Bill Text: MI HB6087 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: School aid; categoricals; payment to reimburse districts and intermediate districts for certain short-term loan costs; provide for. Amends 1979 PA 94 (MCL 388.1601 - 388.1896) by adding sec. 11l.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-12-12 - Printed Bill Filed 12/12/2012 [HB6087 Detail]

Download: Michigan-2011-HB6087-Introduced.html

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HOUSE BILL No. 6087

 

December 12, 2012, Introduced by Rep. Brown and referred to the Committee on Appropriations.

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

(MCL 388.1601 to 388.1896) by adding section 11l.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11l. (1) In addition to the appropriations in section 11,

 

there is appropriated from the general fund an amount not to exceed

 

$45,000,000.00 for 2011-2012 for payments to eligible districts and

 

intermediate districts to reimburse them for the costs of borrowing

 

for cash-flow purposes due to the lag between the end of the school

 

fiscal year and the beginning of the state fiscal year.

 

     (2) To be eligible for reimbursement under this section, a

 

district or intermediate district shall meet all of the following:

 

     (a) The district or intermediate district borrowed money and

 

issued notes in the immediately preceding state fiscal year under

 

section 1225 of the revised school code, MCL 380.1225, and those

 

notes were purchased by the Michigan finance authority.

 

     (b) The amount of the general operating fund balance

 

maintained by the district or intermediate district as of the end

 

of the school fiscal year ending in the immediately preceding state

 

fiscal year did not exceed 18% of the district's or intermediate

 

district's general operating budget for that school fiscal year.

 

     (3) The amount of the payment to a district or intermediate

 

district under this section is an amount equal to the total amount

 

of interest for which the district or intermediate district is

 

liable under the notes described in subsection (2)(a).

 

     (4) 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.

 

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

 

shall be paid in full in the December installment payment under

 

that section.