Bill Text: MI HB5565 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Appropriations; supplemental; school aid supplemental for 2010 fiscal year to restore certain vetoed funding; provide for. Amends secs. 11, 20j & 22b of 1979 PA 94 (MCL 388.1611 et seq.).
Spectrum: Moderate Partisan Bill (Democrat 32-9)
Status: (Introduced - Dead) 2009-11-03 - Printed Bill Filed 10/30/2009 [HB5565 Detail]
Download: Michigan-2009-HB5565-Introduced.html
HOUSE BILL No. 5565
October 29, 2009, Introduced by Reps. Corriveau, Bledsoe, Lisa Brown, Polidori, Constan, Kennedy, Barnett, Byrnes, Donigan, Geiss, Gregory, Kandrevas, LeBlanc, Liss, Haugh, Clemente, Warren, Ebli, Walsh, Nathan, Miller, Switalski, Meadows, Griffin, Melton, Stanley, Rocca, Crawford, Dillon, Johnson, Kowall, Moss, Stamas, Rick Jones, Genetski, Roberts, Young, Jackson, Cushingberry, Huckleberry and Knollenberg and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 20j, and 22b (MCL 388.1611, 388.1620j, and
388.1622b), sections 11 and 22b as amended by 2009 PA 121 and
section 20j as amended by 2008 PA 561.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2010,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$10,793,954,100.00
$10,793,105,400.00 from the state school aid
fund established by section 11 of article IX of the state
constitution
of 1963 and the sum of $31,800,000.00 $30,206,200.00
from the general fund. For the fiscal year ending September 30,
2010, there is also appropriated the sum of $450,000,000.00 from
the federal funding awarded to this state under title XIV of the
American recovery and reinvestment act of 2009, Public Law 111-5,
to be used solely for the purpose of funding the primary funding
formula calculated under section 20, in accordance with federal
law. In addition, other available federal funds are appropriated
for the fiscal year ending September 30,2010.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
and 56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act 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. 20j. (1) Foundation allowance supplemental payments for
2008-2009
2009-2010 to districts that in the 1994-95 state fiscal
year had a foundation allowance greater than $6,500.00 shall be
calculated under this section.
(2) The per pupil allocation to each district under this
section shall be the difference between the basic foundation
allowance for the 1998-99 state fiscal year and $7,204.00 less
$271.00 minus the dollar amount of the adjustment from the 1998-99
state fiscal year to 2007-2008 in the 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. 22b. (1) From the state funds appropriated in section 11,
there is allocated for 2009-2010 an amount not to exceed
$3,323,800,000.00 for discretionary nonmandated payments to
districts under this section. Funds allocated under this section
that are not expended in the state fiscal year for which they were
allocated, as determined by the department, may be used to
supplement the allocations under sections 22a and 51c in order to
fully fund those calculated allocations for the same fiscal year.
(2) In addition to the state funds allocated in subsection
(1), there is allocated an amount estimated at $450,000,000.00 from
the federal funds awarded to this state under title XIV of the
American recovery and reinvestment act of 2009, Public Law 111-5.
These federal funds shall be distributed in a form and manner
determined by the department based on an equal dollar amount per
the number of membership pupils used to calculate the August 20,
2009 state aid payment and shall be expended in a manner prescribed
by federal law.
(3) Subject to subsection (4) and section 11, the allocation
to a district under this section shall be an amount equal to the
sum of the amounts calculated under sections 20, 20j, 51a(2),
51a(3), and 51a(12), minus the sum of the allocations to the
district under sections 22a and 51c.
(4) In order to receive an allocation under subsection (1),
each district shall do all of the following:
(a) Administer in each grade level that it operates in grades
1 to 5 a standardized assessment approved by the department of
grade-appropriate basic educational skills. A district may use the
Michigan literacy progress profile to satisfy this requirement for
grades 1 to 3. Also, if the revised school code is amended to
require annual assessments at additional grade levels, in order to
receive an allocation under this section each district shall comply
with that requirement.
(b) Comply with sections 1278a and 1278b of the revised school
code, MCL 380.1278a and 380.1278b.
(c) Furnish data and other information required by state and
federal law to the center and the department in the form and manner
specified by the center or the department, as applicable.
(d) Comply with section 1230g of the revised school code, MCL
380.1230g.
(5) 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.
(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, and 51c. If a claim is made by an
entity receiving funds under this act 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 (3). 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 (3).
(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.
Enacting section 1. In accordance with section 30 of article I
of the state constitution of 1963, total state spending in this
amendatory act and in 2009 PA 121 from state sources for fiscal
year 2009-2010 is estimated at $10,823,311,600.00 and state
appropriations to be paid to local units of government for fiscal
year 2009-2010 are estimated at $10,717,953,000.00.
