Bill Text: MI SB0173 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: School aid; payments; payment of work project allocation for costs associated with certain dissolved school districts and calculation of state portion of foundation allowance for certain receiving districts; revise. Amends secs. 11, 11r, 20, 20g & 22a of 1979 PA 94 (MCL 388.1611 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2015-09-17 - Re-referred To Committee On Appropriations [SB0173 Detail]
Download: Michigan-2015-SB0173-Engrossed.html
SB-0173, As Passed Senate, March 25, 2015
SUBSTITUTE FOR
SENATE BILL NO. 173
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11, 11r, 20, 20g, and 22a (MCL 388.1611,
388.1611r, 388.1620, 388.1620g, and 388.1622a), sections 11 and 22a
as amended by 2015 PA 5 and sections 20 and 20g as amended and
section 11r as added by 2014 PA 196.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2015,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,827,097,400.00
$11,827,822,400.00 from the state school aid
fund, the sum of $18,000,000.00 from the MPSERS retirement
obligation reform reserve fund created under section 147b, and the
sum of $33,700,000.00 from the general fund. In addition, all other
available federal funds are appropriated for the fiscal year ending
September 30, 2015.
(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. 11r. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $4,000,000.00 $2,400,000.00 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) 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.
Sec. 20. (1) For 2014-2015, both of the following apply:
(a) The basic foundation allowance is $8,099.00.
(b) The minimum foundation allowance is $7,126.00.
(2) The amount of each district's foundation allowance shall
be calculated as provided in this section, using a basic foundation
allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount
of a district's foundation allowance shall be calculated as
follows, using in all calculations the total amount of the
district's foundation allowance as calculated before any proration:
(a) Except as otherwise provided in this subdivision, for a
district that had a foundation allowance for the immediately
preceding state fiscal year that was 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
$10.00) 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 the purposes of
this subdivision, for 2014-2015, the minimum foundation allowance
for the immediately preceding state fiscal year shall be considered
to be $7,076.00. For 2014-2015, 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 district's foundation allowance for 2013-
2014 plus $50.00.
(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 2014-
2015 in an amount equal to the basic foundation allowance for 2014-
2015.
(c) For a district that had a foundation allowance for the
immediately preceding state fiscal year that was greater than the
basic foundation allowance for the immediately preceding state
fiscal year, the district's foundation allowance is an amount equal
to the sum of the district's foundation allowance for the
immediately preceding state fiscal year plus the lesser of the
increase in the basic foundation allowance for the current state
fiscal year, as compared to the immediately preceding state fiscal
year, or the product of the district's foundation allowance for the
immediately preceding state fiscal year times the percentage
increase in the United States consumer price index in the calendar
year ending in the immediately preceding fiscal year as reported by
the May revenue estimating conference conducted under section 367b
of the management and budget act, 1984 PA 431, MCL 18.1367b.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(e) For a district that received a payment under section 22c
as that section was in effect for 2013-2014, the district's 2013-
2014 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2013-2014
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2013-2014 under section 22c as that section was in effect for 2013-
2014.
(4) Except as otherwise provided in this subsection, 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
divided by the district's membership excluding special education
pupils. For a district described in subsection (3)(c), 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 divided by the district's
membership excluding special education pupils. 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.
(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.
(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. 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.
(8) Subject to subsection (4), for a district that is formed
or reconfigured after June 1, 2002 by consolidation of 2 or more
districts or by annexation, the resulting district's foundation
allowance under this section beginning after the effective date of
the consolidation or annexation shall be the lesser of the sum of
the average of the foundation allowances of each of the original or
affected districts, calculated as provided in this section,
weighted as to the percentage of pupils in total membership in the
resulting district who reside in the geographic area of each of the
original or affected districts plus $100.00 or the highest
foundation allowance among the original or affected districts. This
subsection does not apply to a receiving district unless there is a
subsequent consolidation or annexation that affects the district.
(9) Each fraction used in making calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(10) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(11) To assist the legislature in determining the basic
foundation allowance for the subsequent state fiscal year, each
revenue estimating conference conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by
dividing the sum of the estimated total state school aid fund
revenue for the subsequent state fiscal year plus the estimated
total state school aid fund revenue for the current state fiscal
year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money
transferred into that fund from the countercyclical budget and
economic stabilization fund under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated
total school aid fund revenue for the current state fiscal year
plus the estimated total state school aid fund revenue for the
immediately preceding state fiscal year, adjusted for any change in
the rate or base of a tax the proceeds of which are deposited in
that fund. If a consensus revenue factor is not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus
index is not determined at the revenue estimating conference, the
principals of the revenue estimating conference shall report their
estimates to the house and senate subcommittees responsible for
school aid appropriations not later than 7 days after the
conclusion of the revenue conference.
(12) Payments to districts, 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) If an amendment to section 2 of article VIII of the state
constitution of 1963 allowing state aid to some or all nonpublic
schools is approved by the voters of this state, each foundation
allowance or per pupil payment calculation under this section may
be reduced.
(14) As used in this section:
(a) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(b) "Combined state and local revenue" means the aggregate of
the district's state school aid received by or paid on behalf of
the district under this section and the district's local school
operating revenue.
(c) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(g) "Local portion of the district's foundation allowance"
means an amount that is equal to the difference between (the sum of
the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills) and (the quotient of the
product of the captured assessed valuation under tax increment
financing acts times the district's certified mills divided by the
district's membership excluding special education pupils).
(h) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211. For a receiving district, if school operating taxes are
to be levied on behalf of a dissolved district that has been
attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, local school operating revenue
does not include school operating taxes levied within the
geographic area of the dissolved district.
(i) "Local school operating revenue per membership pupil"
means a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(j) "Maximum public school academy allocation", except as
otherwise provided in this subdivision, means the maximum per-pupil
allocation as calculated by adding the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year plus the difference between twice the amount of
the difference between the basic foundation allowance for the
current state fiscal year and the basic foundation 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 for the immediately
preceding state fiscal year minus $10.00) 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 2014-2015, the
minimum foundation allowance for the immediately preceding state
fiscal year shall be considered to be $7,076.00. For 2014-2015, the
maximum public school academy allocation is $7,218.00.
(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, or commercial personal property.
(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. However, for a receiving district that is located in a
county with a population of less than 250,000 and that has not
renewed its authorization to levy mills for school operating
purposes under section 1211 of the revised school code, MCL
380.1211, since receiving property from a dissolved district, until
the earlier of December 2016 or the successful renewal of that
authorization, the calculation of taxable value per membership
pupil shall exclude the taxable value of property attributable to
territory of the dissolved district that was attached to the
receiving district under section 12 of the revised school code, MCL
380.12.
Sec. 20g. (1) From the money appropriated under section 11,
there is allocated an amount not to exceed $2,200,000.00 for 2014-
2015 for grants to eligible districts that first received payments
under this section in 2013-2014 for transition costs related to the
enrollment of pupils who were previously enrolled in a district
that was dissolved under section 12 of the revised school code, MCL
380.12, allocated as provided under subsection (3). Payments under
this section shall continue for a total of 4 fiscal years following
the dissolution of a district, after which the payments shall
cease.
(2) A receiving school district, as that term is defined in
section 12 of the revised school code, MCL 380.12, is an eligible
district
under this section.subsection
(1).
(3)
The amount allocated to each eligible district under This
section
subsection (1) is an amount equal to the product of the
number of membership pupils enrolled in the eligible district who
were previously enrolled in the dissolved school district in the
school year immediately preceding the dissolution, or who reside in
the geographic area of the dissolved school district and are
entering kindergarten, times 10.0% of the lesser of the foundation
allowance of the eligible district as calculated under section 20
or the basic foundation allowance under section 20(1).
(4) From the state school aid money appropriated under section
11, there is allocated for 2014-2015 to a qualifying intermediate
district an amount not to exceed $725,000.00 to be used solely for
paying outstanding operating debt of a dissolved school district,
as determined by the department. An intermediate district is a
qualifying intermediate district if it is charged with performing
functions and satisfying responsibilities of a dissolved school
district under section 12(3) of the revised school code, MCL
380.12, if the authorization for that dissolved school district to
levy mills for school operating purposes under section 1211 of the
revised school code, MCL 380.1211, was not renewed after the school
district was dissolved and if the intermediate district is located
in a county with a population of less than 250,000. The amount
allocated under this subsection shall be considered to be a part of
and counted against the $2,500,000.00 that was available for that
intermediate district under this section as it was in effect for
the 2013-2014 fiscal year due to a dissolved school district
located in the qualifying intermediate district.
(5) An intermediate district receiving funds under subsection
(4) shall use those funds to pay the outstanding operating debt of
the dissolved school district, as determined by the department, not
later than 30 days after receipt of those funds.
(6) Notwithstanding section 17b, payments under subsection (4)
shall be paid on a schedule prescribed by the department.
(7)
(4) As used in this section, "dissolved school
district"
means a school district that has been declared dissolved under
section 12 of the revised school code, 1976 PA 451, MCL 380.12.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,380,000,000.00
$5,381,600,000.00 for 2014-2015 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.
(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.
(7) As used in this section:
(a) "1994-95 foundation allowance" means a district's 1994-95
foundation allowance calculated and certified by the department of
treasury or the superintendent under former section 20a as enacted
in 1993 PA 336 and as amended by 1994 PA 283.
(b) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(c) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(d) "Current year hold harmless school operating taxes per
pupil" means the per pupil revenue generated by multiplying a
district's 1994-95 hold harmless millage by the district's current
year taxable value per membership pupil. For a receiving district,
if school operating taxes are to be levied on behalf of a dissolved
district that has been attached in whole or in part to the
receiving district to satisfy debt obligations of the dissolved
district under section 12 of the revised school code, MCL 380.12,
taxable value per membership pupil does not include the taxable
value of property within the geographic area of the dissolved
district.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Hold harmless millage" means, for a district with a 1994-
95 foundation allowance greater than $6,500.00, the number of mills
by which the exemption from the levy of school operating taxes on a
homestead, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal
property,
and 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,
or 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, and 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, and 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,
Senate Bill No. 173 as amended March 24, 2015
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.
Enacting section 1. In accordance with section 30 of article
IX of the state constitution of 1963, total state spending on
school aid in article I under 2014 PA 196, 2015 PA 5, and this
amendatory act from state sources for fiscal year 2014-2015 is
estimated at <<$11,879,522,400.00>> and state appropriations for school
aid to be paid to local units of government for fiscal year 2014-
2015 are estimated at <<$11,720,874,600.00>>.
