testing, or

recruiting, advising, or orientation activities specific to adults.

As used in this subparagraph, "high school equivalency test

preparation program" means that term as defined in section 4.

(v) The community college has active partnerships with

regional 4-year colleges and universities to promote successful

transfer, such as articulation, 2+2, or reverse transfer agreements

or operation of a university center.

(i) The community college provides continuing education

programming for leisure, wellness, personal enrichment, or

professional development.

(ii) The community college operates or sponsors opportunities

for community members to engage in activities that promote leisure,

wellness, cultural or personal enrichment such as community sports

teams, theater or musical ensembles, or artist guilds.

(iii) The community college operates public facilities to

promote cultural, educational, or personal enrichment for community

members, such as libraries, computer labs, performing arts centers,

museums, art galleries, or television or radio stations.

(iv) The community college operates public facilities to

promote leisure or wellness activities for community members,

including gymnasiums, athletic fields, tennis courts, fitness

centers, hiking or biking trails, or natural areas.

(v) The community college promotes, sponsors, or hosts

community service activities for students, staff, or community

members.

(4) Payments for performance funding under section 201(2)

shall be made to a community college only if that community college

actively participates in the Michigan Transfer Network sponsored by

the Michigan Association of Collegiate Registrars and Admissions

Officers and submits timely updates, including updated course

equivalencies at least every 6 months, to the Michigan transfer

network. The state budget director shall determine if a community

college has not satisfied this requirement. The state budget

director may withhold payments for performance funding until a

community college is in compliance with this section.

Sec. 236. (1) Subject to the conditions set forth in this

article, the amounts listed in this section are appropriated for

House Bill No. 4313 as amended May 2, 2017

higher education for the fiscal year ending September 30, ~~2017,~~

2018, from the funds indicated in this section. The following is a

summary of the appropriations in this section:

(a) The gross appropriation is ~~$1,582,640,400.00.~~

[$1,621,124,400.00.] After deducting total interdepartmental grants

and intradepartmental transfers in the amount of $0.00, the

adjusted gross appropriation is

~~$1,582,640,400.00.~~ [$1,621,124,400.00.]

(b) The sources of the adjusted gross appropriation described

in subdivision (a) are as follows:

(i) Total federal revenues, ~~$101,526,400.00.~~$111,526,400.00.

(ii) Total local revenues, $0.00.

(iii) Total private revenues, $0.00.

(iv) Total other state restricted revenues,

~~$237,209,500.00.~~$235,743,500.00.

(v) State general fund/general purpose money,

~~$1,243,904,500.00.~~ [$1,273,854,500.00.]

(2) Amounts appropriated for public universities are as

follows:

(a) The appropriation for Central Michigan University is

~~$83,925,500.00, $81,127,100.00 for operations and $2,798,400.00 for~~

~~performance funding.~~$85,568,000.00, $83,925,500.00 for operations

and $1,642,500.00 for performance funding.

(b) The appropriation for Eastern Michigan University is

~~$73,593,800.00, $71,782,500.00 for operations and $1,811,300.00 for~~

~~performance funding.~~$75,091,100.00, $73,593,800.00 for operations

and $1,497,300.00 for performance funding.

~~$52,259,900.00, $50,369,800.00 for operations and $1,890,100.00 for~~

~~performance funding.~~$53,528,700.00, $52,259,900.00 for operations

and $1,268,800.00 for performance funding.

(d) The appropriation for Grand Valley State University is

~~$68,227,900.00, $65,275,700.00 for operations and $2,952,200.00 for~~

~~performance funding.~~$70,006,400.00, $68,227,900.00 for operations

and $1,778,500.00 for performance funding.

(e) The appropriation for Lake Superior State University is

~~$13,567,400.00, $13,207,400.00 for operations and $360,000.00 for~~

~~performance funding.~~$13,764,700.00, $13,567,400.00 for operations

and $197,300.00 for performance funding.

(f) The appropriation for Michigan State University is

~~$337,777,800.00, $268,770,700.00 for operations, $7,091,400.00 for~~

~~performance funding, $33,243,100.00 for MSU AgBioResearch, and~~

~~$28,672,600.00 for MSU Extension.~~$344,436,000.00, $275,862,100.00

for operations, $5,108,200.00 for performance funding,

$34,074,200.00 for MSU AgBioResearch, and $29,391,500.00 for MSU

Extension.

(g) The appropriation for Michigan Technological University is

~~$48,097,500.00, $46,754,700.00 for operations and $1,342,800.00 for~~

~~performance funding.~~$49,004,500.00, $48,097,500.00 for operations

and $907,000.00 for performance funding.

(h) The appropriation for Northern Michigan University is

~~$46,279,200.00, $45,107,700.00 for operations and $1,171,500.00 for~~

~~performance funding.~~$47,094,500.00, $46,279,200.00 for operations

and $815,300.00 for performance funding.

(i) The appropriation for Oakland University is

~~$49,920,700.00, $48,371,900.00 for operations and $1,548,800.00 for~~

~~performance funding.~~$51,170,100.00, $49,920,700.00 for operations

and $1,249,400.00 for performance funding.

(j) The appropriation for Saginaw Valley State University is

~~$29,114,000.00, $28,181,200.00 for operations and $932,800.00 for~~

~~performance funding.~~$29,733,500.00, $29,114,000.00 for operations

and $619,500.00 for performance funding.

(k) The appropriation for University of Michigan � Ann Arbor

is ~~$308,639,000.00, $299,975,000.00 for operations and~~

~~$8,664,000.00 for performance funding.~~$314,291,600.00,

$308,639,000.00 for operations and $5,652,600.00 for performance

funding.

(l) The appropriation for University of Michigan � Dearborn is

~~$24,803,300.00, $24,033,100.00 for operations and $770,200.00 for~~

~~performance funding.~~$25,391,000.00, $24,803,300.00 for operations

and $587,700.00 for performance funding.

(m) The appropriation for University of Michigan � Flint is

~~$22,549,300.00, $21,815,400.00 for operations and $733,900.00 for~~

~~performance funding.~~$23,036,100.00, $22,549,300.00 for operations

and $486,800.00 for performance funding.

(n) The appropriation for Wayne State University is

~~$196,064,500.00, $191,451,300.00 for operations and $4,613,200.00~~

~~for performance funding.~~$199,014,500.00, $196,064,500.00 for

operations and $2,950,000.00 for performance funding.

(o) The appropriation for Western Michigan University is

~~$107,440,900.00, $104,334,100.00 for operations and $3,106,800.00~~

~~for performance funding.~~$109,280,000.00, $107,440,900.00 for

operations and $1,839,100.00 for performance funding.

(3) The amount appropriated in subsection (2) for public

universities is appropriated from the following:

(a) State school aid fund, $231,219,500.00.

(b) State general fund/general purpose money,

~~$1,231,041,200.00.~~$1,259,191,200.00.

(4) The amount appropriated for Michigan public school

employees' retirement system reimbursement is ~~$5,890,000.00,~~

$4,005,000.00, appropriated from the state school aid fund.

(5) The amount appropriated for state and regional programs is

$315,000.00, appropriated from general fund/general purpose money

and allocated as follows:

(a) Higher education database modernization and conversion,

$200,000.00.

(b) Midwestern Higher Education Compact, $115,000.00.

(6) The amount appropriated for the Martin Luther King, Jr. -

Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated

from general fund/general purpose money and allocated as follows:

(a) Select student support services, $1,956,100.00.

(b) Michigan college/university partnership program,

$586,800.00.

$148,600.00.

(7) Subject to subsection (8), the amount appropriated for

grants and financial aid is ~~$110,983,200.00,~~ $121,783,200.00,

allocated as follows:

(a) State competitive scholarships,

~~$18,361,700.00.~~$22,361,700.00.

(b) Tuition grants, ~~$35,021,500.00.~~$36,521,500.00.

(d) Children of veterans and officer's survivor tuition grant

programs, $1,400,000.00.

(e) Project GEAR-UP, $3,200,000.00.

(8) The money appropriated in subsection (7) for grants and

financial aid is appropriated from the following:

(a) Federal revenues under the United States Department of

Education, Office of Elementary and Secondary Education, GEAR-UP

program, $3,200,000.00.

(b) Federal revenues under the social security act, temporary

assistance for needy families, ~~$98,326,400.00.~~$108,326,400.00.

program, $100,000.00.

(d) State general fund/general purpose money,

~~$9,356,800.00.~~$10,156,800.00.

~~(9) For fiscal year 2016-2017 only, $500,000.00 is~~

~~appropriated for the Michigan State University Diagnostic Center~~

~~for Population and Animal Health, appropriated from state general~~

~~fund/general purpose money.~~

(9) For fiscal year 2017-2018 only, in addition to the

allocation under subsection (4), from the appropriations described

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

$419,000.00 for payments to participating public universities,

appropriated from the state school aid fund. A university that

House Bill No. 4313 as amended May 2, 2017

receives money under this subsection shall use that money solely

for the purpose of offsetting the normal cost contribution rate. As

used in this subsection, "participating public universities" means

public universities that are a reporting unit of the Michigan

public school employees' retirement system under the public school

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

38.1437, and that pay contributions to the Michigan public school

employees' retirement system for the state fiscal year.

[(10) For fiscal year 2017-2018 only, $1,500,000.00 is appropriated for the Michigan State University fruit and vegetable processing teaching laboratory, appropriated from general fund/general purpose money.]

Sec. 236a. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, ~~2018~~

2019 for the items listed in section 236. The fiscal year ~~2017-2018~~

2018-2019 appropriations are anticipated to be the same as those

for fiscal year ~~2016-2017,~~ 2017-2018, except that the amounts will

be adjusted for changes in caseload and related costs, federal fund

match rates, economic factors, and available revenue. These

adjustments will be determined after the January ~~2017~~ 2018

consensus revenue estimating conference.

Sec. 236b. In addition to the funds appropriated in section

236, there is appropriated for grants and financial aid in fiscal

year ~~2016-2017~~ 2017-2018 an amount not to exceed $6,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred under section 393(2)

of the management and budget act, 1984 PA 431, MCL 18.1393, for

another purpose under this article.

Sec. 236c. In addition to the funds appropriated for fiscal

year ~~2016-2017~~ 2017-2018 in section 236, appropriations to the

department of technology, management, and budget in the act

providing general appropriations for fiscal year ~~2016-2017~~ 2017-

2018 for state building authority rent, totaling an estimated

$144,995,300.00, provide funding for the state share of costs for

previously constructed capital projects for state universities.

These appropriations for state building authority rent represent

additional state general fund support provided to public

universities, and the following is an estimate of the amount of

that support to each university:

(a) Central Michigan University,

~~$11,819,500.00.~~$12,570,900.00.

(b) Eastern Michigan University, ~~$4,868,000.00.~~$5,177,500.00.

(d) Grand Valley State University,

~~$6,635,900.00.~~$7,057,800.00.

(e) Lake Superior State University,

~~$1,722,800.00.~~$1,832,400.00.

(f) Michigan State University, ~~$18,827,000.00.~~$15,500,500.00.

(g) Michigan Technological University,

~~$6,793,200.00.~~$7,225,100.00.

(h) Northern Michigan University, ~~$9,447,600.00.~~$7,786,500.00.

(i) Oakland University, ~~$12,685,900.00.~~$13,492,400.00.

(j) Saginaw Valley State University,

~~$10,331,000.00.~~$10,918,500.00.

(k) University of Michigan - Ann Arbor,

~~$11,875,600.00.~~$10,586,200.00.

(l) University of Michigan - Dearborn,

~~$9,008,800.00.~~$9,581,500.00.

(m) University of Michigan - Flint,

~~$4,357,600.00.~~$4,315,600.00.

(n) Wayne State University, ~~$15,399,400.00.~~$16,378,300.00.

(o) Western Michigan University,

~~$14,962,700.00.~~$15,913,800.00.

Sec. 237b. As used in this article: ~~, the term "workforce~~

(a) "Center" means the center for educational performance and

information created in section 94a.

(b) "Workforce development agency" means the workforce

development agency within the department of talent and economic

development--talent investment agency.

Sec. 239b. It is the intent of the legislature that public

universities shall not use funds appropriated in section 236 to

lease or purchase a vehicle assembled or manufactured outside of

the United States and will give preference to vehicles assembled or

manufactured in this state.

Sec. 241. (1) Subject to sections 244 and 265a, the funds

appropriated in section 236 to public universities shall be paid

out of the state treasury and distributed by the state treasurer to

the respective institutions in 11 equal monthly installments on the

sixteenth of each month, or the next succeeding business day,

beginning with October 16, ~~2016.~~ 2017. Except for Wayne State

University, each institution shall accrue its July and August ~~2017~~

2018 payments to its institutional fiscal year ending June 30,

~~2017.~~2018.

(2) All public universities shall submit higher education

institutional data inventory (HEIDI) data and associated financial

and program information requested by and in a manner prescribed by

the state budget director. For public universities with fiscal

years ending June 30, ~~2016,~~ 2017, these data shall be submitted to

the state budget director by October 15, ~~2016.~~ 2017. Public

universities with a fiscal year ending September 30, ~~2016~~ 2017

shall submit preliminary HEIDI data by November 15, ~~2016~~ 2017 and

final data by December 15, ~~2016.~~ 2017. If a public university fails

to submit HEIDI data and associated financial aid program

information in accordance with this reporting schedule, the state

treasurer may withhold the monthly installments under subsection

(1) to the public university until those data are submitted.

Sec. 244. A By October 15 of each year, a public university

receiving funds in section 236 shall ~~cooperate with all measures~~

~~taken by the state to develop, operate, and maintain~~ provide its

longitudinal data system data set for the preceding academic year

to the center for inclusion in the statewide P-20 longitudinal data

system described in section 94a. If the state budget director finds

that a university has not complied with this section, the state

budget director is authorized to withhold the monthly installments

provided to that university under section 241 until he or she finds

the university has complied with this section.

Sec. 245. (1) A public university shall maintain a public

transparency website available through a link on its website

homepage. The public university shall update this website within 30

days after the university's governing board adopts its annual

operating budget for the next academic year, or after the governing

board adopts a subsequent revision to that budget.

(2) The website required under subsection (1) shall include

all of the following concerning the public university:

(a) The annual operating budget and subsequent budget

revisions.

(b) A summary of current expenditures for the most recent

fiscal year for which they are available, expressed as pie charts

in the following 2 categories:

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

following subcategories:

(A) Earnings and wages.

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

medical, dental, vision, life, disability, and long-term care

benefits.

(D) All other personnel costs.

(ii) A chart of all current expenditures the public university

reported as part of its higher education institutional data

inventory data under section 241(2), broken into the same

subcategories in which it reported those data.

(i) The current collective bargaining agreement for each

bargaining unit.

(ii) Each health care benefits plan, including, but not

limited to, medical, dental, vision, disability, long-term care, or

any other type of benefits that would constitute health care

services, offered to any bargaining unit or employee of the public

university.

(iii) Audits and financial reports for the most recent fiscal

year for which they are available.

(iv) Campus security policies and crime statistics pursuant to

the student right-to-know and campus security act, Public Law 101-

542, 104 ~~Stat.~~ Stat 2381. Information shall include all material

prepared pursuant to the public information reporting requirements

under the crime awareness and campus security act of 1990, title II

of the student right-to-know and campus security act, Public Law

101-542, 104 ~~Stat.~~ Stat 2381.

(d) A list of all positions funded partially or wholly through

institutional general fund revenue that includes the position title

and annual salary or wage amount for each position.

(e) General fund revenue and expenditure projections for the

current fiscal year and the next fiscal year.

(f) A listing of all debt service obligations, detailed by

project, anticipated fiscal year payment for each project, and

total outstanding debt for the current fiscal year.

(g) The institution's policy regarding the transferability of

core college courses between community colleges and the university.

(h) A listing of all community colleges that have entered into

reverse transfer agreements with the university.

(3) On the website required under subsection (1), a public

university shall provide a dashboard or report card demonstrating

the university's performance in several "best practice" measures.

The dashboard or report card shall include at least all of the

following for the 3 most recent academic years for which the data

are available:

(a) Enrollment.

(b) Student retention rate.

(d) Number of Pell grant recipients and graduating Pell grant

recipients.

(e) Geographic origination of students, categorized as in-

state, out-of-state, and international.

(f) Faculty to student ratios and total university employee to

student ratios.

(g) Teaching load by faculty classification.

(h) Graduation outcome rates, including employment and

continuing education.

(4) For statewide consistency and public visibility, public

universities must use the icon badge provided by the department of

technology, management, and budget consistent with the icon badge

developed by the department of education for K-12 school districts.

It must appear on the front of each public university's homepage.

The size of the icon may be reduced to 150 x 150 pixels. The font

size and style for this reporting must be consistent with other

documents on each university's website.

(5) The state budget director shall determine whether a public

university has complied with this section. The state budget

director may withhold a public university's monthly installments

described in section 241 until the public university complies with

this section.

(6) By November 15 of each year, a public university shall

report the following information to the center ~~for educational~~

~~performance and information~~ and post the information on its website

under the budget transparency icon badge:

(a) Opportunities for earning college credit through the

following programs:

(i) State approved career and technical education or a tech

prep articulated program of study.

(ii) Direct college credit or concurrent enrollment.

(iii) Dual enrollment.

(iv) An early college/middle college program.

(b) For each program described in subdivision (a) that the

public university offers, all of the following information:

(i) The number of high school students participating in the

program.

(ii) The number of school districts that participate in the

program with the public university.

(iii) Whether a university professor, qualified local school

district employee, or other individual teaches the course or

courses in the program.

(iv) The total cost to the public university to operate the

program.

(v) The cost per credit hour for the course or courses in the

program.

(vi) The location where the course or courses in the program

are held.

(vii) Instructional resources offered to the program

instructors.

(viii) Resources offered to the student in the program.

(ix) Transportation services provided to students in the

program.

Sec. 249. (1) The funds appropriated in section 236 for the

children of veterans and officer's survivor tuition grant programs

shall be supported with revenue from the restricted account created

in section 5 of the children of veterans tuition grant act, 2005 PA

248, MCL 390.1345. As provided in section 5 of the children of

veterans tuition grant act, 2005 PA 248, MCL 390.1345, unexpended

funds remaining in the restricted account at the end of the fiscal

year shall not lapse to the general fund.

(2) The general fund/general purpose funds appropriated in

section 236 for the children of veterans and officer's survivor

tuition grant programs shall be deposited into the restricted

account described in subsection (1), as required in section 5 of

the children of veterans tuition grant act, 2005 PA 248, MCL

390.1345.

(3) Funds deposited into the restricted account under

subsection (2) for the children of veterans and officer's survivor

tuition grant programs are appropriated and available for

allocation as required in the children of veterans tuition grant

act, 2005 PA 248, MCL 390.1341 to 390.1346.

Sec. 250. To be considered eligible for any scholarship or

grant financial aid program administered by the department of

treasury, the student must file the Free Application for Federal

Student Aid (FAFSA) annually.

Sec. 251. (1) Payments of the amounts included in section 236

for the state competitive scholarship program shall be distributed

pursuant to 1964 PA 208, MCL 390.971 to 390.981.

(2) Pursuant to section 6 of 1964 PA 208, MCL 390.976, the

department of treasury shall determine an actual maximum state

competitive scholarship award per student, which shall be not less

than ~~$575.00,~~ $775.00, that ensures that the aggregate payments for

the state competitive scholarship program do not exceed the

appropriation contained in section 236 for the state competitive

scholarship program. If the department determines that insufficient

funds are available to establish a maximum award amount equal to at

least ~~$575.00,~~ $775.00, the department shall immediately report to

the house and senate appropriations subcommittees on higher

education, the house and senate fiscal agencies, and the state

budget director regarding the estimated amount of additional funds

necessary to establish a ~~$575.00~~ $775.00 maximum award amount.

(3) The department of treasury shall implement a proportional

competitive scholarship maximum award level for recipients enrolled

less than full-time in a given semester or term.

(4) If a student who receives an award under this section has

his or her tuition and fees paid under the Michigan educational

trust program, pursuant to the Michigan education trust act, 1986

PA 316, MCL 390.1421 to 390.1442, and still has financial need, the

funds awarded under this section may be used for educational

expenses other than tuition and fees.

(5) If the department of treasury increases the maximum award

per eligible student from that provided in the previous fiscal

year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards.

(6) Veterans Administration benefits shall not be considered

in determining eligibility for the award of scholarships under 1964

PA 208, MCL 390.971 to 390.981.

(7) Any unexpended and unencumbered funds remaining on

September 30, 2018 from the amounts appropriated in section 236 for

the state competitive scholarship program for fiscal year 2017-2018

do not lapse on September 30, 2018, but continue to be available

for the expenditure for state competitive scholarships provided in

the 2018-2019 fiscal year under a work project account. The use of

these unexpended fiscal year 2017-2018 funds terminates at the end

of the 2018-2019 fiscal year.

Sec. 252. (1) The amounts appropriated in section 236 for the

state tuition grant program shall be distributed pursuant to 1966

PA 313, MCL 390.991 to 390.997a.

(2) Tuition grant awards shall be made to all eligible

Michigan residents enrolled in undergraduate degree programs who

are qualified and who apply before July 1, ~~of each year for the~~

~~next academic year.~~2017 for the 2017-2018 academic year. Beginning

with the 2018-2019 academic year, tuition grant awards shall be

made to all eligible Michigan residents enrolled in undergraduate

degree programs who are qualified and who apply before June 1 of

each year for the next academic year.

(3) Beginning with the 2018-2019 academic year, a tuition

grant may be renewed for not more than 10 semesters or its

equivalent in trimesters or quarters of undergraduate education, or

if an eligible applicant has not completed using the grant within

10 years after his or her eligibility is determined, whichever

occurs first. The department shall determine an equivalent to 10

semesters or its equivalent in trimesters or quarters of

undergraduate education for less than full-time but more than half-

time students.

(4) ~~(3)~~ Pursuant to section 5 of 1966 PA 313, MCL 390.995, and

subject to subsections ~~(7)~~ (8) and ~~(8),~~ (9), the department of

treasury shall determine an actual maximum tuition grant award per

student, which shall be no less than ~~$1,512.00,~~ $1,750.00, that

ensures that the aggregate payments for the tuition grant program

do not exceed the appropriation contained in section 236 for the

state tuition grant program. If the department determines that

insufficient funds are available to establish a maximum award

amount equal to at least ~~$1,512.00,~~ $1,750.00, the department shall

immediately report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director regarding the estimated

amount of additional funds necessary to establish a ~~$1,512.00~~

$1,750.00 maximum award amount. If the department determines that

sufficient funds are available to establish a maximum award amount

equal to at least ~~$1,512.00,~~ $1,750.00, the department shall

immediately report to the house and senate appropriations

subcommittees on higher education, the house and senate fiscal

agencies, and the state budget director regarding the maximum award

amount established and the projected amount of any projected year-

end appropriation balance based on that maximum award amount. By

February 18 of each fiscal year, the department shall analyze the

status of award commitments, shall make any necessary adjustments,

and shall confirm that those award commitments will not exceed the

appropriation contained in section 236 for the tuition grant

program. The determination and actions shall be reported to the

state budget director and the house and senate fiscal agencies no

later than the final day of February of each year. If award

adjustments are necessary, the students shall be notified of the

adjustment by March 4 of each year.

(5) ~~(4)~~ Any unexpended and unencumbered funds remaining on

September 30, ~~2017~~ 2018 from the amounts appropriated in section

236 for the tuition grant program for fiscal year ~~2016-2017 shall~~

2017-2018 do not lapse on September 30, ~~2017,~~ 2018, but ~~shall~~

continue to be available for expenditure for tuition grants

provided in the ~~2017-2018~~ 2018-2019 fiscal year under a work

project account. The use of these unexpended fiscal year ~~2016-2017~~

2018-2019 funds ~~shall terminate~~ terminates at the end of the ~~2017-~~

~~2018~~ 2018-2019 fiscal year.

(6) ~~(5)~~ The department of treasury shall continue a

proportional tuition grant maximum award level for recipients

enrolled less than full-time in a given semester or term.

(7) ~~(6)~~ If the department of treasury increases the maximum

award per eligible student from that provided in the previous

fiscal year, it shall not have the effect of reducing the number of

eligible students receiving awards in relation to the total number

of eligible applicants. Any increase in the maximum grant shall be

proportional for all eligible students receiving awards for that

fiscal year.

(8) ~~(7)~~ Except as provided in subsection ~~(4),~~ (5), the

department of treasury shall not award more than ~~$3,200,000.00~~

$3,500,000.00 in tuition grants to eligible students enrolled in

the same independent nonprofit college or university in this state.

Any decrease in the maximum grant shall be proportional for all

eligible students enrolled in that college or university, as

determined by the department.

(9) ~~(8)~~ The department of treasury shall not award tuition

grants to otherwise eligible students enrolled in an independent

college or university that does not report, in a form and manner

directed by and satisfactory to the department of treasury, by

~~September 30~~ October 31 of each year, all of the following:

(a) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and successfully completed a

program or graduated.

(b) The number of students in the most recently completed

academic year who in any academic year received a state tuition

grant at the reporting institution and took a remedial education

class.

academic year who in any academic year received a Pell grant at the

reporting institution and successfully completed a program or

graduated.

(10) ~~(9)~~ By February 1, ~~2017,~~ 2018, each independent college

and university participating in the tuition grant program shall

report to the senate and house appropriations subcommittees on

higher education, the senate and house fiscal agencies, and the

state budget director on its efforts to develop and implement

sexual assault response training for the institution's title IX

coordinator, campus law enforcement personnel, campus public safety

personnel, and any other campus personnel charged with responding

to on-campus incidents, including information on sexual assault

response training materials and the status of implementing sexual

assault response training for institutional personnel.

Sec. 254. The sums appropriated in section 236 for the state

competitive scholarship, tuition incentive, and tuition grant

programs shall be paid out of the state treasury and shall be

distributed to the respective institutions under a quarterly

payment system as follows:

(a) For the state competitive scholarship and tuition grant

programs, 50% shall be paid at the beginning of the state's first

fiscal quarter, 30% during the state's second fiscal quarter, 10%

during the state's third fiscal quarter, and 10% during the state's

fourth fiscal quarter.

(b) For the tuition incentive program, ~~55%~~ 65% shall be paid

at the beginning of the state's first fiscal quarter, ~~40%~~ and 35%

during the state's second fiscal quarter. ~~, and 5% during the~~

~~state's third fiscal quarter.~~

Sec. 256. (1) The funds appropriated in section 236 for the

tuition incentive program shall be distributed as provided in this

section and pursuant to the administrative procedures for the

tuition incentive program of the department of treasury.

(2) As used in this section:

(a) "Phase I" means the first part of the tuition incentive

~~assistance~~ program defined as the academic period of 80 semester or

120 term credits, or less, leading to an associate degree or

certificate. Students must be enrolled in a certificate or

associate degree program and taking classes within the program of

study for a certificate or associate degree. Tuition will not be

covered for courses outside of a certificate or associate degree

program.

(b) "Phase II" means the second part of the tuition incentive

~~assistance~~ program which provides assistance in the third and

fourth year of 4-year degree programs.

(d) "High school equivalency certificate" means that term as

defined in section 4.

(3) An individual shall meet the following basic criteria and

financial thresholds to be eligible for tuition incentive program

benefits:

(a) To be eligible for phase I, an individual shall meet all

of the following criteria:

(i) Apply for certification to the department any time after

he or she begins the sixth grade but before August 31 of the school

year in which he or she graduates from high school or before

achieving a high school equivalency certificate.

(ii) Be less than 20 years of age at the time he or she

graduates from high school with a diploma or certificate of

completion or achieves a high school equivalency certificate or,

for students attending a 5-year middle college approved by the

Michigan department of education, be less than 21 years of age when

he or she graduates from high school.

(iii) Be a United States citizen and a resident of ~~Michigan~~

this state according to institutional criteria.

(iv) Be at least a half-time student, earning less than 80

semester or 120 term credits at a participating educational

institution within 4 years of high school graduation or achievement

of a high school equivalency certificate. All program eligibility

expires 6 years from high school graduation or achievement of a

high school equivalency certificate.

(v~~) Request information on filing a FAFSA.~~

(v) (vi) Meet the satisfactory academic progress policy of the

educational institution he or she attends.

(b) To be eligible for phase II, an individual shall meet

either of the following criteria in addition to the criteria in

subdivision (a):

(i) Complete at least 56 transferable semester or 84

transferable term credits.

(ii) Obtain an associate degree or certificate at a

participating institution.

not be incarcerated and must be financially eligible as determined

by the department. An individual is financially eligible for the

tuition incentive program if he or she was eligible for Medicaid

from ~~the~~ this state ~~of Michigan~~ for 24 months within the 36

consecutive months before application. The department shall accept

certification of Medicaid eligibility only from the department of

health and human services for the purposes of verifying if a person

is Medicaid eligible for 24 months within the 36 consecutive months

before application. Certification of eligibility may begin in the

sixth grade. As used in this subdivision, "incarcerated" does not

include detention of a juvenile in a state-operated or privately

operated juvenile detention facility.

(4) Beginning in fiscal year 2017-2018, the department shall

not award more than $8,500,000.00 annually in tuition incentive

program funds to eligible students enrolled in the same college or

university in this state.

(5) For phase I, the department shall provide payment on

behalf of a person eligible under subsection (3). The department

shall only accept standard per-credit hour tuition billings and

shall reject billings that are excessive or outside the guidelines

for the type of educational institution.

(6) For phase I, all of the following apply:

(a) Payments for associate degree or certificate programs

shall not be made for more than 80 semester or 120 term credits for

any individual student at any participating institution.

(b) For persons enrolled at a Michigan community college, the

department shall pay the current in-district tuition and mandatory

fees. For persons residing in an area that is not included in any

community college district, the out-of-district tuition rate may be

authorized.

Michigan public university, the department shall pay lower division

resident tuition and mandatory fees for the current year. Beginning

in fiscal year 2018-2019, for persons enrolled at a Michigan public

university, the department shall pay mandatory fees for the current

year and a per-credit payment that does not exceed 3 times the

average community college in-district per-credit tuition rate as

reported on August 1 for the immediately preceding academic year.

(d) For persons enrolled at a Michigan independent, nonprofit

degree-granting college or university, or a Michigan federal

tribally controlled community college, or Focus: HOPE, the

department shall pay mandatory fees for the current year and a per-

credit payment that does not exceed the average community college

in-district per-credit tuition rate as reported on August 1, for

the immediately preceding academic year.

(7) A person participating in phase II may be eligible for

additional funds not to exceed $500.00 per semester or $400.00 per

term up to a maximum of $2,000.00 subject to the following

conditions:

(a) Credits are earned in a 4-year program at a Michigan

degree-granting 4-year college or university.

(b) The tuition reimbursement is for coursework completed

within 30 months of completion of the phase I requirements.

(8) The department shall work closely with participating

institutions to develop an application and eligibility

determination process that will provide the highest level of

participation and ensure that all requirements of the program are

met.

(9) Applications for the tuition incentive program may be

approved at any time after the student begins the sixth grade. If a

determination of financial eligibility is made, that determination

is valid as long as the student meets all other program

requirements and conditions.

(10) Each institution shall ensure that all known available

restricted grants for tuition and fees are used prior to billing

the tuition incentive program for any portion of a student's

tuition and fees.

(11) The department shall ensure that the tuition incentive

program is well publicized and that eligible Medicaid clients are

provided information on the program. The department shall provide

the necessary funding and staff to fully operate the program.

(12) Any unexpended and unencumbered funds remaining on

September 30, 2018 from the amounts appropriated in section 236 for

the tuition incentive program for fiscal year 2017-2018 do not

lapse on September 30, 2018, but continue to be available for

expenditure for tuition incentive program funds provided in the

2018-2019 fiscal year under a work project account. The use of

these unexpended fiscal year 2017-2018 funds terminates at the end

of the 2018-2019 fiscal year.

(13) The department of treasury shall collaborate with the

center to use the P-20 longitudinal data system to report the

following information for each qualified postsecondary institution:

(a) The number of phase I students in the most recently

completed academic year who in any academic year received a tuition

incentive program award and who successfully completed a degree or

certificate program. Cohort graduation rates for phase I students

shall be calculated using the established success rate methodology

developed by the center in collaboration with the postsecondary

institutions.

(b) The number of students in the most recently completed

academic year who in any academic year received a Pell grant at the

reporting institution and who successfully completed a degree or

certificate program. Cohort graduation rates for students who

received Pell grants shall be calculated using the established

success rate methodology developed by the center in collaboration

with the postsecondary institutions.

(14) If a qualified postsecondary institution does not report

the data necessary to comply with subsection (13) to the P-20

longitudinal data system, the institution shall report, in a form

and manner satisfactory to the department of treasury and the

center, all of the information needed to comply with subsection

(13) by December 1, 2017.

(15) Beginning in fiscal year 2018-2019, if a qualified

postsecondary institution does not report the data necessary to

complete the reporting in subsection (13) to the P-20 longitudinal

data system by October 15 for the prior academic year, the

department of treasury shall not award phase I tuition incentive

program funding to otherwise eligible students enrolled in that

institution until the data are submitted.

Sec. 263. (1) Included in the appropriation in section 236 for

fiscal year ~~2016-2017~~ 2017-2018 for MSU AgBioResearch is

$2,982,900.00 and included in the appropriation in section 236 for

MSU Extension is $2,645,200.00 for Project GREEEN. Project GREEEN

is intended to address critical regulatory, food safety, economic,

and environmental problems faced by this state's plant-based

agriculture, forestry, and processing industries. "GREEEN" is an

acronym for Generating Research and Extension to Meet Environmental

and Economic Needs.

(2) The department of agriculture and rural development and

Michigan State University, in consultation with agricultural

commodity groups and other interested parties, shall develop

Project GREEEN and its program priorities.

Sec. 263a. (1) Not later than September 30 of each year,

Michigan State University shall submit a report on MSU

AgBioResearch and MSU Extension to the house and senate

appropriations subcommittees on agriculture and on higher

education, the house and senate standing committees on agriculture,

the house and senate fiscal agencies, and the state budget director

for the preceding academic fiscal year.

(2) The report required under subsection (1) shall include all

of the following:

(a) Total funds expended by MSU AgBioResearch and by MSU

Extension identified by state, local, private, federal, and

university fund sources.

(b) The metric goals that were used to evaluate the impacts of

programs operated by MSU Extension and MSU AgBioResearch. The

following metric goals will be used to evaluate the impacts of

those programs:

(i) Increasing the number of agriculture and food-related

firms collaborating with and using services of research and

extension faculty and staff by 3% per year.

(ii) Increasing the number of individuals utilizing MSU

Extension's educational services by 5% per year.

(iii) Increasing external funds generated in support of

research and extension, beyond state appropriations, by 10% over

the amounts generated in the past 3 state fiscal years.

(iv) Increasing the sector's total economic impact to at least

~~$100,000,000,000.00.~~$125,000,000,000.00.

(v) Increasing Michigan's agricultural exports to at least

~~$3,500,000,000.00.~~$4,250,000,000.00.

(vi~~) Increasing jobs in the food and agriculture sector by~~

~~10%.~~

(vi) (~~vii~~) Improving access by Michigan consumers to healthy

foods by 20%.

and MSU Extension with specific reference to accomplishments,

impacts, and the metrics described in subdivision (b), including a

specific accounting of Project GREEEN expenditures and the impact

of those expenditures.

Sec. 264. Included in the appropriation in section 236 for

fiscal year ~~2016-2017~~ 2017-2018 for Michigan State University is

$80,000.00 for the Michigan Future Farmers of America Association.

This $80,000.00 allocation shall not supplant any existing support

that Michigan State University provides to the Michigan Future

Farmers of America Association.

Sec. 265. (1) Payments under section 265a for performance

funding shall only be made to a public university that certifies to

the state budget director by August 31, ~~2016~~ 2017 that its board

did not adopt an increase in tuition and fee rates for resident

undergraduate students after September 1, ~~2015~~ 2016 for the ~~2015-~~

~~2016~~ 2016-2017 academic year and that its board will not adopt an

increase in tuition and fee rates for resident undergraduate

students for the ~~2016-2017~~ 2017-2018 academic year that is greater

than ~~4.2%.~~ 3.8% or $475.00, whichever is greater. As used in this

subsection:

(a) "Fee" means any board-authorized fee that will be paid by

more than 1/2 of all resident undergraduate students at least once

during their enrollment at a public university, as described in the

higher education institutional data inventory (HEIDI) user manual.

A university increasing a fee that applies to a specific subset of

students or courses shall provide sufficient information to prove

that the increase applied to that subset will not cause the

increase in the average amount of board-authorized total tuition

and fees paid by resident undergraduate students in the ~~2016-2017~~

2017-2018 academic year to exceed the limit established in this

subsection.

(b) "Tuition and fee rate" means the average of full-time

rates paid by a majority of students in each undergraduate class,

based on an unweighted average of the rates authorized by the

university board and actually charged to students, deducting any

uniformly rebated or refunded amounts, for the 2 semesters with the

highest levels of full-time equated resident undergraduate

enrollment during the academic year, as described in the higher

education institutional data inventory (HEIDI) user manual.

that compels resident undergraduate students to be covered by

health insurance as a condition to enroll at the university, "fee"

includes the annual amount a student is charged for coverage by the

university-affiliated group health insurance policy if he or she

does not provide proof that he or she is otherwise covered by

health insurance. This subdivision does not apply to limited

subsets of resident undergraduate students to be covered by health

insurance for specific reasons other than general enrollment at the

university.

(2) The state budget director shall implement uniform

reporting requirements to ensure that a public university receiving

a payment under section 265a for performance funding has satisfied

the tuition restraint requirements of this section. The state

budget director shall have the sole authority to determine if a

public university has met the requirements of this section.

Information reported by a public university to the state budget

director under this subsection shall also be reported to the house

and senate appropriations subcommittees on higher education and the

house and senate fiscal agencies.

(3) Universities that exceed the tuition and fee rate cap

described in subsection (1) shall not receive a planning or

construction authorization for a state-funded capital outlay

project in fiscal year ~~2017-2018~~ 2018-2019 or fiscal year ~~2018-~~

~~2019.~~2019-2020.

(4) Notwithstanding any other provision of this act, the

legislature may at any time adjust appropriations for a university

that adopts an increase in tuition and fee rates for resident

undergraduate students that exceeds the rate cap established in

subsection (1).

Sec. 265a. (1) Appropriations to public universities in

section 236 for fiscal year ~~2016-2017~~ 2017-2018 for performance

funding shall be paid only to a public university that complies

with section 265 and certifies to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies by August 31, ~~2016~~ 2017

that it complies with all of the following requirements:

(a) The university participates in reverse transfer agreements

described in section 286 with at least 3 Michigan community

colleges.

(b) The university does not and will not consider whether dual

enrollment credits earned by an incoming student were utilized

towards his or her high school graduation requirements when making

a determination as to whether those credits may be used by the

student toward completion of a university degree or certificate

program.

updates to the Michigan Transfer Network created as part of the

Michigan Association of Collegiate Registrars and Admissions

Officers transfer agreement.

(2) Any performance funding amounts under section 236 that are

not paid to a public university because it did not comply with 1 or

more requirements under subsection (1) are unappropriated and

reappropriated for performance funding to those public universities

that meet the requirements under subsection (1), distributed in

proportion to their performance funding appropriation amounts under

section 236.

(3) The state budget director shall report to the house and

senate appropriations subcommittees on higher education and the

house and senate fiscal agencies by September 30, ~~2016,~~ 2017,

regarding any performance funding amounts that are not paid to a

public university because it did not comply with 1 or more

requirements under subsection (1) and any reappropriation of funds

under subsection (2).

(4) Performance funding amounts described in section 236 are

distributed based on the following formula:

(a) Proportional to each university's share of total

operations funding appropriated in fiscal year 2010-2011, 50%.

(b) Based on weighted undergraduate completions in critical

skills areas, 11.1%.

universities classified in Carnegie classifications as

~~doctoral/research universities, research universities (high~~

~~research activity), or research universities (very high research~~

~~activity)~~ doctoral universities: moderate research activity,

doctoral universities: higher research activity, or doctoral

universities: highest research activity only, 5.6%.

(d) Based on 6-year graduation rate, total degree completions,

and institutional support as a percentage of core expenditures, and

the percentage of students receiving Pell grants, scored against

national Carnegie classification peers and weighted by total

undergraduate fiscal year equated students, 33.3%.

(5) For purposes of determining the score of a university

under subsection (4)(d), each university is assigned 1 of the

following scores:

(a) A university classified as in the top 20%, a score of 3.

(b) A university classified as above national median, a score

of 2.

the intent of the legislature that, beginning in the ~~2017-2018~~

2018-2019 state fiscal year, a university classified as improving

is assigned a score of 1.

(d) A university that is not included in subdivision (a), (b),

or (c), a score of 0.

(6) As used in this section, "Carnegie classification" means

the basic classification of the university according to the most

recent version ~~prior to February 1, 2016~~ of the Carnegie

classification of institutions of higher education, published by

the Carnegie Foundation for the Advancement of Teaching.

Sec. 267. All public universities shall submit the amount of

tuition and fees actually charged to a full-time resident

undergraduate student for academic year ~~2016-2017~~ 2017-2018 as part

of their higher education institutional data inventory (HEIDI) data

by August 31 of each year. A public university shall report any

revisions for any semester of the reported academic year ~~2016-2017~~

2017-2018 tuition and fee charges to HEIDI within 15 days of being

adopted.

Sec. 268. (1) For the fiscal year ending September 30, ~~2017,~~

2018, it is the intent of the legislature that funds be allocated

for unfunded North American Indian tuition waiver costs incurred by

public universities under 1976 PA 174, MCL 390.1251 to 390.1253,

from the general fund.

(2) By February 15 of each year, the department of civil

rights shall annually submit to the state budget director, the

house and senate appropriations subcommittees on higher education,

and the house and senate fiscal agencies a report on North American

Indian tuition waivers for the preceding ~~fiscal~~ academic year that

includes, but is not limited to, all of the following information:

(a) The number of waiver applications received and the number

of waiver applications approved.

(b) For each university submitting information under

subsection (3), all of the following:

(i) The number of graduate and undergraduate North American

Indian students enrolled each term for the previous ~~fiscal~~ academic

year.

(ii) The number of North American Indian waivers granted each

term, including to continuing education students, and the monetary

value of the waivers for the previous ~~fiscal~~ academic year.

(iii) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who withdrew

from the university each term during the previous ~~fiscal~~ academic

year. For purposes of this subparagraph, a withdrawal occurs when a

student who has been awarded the waiver withdraws from the

institution at any point during the term, regardless of enrollment

in subsequent terms.

(iv) The number of graduate and undergraduate students

attending under a North American Indian tuition waiver who

successfully complete a degree or certificate program, separated by

degree or certificate level, and the graduation rate for graduate

and undergraduate students attending under a North American Indian

tuition waiver who complete a degree or certificate within 150% of

the normal time to complete, separated by the level of the degree

or certificate.

(3) A public university that receives funds under section 236

shall provide to the department of civil rights any information

necessary for preparing the report detailed in subsection (2),

using guidelines and procedures developed by the department of

civil rights.

(4) The department of civil rights may consolidate the report

required under this section with the report required under section

223, but a consolidated report must separately identify data for

universities and data for community colleges.

Sec. 269. For fiscal year ~~2016-2017,~~ 2017-2018, from the

amount appropriated in section 236 to Central Michigan University

for operations, $29,700.00 shall be paid to Saginaw Chippewa Tribal

College for the costs of waiving tuition for North American Indians

under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 270. For fiscal year ~~2016-2017,~~ 2017-2018, from the

amount appropriated in section 236 to Lake Superior State

University for operations, $100,000.00 shall be paid to Bay Mills

Community College for the costs of waiving tuition for North

American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

Sec. 274. It is the intent of the legislature that public and

private organizations that conduct human embryonic stem cell

derivation subject to section 27 of article I of the state

constitution of 1963 will provide information to the director of

the department of health and human services by December 1, ~~2016~~

2017 that includes all of the following:

(a) Documentation that the organization conducting human

embryonic stem cell derivation is conducting its activities in

compliance with the requirements of section 27 of article I of the

state constitution of 1963 and all relevant National Institutes of

Health guidelines pertaining to embryonic stem cell derivation.

(b) A list of all human embryonic stem cell lines submitted by

the organization to the National Institutes of Health for inclusion

in the Human Embryonic Stem Cell Registry before and during fiscal

year ~~2015-2016,~~ 2016-2017, and the status of each submission as

approved, pending approval, or review completed but not yet

accepted.

submitted for inclusion in the Human Embryonic Stem Cell Registry,

before and during fiscal year ~~2015-2016.~~2016-2017.

Sec. 274c. By February 1, ~~2017,~~ 2018, each university

receiving funds under section 236 shall report to the senate and

house appropriations subcommittees on higher education, the senate

and house fiscal agencies, and the state budget director on its

efforts to develop and implement sexual assault response training

for the university's title IX coordinator, campus law enforcement

personnel, campus public safety personnel, and any other campus

personnel charged with responding to on-campus incidents, including

information on sexual assault response training materials and the

status of implementing sexual assault response training for campus

personnel.

Sec. 274d. By October 31, each university receiving funds

under section 236 shall report to the senate and house

appropriations subcommittees on higher education, the senate and

house fiscal agencies, and the state budget director its annual

title IX report, also known as the student sexual misconduct

report, issued by the title IX coordinator, as required under the

federal campus save act of 2013, Public Law 113-4, section 304,

127, Stat 54, 89-92 (2013).

Sec. 275. (1) ~~It is the intent of the legislature that each~~

Each public university that receives an appropriation in section

236 shall do all of the following:

(a) Meet the provisions of section 5003 of the post-911

veterans educational assistance act of 2008, 38 USC 3301 to ~~3325,~~

3327, including voluntary participation in the Yellow Ribbon GI

Education Enhancement Program established in that act in 38 USC

3317. By October 1 of each year, each public university shall

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

Michigan Association of State Universities on whether or not it has

chosen to participate in the Yellow Ribbon GI Education Enhancement

Program. If at any time during the fiscal year a university

participating in the Yellow Ribbon Program chooses to leave the

Yellow Ribbon Program, it shall notify the house and senate

appropriations subcommittees on higher education, the house and

senate fiscal agencies, and the Michigan Association of State

Universities.

(b) Establish an on-campus veterans' liaison to provide

information and assistance to all student veterans.

veterans.

(d) Include in its admission application process a specific

question as to whether an applicant for admission is a veteran, an

active member of the military, a member of the National Guard or

military reserves, or the spouse or dependent of a veteran, active

member of the military, or member of the National Guard or military

reserves, in order to more quickly identify potential educational

assistance available to that applicant.

(e) Consider all veterans residents of this state for

determining their tuition rates and fees.

(f) Waive enrollment fees for all veterans.

(2) By October 1 of each year, each public university shall

report to the house and senate appropriations subcommittees on

higher education, the house and senate fiscal agencies, and the

department of military and veterans affairs regarding services

provided specifically to veterans and active military duty

personnel, including, but not limited to, the services described in

subsection (1).

(3) As used in this section, "veteran" means an honorably

discharged veteran entitled to educational assistance under the

provisions of section 5003 of the post-911 veterans educational

assistance act of 2008, 38 USC 3301 to ~~3325.~~3327.

Sec. 276. (1) Included in the appropriation for fiscal year

~~2016-2017~~ 2017-2018 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

future faculty program that is intended to increase the pool of

academically or economically disadvantaged candidates pursuing

faculty teaching careers in postsecondary education. Preference may

not be given to applicants on the basis of race, color, ethnicity,

gender, or national origin. Institutions should encourage

applications from applicants who would otherwise not adequately be

represented in the graduate student and faculty populations. Each

public university shall apply the percentage change applicable to

every public university in the calculation of appropriations in

section 236 to the amount of funds allocated to the future faculty

program.

(2) The program shall be administered by each public

university in a manner prescribed by the workforce development

agency. The workforce development agency shall use a good faith

effort standard to evaluate whether a fellowship is in default.

Sec. 277. (1) Included in the appropriation for fiscal year

~~2016-2017~~ 2017-2018 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

college day program that is intended to introduce academically or

economically disadvantaged schoolchildren to the potential of a

college education. Preference may not be given to participants on

the basis of race, color, ethnicity, gender, or national origin.

Public universities should encourage participation from those who

would otherwise not adequately be represented in the student

population.

(2) Individual program plans of each public university shall

include a budget of equal contributions from this program, the

participating public university, the participating school district,

and the participating independent degree-granting college. College

day funds shall not be expended to cover indirect costs. Not more

than 20% of the university match shall be attributable to indirect

costs. Each public university shall apply the percentage change

applicable to every public university in the calculation of

appropriations in section 236 to the amount of funds allocated to

the college day program.

(3) The program described in this section shall be

administered by each public university in a manner prescribed by

the workforce development agency.

Sec. 278. (1) Included in section 236 for fiscal year ~~2016-~~

~~2017~~ 2017-2018 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks select student support services program for

developing academically or economically disadvantaged student

retention programs for 4-year public and independent educational

institutions in this state. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

student population.

(2) An award made under this program to any 1 institution

shall not be greater than $150,000.00, and the amount awarded shall

be matched on a 70% state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 279. (1) Included in section 236 for fiscal year ~~2016-~~

~~2017~~ 2017-2018 is funding for the Martin Luther King, Jr. - Cesar

Chavez - Rosa Parks college/university partnership program between

4-year public and independent colleges and universities and public

community colleges, which is intended to increase the number of

academically or economically disadvantaged students who transfer

from community colleges into baccalaureate programs. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Institutions should

encourage participation from those who would otherwise not

adequately be represented in the transfer student population.

(2) The grants shall be made under the program described in

this section to Michigan public and independent colleges and

universities. An award to any 1 institution shall not be greater

than $150,000.00, and the amount awarded shall be matched on a 70%

state, 30% college or university basis.

(3) The program described in this section shall be

administered by the workforce development agency.

Sec. 280. (1) Included in the appropriation for fiscal year

~~2016-2017~~ 2017-2018 for each public university in section 236 is

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks

visiting professors program which is intended to increase the

number of instructors in the classroom to provide role models for

academically or economically disadvantaged students. Preference may

not be given to participants on the basis of race, color,

ethnicity, gender, or national origin. Public universities should

encourage participation from those who would otherwise not

adequately be represented in the student population.

(2) The program described in this section shall be

administered by the workforce development agency.

Sec. 281. (1) Included in the appropriation for fiscal year

~~2016-2017~~ 2017-2018 in section 236 is funding under the Martin

Luther King, Jr. - Cesar Chavez - Rosa Parks initiative for the

Morris Hood, Jr. educator development program which is intended to

increase the number of academically or economically disadvantaged

students who enroll in and complete K-12 teacher education programs

at the baccalaureate level. Preference may not be given to

participants on the basis of race, color, ethnicity, gender, or

national origin. Institutions should encourage participation from

those who would otherwise not adequately be represented in the

teacher education student population.

(2) The program described in this section shall be

administered by each state-approved teacher education institution

in a manner prescribed by the workforce development agency.

(3) Approved teacher education institutions may and are

encouraged to use student support services funding in coordination

with the Morris Hood, Jr. funding to achieve the goals of the

program described in this section.

Sec. 282. Each institution receiving funds for fiscal year

~~2016-2017~~ 2017-2018 under section 278, 279, or 281 shall ~~notify~~

provide to the workforce development agency by April 15, ~~2017 as to~~

~~whether it will expend by the end of its fiscal year the funds~~

~~received under section 278, 279, or 281.~~ 2018 the unobligated and

unexpended funds as of March 31, 2018 and a plan to expend the

remaining funds by the end of the fiscal year. Notwithstanding the

award limitations in sections 278 and 279, the amount of funding

reported as not being expended will be reallocated to the

institutions that intend to expend all funding received under

section 278, 279, or 281.

Sec. 283. (1) ~~From the amount appropriated in section 236, the~~

~~public universities shall systematically~~ Using the data provided to

the center as required by section 244 of this act, the center shall

use the P-20 longitudinal data system to inform interested Michigan

high schools and the public regarding the aggregate academic status

of its students. ~~from each high school in a manner prescribed by~~

The center shall work with the universities and the Michigan

Association of State Universities and in cooperation with the

Michigan Association of Secondary School Principals. ~~Public~~

~~universities shall also work with the center for educational~~

~~performance and information to maintain a systematic approach for~~

~~accomplishing this task.~~

(2) Michigan high schools shall systematically inform the

public universities about the use of information received under

this section in a manner prescribed by the Michigan Association of

Secondary School Principals in cooperation with the Michigan

Association of State Universities.

Sec. 284. ~~From the amount appropriated in section 236, the~~

~~public universities~~ Using data provided to the center as required

by section 244 of this act, the center shall use the P-20

longitudinal data system to inform Michigan community colleges

regarding the academic status of community college transfer

students. ~~in a manner prescribed by~~ The center shall work with the

universities and the Michigan Association of State Universities in

cooperation with the Michigan Community College Association. ~~Public~~

~~universities shall also work with the center for educational~~

~~performance and information to maintain a systematic approach for~~

~~accomplishing this task.~~

Sec. 286a. By February 1, ~~2017,~~ 2018, the Michigan Community

College Association, the Michigan Association of State

Universities, and the Michigan Independent Colleges and

Universities, on behalf of their member colleges and universities,

shall submit to the senate and house appropriations subcommittees

on higher education, the senate and house appropriations

subcommittees on community colleges, the senate and house fiscal

agencies, and the state budget director a comprehensive report

detailing the number of academic program partnerships between

public community colleges, public universities, and private

colleges and universities, including, but not limited to, the

following information:

(a) The names of the baccalaureate degree programs of study

offered by public and private universities on community college

campuses.

(b) The names of the articulation agreements for baccalaureate

degree programs of study between public community colleges, public

universities, and private colleges and universities.

awarded through articulation agreements, and the number of courses

offered, number of students enrolled, and number of degrees awarded

through on-campus programs named in subdivision (a) from July 1,

~~2015~~ 2016 through June 30, ~~2016.~~2017.

Enacting section 1. (1) In accordance with section 30 of

article IX of the state constitution of 1963, total state spending

from state sources on state school aid under article I of the state

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

amended by 2016 PA 249 and this amendatory act, for fiscal year

2016-2017 is estimated at $12,326,709,400.00, and state

appropriations for school aid to be paid to local units of

government for fiscal year 2016-2017 are estimated at

$12,162,929,700.00. In accordance with section 30 of article IX of

the state constitution of 1963, total state spending from state

sources on school aid under article I of the state school aid act

of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as amended by this

amendatory act, for fiscal year 2017-2018 is estimated at

$12,582,507,200.00, and state appropriations for school aid to be

paid to local units of government for fiscal year 2017-2018 are

estimated at $12,417,153,600.00.

(2) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

community colleges for fiscal year 2017-2018 under article II of

the state school aid act of 1979, 1979 PA 94, MCL 388.1801 to

388.1830, is estimated at $395,142,600.00 and the amount of that

state spending from state sources to be paid to local units of

House Bill No. 4313 as amended May 2, 2017

government for fiscal year 2017-2018 is estimated at

$395,142,600.00.

(3) In accordance with section 30 of article IX of the state

constitution of 1963, total state spending from state sources for

higher education for fiscal year 2017-2018 under article III of the

state school aid act of 1979, 1979 PA 94, MCL 388.1836 to 388.1891,

is estimated at [$1,509,598,000.00] and the amount of that state

spending from state sources to be paid to local units of government

for fiscal year 2017-2018 is estimated at $0.00.

Enacting section 2. Sections 11o, 20g, 21, 31c, 31h, 31j, 32q,

35, 55, 63, 65, and 95a of the state school aid act of 1979, 1979

PA 94, MCL 388.1611o, 388.1620g, 388.1621, 388.1631c, 388.1631h,

388.1631j, 388.1632q, 388.1635, 388.1655, 388.1663, 388.1665, and

388.1695a, are repealed effective October 1, 2017.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2017.

(2) Sections 11, 11m, 11r, 11s, 15, 22a, 22b, 22g, 26a, 26c,

31f, 39a, 51a, 51c, 56, 61b, and 62 of the state school aid act of

1979, 1979 PA 94, MCL 388.1611, 388.1611m, 388.1611r, 388.1611s,

388.1615, 388.1622a, 388.1622b, 388.1622g, 388.1626a, 388.1626c,

388.1631f, 388.1639a, 388.1651a, 388.1651c, 388.1656, 388.1661b,

and 388.1662, as amended by this amendatory act, take effect upon

enactment of this amendatory act.

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Bill Text: MI HB4313 | 2017-2018 | 99th Legislature | Engrossed

Michigan House Bill 4313 (Prior Session Legislation)

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