Bill Text: MI SB0182 | 2013-2014 | 97th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Appropriations; zero budget; school aid appropriations; provide for fiscal year 2013-2014. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2013-05-29 - For Final Disposition Of Budget, See Hb 4228 [SB0182 Detail]

Download: Michigan-2013-SB0182-Engrossed.html

SB-0182, As Passed Senate, April 24, 2013

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 182

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 18,

 

18b, 19, 20, 20d, 22a, 22b, 22d, 22j, 24, 24a, 24c, 26a, 26b, 26c,

 

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

 

62, 74, 81, 94a, 95, 98, 99, 101, 102, 104, 107, 147, 147b, 147c,

 

and 152a (MCL 388.1606, 388.1611, 388.1611a, 388.1611g, 388.1611j,

 

388.1611k, 388.1611m, 388.1612, 388.1615, 388.1618, 388.1618b,

 

388.1619, 388.1620, 388.1620d, 388.1622a, 388.1622b, 388.1622d,

 

388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1626a, 388.1626b,

 

388.1626c, 388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p,

 

388.1639a, 388.1651a, 388.1651b, 388.1651c, 388.1651d, 388.1653a,

 

388.1654, 388.1656, 388.1661a, 388.1662, 388.1674, 388.1681,

 


388.1694a, 388.1695, 388.1698, 388.1699, 388.1701, 388.1702,

 

388.1704, 388.1707, 388.1747, 388.1747b, 388.1747c, and 388.1752a),

 

sections 6, 11, and 26b as amended by 2012 PA 465, sections 11a,

 

11g, 11j, 11k, 11m, 12, 18, 19, 20, 20d, 22a, 22b, 22d, 24, 24a,

 

24c, 26a, 31a, 31d, 31f, 32d, 39a, 51a, 51c, 51d, 53a, 54, 56, 61a,

 

62, 74, 81, 94a, 98, 99, 102, 104, 107, 147, 147b, and 152a as

 

amended and sections 22j, 26c, 32p, 95, and 147c as added by 2012

 

PA 201, section 15 as amended by 2012 PA 286, section 18b as

 

amended by 2008 PA 268, section 51b as added by 1996 PA 300, and

 

section 101 as amended by 2012 PA 516, and by adding sections 11s,

 

21f, 22c, 22k, 22m, 25e, and 32q; and to repeal acts and parts of

 

acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 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 current school

 

year. A district's, public school academy's, or intermediate

 

district's membership shall be adjusted as provided under section

 

25 for pupils who enroll in the district, public school academy, or

 

intermediate district after the pupil membership count day. 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, or for the education achievement system,

 

a pupil's participation in the cyber school's educational program

 

or in an online educational program of the education achievement

 

system or of an achievement school is considered regular daily

 

attendance; for the education achievement system, a pupil's

 

participation in an online 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 an online 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 individual pupil

 

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

 

membership.

 


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

 

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

 

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

 

of residence does not give the educating district its approval to

 

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

 

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

 

the requirement that the educating district must have the approval

 

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

 

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

 

district.

 

     (c) A special education pupil educated by the intermediate

 

district shall be counted in membership in the intermediate

 

district.

 

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

 

program of a juvenile detention facility, a child caring

 

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

 

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

 

or intermediate district approved by the department to operate the

 

program.

 

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

 

blind shall be counted in membership in the pupil's intermediate

 

district of residence.

 

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

 

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

 

single district or in an area vocational-technical education

 

program established pursuant to section 690 of the revised school

 

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

 


residence.

 

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

 

counted in membership in the public school academy.

 

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

 

in membership in the education achievement system.

 

     (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 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.

 

     (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 homeless pupils and that is located in a city with a

 

population of more than 500,000.175,000.

 

     (B) Had dropped out of school for more than 1 year and has re-

 

entered school.

 

     (C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

     (iii) If a child becomes a resident of a district and the 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 obtained a high school diploma shall

 

not be counted in membership. An individual who has obtained a

 

general educational development (G.E.D.) certificate shall not be

 

counted in membership unless the individual is a pupil with a

 

disability as defined in R 340.1702 of the Michigan administrative

 

code. An individual participating in a job training program funded

 

under former section 107a or a jobs program funded under former

 

section 107b, administered by the Michigan strategic fund, 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). 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

 

specified in subdivision (q), 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 specified in subdivision (q) 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

 

specified in subdivision (q), 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 specified in subdivision (q) 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(3). 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) Beginning in 2012-2013, 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. Not later than December 1, 2012, the

 

department shall seek a clarification from the federal department

 

of education as to whether this is an allowable use of federal

 

title I money. The change in the counting of full-time equated

 

memberships for pupils in kindergarten that takes took effect in

 

for 2012-2013 is not a mandate. Not later than the fifth Wednesday

 

after the pupil membership count day, each district or public

 

school academy and the education achievement system shall report to

 

the department and the center the number of instructional hours

 

scheduled per kindergarten pupil for 2012-2013. If the number of

 

instructional hours scheduled per kindergarten pupil is not equal

 

for all kindergarten pupils in the district, the district or public

 

school academy and the education achievement system shall report

 

the number of kindergarten pupils who were scheduled to receive

 

each of the different numbers of instructional hours scheduled.

 

     (s) For a district, 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 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 specified in subdivision (q) 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 , except computers, 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) A pupil enrolled in an alternative or disciplinary

 

education program described in section 25 shall be counted in

 

membership in the district, the public school academy, or the

 

education achievement system that is educating the pupil.

 

     (w) 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.

 


     (x) 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.

 

     (y) 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 , beginning in 2007-

 

2008, 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.

 

     (z) 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 in which a former pupil of the 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 receives the same amount of membership aid for

 

the pupil as if the pupil were counted in the district or the

 

education achievement system on the supplemental count day of the

 

preceding school year.

 

     (aa) Full-time equated memberships for special education

 

pupils who are not enrolled in kindergarten but are enrolled in a

 

classroom program under R 340.1754 of the Michigan administrative

 

code shall be determined by dividing the number of class hours

 

scheduled and provided per year by 450. Full-time equated

 

memberships for special education pupils who are not enrolled in

 

kindergarten but are receiving early childhood special education

 

services under R 340.1755 of the Michigan administrative code shall

 

be determined by dividing the number of hours of service scheduled

 

and provided per year per pupil by 180.

 


     (bb) 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.

 

     (cc) 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 was counted 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 purposes of determining the district's

 

membership.

 

     (dd) A district, a 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.

 

     (ee) 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.

 

     (ff) 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. 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 the tenth day of the next 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.

 

     (5) "Public school academy" means that term as defined in the

 

revised school code.

 

     (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 1 to 12 in

 

accordance with section 166b.

 

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

 


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

 

     (c) A pupil enrolled in a public school academy or the

 

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.

 

     (v) The pupil is enrolled in an alternative or disciplinary

 

education program described in section 25.

 

     (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.

 

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

 

district of residence as a qualifying pupil under section 22h(2).

 

     (p) An online learning pupil enrolled in a district other than

 

the pupil's district of residence as an eligible pupil under

 


section 21f.

 

     However, 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 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, 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 a district that

 

had at least 60,000 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, or a pupil described in subsection (6)(c) to (o). (p), 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.

 


Senate Bill No. 182 as amended April 23, 2013

 

     (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. 11. (1) Subject to subsection (3), for For the fiscal

 

year ending September 30, 2013, 2014, there is appropriated for the

 

public schools of this state and certain other state purposes

 

relating to education the sum of $10,961,245,600.00

 

<<$11,081,665,600.00>> from the state school aid fund, the sum of

 

$150,000,000.00 from the MPSERS retirement obligation reform

 

reserve fund created under section 147b, and the sum of

 

$282,400,000.00 $229,600,000.00 from the general fund. In addition,

 

all other available federal funds , except those otherwise

 


appropriated under section 11p, are appropriated for the fiscal

 

year ending September 30, 2013.2014.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

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

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

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

 

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

 

the school aid stabilization fund created under section 11a.

 

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

 

a separate account within the state school aid fund established by

 

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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

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

 


money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

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

 

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

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that

 

fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

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

 

stabilization fund. If the money in the school aid stabilization

 

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

 

shortfall, the state budget director shall notify the legislature

 

as required under section 11(3) 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 11(4).296(3).

 

     (7) For 2012-2013, 2013-2014, 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.

 

     (8) Effective February 24, 2012, in addition to any amounts

 


otherwise deposited into the school aid stabilization fund, there

 

is transferred from the state school aid fund to the school aid

 

stabilization fund an amount equal to $100,000,000.00.

 

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

 

allocated for this section an amount not to exceed $39,000,000.00

 

$39,500,000.00 for the fiscal year ending September 30, 2013, 2014

 

and for each succeeding fiscal year through the fiscal year ending

 

September 30, 2015, after which these payments will cease. These

 

allocations are for paying the amounts described in subsection (3)

 

to districts and intermediate districts, other than those receiving

 

a lump-sum payment under section 11f(2), that were not plaintiffs

 

in the consolidated cases known as Durant v State of Michigan,

 

Michigan supreme court docket no. 104458-104492 and that, on or

 

before March 2, 1998, submitted to the state treasurer a waiver

 

resolution described in section 11f. The amounts paid under this

 

section represent offers of settlement and compromise of any claim

 

or claims that were or could have been asserted by these districts

 

and intermediate districts, as described in this section.

 

     (2) This section does not create any obligation or liability

 

of this state to any district or intermediate district that does

 

not submit a waiver resolution described in section 11f. This

 

section and any other provision of this article are not intended to

 

admit liability or waive any defense that is or would be available

 

to this state or its agencies, employees, or agents in any

 

litigation or future litigation with a district or intermediate

 

district regarding these claims or potential claims.

 

     (3) The amount paid each fiscal year to each district or

 


intermediate district under this section shall be 1 of the

 

following:

 

     (a) If the district or intermediate district does not borrow

 

money and issue bonds under section 11i, 1/30 of the total amount

 

listed in section 11h for the district or intermediate district

 

through the fiscal year ending September 30, 2013.2015.

 

     (b) If the district or intermediate district borrows money and

 

issues bonds under section 11i, an amount in each fiscal year

 

calculated by the department of treasury that is equal to the debt

 

service amount in that fiscal year on the bonds issued by that

 

district or intermediate district under section 11i and that will

 

result in the total payments made to all districts and intermediate

 

districts in each fiscal year under this section being no more than

 

the amount appropriated under this section in each fiscal year.

 

     (4) The entire amount of each payment under this section each

 

fiscal year shall be paid on May 15 of the applicable fiscal year

 

or on the next business day following that date. If a district or

 

intermediate district borrows money and issues bonds under section

 

11i, the district or intermediate district shall use funds received

 

under this section to pay debt service on bonds issued under

 

section 11i. If a district or intermediate district does not borrow

 

money and issue bonds under section 11i, the district or

 

intermediate district shall use funds received under this section

 

only for the following purposes, in the following order of

 

priority:

 

     (a) First, to pay debt service on voter-approved bonds issued

 

by the district or intermediate district before the effective date

 


of this section.

 

     (b) Second, to pay debt service on other limited tax

 

obligations.

 

     (c) Third, for deposit into a sinking fund established by the

 

district or intermediate district under the revised school code.

 

     (5) To the extent payments under this section are used by a

 

district or intermediate district to pay debt service on debt

 

payable from millage revenues, and to the extent permitted by law,

 

the district or intermediate district may make a corresponding

 

reduction in the number of mills levied for debt service.

 

     (6) A district or intermediate district may pledge or assign

 

payments under this section as security for bonds issued under

 

section 11i, but shall not otherwise pledge or assign payments

 

under this section.

 

     Sec. 11j. From the appropriation in section 11, there is

 

allocated an amount not to exceed $120,390,000.00 for 2012-2013

 

$131,660,000.00 for 2013-2014 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 11

 

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 2012-2013, 2013-2014, 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

 


Senate Bill No. 182 as amended April 24, 2013

 

shared credit rating act, 1985 PA 227, MCL 141.1066c.

 

     Sec. 11m. From the appropriations in section 11, there is

 

allocated for 2011-2012 an amount not to exceed $2,100,000.00 and

 

there is allocated for 2012-2013 2013-2014 an amount not to exceed

 

$3,200,000.00 $6,000,000.00 for fiscal year cash-flow borrowing

 

costs solely related to the state school aid fund established by

 

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

 

     <<

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       >>

 

     Sec. 12. It is the intent of the legislature to appropriate

 

and allocate for the fiscal year ending September 30, 2014 2015 the

 

same amounts of money from the same sources for the same purposes

 

as are appropriated and allocated under this article for the fiscal

 

year ending September 30, 2013, 2014, as adjusted for changes in

 

pupil membership, taxable values, special education costs, interest

 

costs, and available revenue. These adjustments will be determined

 

after the January 2013 2014 consensus revenue estimating

 

conference.

 

     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 years for the

 

adjustment and may advance payments to the district otherwise

 

authorized under this act article if the district would otherwise

 

experience a significant hardship in satisfying its financial

 

obligations.

 

     (3) If, because of the receipt of new or updated data, the

 

department determines during a fiscal year that the amount paid to

 

a district or intermediate district under this article for a prior

 

fiscal year was incorrect under the law in effect for that year,

 

the department may make the appropriate deduction or payment in the

 

district's or intermediate district's allocation for the fiscal

 

year in which the determination is made. The deduction or payment

 

shall be calculated according to the law in effect in the fiscal

 

year in which the improper 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) 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.

 

     (5) In addition to funds appropriated in section 11 for all

 

programs and services, there is appropriated for 2012-2013 2013-

 

2014 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 or intermediate

 

district under this article 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) Within 30 days after a board adopts its annual operating

 

budget for the following school fiscal year, or after a board

 

adopts a subsequent revision to that budget, the district shall

 

make all of the following available through a link on its website

 

home page, or may make the information available through a link on

 

its intermediate district's website home page, 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.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.

 

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

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

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

 

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

 

other type of benefits that would constitute health care services,

 


offered to any bargaining unit or employee in the district.

 

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

 

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

 

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

 

health benefits act, 2007 PA 106, MCL 124.75.

 

     (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.

 

     (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 purpose of determining the reasonableness of

 

expenditures 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 at the expense of the district or

 

intermediate district, as applicable, 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.

 

     (b) If a district operates in a single building with fewer

 

than 700 full-time equated pupils, if the district has stable

 

membership, and if the error rate of the immediately preceding 2

 

pupil accounting field audits of the district is less than 2%, the

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable

 

membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the

 

immediately preceding fiscal year by less than 5%.

 

     (c) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

     (d) The pupil and financial accounting records and reports,

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

     (e) All of the following shall be done not later than November

 

15 each year:

 

     (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 15 of each year, each district and

 

intermediate district shall submit to the center, in a manner

 

prescribed by the center, annual comprehensive financial data

 

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), 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) Not later than October 1, 2012, September 1, 2014, if a

 

district or intermediate district offers online learning, the

 

district or intermediate district shall submit to the department a

 

report that details the per-pupil costs of operating the online

 

learning. The report shall include , on a per-pupil basis, at least

 

all of the following costs:information concerning the operation of

 

online learning for the school fiscal year ending June 30, 2014:

 

     (a) Textbooks, instructional materials, and supplies,

 

including electronic instructional material. The name of the

 

district operating the online learning and of each district that

 

enrolled students in the online learning.

 

     (b) Computer and other electronic equipment, including

 

internet and telephone access. The total number of students enrolled

 

in the online learning and the total number of membership pupils

 

enrolled in the online learning.

 

     (c) Salaries and benefits for the online learning employees.

 

For each pupil who is enrolled in a district other than the

 

district offering online learning, the name of that district.

 

     (d) Purchased courses and curricula. The district in which the

 

pupil was enrolled before enrolling in the district offering online

 

learning.

 

     (e) Fees associated with oversight and regulation. The number

 


of participating students who had previously dropped out of school.

 

     (f) Travel costs associated with school activities and

 

testing. The number of participating students who had previously

 

been expelled from school.

 

     (g) Facilities costs. 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. The total shall include costs

 

broken down by cost for training, personnel, hardware and software,

 

payment to each online learning provider, and other costs

 

associated with operating online learning.

 

     (h) Costs associated with special education. The name of each

 

online education provider contracted by the district and the state

 

in which each online education provider is headquartered.

 

     (12) Not later than December 31, 2012, the department shall

 

issue a report to the legislature including the following:

 

     (a) A review of the data submitted under subsection (11).

 

     (b) A comparison with costs of substantially similar programs

 

in other states and relevant national research on the costs of

 

online learning.

 

     (c) Any conclusions concerning factors or characteristics of

 

online learning programs that make a difference in the costs of

 

operating the programs.

 

     Sec. 18b. (1) Property of a public school academy that was

 

acquired substantially with funds appropriated under this act

 

article shall be transferred to this state by the public school

 

academy corporation if any of the following occur:

 

     (a) The public school academy has been ineligible to receive

 


funding under this act article for 18 consecutive months.

 

     (b) The public school academy's contract has been revoked or

 

terminated for any reason.

 

     (c) The public school academy's contract has expired and has

 

not been reissued by the authorizing body.

 

     (2) A public school academy corporation shall initiate the

 

process of transferring property to this state as required under

 

subsection (1) within 30 days after the occurrence of the event

 

that triggers the process under subsection (1).

 

     (3) (2) Property required to be transferred to this state

 

under this section includes title to all real and personal

 

property, interests in real or personal property, and other assets

 

owned by the public school academy corporation that were

 

substantially acquired with funds appropriated under this

 

act.article.

 

     (4) (3) The state treasurer, or his or her designee, is

 

authorized to dispose of property transferred to this state under

 

this section. Except as otherwise provided in this section, the

 

state treasurer shall deposit in the state school aid fund any

 

money included in that property and the net proceeds from the sale

 

of the property or interests in property, after payment by the

 

state treasurer of any public school academy debt secured by the

 

property or interest in property.

 

     (5) (4) This section does not impose any liability on this

 

state, any agency of this state, or an authorizing body for any

 

debt incurred by a public school academy.

 

     (6) (5) As used in this section and section 18c, "authorizing

 


body" means an authorizing body defined under section 501 or 1311b

 

of the revised school code, MCL 380.501 and 380.1311b.

 

     Sec. 19. (1) A district or intermediate district shall comply

 

with all applicable reporting requirements specified in state and

 

federal law. Data provided to the center, in a form and manner

 

prescribed by the center, shall be aggregated and disaggregated as

 

required by state and federal law. In addition, a district or

 

intermediate district shall cooperate with all measures taken by

 

the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

     (2) Each district shall furnish to the center not later than 5

 

weeks after the pupil membership count day and by June 30 of the

 

school fiscal year ending in the fiscal year, in a manner

 

prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This

 

information shall meet requirements established in the pupil

 

auditing manual approved and published by the department. The

 

center shall calculate an annual graduation and pupil dropout rate

 

for each high school, each district, and this state, in compliance

 

with nationally recognized standards for these calculations. The

 

center shall report all graduation and dropout rates to the senate

 

and house education committees and appropriations committees, the

 

state budget director, and the department not later than 30 days

 

after the publication of the list described in subsection (6).

 

     (3) By the first business day in December and by June 30 of

 

each year, a district shall furnish to the center, in a manner

 

prescribed by the center, information related to educational

 


personnel as necessary for reporting required by state and federal

 

law.

 

     (4) By June 30 of each year, a district shall furnish to the

 

center, in a manner prescribed by the center, information related

 

to safety practices and criminal incidents as necessary for

 

reporting required by state and federal law.

 

     (5) If a district or intermediate district fails to meet the

 

requirements of this section, the department shall withhold 5% of

 

the total funds for which the district or intermediate district

 

qualifies under this article until the district or intermediate

 

district complies with all of those subsections. If the district or

 

intermediate district does not comply with all of those subsections

 

by the end of the fiscal year, the department shall place the

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.

 

     (6) Before publishing a list of schools or districts

 

determined to have failed to make adequate yearly progress school

 

or district accountability designations as required by the no child

 

left behind act of 2001, Public Law 107-110, the department shall

 

allow a school or district to appeal that determination. The

 

department shall consider and act upon the appeal within 30 days

 

after it is submitted and shall not publish the list until after

 

all appeals have been considered and decided.

 

     (7) It is the intent of the legislature to implement not later

 

than 2014-2015 statewide standard reporting requirements for

 

education data approved by the department in conjunction with the

 

center. The department shall work with the center, intermediate

 


Senate Bill No. 182 as amended April 24, 2013

 

districts, districts, and other interested stakeholders to develop

 

recommendations on the implementation of this policy change. A

 

district or intermediate district shall implement the statewide

 

standard reporting requirements not later than 2014-2015 or when a

 

district or intermediate district updates its education data

 

reporting system, whichever is later.

 

     Sec. 20. (1) For 2011-2012, and for 2012-2013, 2013-2014, the

 

basic foundation allowance is <<$8,078.00>>.

 

     (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) For a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was at least equal to

 

the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest foundation allowance among all districts,

 

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 greater

 

of $6,966.00 or the district's foundation allowance for the

 

immediately preceding state fiscal year, excluding any adjustment

 

under subsection (14), 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 dollar amount of the adjustment from

 

the immediately preceding state fiscal year to the current state

 

fiscal year made in the basic foundation allowance minus $20.00)

 

times (the difference between the district's foundation allowance

 

for the immediately preceding state fiscal year and the sum of

 

$7,108.00 plus the total dollar amount of all adjustments made from

 

2006-2007 to the immediately preceding state fiscal year in the

 

lowest foundation allowance among all districts) divided by the

 

difference between the basic foundation allowance for the current

 

state fiscal year and the sum of $7,108.00 plus the total dollar

 

amount of all adjustments made from 2006-2007 to the immediately

 

preceding state fiscal year in the lowest foundation allowance

 

among all districts]. For 2011-2012, for a district that had a

 

foundation allowance for the immediately preceding state fiscal

 

year that was at least equal to the sum of $7,108.00 plus the total

 

dollar amount of all adjustments made from 2006-2007 to the

 

immediately preceding state fiscal year in the lowest foundation

 

allowance among all districts, 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 2010-2011, minus $470.00.

 

Except as otherwise provided in subdivision (h), for 2012-2013,

 

2013-2014, for a district that had a foundation allowance for the

 

immediately preceding state fiscal year that was at least equal to

 

the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 


fiscal year in the lowest foundation allowance among all districts,

 

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 the immediately preceding state fiscal

 

year. However, the foundation allowance for a district that had

 

less than the basic foundation allowance for the immediately

 

preceding state fiscal year shall not exceed the basic foundation

 

allowance for the current state fiscal year.

 

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

 

district that in the immediately preceding state fiscal year had a

 

foundation allowance in an amount at least equal to the amount of

 

the basic foundation allowance for the immediately preceding state

 

fiscal year, the district shall receive a foundation allowance for

 

2011-2012 in an amount equal to the district's foundation allowance

 

for 2010-2011, minus $470.00. For 2012-2013, 2013-2014, 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 at least equal to the amount of the basic foundation

 

allowance for the immediately preceding state fiscal year, the

 

district shall receive a foundation allowance for 2012-2013 in an

 

amount equal to the district's foundation allowance for the

 

immediately preceding state fiscal year.

 

     (c) Except as otherwise provided in subdivision (d), for a

 

district that in the 1994-95 state fiscal year had a foundation

 

allowance greater than $6,500.00, 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. Except as otherwise provided

 

in subdivision (d), for 2011-2012, for a district that in the 1994-

 

1995 state fiscal year had a foundation allowance greater than

 

$6,500.00, the district's foundation allowance is an amount equal

 

to the district's foundation allowance for the 2010-2011 fiscal

 

year minus $470.00. For 2012-2013, 2013-2014, except as otherwise

 

provided in subdivision (d), for a district that in the 1994-1995

 

state fiscal year had a foundation allowance greater than

 

$6,500.00, the district's foundation allowance is an amount equal

 

to the district's foundation allowance for the immediately

 

preceding state fiscal year.

 

     (d) For a district that in the 1994-95 state fiscal year had a

 

foundation allowance greater than $6,500.00 and that had a

 

foundation allowance for the 2009-2010 state fiscal year, as

 

otherwise calculated under this section, that was less than the

 

basic foundation allowance, the district's foundation allowance for

 

2011-2012 and each succeeding fiscal year shall be considered to be

 

an amount equal to the basic foundation allowance.

 


     (e) 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.

 

     (f) For a district that received a payment under section 22c

 

as that section was in effect for 2001-2002, the district's 2001-

 

2002 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2001-2002

 

foundation allowance as otherwise calculated under this section

 

plus the per pupil amount of the district's equity payment for

 

2001-2002 under section 22c as that section was in effect for 2001-

 

2002.

 

     (g) For a district that received a payment under section 22c

 

as that section was in effect for 2006-2007, the district's 2006-

 

2007 foundation allowance shall be considered to have been an

 

amount equal to the sum of the district's actual 2006-2007

 

foundation allowance as otherwise calculated under this section

 

plus the per pupil amount of the district's equity payment for

 

2006-2007 under section 22c as that section was in effect for 2006-

 

2007.

 

     (h) For 2012-2013, for a district that had a foundation

 

allowance for the 2011-2012 state fiscal year of less than

 

$6,966.00, the district's foundation allowance is an amount equal

 

to $6,966.00.

 

     (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 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 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 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

 

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.

 


     (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, 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 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.

 

     (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. However, for

 

2011-2012, the index shall be 0.93575 and for 2012-2013, 2013-2014,

 

the index shall be 1.00. 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) For a district in which 7.75 mills levied in 1992 for

 

school operating purposes in the 1992-93 school year were not

 

renewed in 1993 for school operating purposes in the 1993-94 school

 

year, the district's combined state and local revenue per

 

membership pupil shall be recalculated as if that millage reduction

 

did not occur and the district's foundation allowance shall be

 

calculated as if its 1994-95 foundation allowance had been

 

calculated using that recalculated 1993-94 combined state and local

 

revenue per membership pupil as a base. A district is not entitled

 

to any retroactive payments for fiscal years before 2000-2001 due

 

to this subsection. A district receiving an adjustment under this

 

subsection shall not receive as a result of this adjustment an

 


amount that exceeds 50% of the amount the district received as a

 

result of this adjustment for 2010-2011. This adjustment shall not

 

be made after 2011-2012.

 

     (13) For a district in which an industrial facilities

 

exemption certificate that abated taxes on property with a state

 

equalized valuation greater than the total state equalized

 

valuation of the district at the time the certificate was issued or

 

$700,000,000.00, whichever is greater, was issued under 1974 PA

 

198, MCL 207.551 to 207.572, before the calculation of the

 

district's 1994-95 foundation allowance, the district's foundation

 

allowance for 2002-2003 is an amount equal to the sum of the

 

district's foundation allowance for 2002-2003, as otherwise

 

calculated under this section, plus $250.00. A district receiving

 

an adjustment under this subsection shall not receive as a result

 

of this adjustment an amount that exceeds 50% of the amount the

 

district received as a result of this adjustment for 2010-2011.

 

This adjustment shall not be made after 2011-2012.

 

     (12) (14) For a district that received a grant under former

 

section 32e for 2001-2002, the district's foundation allowance for

 

2002-2003 and each succeeding fiscal year through 2012-2013 shall

 

be adjusted to be an amount equal to the sum of the district's

 

foundation allowance, as otherwise calculated under this section,

 

plus the quotient of 100% of the amount of the grant award to the

 

district for 2001-2002 under former section 32e divided by the

 

number of pupils in the district's membership for 2001-2002 who

 

were residents of and enrolled in the district. Except as otherwise

 

provided in this subsection, a district qualifying for a foundation

 


allowance adjustment under this subsection shall use the funds

 

resulting from this adjustment for at least 1 of grades K to 3 for

 

purposes allowable under former section 32e as in effect for 2001-

 

2002. For an individual school or schools operated by a district

 

qualifying for a foundation allowance under this subsection that

 

have been determined by the department to meet the adequate yearly

 

progress standards of the federal no child left behind act of 2001,

 

Public Law 107-110, in both mathematics and English language arts

 

at all applicable grade levels for all applicable subgroups, the

 

district may submit to the department an application for

 

flexibility in using the funds resulting from this adjustment that

 

are attributable to the pupils in the school or schools. The

 

application shall identify the affected school or schools and the

 

affected funds and shall contain a plan for using the funds for

 

specific purposes identified by the district that are designed to

 

reduce class size, but that may be different from the purposes

 

otherwise allowable under this subsection. The department shall

 

approve the application if the department determines that the

 

purposes identified in the plan are reasonably designed to reduce

 

class size. If the department does not act to approve or disapprove

 

an application within 30 days after it is submitted to the

 

department, the application is considered to be approved. If an

 

application for flexibility in using the funds is approved, the

 

district may use the funds identified in the application for any

 

purpose identified in the plan. A district receiving an adjustment

 

under this subsection shall not receive as a result of this

 

adjustment an amount that exceeds 68.5% of the amount the district

 


received as a result of this adjustment for 2010-2011. For 2013-

 

2014, the adjustment under this subsection shall be the difference

 

between 85% of the amount of the adjustment under this subsection

 

for the immediately preceding state fiscal year and the amount

 

resulting from subtracting the district's foundation allowance for

 

the immediately preceding state fiscal year excluding any

 

adjustment under this subsection for the immediately preceding

 

state fiscal year from $6,966.00, if that difference is greater

 

than $0.00. If that difference is less than $0.00, the adjustment

 

under this subsection shall be 85% of the amount of the adjustment

 

under this subsection for the immediately preceding state fiscal

 

year.

 

     (15) For a district that levied 1.9 mills in 1993 to finance

 

an operating deficit, the district's foundation allowance shall be

 

calculated as if those mills were included as operating mills in

 

the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal

 

years before 2006-2007 due to this subsection. A district receiving

 

an adjustment under this subsection shall not receive more than

 

$800,000.00 for a fiscal year as a result of this adjustment. A

 

district receiving an adjustment under this subsection shall not

 

receive as a result of this adjustment an amount that exceeds 50%

 

of the amount the district received as a result of this adjustment

 

for 2010-2011. This adjustment shall not be made after 2011-2012.

 

     (16) For a district that levied 2.23 mills in 1993 to finance

 

an operating deficit, the district's foundation allowance shall be

 

calculated as if those mills were included as operating mills in

 


the calculation of the district's 1994-1995 foundation allowance. A

 

district is not entitled to any retroactive payments for fiscal

 

years before 2006-2007 due to this subsection. A district receiving

 

an adjustment under this subsection shall not receive more than

 

$500,000.00 for a fiscal year as a result of this adjustment. A

 

district receiving an adjustment under this subsection shall not

 

receive as a result of this adjustment an amount that exceeds 50%

 

of the amount the district received as a result of this adjustment

 

for 2010-2011. This adjustment shall not be made after 2011-2012.

 

     (13) Beginning in 2014-2015, equity payments under section 22c

 

shall be incorporated into the calculation of a district's

 

foundation allowance or public school academy's per pupil payment

 

under this section.

 

     (14) (17) 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.

 

     (15) (18) 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.

 

     (16) (19) 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) "Immediately preceding state fiscal year" means the state

 

fiscal year immediately preceding the current state fiscal year.

 

     (f) "Local school operating revenue" means school operating

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211.

 

     (g) "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.

 

     (h) "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 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 dollar amount of the adjustment from

 

the immediately preceding state fiscal year to the current state

 

fiscal year made in the basic foundation allowance minus $20.00)

 

times (the difference between the highest per-pupil allocation

 


among all public school academies for the immediately preceding

 

state fiscal year and the sum of $7,108.00 plus the total dollar

 

amount of all adjustments made from 2006-2007 to the immediately

 

preceding state fiscal year in the lowest per-pupil allocation

 

among all public school academies) divided by the difference

 

between the basic foundation allowance for the current state fiscal

 

year and the sum of $7,108.00 plus the total dollar amount of all

 

adjustments made from 2006-2007 to the immediately preceding state

 

fiscal year in the lowest per-pupil allocation among all public

 

school academies]. For 2011-2012 and 2012-2013, 2013-2014, maximum

 

public school academy allocation means $7,110.00.$7,207.00.

 

     (i) "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.

 

     (j) "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.

 

     (k) "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.

 

     (l) "School operating purposes" means the purposes included in

 

the operation costs of the district as prescribed in sections 7 and

 

18.

 

     (m) "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.

 

     (n) "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.

 

     (o) "Taxable value per membership pupil" means taxable value,

 

as certified by the department of treasury, 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 2012-2013, 2013-2014, 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, 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. 21f. (1) A pupil enrolled in a district in any of grades

 

5 to 12 is eligible to enroll in an online course as provided for

 


in this section.

 

     (2) With the consent of the pupil's parent or legal guardian,

 

a district shall enroll an eligible pupil in up to 2 online courses

 

as requested by the pupil during an academic term, semester, or

 

trimester. However, if a pupil has demonstrated previous success

 

with online courses as determined by the educating district and the

 

educating district and the pupil's parent or guardian determine

 

that it is in the best interest of the pupil, a pupil may be

 

enrolled in more than 2 online courses in an academic term,

 

semester, or trimester. Consent of the pupil's parent or legal

 

guardian is not required if the pupil is at least age 18 or is an

 

emancipated minor.

 

     (3) An eligible pupil may enroll in an online course published

 

in the pupil's educating district's catalog of online courses

 

described in subsection (7)(a) or the statewide catalog of online

 

courses maintained by the department.

 

     (4) A district shall determine whether or not it has capacity

 

to accept applications for enrollment from nonresident applicants

 

in online courses and may use that limit as the reason for refusal

 

to enroll an applicant. If the number of nonresident applicants

 

eligible for acceptance in an online course does not exceed the

 

capacity of the district to provide the online course, the district

 

shall accept for enrollment all of the nonresident applicants

 

eligible for acceptance. If the number of nonresident applicants

 

exceeds the district's capacity to provide the online course, the

 

district shall use a random draw system, subject to the need to

 

abide by state and federal antidiscrimination laws and court

 


orders.

 

     (5) A district may deny a pupil enrollment in an online course

 

if any of the following apply, as determined by the district:

 

     (a) The pupil has previously gained the credits provided from

 

the completion of the online course.

 

     (b) The online course is not capable of generating academic

 

credit.

 

     (c) The online course is inconsistent with the remaining

 

graduation requirements or career interests of the pupil.

 

     (d) The pupil does not possess the prerequisite knowledge and

 

skills to be successful in the online course.

 

     (6) If a pupil is denied enrollment in an online course by a

 

district, the pupil may appeal the denial by submitting a letter to

 

the superintendent of the intermediate district in which the

 

pupil's educating district is located. The letter of appeal shall

 

include the reason provided by the district for not enrolling the

 

pupil and the reason why the pupil is claiming that the enrollment

 

should be approved. The intermediate district superintendent or

 

designee shall respond to the appeal within 5 days after it is

 

received. If the intermediate district superintendent or designee

 

determines that the denial of enrollment does not meet 1 or more of

 

the reasons specified in subsection (5), the district shall allow

 

the pupil to enroll in the online course.

 

     (7) To offer or provide an online course, a district shall do

 

all of the following:

 

     (a) Provide the department with the course syllabus in a form

 

and method prescribed by the department for inclusion in a

 


statewide online course catalog. The district shall also provide on

 

its publicly accessible website a link to the course syllabi for

 

all of the online courses offered by the district and a link to the

 

statewide catalog of online courses maintained by the department.

 

     (b) Offer the online course on an open entry and exit method,

 

or aligned to a semester, trimester, or accelerated academic term

 

format.

 

     (8) For a pupil enrolled in 1 or more online courses published

 

in the pupil's educating district's catalog of online courses under

 

subsection (7) or in the statewide catalog of online courses

 

maintained by the department, the district shall use foundation

 

allowance or per pupil funds calculated under section 20 to pay for

 

the expenses associated with the online course or courses. The

 

district shall pay 50% of the cost of the online course upon

 

enrollment and 50% upon successful completion as determined by the

 

district.

 

     (9) An online learning pupil shall have the same rights and

 

access to technology in his or her educating district's school

 

facilities as all other pupils enrolled in the educating district.

 

     (10) If a pupil successfully completes an online course, as

 

determined by the educating district, the pupil's educating

 

district shall grant appropriate academic credit for completion of

 

the course and shall count that credit toward completion of

 

graduation and subject area requirements. A pupil's school record

 

and transcript shall identify the online course title as it appears

 

in the online course syllabus.

 

     (11) The enrollment of a pupil in 1 or more online courses

 


shall not result in a pupil being counted as more than 1.0 full-

 

time equivalent pupils under this act.

 

     (12) As used in this section:

 

     (a) "Online course" means a course of study that is capable of

 

generating a credit or a grade, that is provided in an interactive

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for

 

each pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 

     (b) "Online course syllabus" means a document that includes

 

all of the following:

 

     (i) The state academic standards addressed in an online course.

 

     (ii) The online course content outline.

 

     (iii) The online course required assessments.

 

     (iv) The online course prerequisites.

 

     (v) Expectations for actual instructor contact time with the

 

online learning pupil and other pupil-to-instructor communications.

 

     (vi) Academic support available to the online learning pupil.

 

     (vii) The online course learning outcomes and objectives.

 

     (viii) The name of the institution or organization providing the

 

online content.

 

     (ix) The name of the institution or organization providing the

 

online instructor.

 

     (x) The course titles assigned by the district and the course

 


titles and course codes from the national center for education

 

statistics (NCES) school codes for the exchange of data (SCED).

 

     (xi) The number of eligible nonresident pupils that will be

 

accepted by the district in the online course.

 

     (c) "Online learning pupil" means a pupil enrolled in 1 or

 

more online courses.

 

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

 

allocated an amount not to exceed $5,776,000,000.00 for 2011-2012

 

and there is allocated an amount not to exceed $5,712,000,000.00

 

for 2012-2013 $5,558,000,000.00 for 2013-2014 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.

 

     (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.

 

     (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) 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.

 

     (6) Subject to conditions set forth in this subsection, from

 

the allocation in subsection (1), there is allocated for 2011-2012

 

only an amount not to exceed $6,000,000.00 for payments to

 

districts that meet the eligibility requirements under this

 

subsection, for the reduction in school operating revenues

 

resulting from a settlement or other disposition of appeals

 

described in subdivision (a). A payment may only be made under this

 

subsection if a settlement agreement is signed by all applicable

 

parties. Payments made under this subsection shall be in accordance

 

with the settlement agreement. All of the following apply to

 

payments under this subsection:

 

     (a) To be eligible for a payment under this subsection, a

 

district shall be determined by the department and the department

 

of treasury to meet all of the following:

 

     (i) The district does not receive any state portion of its

 

foundation allowance, as calculated under section 20(4).

 

     (ii) Before January 1, 2011, the owner of a natural-gas-powered

 

power plant located in a renaissance zone within the district's

 

geographic boundaries for 2009 and 2010 appealed to the Michigan

 

tax tribunal an order of the state tax commission for tax years

 

2009 and 2010 pursuant to section 154 of the general property tax

 

act, 1893 PA 206, MCL 211.154, and appealed to the state tax

 


commission the 2011 classification and valuation of the power

 

plant.

 

     (iii) The district received a reduced amount of local school

 

operating revenue for tax years 2009, 2010, and 2011 as a result of

 

the exemptions of industrial personal property and commercial

 

personal property under section 1211 of the revised school code,

 

MCL 380.1211.

 

     (iv) A settlement agreement has been signed to resolve the

 

Michigan tax tribunal appeal described in subparagraph (ii) and a

 

memorandum of understanding that stipulates terms of the settlement

 

has been executed by the parties.

 

     (b) A payment made under this subsection shall be in addition

 

to renaissance zone reimbursement amounts paid in the 2009-2010 and

 

2010-2011 state fiscal years under section 26a to districts

 

eligible for payment under this subsection. The 2009-2010 and 2010-

 

2011 state fiscal year payments under section 26a to a district

 

receiving a payment under this subsection shall not be reduced as a

 

result of the reduction to the district's 2009 and 2010 taxable

 

value of real property under the appeals described in subdivision

 

(a)(ii).

 

     (6) (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.

 

     (e) "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 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.

 

     (f) "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.

 

     (g) "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.

 

     (h) "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.

 

     (i) "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.

 

     (j) "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.

 

     (k) "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.

 

     (l) "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 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 for the calendar year ending in the

 


Senate Bill No. 182 as amended April 24, 2013

 

current state fiscal year.

 

     (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.

 

     Sec. 22b. (1) From the state funds appropriated appropriation

 

in section 11, there is allocated for 2011-2012 an amount not to

 

exceed $3,052,000,000.00 and there is allocated for 2012-2013 2013-

 

2014 an amount not to exceed $3,152,300,000.00 <<$3,329,500,000.00>>

 

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) 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, 51a(2), 51a(3),

 

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

 

sections 22a and 51c.

 

     (3) 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.Comply with section 1280b of the revised

 

school code, MCL 380.1280b.

 

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

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (e) Comply with section 21f.

 

     (4) The achievement authority shall not expend any money it

 

receives from any source other than an allocation under this act

 

unless the money is specifically appropriated to the achievement

 

authority. If the achievement authority does not comply with this

 

subsection, the achievement authority shall not receive an

 

allocation under subsection (1).

 

     (5) (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.

 

     (6) (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.

 

     (7) (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.

 

     (8) (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.

 

     (9) (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) (8) 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).

 

     (10) (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.

 

     (11) (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.

 

     (12) (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

 


Senate Bill No. 182 as amended April 24, 2013

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

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

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.

 

     (12) Not later than January 1, 2013, the department shall

 

submit a report to the legislature identifying the amount of the

 

savings that the department has calculated as having been achieved

 

due to the revised number of instructional hours used to calculate

 

full-time equated memberships for kindergarten pupils under section

 

6(4)(r) as amended by 2011 PA 62.

 

     <<

 

 

 

 

 

 

 

 

 

 

 

 


Senate Bill No. 182 as amended April 24, 2013

 

 

 

            >>

 

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

 

not to exceed $2,025,000.00 $2,584,600.00 is allocated each fiscal

 

year for 2011-2012 and for 2012-2013 for 2013-2014 for supplemental

 

payments to rural districts under this section.

 

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

 

allocated each fiscal year for 2011-2012 and for 2012-2013 for

 

2013-2014 an amount not to exceed $750,000.00 $957,300.00 for

 

payments under this subsection to districts that meet all of the

 

following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

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

 

any other public school building.

 

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

 

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

 

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

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential

 

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

 


a spending plan that distributes the available funding under

 

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

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

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

 

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

 

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

 

subsection (1), there is allocated each fiscal year for 2011-2012

 

and for 2012-2013 for 2013-2014 an amount not to exceed

 

$1,275,000.00 $1,627,300.00 for payments under this subsection to

 

districts that meet all of the following:

 

     (a) The district has 5.0 or fewer pupils per square mile as

 

determined by the department.

 

     (b) The district has a total square mileage greater than 200.0

 

or is 1 of 2 districts that have consolidated transportation

 

services and have a combined total square mileage greater than

 

200.0.

 

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

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$30,000,000.00 $46,400,000.00 to provide separate incentive

 

payments to districts that meet student academic performance

 


funding goals under subsections (2) to (5). Payments received under

 

this section may be used for any purpose for which payments under

 

sections 22a and 22b may be used.

 

     (2) The maximum amount of the incentive payment for student

 

academic performance is an amount equal to $100.00 per pupil.

 

Payments calculated and awarded to qualifying districts under

 

subsections (3) to (5) shall be calculated and awarded separately,

 

and a district may receive a payment under any or all of

 

subsections (3) to (5).

 

     (3) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

mathematics in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in a qualifying district. The department shall determine

 

the qualifying districts under this subsection as follows:

 

     (a) Using a model determined by the department that

 

incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2010-2011 2011-2012 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in mathematics and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 


proficiently in mathematics and declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in mathematics and who maintains his or her level of

 

proficiency, as determined by the department, over the school year,

 

1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in mathematics and who maintains his or her level of

 

proficiency, as determined by the department, over the school year,

 

2 points.

 

     (v) For each pupil who began the school year not performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in mathematics and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2010-2011 2011-2012 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision

 

(a) and dividing that total by the number of those pupils.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2010-2011 2011-2012

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in

 

mathematics, and the district had at least 30 full academic year

 

pupils in grades 3 to 8 with a performance level change designation

 

in mathematics.

 


     (4) An amount not to exceed 30% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection based on pupil performance on state assessments in

 

reading in grades 3 to 8. The amount of a payment under this

 

subsection is an amount equal to $30.00 per pupil for all pupils in

 

membership in the district. The department shall determine the

 

qualifying districts under this subsection as follows:

 

     (a) Using a model determined by the department that

 

incorporates the most recent cut scores adopted for the Michigan

 

educational assessment program for each pupil in grades 3 to 8 in

 

the 2010-2011 2011-2012 school year, the department shall calculate

 

a point score using a metric that assigns points to each of those

 

pupils as follows:

 

     (i) For each pupil who began the school year not performing

 

proficiently in reading and who declines in proficiency, as

 

determined by the department, over the school year, 0 points.

 

     (ii) For each pupil who began the school year performing

 

proficiently in reading and declines in proficiency, as determined

 

by the department, over the school year, 0 points.

 

     (iii) For each pupil who began the school year not performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 1 point.

 

     (iv) For each pupil who began the school year performing

 

proficiently in reading and who maintains proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (v) For each pupil who began the school year not performing

 


proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 3 points.

 

     (vi) For each pupil who began the school year performing

 

proficiently in reading and who improves in proficiency, as

 

determined by the department, over the school year, 2 points.

 

     (b) The department shall then calculate a district average for

 

this metric for the 2010-2011 2011-2012 school year by totaling the

 

number of points for all pupils in grades 3 to 8 under subdivision

 

(a) and dividing that total by the number of those pupils.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district average for the 2010-2011 2011-2012

 

school year under subdivision (b) is at least equal to a factor of

 

1.5, and the district tested at least 95% of its pupils in reading,

 

and the district had at least 30 full academic year pupils in

 

grades 3 to 8 reading with a performance level change designation

 

in reading.

 

     (5) An amount not to exceed 40% of the maximum per pupil

 

amount allocated under subsection (2) shall be used to make

 

performance incentive payments to qualifying districts under this

 

subsection for high school improvement using a metric based on the

 

positive trend over a 4-year period in the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on the state assessments of high school pupils. The

 

amount of a payment under this subsection is an amount equal to

 

$40.00 per pupil for all pupils in membership in the district. The

 

department shall determine the qualifying districts under this

 

subsection as follows:

 


     (a) Calculate a linear regression of the percentage of high

 

school pupils in the district testing as proficient in all tested

 

subject areas on state assessments of high school pupils on school

 

year over the 4-year period ending with the 2010-2011 2011-2012

 

school year as adjusted for changes in cut scores most recently

 

adopted for the Michigan merit examination.

 

     (b) Calculate a statewide average for all districts operating

 

a high school of the linear regression of the percentage of high

 

school pupils testing as proficient in all tested subject areas on

 

state assessments of high school pupils on school year over the 4-

 

year period ending with the 2010-2011 2011-2012 school year, as

 

adjusted for changes in cut scores most recently adopted for the

 

Michigan merit examination as the base year for all comparisons.

 

     (c) A district is a qualifying district for the payment under

 

this subsection if the district's linear regression over the 4-year

 

period ending with the 2010-2011 2011-2012 school year under

 

subdivision (a) is at least equal to the statewide average linear

 

regression over the 4-year period ending with the base year under

 

subdivision (b), and the district's linear regression over the 4-

 

year period ending with the 2010-2011 2011-2012 school year under

 

subdivision (a) is positive, and the district tested 95% of high

 

school pupils in each tested subject on the Michigan merit

 

examination, state assessments, and the district had at least 20

 

full academic year pupils take all tested subjects on the Michigan

 

merit examination state assessments of high school pupils over each

 

of the most recent 4 years.

 

     (6) 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.

 

     (7) It is the intent of the legislature that grants awarded

 

under this section in 2014-2015 shall be based on growth scores

 

achieved using computer adaptive tests in the 2013-2014 school

 

year.

 

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

 

allocated for 2013-2014 an amount not to exceed $8,000,000.00 for

 

competitive student-centric grants to eligible districts.

 

     (2) In order to be eligible to receive grants, a district

 

shall demonstrate to the satisfaction of the department that the

 

district does all of the following:

 

     (a) Provides a rigorous curriculum aligned to state, national,

 

and international standards.

 

     (b) Organizes instructional delivery in such a way that

 

individual pupils advance to the next level of learning based on

 

their individual mastery of each subject area.

 

     (c) Allows for school site-based autonomy in decision making.

 

     (d) Ensures that teachers have access to all of the following:

 

     (i) Timely and meaningful pupil academic achievement data.

 

     (ii) Best instructional practices.

 

     (iii) Time to collaborate with others.

 

     (iv) Mentors.

 

     (v) Professional development tied to pupil needs as

 

demonstrated by data.

 

     (3) A district seeking a grant under this section shall submit

 


an application to the department by October 1, 2013 in a form and

 

manner prescribed by the department. The department shall award

 

grants on a per pupil basis to eligible recipients no later than

 

December 30, 2013.

 

     (4) The amount of a grant to a district receiving a grant

 

under this section shall not exceed $1,000,000.00.

 

     Sec. 22m. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2013-2014 an

 

amount not to exceed $18,000,000.00 for the purpose of providing

 

every district with access to a computer-adaptive test for each

 

pupil enrolled in the district. The computer-adaptive test provided

 

shall be the test that is chosen through a request for proposal

 

process undertaken by the department not later than August 1, 2013

 

and that is determined as the sole provider of the test. The

 

computer-adaptive test chosen by the department shall provide 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 2013-2014

 

school year.

 

     (c) Valid and reliable diagnostic assessment data.

 

     (d) Adjustment of testing difficulty based on previous answers

 

to test questions.

 

     (e) Immediate feedback to pupils and teachers.

 

     (2) Money allocated under this section shall be used only to

 

provide districts with access to a computer-adaptive test for each

 


pupil. The department shall not distribute or use this money for

 

any other purpose.

 

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

 

allocated for 2012-2013 2013-2014 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 human services to reside in or to attend a

 

juvenile detention facility or child caring institution licensed by

 

the department of 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

 

human services to reside in or to attend a juvenile detention

 

facility or child caring institution licensed by the department of

 

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 act 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 $2,135,800.00 for 2012-2013

 

$2,167,500.00 for 2013-2014 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities

 

operated by the department of 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 human services to ensure that all

 

funding allocated under this section is utilized by the

 

intermediate district and department of 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 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 $1,500,000.00 for 2012-2013 2013-

 

2014 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

 

located within the district and is administered by the department

 

of military and veterans affairs. Both of the following apply to a

 

district receiving payments under this section:

 

     (a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.

 


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

 

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

 

receives under this section.

 

     Sec. 25e. (1) The center shall work with the department,

 

districts, and intermediate districts to develop a pupil transfer

 

application modeled on the graduation and dropout application and

 

to develop a pupil transfer process under this section. The center

 

shall complete development of this pupil transfer application not

 

later than November 1, 2013.

 

     (2) If a pupil enrolls in a district or intermediate district

 

after the pupil membership count day and, due to the pupil's

 

enrollment and attendance status as of the pupil membership count

 

day, the pupil was not counted in membership in the educating

 

district or intermediate district, the educating district or

 

intermediate district may report the enrollment and attendance

 

information to the center through the pupil transfer application

 

until the supplemental count day. If the pupil transfers from

 

another district or intermediate district, the educating district

 

or intermediate district also may report the enrollment and

 

attendance information to the center through the pupil transfer

 

application until the supplemental count day. Upon receipt of the

 

transfer information under this subsection indicating that a pupil

 

has enrolled and is in attendance in an educating district or

 

intermediate district as described in this subsection, the pupil

 

transfer application shall do the following:

 

     (a) Notify the district in which the pupil was previously

 

enrolled. The district shall provide pupil exit dates and other

 


information as required by the center and the department.

 

     (b) Notify both the pupil auditing staff of the intermediate

 

district in which the educating district is located and the pupil

 

auditing staff of the intermediate district in which the district

 

that previously enrolled the pupil is located. The pupil auditing

 

staff shall edit, if necessary, and approve the transfer.

 

     (c) Aggregate the districtwide changes and notify the

 

department for use in adjusting the state aid payment system.

 

     (3) The department shall do all of the following:

 

     (a) Adjust the membership calculation for each district or

 

intermediate district in which the pupil was previously counted in

 

membership or that previously received an adjustment in its

 

membership calculation under this section due to the pupil's

 

enrollment and attendance, if any, so that the district's or

 

intermediate district's membership is prorated to allow the

 

district or intermediate district to receive for each school day in

 

which the pupil was enrolled and in attendance in the district an

 

amount equal to 1/180 of the foundation allowance or per pupil

 

payment as calculated under section 20 for the district or

 

intermediate district. The foundation allowance or per pupil

 

payment shall be adjusted by the pupil's full-time equated status

 

as affected by the membership definition under section 6(4).

 

     (b) Adjust the membership calculation for the educating

 

district or intermediate district for each school day in which the

 

pupil is enrolled and is in attendance in the educating district or

 

intermediate district so that the district's or intermediate

 

district's membership is increased to allow the district or

 


intermediate district to receive, for each school day between the

 

day the pupil enrolled in the educating district and the

 

supplemental count day, an amount equal to 1/180 of the foundation

 

allowance or per pupil payment as calculated under section 20 for

 

the educating district or intermediate district. The foundation

 

allowance or per pupil payment shall be adjusted by the pupil's

 

full-time equated status as affected by the membership definition

 

under section 6(4).

 

     (4) The changes in calculation of state school aid required

 

under subsection (3) shall take effect as of the date that the

 

pupil becomes enrolled and in attendance in the educating district

 

or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the

 

affected districts or intermediate districts on this recalculation

 

of state school aid.

 

     (5) If a pupil enrolls in an educating district or

 

intermediate district as described in subsection (2), the district

 

or intermediate district in which the pupil is counted in

 

membership or another educating district or intermediate district

 

that received an adjustment in its membership calculation under

 

subsection (3), if any, and the educating district or intermediate

 

district shall provide to the center and the department all

 

information they require to comply with this section.

 

     (6) As used in this section, "educating district or

 

intermediate district" means the district or intermediate district

 

in which a pupil enrolls after the pupil membership count day or

 

after an adjustment was made in another district's or intermediate

 


district's membership calculation under this section due to the

 

pupil's enrollment and attendance.

 

     Sec. 26a. (1) From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$25,137,500.00 for 2011-2012 and an amount not to exceed

 

$26,300,000.00 for 2012-2013 2013-2014 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 2012. 2013. 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.

 

     (2) 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 $1,500,000.00 for 2012-2013 to

 

reimburse public libraries pursuant to section 12 of the Michigan

 

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied

 

in 2012. 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 2012-2013 2013-2014 an amount not to exceed

 

$3,328,000.00 $4,009,500.00 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 $276,800.00 for 2011-2012 and an

 

amount not to exceed $347,800.00 for 2012-2013 $224,000.00 for

 

2013-2014 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.

 

     Sec. 31a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated for 2012-2013 2013-

 

2014 an amount not to exceed $317,695,500.00 for payments to

 

eligible districts, eligible public school academies, and the

 

education achievement system under this section. Subject to

 

subsection (14), the amount of the additional allowance under this

 

section, other than funding under subsection (6) or (7), shall be

 

based on the number of actual pupils in membership in the district

 

or public school academy or the education achievement system who

 

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, and reported to the department 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 in the form and manner

 

prescribed by the center. However, for a public school academy that

 

began operations as a public school academy, or for an achievement

 

school that began operations as an achievement school, after the

 

pupil membership count day of the immediately preceding school

 


year, the basis for the additional allowance under this section

 

shall be the number of actual pupils in membership in the public

 

school academy or the education achievement system who met the

 

income eligibility criteria for free breakfast, lunch, or milk in

 

the current state fiscal year, as determined under the Richard B.

 

Russell national school lunch act and reported to the department

 

not later than the fifth Wednesday after the pupil membership count

 

day.

 

     (2) To be eligible to receive funding under this section,

 

other than funding under subsection (6) or (7), a district or

 

public school academy that has not been previously determined to be

 

eligible or the education achievement system shall apply to the

 

department, in a form and manner prescribed by the department, and

 

a district or public school academy or the education achievement

 

system must meet all of the following:

 

     (a) 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, is less than or equal to the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (b) The district or public school academy or the education

 

achievement system agrees to use the funding only for purposes

 

allowed under this section and to comply with the program and

 

accountability requirements under this section.

 

     (3) 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 and as reported to

 

the department 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 foundation allowance or the public school academy's or

 

the education achievement system's per pupil amount calculated

 

under section 20, 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. A public school academy that began operations as

 

a public school academy, or an achievement school that began

 

operations as an achievement school, 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 or in 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

 

and as reported to the department 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 or the education achievement system's per

 

membership pupil amount calculated under section 20 for the current

 

state fiscal year.

 

     (4) 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 or counseling

 

services, for at-risk pupils; for school health clinics; for

 

preschool programs pursuant to section 32d; and for the purposes of

 

subsection (5), (6), or (7). 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 in

 

the immediately preceding state fiscal year, as determined and

 

reported as described in subsection (1), or the education

 

achievement system if it meets this requirement, may use not more

 

than 20% of the funds it receives under this section for school

 

security. A district, the public school academy, or the education

 

achievement system shall not use any of that money for

 

administrative costs or to supplant another program or other funds,

 

except for funds allocated to the district or public school academy

 

or the education achievement system under this section in the

 

immediately preceding year and already being used by the district

 

or public school academy or the education achievement system for

 

at-risk pupils. 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 and may include, but are not limited to, tutorial services,

 

early childhood programs to serve children age 0 to 5, and reading

 

programs as described in former section 32f as in effect for 2001-

 

2002. A tutorial method may be conducted with paraprofessionals

 

working under the supervision of a certificated teacher. The ratio

 

of pupils to paraprofessionals shall be between 10:1 and 15:1. Only

 

1 certificated teacher is required to supervise instruction using a

 

tutorial method. As used in this subsection, "to supplant another

 

program" means to take the place of a previously existing

 

instructional program or direct noninstructional services funded

 

from a funding source other than funding under this section.

 

     (5) Except as otherwise provided in subsection (12), 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.

 

     (6) From the funds allocated under subsection (1), there is

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$3,557,300.00 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 community health. 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 (14) for that fiscal year.

 

     (7) From the funds allocated under subsection (1), there is

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$5,150,000.00 for the state portion of the hearing and vision

 

screenings as described in section 9301 of the public health code,

 

1978 PA 368, MCL 333.9301. A local public health department shall

 

pay at least 50% of the total cost of the screenings. The frequency

 

of the screenings shall be as required under R 325.13091 to R

 

325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

administrative code. Funds shall be awarded in a form and manner

 


approved jointly by the department and the department of community

 

health. Notwithstanding section 17b, payments to eligible entities

 

under this subsection shall be paid on a schedule determined by the

 

department.

 

     (8) 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 at least a brief

 

description of each program conducted 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, the number of at-risk pupils

 

eligible for free or reduced price school lunch who were served by

 

each of those programs, and the total number of at-risk pupils

 

served by each of those programs. 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.

 

     (9) 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.

 

     (10) Subject to subsections (5), (6), (7), (12), and (13), any

 

a district may use up to 100% of the funds it receives under this

 

section to reduce the ratio of pupils to teachers in grades K-12,

 

or any combination of those grades, in school buildings in which

 

the percentage of pupils described in subsection (1) exceeds the

 

district's aggregate percentage of those pupils. Subject to

 

subsections (5), (6), (7), (12), and (13), if a district obtains a

 

waiver from the department, the a district may use up to 100% of

 

the funds it receives under this section to reduce the ratio of

 

pupils to teachers in grades K-12, or any combination of those

 

grades, in school buildings in which the percentage of pupils

 

described in subsection (1) is at least 60% of the district's

 

aggregate percentage of those pupils and at least 30% of the total

 

number of pupils enrolled in the school building. To obtain a

 

waiver, a district must apply to the department and demonstrate to

 

the satisfaction of the department that the class size reductions

 

would be in the best interests of the district's at-risk pupils.

 

     (11) A district or public school academy or the education

 

achievement system may use funds received under this section for

 

adult high school completion, general educational development

 

(G.E.D.) test preparation, adult English as a second language, or

 

adult basic education programs described in section 107.

 


     (12) For an individual school or schools operated by a

 

district or public school academy receiving funds under this

 

section or the education achievement system that have been

 

determined by the department to meet the adequate yearly progress

 

standards of the no child left behind act of 2001, Public Law 107-

 

110, in both mathematics and English language arts at all

 

applicable grade levels for all applicable subgroups, the district

 

or public school academy or the education achievement system may

 

use not more than 20% of the funds it receives under this section

 

for specific alternative purposes identified by the district or

 

public school academy or the education achievement system that are

 

designed to benefit at-risk pupils in the school, but that may be

 

different from the purposes otherwise allowable under this section.

 

If a district or public school academy or the education achievement

 

system uses funds for alternative purposes allowed under the

 

flexibility provisions under this subsection, the district or

 

public school academy or the education achievement system shall

 

maintain documentation of the amounts used for those alternative

 

purposes and shall make that information available to the

 

department upon request.

 

     (13) A district or public school academy that receives funds

 

under this section or the education achievement system may use

 

funds it receives under this section to implement and operate an

 

early intervening program for pupils in grades K to 3 that meets

 

either or both of the following:

 

     (a) Monitors individual pupil learning and provides specific

 

support or learning strategies to pupils as early as possible in

 


order to reduce the need for special education placement. The

 

program shall include literacy and numeracy supports, sensory motor

 

skill development, behavior supports, instructional consultation

 

for teachers, and the development of a parent/school learning plan.

 

Specific support or learning strategies may include support in or

 

out of the general classroom in areas including reading, writing,

 

math, visual memory, motor skill development, behavior, or language

 

development. These would be provided based on an understanding of

 

the individual child's learning needs.

 

     (b) Provides early intervening strategies using school-wide

 

systems of academic and behavioral supports and is scientifically

 

research-based. The strategies to be provided shall include at

 

least pupil performance indicators based upon response to

 

intervention, instructional consultation for teachers, and ongoing

 

progress monitoring. A school-wide system of academic and

 

behavioral support should be based on a support team available to

 

the classroom teachers. The members of this team could include the

 

principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically

 

study the needs of the individual child and work with the teacher

 

to match instruction to the needs of the individual child.

 

     (14) If necessary, and before any proration required under

 

section 11, 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 (1).

 

     (15) If a district is formed by consolidation after June 1,

 

1995, and if 1 or more of the original districts was 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.

 

     (16) As used in this section, "at-risk pupil" means a pupil

 

for whom the district has documentation that the pupil meets at

 

least 2 of the following criteria: is a victim of child abuse or

 

neglect; is below grade level in English language and communication

 

skills arts or mathematics; is a pregnant teenager or teenage

 

parent; is eligible for a federal free or reduced-price lunch

 

subsidy; has atypical behavior or attendance patterns; or has a

 

family history of school failure, incarceration, or substance

 

abuse. At-risk pupil also includes all pupils in a priority school

 

as defined in the elementary and secondary education act of 2001

 

flexibility request approved by the United States department of

 

education. For pupils for whom the results of at least the

 

applicable Michigan education assessment program (MEAP) test have

 

been received, at-risk pupil also includes a pupil who does not

 


meet the other criteria under this subsection but who did not

 

achieve at least a score of level 2 on the most recent MEAP English

 

language arts, mathematics, science test, or social studies for

 

which results for the pupil have been received. For pupils for whom

 

the results of the Michigan merit examination have been received,

 

at-risk pupil also includes a pupil who does not meet the other

 

criteria under this subsection but who did not achieve proficiency

 

on the reading, component writing, mathematics, science, or social

 

studies components of the most recent Michigan merit examination

 

for which results for the pupil have been received. , did not

 

achieve proficiency on the mathematics component of the most recent

 

Michigan merit examination for which results for the pupil have

 

been received, or did not achieve basic competency on the science

 

component of the most recent Michigan merit examination for which

 

results for the pupil have been received. For pupils in grades K-3,

 

at-risk pupil also includes a pupil who is at risk of not meeting

 

the district's core academic curricular objectives in English

 

language arts or mathematics.

 

     (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.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 for 2012-2013

 

2013-2014 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.

 

     (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 2012-2013 2013-2014 all available federal funding,

 

estimated at $400,000,000.00, $460,000,000.00 for the national

 

school lunch program and all available federal funding, estimated

 

at $2,506,000.00, $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 $9,625,000.00 for 2012-2013

 

$5,625,000.00 for 2013-2014 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 $109,275,000.00 for 2012-2013. $174,275,000.00 for

 

2013-2014. Funds allocated under this section shall be used to

 

provide part-day, school-day, or GSRP/head start blended

 

comprehensive free compensatory classroom programs designed to do 1

 

or both of the following:

 

     (a) Improve improve the readiness and subsequent achievement

 

of educationally disadvantaged children as defined by the

 

department who will be at least 4, but less than 5 years of age, as

 

of December 1 of the school year in which the programs are offered,

 

and who meet the participant eligibility and prioritization

 

guidelines as defined by the state board.department. Beginning in

 

2013-2014, 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 the date specified for determining a child's

 

eligibility to attend school under section 1147 of the revised

 

school code, MCL 380.1147.

 

     (b) Provide preschool and parenting education programs similar

 

to those under former section 32b as in effect for 2001-2002.

 

Beginning in 2007-2008, funds spent for programs described in this

 

subdivision shall not exceed the amount spent under this

 

subdivision for the immediately preceding fiscal year. Funds spent

 


for programs described in this subdivision shall be used for

 

services to families with income below 300% of the federal poverty

 

level.

 

     (2) Funds allocated under this section 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. For 2012-2013, the fiduciary intermediate

 

districts and consortia of intermediate districts shall allocate

 

the funding under this section as follows:

 

     (a) An amount not to exceed $100,400,000.00 allocated to

 

intermediate districts and consortia of intermediate districts as

 

directed by the department based on the formula in section 39. In

 

order to be eligible to receive funds allocated under this

 

subdivision subsection from an intermediate district or consortium

 

of intermediate districts, a district, or 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.

 

     (b) An amount not to exceed $8,875,000.00 allocated in grants

 

to competitive great start readiness programs as directed by the

 

department based on the grant award process in section 32l. In order

 

to be eligible to receive funds allocated under this section from

 

an intermediate district or consortium of intermediate districts, a

 

competitive great start readiness program shall comply with this

 

section and section 32l.

 

     (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 2012-2013 2013-

 

2014 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day, school-day, or GSRP/head start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process . At a minimum, the process shall include all

 

other funded preschool programs that may serve children in the same

 

geographic area, 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.

 

     (c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.

 

     (d) Health and developmental screening services for all

 

program participants.

 

     (e) Referral services for families of program participants to

 

community social service agencies, 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 multidistrict, multiagency, 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 the program components listed in this subsection and

 

make recommendations for changes to the great start readiness

 

program for which it is an advisory committee.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (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) Ensure that more than 75% 100% of the children

 

participating in an eligible great start readiness program for whom

 

the provider is receiving funds under this section are children who

 

live with families with a household income that is equal to or less

 

than 300% of the federal poverty level.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. For programs managed

 


directly by a district or intermediate district, a valid teaching

 

certificate and an early childhood (ZA or ZS) endorsement are

 

required. This provision does not apply to a district, intermediate

 

district, or competitive program that subcontracts with an eligible

 

child development program. In that situation, a teacher must have a

 

valid Michigan teaching certificate with an early childhood (ZA or

 

ZS) endorsement, a valid Michigan elementary teaching certificate

 

with a child development associate credential, or a bachelor's

 

degree in child development 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 development, 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 existing 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 2 children served by the

 

program for purposes of determining the number of children to be

 

served and for determining the amount of the grant award. A grant

 

award shall not be increased solely on the basis of providing a

 

school-day program.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/head

 

start blended program, the grant recipient shall ensure that all

 


head start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program.

 

     (8) (7) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section may provide services

 

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

 

private for-profit or nonprofit preschool center providers that

 

meet all requirements of subsection (4) and retain for

 

administrative services an amount equal to not more than 5% 7% of

 

the grant amount. An In addition, an intermediate district , or

 

consortium of intermediate districts , or competitive grant program

 

may expend not more than 10% 2% of the total grant amount for

 

administration recruiting and public awareness of the program.

 

     (8) Any public or private for-profit or nonprofit legal entity

 

or agency may apply for a competitive grant under this section.

 

However, a district or intermediate district may not apply for a

 

competitive grant under this section unless the district,

 

intermediate district, or consortium of districts or intermediate

 

districts is acting as a local grantee for the federal head start

 

program operating under the head start act, 42 USC 9831 to 9852.

 

     (9) Each provider shall enroll children according to how far

 

the child's household income is below 300% 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

 

300% 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. Each provider shall retain 10%

 

of its funding under this section to enroll eligible children after

 

the start of the program.

 

     (10) 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 20% of its

 

total slot allocation. If the intermediate district or consortium

 

is not able to contract for at least 20% 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 20% 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 as provided under this section.

 

     (11) (9) 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 or other eligibility criteria prescribed by the department

 

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 or other

 

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 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.

 

     (12) (10) As used in this section:

 

     (a) "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.

 

     (c) "School-day program" means a program that operates for at

 

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.

 

     (13) (11) A grant recipient An intermediate district or

 

consortium of intermediate districts receiving funds under this

 

section is encouraged to shall establish a sliding scale of tuition

 

rates based upon a child's family income for the purpose of

 

expanding eligible programs under this section. household income

 

for children participating in an eligible great start readiness

 

program who live with families with a household income that is more

 

than 300% of the federal poverty level to be used by all of its

 

providers, as approved by the department. A grant recipient may

 

shall charge tuition for programs provided under this section

 


according to that sliding scale of tuition rates on a uniform basis

 

for any child who does not meet the program income eligibility

 

requirements under this section.

 

     (12) The department shall develop a plan for a multiyear

 

phased-in approach to transfer funding for great start readiness

 

programs under this section into an early childhood block grant

 

program, along with funding for great start collaboratives under

 

section 32b and funding for great parents, great start programs

 

under section 32j. The early childhood block grant program will

 

allocate funds to intermediate districts and consortia of

 

intermediate districts to act as fiduciaries and provide

 

administration of regional early childhood programs in conjunction

 

with their regional great start collaborative to improve program

 

quality, evaluation, and efficiency for early childhood programs.

 

The department shall work with intermediate districts, districts,

 

great start collaboratives, and the early childhood investment

 

corporation to establish a revised funding formula, application

 

process, program criteria, and data reporting requirements.

 

     (14) From the amount allocated in subsection (1), an amount

 

not to exceed $100.00 is allocated to the Kalamazoo regional

 

education service agency for a pilot program to evaluate an

 

innovative local, prekindergarten system involving private

 

preschools, braided funding from both public and private sources

 

for the same classroom, quality development of preschools through

 

mentoring, and accountability using pretests and posttests. To

 

conduct this pilot program, the intermediate district shall

 

coordinate and contract with a private nonprofit entity for a

 


prekindergarten program that will include all of the following:

 

     (a) Helping private providers meet quality standards through

 

training and mentoring.

 

     (b) Providing common professional development offerings for

 

public and private teachers in the areas of curriculum

 

implementation, literacy, math, response to intervention, positive

 

behavior support, classroom management, and parent engagement

 

activities, and evaluating the effectiveness of this training.

 

     (c) Offering on-site teacher mentors/coaches to assist

 

teachers in implementing research-based practices.

 

     (d) Creating income-integrated "braided" classrooms that may

 

involve funding for various children in the same class from head

 

start, the great start readiness program, a locally funded

 

prekindergarten system providing tuition assistance to lower and

 

middle income families and supporting private providers in reaching

 

high-quality, and parent pay.

 

     (e) Providing tuition assistance that enables families to

 

access high-quality private prekindergarten providers as well as

 

public prekindergarten providers.

 

     (f) Supporting the continued development of an outreach plan

 

to connect with communities who serve the most vulnerable.

 

     (g) Demonstrating how the system's results can be rigorously

 

evaluated by a pretest and posttest at prekindergarten entrance and

 

kindergarten entrance.

 

     (15) State funds shall not be used for tuition assistance for

 

the pilot program under subsection (14) except for tuition

 

assistance for children with a household income below 300% of the

 


federal poverty line, up to the maximum amount that is allowed

 

under the great start readiness program.

 

     (16) The department shall work with the Kalamazoo regional

 

education assistance agency to develop a report on the

 

effectiveness of the pilot program under subsection (14) and shall

 

submit the report not later than December 31, 2014 to the house and

 

senate standing committees on education, the house and senate

 

appropriations subcommittees on school aid, the Governor, and the

 

house and senate fiscal agencies. The report shall include a

 

determination of the effectiveness of integrating pupils living

 

with families with various levels of income in the same preschool

 

classroom compared to segregating pupils into classrooms based on

 

income or other identified risk factors and using pretests and

 

posttests to, in part, determine that effectiveness.

 

     Sec. 32p. (1) From the school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$10,900,000.00 to intermediate districts for 2012-2013 2013-2014

 

for the purpose of providing early childhood funding to

 

intermediate school districts in block grants, supporting the

 

activities under subsection (2), and providing early childhood

 

programs for children from birth through age 8. The Beginning in

 

2013-2014, the funding provided to each intermediate district under

 

this section shall be equal to the sum of all funding allocated

 

under former sections 32b and 32j, as those sections were in effect

 

for 2011-2012. 100% of the amount allocated to the intermediate

 

district under this section for the immediately preceding fiscal

 

year. In order to receive funding under this section, each

 


intermediate district shall provide an application to the office of

 

great start not later than August 15, 2012, September 15 of the

 

immediately preceding fiscal year indicating the activities planned

 

to be provided. and children served under the block grant.

 

     (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. to address

 

the availability of the following 6 components of a great start

 

system in its communities: physical health, social-emotional

 

health, family supports, basic needs, economic stability and

 

safety, and parenting education and early education and care. The

 

goal of a local each great start collaborative is 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 is ready for kindergarten. to achieve the

 

following outcomes:

 

     (a) Children born healthy.

 

     (b) Children healthy, thriving, and developmentally on track

 

from birth to third grade.

 

     (c) Children developmentally ready to succeed in school at the

 

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 a workgroup to serve as a school readiness advisory

 

committee as required under section 32d and shall ensure the

 

coordination and expansion of infrastructure or programming to

 


support high-quality early childhood and childcare programs. An

 

intermediate district or consortium of intermediate districts may

 

reconstitute its local great start collaborative if that

 

collaborative is found to be ineffective.that its local great start

 

system includes the following supports for children from birth

 

through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.

 

     (d) Parent education and child advocacy.

 

     (e) Early education and care.

 

     (4) (3) Not later than December 1 , 2013, of each year, each

 

intermediate district shall provide a report to the department

 

detailing the activities actually provided during 2012-2013 the

 

immediately preceding school year and the families and children

 

actually served. 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. The block grants allocated under this

 

section implement legislative intent language for this purpose

 

enacted in 2011 PA 62.

 

     (5) (4) An intermediate district or consortium of intermediate

 

districts that receives funding under this section may carry over

 

any unexpended funds received under this section for a fiscal year

 

into the next fiscal year and may expend those unused funds in 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. 32q. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2013-2014 an amount

 

not to exceed $100.00 for a grant to the communities in schools of

 

Michigan program. The purposes of the communities in schools of

 

Michigan program include all of the following:

 

     (a) Improving the coordination, availability, delivery, and

 

effectiveness of integrated services and comprehensive supports for

 

pupils and families, including enhancing student learning outcomes

 

for pupils.

 

     (b) Acting as a liaison with other organizations in order to

 

assist public schools in providing pupils and families the

 

integrated services and comprehensive supports needed to improve

 

the learning of pupils and their ability to plan for postsecondary

 

educational opportunities, such as health, employment,

 

mentor/tutor, and human services, enrichment and accelerated

 

learning opportunities, before- and after-school programs, and

 

recreation, and related assistance.

 

     (c) Improving coordination between public schools and the

 

pupils and families they serve.

 

     (2) From the grant under subsection (1), communities in

 

schools of Michigan shall award subgrants, on a competitive basis,

 

to 1 or more eligible entities to connect integrated services and

 

comprehensive supports to pupils and families in order to enhance

 

student learning and outcomes, by performing the following:

 

     (a) Conducting an assessment of pupil and family needs in

 


schools.

 

     (b) Assessing the availability and quality of learning

 

opportunities beyond the classroom, including service-learning

 

opportunities.

 

     (c) Linking needed integrated services and comprehensive

 

supports to pupils, their families, and their public schools, and

 

evaluating the impact of such services and supports once the

 

services and supports are provided.

 

     (d) Enhancing the social, emotional, intellectual, and

 

physical development of pupils.

 

     (e) Providing training and support related to integrated

 

services and comprehensive supports for staff, teachers, and, as

 

appropriate, parent and community outreach coordinators in public

 

schools.

 

     (3) As used in this section, "eligible entity" means a

 

nonprofit community-based organization that is operating in

 

partnership with a public school to implement an independently

 

evaluated model of integrated student services and comprehensive

 

supports that is proven to increase pupil achievement.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2012-2013 2013-2014 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $812,328,500.00, $811,828,500.00, for

 

the federal programs under the no child left behind act of 2001,

 

Public Law 107-110. These funds are allocated as follows:

 

     (a) An amount estimated at $10,808,600.00 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 $250,000.00 for the purpose of

 

improving teaching and learning through a more effective use of

 

technology, funded from DED-OESE, educational technology state

 

grant funds.

 

     (b) (c) An amount estimated at $111,111,900.00 for the purpose

 

of preparing, training, and recruiting high-quality teachers and

 

class size reduction, funded from DED-OESE, improving teacher

 

quality funds.

 

     (c) (d) An amount estimated at $12,200,000.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

     (d) (e) An amount estimated at $10,286,500.00 for the Michigan

 

charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

     (e) (f) An amount estimated at $2,393,500.00 for rural and low

 

income schools, funded from DED-OESE, rural and low income school

 

funds.

 

     (f) (g) An amount estimated at $591,500,000.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

     (h) An amount estimated at $250,000.00 for the purpose of

 

providing unified family literacy programs, funded from DED-OESE,

 

title I, even start funds.

 

     (g) (i) An amount estimated at $8,878,000.00 for the purpose

 


of identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

     (h) (j) An amount estimated at $40,050,000.00 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) (k) An amount estimated at $24,600,000.00 to help support

 

local school improvement efforts, funded from DED-OESE, title I,

 

local school improvement grants.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2012-2013 2013-2014 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $33,514,100.00 $31,700,000.00 for the

 

following programs that are funded by federal grants:

 

     (a) An amount estimated at $600,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS –

 

center for disease control, AIDS funding.

 

     (b) An amount estimated at $1,814,100.00 $2,600,000.00 to

 

provide services to homeless children and youth, funded from DED-

 

OVAE, homeless children and youth funds.

 

     (c) An amount estimated at $2,600,000.00 for serve America

 

grants, funded from the corporation for national and community

 

service funds.

 

     (c) (d) An amount estimated at $28,500,000.00 for providing

 

career and technical education services to pupils, funded from DED-

 

OVAE, basic grants to states.

 


     (3) To the extent allowed under federal law, the funds

 

allocated under subsection (1)(g), (h), and (k) (1)(f) and (i) may

 

be used for 1 or more reading improvement programs that meet at

 

least 1 of the following:

 

     (a) A research-based, validated, structured reading program

 

that aligns learning resources to state standards and includes

 

continuous assessment of pupils and individualized education plans

 

for pupils.

 

     (b) A mentoring program that is a research-based, validated

 

program or a statewide 1-to-1 mentoring program and is designed to

 

enhance the independence and life quality of pupils who are

 

mentally impaired by providing opportunities for mentoring and

 

integrated employment.

 

     (c) A cognitive development program that is a research-based,

 

validated educational service program focused on assessing and

 

building essential cognitive and perceptual learning abilities to

 

strengthen pupil concentration and learning.

 

     (d) A structured mentoring-tutorial reading program for pupils

 

in preschool to grade 4 that is a research-based, validated program

 

that develops individualized educational plans based on each

 

pupil's age, assessed needs, reading level, interests, and learning

 

style.

 

     (4) 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.

 

     (5) 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.

 

     (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.

 

     (c) "DED-OVAE" means the DED office of vocational and adult

 

education.

 

     (d) "HHS" means the United States department of health and

 

human services.

 

     (e) "HHS-ACF" means the HHS administration for children and

 

families.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated for 2011-2012 2013-2014 an amount not to exceed

 

$956,769,100.00 and there is allocated an amount not to exceed

 

$996,269,100.00 for 2012-2013 $980,569,100.00 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 $363,400,000.00 for 2011-2012 and estimated

 

at $365,000,000.00 for 2012-2013, $370,000,000.00 for 2013-2014,

 

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; 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. All federal funds allocated under

 

this section in excess of those allocated under this section for

 

2002-2003 may be distributed in accordance with the flexible

 

funding provisions of the individuals with disabilities education

 

act, Public Law 108-446, including, but not limited to, 34 CFR

 

300.206 and 300.208. 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 $247,500,000.00 for

 


2011-2012 and estimated at $257,400,000.00 for 2012-2013,

 

$258,300,000.00 for 2013-2014, 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, 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, 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.

 


     (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 each fiscal year for 2011-2012 and for 2012-2013 for

 

2013-2014 an amount not to exceed $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 2011-2012 and

 

for 2012-2013 for 2013-2014 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 2011-2012 and for 2012-2013 for 2013-2014 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.

 

     (c) If the department determines before bookclosing for a

 

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. This reimbursement

 

shall not be made after 2014-2015.

 

     (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 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 $5,300,000.00 for

 

2011-2012 and estimated at $5,600,000.00 for 2012-2013,

 

$4,500,000.00 for 2013-2014, 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 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, 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, 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. 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.

 


     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of community health.

 

     (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).

 

     (c) 100% of the payment required under section 54.

 

     (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.

 

     Sec. 51b. A district or intermediate district shall not

 

receive funds under this article section 51a unless the district or

 

intermediate district complies with rules promulgated under article

 

3 of the revised school code, being sections 380.1701 to 380.1766

 

of the Michigan Compiled Laws.

 

     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, from the allocation under section 51a(1), there

 

is allocated each fiscal year for 2011-2012 and for 2012-2013 for

 

2013-2014 the amount necessary, estimated at $648,700,000.00 for

 

2011-2012 and estimated at $678,000,000.00 for 2012-2013,

 

$662,500,000.00, 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 for each fiscal year 2011-2012 and for 2012-

 

2013 2013-2014 all available federal funding, estimated at

 

$74,000,000.00, each fiscal year, for special education programs

 

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 2011-2012 and

 

for 2012-2013:for 2013-2014:

 

     (a) An amount estimated at $15,000,000.00 for handicapped

 

infants and toddlers, funded from DED-OSERS, handicapped infants

 

and toddlers funds.

 

     (b) An amount estimated at $14,000,000.00 for preschool grants

 

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

 

incentive funds.

 

     (c) An amount estimated at $45,000,000.00 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. 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.

 

     (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 community health.

 

     (c) Pupils who are former residents of department of community

 

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 $13,500,000.00 of the allocation for 2011-

 

2012 and for 2012-2013 2013-2014 in section 51a(1) shall be

 

allocated for each fiscal year 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. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2012-2013 2013-2014 in section 51a(1) shall be

 

allocated under this section.

 

     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.

 

     (c) "Taxable value" means the total taxable value of the

 

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 $36,881,100.00 for 2012-2013

 

$37,758,100.00 for 2013-2014 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 2010-2011 2012-

 

2013 shall be made in 2011-2012 2013-2014 at an amount per 2010-

 

2011 2012-2013 membership pupil computed by subtracting from

 

$174,700.00 $169,900.00 the 2010-2011 2012-2013 taxable value

 


behind each membership pupil and multiplying the resulting

 

difference by the 2010-2011-2012-2013 millage levied.

 

     (4) For 2012-2013 only, reimbursement to each intermediate

 

district shall be equal to its reimbursement under this section for

 

2011-2012.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 62.9% of the total amount allocated

 

under subsection (2).

 

     (5) 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 $26,611,300.00 for 2012-2013

 

2013-2014 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 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 based on the type of career and technical education

 

programs provided, the number of pupils enrolled, and the length of

 

the training period provided, and shall not exceed 75% of the added

 

cost of any program. 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.

 

     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.

 


     (c) "Taxable value" means the total taxable value of the

 

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 $9,000,000.00 for 2012-2013 $9,190,000.00

 

for 2013-2014 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 2010-2011 2012-

 

2013 shall be made in 2011-2012 2013-2014 at an amount per 2010-

 

2011 2012-2013 membership pupil computed by subtracting from

 

$190,400.00 $186,500.00 the 2010-2011 2012-2013 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2010-2011 2012-2013 millage levied.

 

     (4) For 2012-2013 only, reimbursements to each intermediate

 

district shall be equal to its reimbursement under this section for

 

2011-2012.

 

     (4) The amount paid to a single intermediate district under

 

this section shall not exceed 38.4% of the total amount allocated

 

under subsection (2).

 

     (5) 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. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,259,900.00 for 2012-2013

 

$3,299,000.00 for 2013-2014 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 75% of 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

 

each fiscal year 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 $1,634,900.00 for 2012-2013

 

$1,674,000.00 for 2013-2014 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) Except as otherwise provided in this section,

 

from the appropriation in section 11, there is allocated for 2012-

 

2013 2013-2014 to the intermediate districts the sum necessary, but

 

not to exceed $64,108,000.00, $64,115,100.00, to provide state aid

 

to intermediate districts under this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $62,108,000.00 $64,108,000.00 for

 

allocations to each intermediate district for 2012-2013 2013-2014

 

in an amount equal to 100% 103.2% of the amount allocated to the

 

intermediate district under this subsection for 2011-2012. the

 

immediately preceding fiscal year. 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) 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. From the allocation in subsection (1), there is

 

allocated $7,000.00 for purposes of this subsection for 2013-2014

 

and 2014-2015, after which the payment under this subsection will

 

cease.

 

     (5) During a fiscal year, the department shall not increase an

 

intermediate district's allocation under subsection (1) because of

 

an adjustment made by the department during the fiscal year in the

 

intermediate district's taxable value for a prior year. Instead,

 

the department shall report the adjustment and the estimated amount

 

of the increase to the house and senate fiscal agencies and the

 

state budget director not later than June 1 of the fiscal year, and

 


the legislature shall appropriate money for the adjustment in the

 

next succeeding fiscal year.

 

     (5) (6) In order to receive funding under subsection (2), 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.

 

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

 

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.

 

     (7) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $2,000,000.00 for 2012-2013 for an

 

incentive payment to each intermediate district that meets best

 

practices as determined by the department under this subsection.

 

The amount of the incentive payment is an amount equal to 3.2% of

 


the amount allocated to the intermediate district under subsection

 

(2). An intermediate district is eligible for an incentive payment

 

under this subsection if the intermediate district satisfies at

 

least 4 of the following requirements not later than June 1, 2013:

 

     (a) The intermediate district enters into an agreement with

 

the department to do all of the following:

 

     (i) Develop a service consolidation plan in 2012-2013 to reduce

 

operating costs that is in compliance with guidelines that were

 

developed by the department for former section 11d as that section

 

was in effect for 2010-2011.

 

     (ii) Implement the service consolidation plan in 2013-2014 and

 

report to the department not later than February 1, 2014 on the

 

intermediate district's progress in implementing the service

 

consolidation plan.

 

     (b) The intermediate district has obtained competitive bids on

 

the provision of 1 or more noninstructional services for the

 

intermediate district or its constituent districts with a value of

 

at least $50,000.00.

 

     (c) The intermediate district develops a technology plan in

 

accordance with department policy on behalf of all constituent

 

districts within the intermediate district that integrates

 

technology into the classroom and prepares teachers to use digital

 

technologies as part of the instructional program of each of its

 

constituent districts.

 

     (d) The intermediate district provides to parents and

 

community members a dashboard or report card demonstrating the

 

intermediate district's efforts to manage its finances responsibly.

 


The dashboard or report card shall include at least all of the

 

following for the 3 most recent school years for which the data are

 

available:

 

     (i) A list of services offered by the intermediate district

 

that are shared by other local or intermediate districts and a list

 

of the districts or intermediate districts that participate.

 

     (ii) The total cost savings to local or other intermediate

 

districts that share services with the intermediate district.

 

     (iii) The number and percentage of teachers in the intermediate

 

district service area that are trained to integrate technology into

 

the classroom.

 

     (iv) The total funds received from levying special education

 

and vocational education millages, and the number of special

 

education and vocational education pupils served with those

 

dollars.

 

     (v) The number and percentage of individualized education

 

programs developed for special education pupils that contain

 

academic goals.

 

     (e) The intermediate district works in a consortium with 1 or

 

more other intermediate districts to develop information management

 

system requirements and bid specifications that can be used as

 

statewide models. At a minimum, these specifications shall address

 

pupil management systems for both general and special education,

 

learning management tools, and business services.

 

     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).

 

     (c) Collect data in the most efficient manner possible in

 

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 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.

 

     (c) Enables the matching of individual teacher and student

 


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 $9,218,400.00 for 2012-2013

 

$9,435,100.00 for 2013-2014 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 2012-2013 2013-2014 the amount necessary,

 

estimated at $193,500.00, for 2012-2013, to support the operations

 

of the center and to establish a P-20 longitudinal data system as

 

provided under this section in compliance with the assurance

 


provided to the United States department of education in order to

 

receive state fiscal stabilization funds. 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), there is

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$850,000.00 for competitive grants 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.

 

     (c) An applicant that received a grant under this subsection

 

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. 95. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $1,750,000.00 for 2012-2013

 

$500,000.00 for 2013-2014 for grants to districts to support

 

professional development for principals and assistant principals in

 

a department-approved training program for implementing educator

 

evaluations as required under section 1249 of the revised school

 

code, MCL 380.1249.

 

     (2) For 2012-2013, all districts may apply for funding under

 

this section by a date determined by the department. Beginning in

 

2013-2014, in In a form and manner determined by the department,

 

priority will be given to districts that have new building

 

administrators who have not previously received training in

 

programs funded under this section.

 


     (3) The department shall approve training programs for the

 

purpose of this section. The department shall approve all training

 

programs recommended by the governor's council on educator

 

effectiveness and may approve other training programs that meet

 

department criteria. At a minimum, these other programs shall meet

 

all of the following criteria:

 

     (a) Contain instructional content on methods of evaluating

 

teachers consistently across multiple grades and subjects.

 

     (b) Include training on evaluation observation that is focused

 

on reliability and bias awareness and that instills skills needed

 

for consistent, evidence-based observations.

 

     (c) Incorporate the use of videos of actual lessons for

 

applying rubrics and consistent scoring.

 

     (d) Align with recommendations of the governor's council on

 

educator effectiveness.

 

     (e) Provide ongoing support to maintain inter-rater

 

reliability. As used in this subdivision, "inter-rater reliability"

 

means a consistency of measurement from different evaluators

 

independently applying the same evaluation criteria to the same

 

classroom observation.

 

     (4) The department shall award grants to eligible districts in

 

an amount determined by the department, but not to exceed $350.00

 

per participant.

 

     (5) A district receiving funds under this section shall use

 

the funds only for department-approved training programs under this

 

section.

 

     Sec. 98. (1) From the general fund money appropriated in

 


Senate Bill No. 182 as amended April 24, 2013

 

section 11, there is allocated an amount not to exceed

 

$4,387,500.00 for 2012-2013 <<$4,387,900.00>> for 2013-2014 for the

 

purposes described in this section.

 

     (2) The Michigan virtual university shall establish the center

 

for online learning research and innovation. The center for online

 

learning research and innovation 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 online and blended digital

 

education delivery models for use by pupils and teachers that

 

include age-appropriate multimedia instructional content.

 

     (iii) Research, design, and recommend competency-based online

 

assessments.

 

     (iv) Research, develop, and recommend annually to the

 

department criteria by which cyber schools and online course

 

providers should be monitored and evaluated to ensure a quality

 

education for their pupils.

 

     (v) Based on pupil completion and performance data reported to

 

the department or the center for educational performance and

 

information from cyber schools and other online course providers

 

operating in this state, analyze the effectiveness of online

 

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, and the department not later than

 

December 31, 2013.1, 2014.

 

     (vi) Design professional development services for Before August

 

31, 2014, provide an extensive professional development program to

 

at least 1,000 educational personnel, including teachers, school

 

administrators, and school board members, to learn how to

 

effectively integrate new technologies and online learning into

 

curricula and instruction.that focuses on the effective integration

 

of digital learning into curricula and instruction. Not later than

 

December 1, 2014, 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

 

digital learning in the public education system. The Michigan

 

virtual university shall ensure that not more than $100.00 of the

 

money allocated under subsection (1) is expended for the activities

 

described in this subparagraph.

 

     (vii) Identify and share best practices for planning,

 

implementing, and evaluating online and blended education delivery

 

models with intermediate districts, districts, and public school

 


academies to accelerate the adoption of innovative education

 

delivery models statewide. Beginning in 2013-2014, the Michigan

 

virtual university shall award up to $100.00 in competitive grants

 

to intermediate districts or consortia of intermediate districts to

 

support and accelerate statewide efforts to expand the integration

 

of online and blended learning. These grant funds may not be used

 

to supplant personnel costs at an intermediate district. Not later

 

than December 1, 2014, the Michigan virtual university shall 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 barriers and other opportunities to

 

encourage the acceptance of digital learning in the public

 

education system.

 

     (b) Provide leadership for this state's system of online and

 

blended digital 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

 

online learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to online

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for online teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, recommend to the

 

superintendent guidelines and standards for a new teacher

 


endorsement credential related to effective online and blended

 

digital learning instruction. Not later than September 30, 2013,

 

the Michigan virtual learning research institute shall report its

 

recommendations for a new digital learning teacher endorsement

 

credential. Beginning in 2013-2014, the Michigan virtual university

 

shall convene and support a statewide cohort of higher education

 

faculty members to implement the new teacher endorsement credential

 

within their higher education institutions' teacher preparation

 

programs. The Michigan virtual university may support a portion of

 

the personnel costs associated with this initiative. The Michigan

 

virtual university shall ensure that higher education faculty

 

members participating in this initiative are required to conduct

 

research work that contributes to the goals of the Michigan virtual

 

learning research institute. The Michigan virtual university shall

 

ensure that not more than $100.00 of the money allocated under

 

subsection (1) is expended for the activities described in this

 

subparagraph.

 

     (v) Pursue public/private partnerships that include districts

 

to study and implement competency-based technology-rich online

 

learning models.

 

     (vi) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify

 

barriers and opportunities related to online learning.

 

     (vii) Produce an annual consumer awareness report for schools

 

and parents about effective online education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 


     (3) Subject to the provisions of this subsection, from the

 

funds allocated in subsection (1), there is allocated an amount not

 

to exceed $500,000.00 for 2012-2013 to the Michigan virtual school

 

operated by the Michigan virtual university to conduct and report

 

on a year-long pilot study of a new performance-based funding model

 

for the Michigan virtual school. The purpose of the pilot study is

 

to determine the merits of a payment system for online

 

instructional programs based on pupil performance rather than

 

solely on enrollment and attendance factors. All of the following

 

apply to the pilot study and the funding under this subsection:

 

     (a) The Michigan virtual school shall randomly select a

 

minimum of 1,000 of its qualifying online course enrollments for

 

inclusion in the pilot study. The Michigan virtual school shall

 

issue a refund or credit to districts for all online course

 

enrollments included in the pilot study.

 

     (b) The Michigan virtual school shall report to the department

 

the number of online course enrollments in the pilot study that

 

meet the following conditions:

 

     (i) The pupil successfully completed the online course as

 

measured by assessments aligned to the course content and earned a

 

grade or credit from the district or public school academy in which

 

the pupil is enrolled.

 

     (ii) The online course is taught by a Michigan certificated

 

teacher certified in the subject area in which the course is being

 

offered.

 

     (iii) Where applicable, the online course is aligned with

 

Michigan curriculum standards.

 


     (iv) The online course curriculum contains periodic online

 

pupil assessments.

 

     (v) Pupils have access to the appropriate technology hardware

 

and software necessary to take the online course.

 

     (vi) Parents or guardians and pupils have secure online access

 

to review periodic pupil progress and performance data.

 

     (vii) The online instructor is available to interact with

 

parents or guardians and pupils using electronic communications.

 

     (c) The department shall pay to Michigan virtual school from

 

the funding under this subsection an amount not to exceed the

 

equivalent of 1/12 of the state's minimum per pupil foundation

 

allowance for each online course enrollment included in the pilot

 

study that meets the conditions of subdivision (b) in the next

 

school aid payment after the report is received by the department.

 

     (viii) 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 online

 

resources that align to Michigan's K-12 curriculum standards for

 

use by students, educators, and parents. The Michigan virtual

 

university shall ensure that not more than $100.00 of the money

 

allocated under subsection (1) is expended for the activities

 

described in this subparagraph.

 

     (3) (4) In order for the Michigan virtual university to

 

receive any funds allocated under this section, the Michigan

 


virtual school must maintain its accreditation status from

 

recognized national and international accrediting entities.

 

     (4) (5) The Michigan virtual school operated by the Michigan

 

virtual university may offer online course offerings, in addition

 

to those offered in the pilot study described in subsection (3),

 

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.

 

     (c) Courses and dual enrollment opportunities.

 

     (d) Programs and services for at-risk pupils.

 

     (e) General education development 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.

 

     (h) The department shall include Michigan virtual school

 

online courses in the statewide catalog of online courses.

 

     (5) (6) 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.

 

     (6) (7) 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 online course titles available to districts.

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (e) An analysis of the results of the pilot study described in

 

subsection (3), including, but not limited to:

 

     (i) A list of the districts that were selected to be part of

 

the pilot study.

 

     (ii) The number of successful online course completions.

 

     (iii) A list of the courses offered in the pilot study and the

 

completion rates for each course.

 

     (iv) Identification of opportunities and barriers that must be

 

addressed in order to apply online learning performance funding

 

based on successful completions rather than enrollment and

 

attendance for online learning offerings statewide.

 

     (7) (8) The governor may appoint an advisory group for the

 

center for online learning research and innovation 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

 


Senate Bill No. 182 as amended April 24, 2013

 

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.

 

     (8) Not later than October 1, 2013, 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

 

2013-2014 fiscal year with details on the Michigan virtual

 

university's staffing, infrastructure, revenues, expenditures, and

 

costs charged to districts. Beginning in 2013-2014, the Michigan

 

virtual university shall submit this budget for the next fiscal

 

year to these entities not later than August 1 immediately

 

preceding that fiscal year.

 

     <<

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                    >>

 


Senate Bill No. 182 as amended April 24, 2013

 

     <<(9)>> As used in this section:

 

     (a) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided face-to-face content, instruction,

 

and assessment, in part at a supervised school 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 computer-based and internet-connected learning environments

 

with some degree of pupil control over time, location, and pace of

 

instruction.

 

     (b) "Cyber school" means a full-time online instructional

 

program of online courses for pupils that may or may not require

 

attendance at a physical school location.

 

     (c) "Digital learning" means instruction delivered via a web-

 

based educational delivery system that uses various information

 

technologies to provide a structured learning environment,

 

including online and blended learning instructional methods.

 

     (d) (c) "Online instructional program" course" means a course

 

of study that generates is capable of generating a credit or a

 

grade, that is provided in an interactive computer-based and

 

internet-connected learning environment, in which pupils are

 

separated from their teachers by time or location, or both, and in

 

which a Michigan certificated teacher teacher who holds a valid

 

Michigan teaching certificate is responsible for providing direct

 

instruction, determining appropriate instructional methods for each

 

pupil, diagnosing learning needs, assessing pupil learning,

 

prescribing intervention strategies, reporting outcomes, and

 

evaluating the effects of instruction and support strategies.

 


     Sec. 99. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $2,725,000.00 $2,850,000.00

 

for 2012-2013 2013-2014 to support the activities and programs of

 

mathematics and science centers and for other purposes as described

 

in this section. In addition, from the federal funds appropriated

 

in section 11, there is allocated for 2012-2013 2013-2014 an amount

 

estimated at $5,249,300.00 from DED-OESE, title II, mathematics and

 

science partnership grants.

 

     (2) 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.

 

     (3) The department shall not award a state grant under this

 

section 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.

 

     (4) 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 section.

 

     (5) Allocations under this section to support the activities

 

and programs of mathematics and science centers shall be continuing

 

support grants to all 33 established mathematics and science

 

centers. Each established mathematics and science center that was

 

funded in the immediately preceding fiscal year shall receive state

 

funding in an amount equal to 100% of the amount it was allocated

 

under this subsection for the immediately preceding fiscal year. If

 

a center declines state funding or a center closes, the remaining

 

money available under this section shall be distributed to the

 

remaining centers, as determined by the department.

 

     (6) From the funds allocated in subsection (1), there is

 

allocated for 2012-2013 2013-2014 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 subsection is in addition to funding allocated

 

under subsection (5).

 

     (7) From the funds allocated in subsection (1), there is

 

allocated for 2012-2013 2013-2014 an amount not to exceed

 

$100,000.00 in a form and manner determined by the department to a

 

single mathematics and science center that is a participant in the

 

Michigan STEM partnership. Funding under this subsection is in

 

addition to funding allocated under subsection (5) and shall be

 

used for connecting mathematics and science centers for science,

 

technology, engineering, and mathematics purposes.

 


     (8) In order to receive state or federal funds under this

 

section, 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 such funds. The grant recipient shall

 

reimburse the state for all disallowances found in the audit.

 

     (9) Not later than September 30, 2013, the department shall

 

reevaluate and update the comprehensive master plan described in

 

subsection (1).

 

     (10) The department shall give preference in awarding the

 

federal grants allocated in subsection (1) to eligible existing

 

mathematics and science centers.

 

     (11) In order to receive state funds under this section, a

 

grant recipient shall provide at least a 10% local match from local

 

public or private resources for the funds received under this

 

section.

 

     (12) Not later than July 1 of each year, a mathematics and

 

science center that receives funds under this section shall report

 

to the department in a form and manner prescribed by the department

 

on the following performance measures:

 

     (a) 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.

 

     (b) Statistical change in pre- and post-assessment scores for

 

teachers who enrolled in professional development activities

 

provided by the mathematics and science center.

 

     (13) 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.

 

     Sec. 101. (1) To be eligible to receive state aid under this

 

act, article, not later than the fifth Wednesday after the pupil

 

membership count day and not later than the fifth Wednesday after

 

the supplemental count day, each district superintendent shall

 

submit to the center and the intermediate superintendent, in the

 

form and manner prescribed by the center, the number of pupils

 

enrolled and in regular daily attendance in the district as of the

 

pupil membership count day and as of the supplemental count day, as

 

applicable, for the current school year. In addition, a district

 

maintaining school during the entire year, as provided under

 

section 1561 of the revised school code, MCL 380.1561, shall submit

 

to the center and the intermediate superintendent, in the form and

 

manner prescribed by the center, the number of pupils enrolled and

 

in regular daily attendance in the district for the current school

 

year pursuant to rules promulgated by the superintendent. Not later

 

than the seventh sixth Wednesday after the pupil membership count

 

day and not later than the sixth Wednesday after the supplemental

 

count day, the district shall certify the data in a form and manner

 

prescribed by the center and file the certified data with the

 

intermediate superintendent. If a district fails to submit and

 

certify the attendance data, as required under this subsection, the

 

center shall notify the department and state aid due to be

 

distributed under this article shall be withheld from the

 

defaulting district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 


district complies with this subsection. If a district does not

 

comply with this subsection by the end of the fiscal year, the

 

district forfeits the amount withheld. A person who willfully

 

falsifies a figure or statement in the certified and sworn copy of

 

enrollment shall be punished in the manner prescribed by section

 

161.

 

     (2) To be eligible to receive state aid under this article,

 

not later than the twenty-fourth Wednesday after the pupil

 

membership count day and not later than the twenty-fourth Wednesday

 

after the supplemental count day, an intermediate district shall

 

submit to the center, in a form and manner prescribed by the

 

center, the audited enrollment and attendance data for the pupils

 

of its constituent districts and of the intermediate district. If

 

an intermediate district fails to submit the audited data as

 

required under this subsection, state aid due to be distributed

 

under this article shall be withheld from the defaulting

 

intermediate district immediately, beginning with the next payment

 

after the failure and continuing with each payment until the

 

intermediate district complies with this subsection. If an

 

intermediate district does not comply with this subsection by the

 

end of the fiscal year, the intermediate district forfeits the

 

amount withheld.

 

     (3) Except as otherwise provided in subsections (11) and (12),

 

all of the following apply to the provision of pupil instruction:

 

     (a) Except as otherwise provided in this section, each

 

district shall provide at least 1,098 hours and, beginning in 2010-

 

2011, the required minimum number of days of pupil instruction. For

 


2010-2011 and for 2011-2012, the required minimum number of days of

 

pupil instruction is 165. Beginning in 2012-2013, the required

 

minimum number of days of pupil instruction is 170. However,

 

beginning in 2010-2011, a district shall not provide fewer days of

 

pupil instruction than the district provided for 2009-2010. A

 

district may apply for a waiver under subsection (9) from the

 

requirements of this subdivision.

 

     (b) Except as otherwise provided in this article, a district

 

failing to comply with the required minimum hours and days of pupil

 

instruction under this subsection shall forfeit from its total

 

state aid allocation an amount determined by applying a ratio of

 

the number of hours or days the district was in noncompliance in

 

relation to the required minimum number of hours and days under

 

this subsection. Not later than August 1, the board of each

 

district shall certify to the department the number of hours and,

 

beginning in 2010-2011, days of pupil instruction in the previous

 

school year. If the district did not provide at least the required

 

minimum number of hours and days of pupil instruction under this

 

subsection, the deduction of state aid shall be made in the

 

following fiscal year from the first payment of state school aid. A

 

district is not subject to forfeiture of funds under this

 

subsection for a fiscal year in which a forfeiture was already

 

imposed under subsection (6).

 

     (c) Hours or days lost because of strikes or teachers'

 

conferences shall not be counted as hours or days of pupil

 

instruction.

 

     (d) If a collective bargaining agreement that provides a

 


complete school calendar is in effect for employees of a district

 

as of October 19, 2009, and if that school calendar is not in

 

compliance with this subsection, then this subsection does not

 

apply to that district until after the expiration of that

 

collective bargaining agreement.

 

     (e) Except as otherwise provided in subdivision (f), a

 

district not having at least 75% of the district's membership in

 

attendance on any day of pupil instruction shall receive state aid

 

in that proportion of 1/180 that the actual percent of attendance

 

bears to the specified percentage.

 

     (f) At the request of a district that operates a department-

 

approved alternative education program and that does not provide

 

instruction for pupils in all of grades K to 12, the superintendent

 

may grant a waiver from the requirements of subdivision (e). The

 

waiver shall indicate that an eligible district is subject to the

 

proration provisions of subdivision (e) only if the district does

 

not have at least 50% of the district's membership in attendance on

 

any day of pupil instruction. In order to be eligible for this

 

waiver, a district must maintain records to substantiate its

 

compliance with the following requirements:

 

     (i) The district offers the minimum hours of pupil instruction

 

as required under this section.

 

     (ii) For each enrolled pupil, the district uses appropriate

 

academic assessments to develop an individual education plan that

 

leads to a high school diploma.

 

     (iii) The district tests each pupil to determine academic

 

progress at regular intervals and records the results of those

 


tests in that pupil's individual education plan.

 

     (g) All of the following apply to a waiver granted under

 

subdivision (f):

 

     (i) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 

     (ii) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (iii) A waiver that is not a waiver described in subparagraph

 

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

 

to remain in effect.

 

     (h) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

     (4) Except as otherwise provided in this subsection, the first

 

6 days or the equivalent number of hours for which pupil

 

instruction is not provided because of conditions not within the

 

control of school authorities, such as severe storms, fires,

 

epidemics, utility power unavailability, water or sewer failure, or

 

health conditions as defined by the city, county, or state health

 

authorities, shall be counted as hours and days of pupil

 


instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil

 

instruction for a fiscal year not more than 6 additional days or

 

the equivalent number of additional hours for which pupil

 

instruction is not provided in a district after April 1 of the

 

applicable school year due to unusual and extenuating occurrences

 

resulting from conditions not within the control of school

 

authorities such as those conditions described in this subsection.

 

Subsequent such hours or days shall not be counted as hours or days

 

of pupil instruction.

 

     (5) A district shall not forfeit part of its state aid

 

appropriation because it adopts or has in existence an alternative

 

scheduling program for pupils in kindergarten if the program

 

provides at least the number of hours required under subsection (3)

 

for a full-time equated membership for a pupil in kindergarten as

 

provided under section 6(4).

 

     (6) In addition to any other penalty or forfeiture under this

 

section, if at any time the department determines that 1 or more of

 

the following has occurred in a district, the district shall

 

forfeit in the current fiscal year beginning in the next payment to

 

be calculated by the department a proportion of the funds due to

 

the district under this article that is equal to the proportion

 

below the required minimum number of hours and days of pupil

 

instruction under subsection (3), as specified in the following:

 

     (a) The district fails to operate its schools for at least the

 

required minimum number of hours and days of pupil instruction

 

under subsection (3) in a school year, including hours and days

 


counted under subsection (4).

 

     (b) The board of the district takes formal action not to

 

operate its schools for at least the required minimum number of

 

hours and days of pupil instruction under subsection (3) in a

 

school year, including hours and days counted under subsection (4).

 

     (7) In providing the minimum number of hours and days of pupil

 

instruction required under subsection (3), a district shall use the

 

following guidelines, and a district shall maintain records to

 

substantiate its compliance with the following guidelines:

 

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

 

must be scheduled for at least the required minimum number of hours

 

of instruction, excluding study halls, or at least the sum of 90

 

hours plus the required minimum number of hours of instruction,

 

including up to 2 study halls.

 

     (b) The time a pupil is assigned to any tutorial activity in a

 

block schedule may be considered instructional time, unless that

 

time is determined in an audit to be a study hall period.

 

     (c) Except as otherwise provided in this subdivision, a pupil

 

in grades 9 to 12 for whom a reduced schedule is determined to be

 

in the individual pupil's best educational interest must be

 

scheduled for a number of hours equal to at least 80% of the

 

required minimum number of hours of pupil instruction to be

 

considered a full-time equivalent pupil. A pupil in grades 9 to 12

 

who is scheduled in a 4-block schedule may receive a reduced

 

schedule under this subsection if the pupil is scheduled for a

 

number of hours equal to at least 75% of the required minimum

 

number of hours of pupil instruction to be considered a full-time

 


equivalent pupil.

 

     (d) If a pupil in grades 9 to 12 who is enrolled in a

 

cooperative education program or a special education pupil cannot

 

receive the required minimum number of hours of pupil instruction

 

solely because of travel time between instructional sites during

 

the school day, that travel time, up to a maximum of 3 hours per

 

school week, shall be considered to be pupil instruction time for

 

the purpose of determining whether the pupil is receiving the

 

required minimum number of hours of pupil instruction. However, if

 

a district demonstrates to the satisfaction of the department that

 

the travel time limitation under this subdivision would create

 

undue costs or hardship to the district, the department may

 

consider more travel time to be pupil instruction time for this

 

purpose.

 

     (e) In grades 7 through 12, instructional time that is part of

 

a junior reserve officer training corps (JROTC) program shall be

 

considered to be pupil instruction time regardless of whether the

 

instructor is a certificated teacher if all of the following are

 

met:

 

     (i) The instructor has met all of the requirements established

 

by the United States department of defense and the applicable

 

branch of the armed services for serving as an instructor in the

 

junior reserve officer training corps program.

 

     (ii) The board of the district or intermediate district

 

employing or assigning the instructor complies with the

 

requirements of sections 1230 and 1230a of the revised school code,

 

MCL 380.1230 and 380.1230a, with respect to the instructor to the

 


same extent as if employing the instructor as a regular classroom

 

teacher.

 

     (8) Except as otherwise provided in subsections (11) and (12),

 

the department shall apply the guidelines under subsection (7) in

 

calculating the full-time equivalency of pupils.

 

     (9) Upon application by the district for a particular fiscal

 

year, the superintendent may waive for a district the minimum

 

number of hours and days of pupil instruction requirement of

 

subsection (3) for a department-approved alternative education

 

program or another innovative program approved by the department,

 

including a 4-day school week. If a district applies for and

 

receives a waiver under this subsection and complies with the terms

 

of the waiver, the district is not subject to forfeiture under this

 

section for the specific program covered by the waiver. If the

 

district does not comply with the terms of the waiver, the amount

 

of the forfeiture shall be calculated based upon a comparison of

 

the number of hours and days of pupil instruction actually provided

 

to the minimum number of hours and days of pupil instruction

 

required under subsection (3). Pupils enrolled in a department-

 

approved alternative education program under this subsection shall

 

be reported to the center in a form and manner determined by the

 

center. All of the following apply to a waiver granted under this

 

subsection:

 

     (a) If the waiver is for a blended model of delivery, a waiver

 

that is granted for the 2011-2012 fiscal year or a subsequent

 

fiscal year remains in effect unless it is revoked by the

 

superintendent.

 


     (b) If the waiver is for a 100% online model of delivery and

 

the educational program for which the waiver is granted makes

 

educational services available to pupils for a minimum of at least

 

1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours

 

during a school year, a waiver that is granted for the 2011-2012

 

fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

     (c) A waiver that is not a waiver described in subdivision (a)

 

or (b) is valid for 1 fiscal year and must be renewed annually to

 

remain in effect.

 

     (10) A district may count up to 38 hours of qualifying

 

professional development for teachers as hours of pupil

 

instruction. Professional development provided online is allowable

 

and encouraged, as long as the instruction has been approved by the

 

district. The department shall issue a list of approved online

 

professional development providers, which shall include the

 

Michigan virtual school. As used in this subsection, "qualifying

 

professional development" means professional development that is

 

focused on 1 or more of the following:

 

     (a) Achieving or improving adequate yearly progress as defined

 

under the no child left behind act of 2001, Public Law 107-110.

 

     (b) Achieving accreditation or improving a school's

 

accreditation status under section 1280 of the revised school code,

 

MCL 380.1280.

 

     (c) Achieving highly qualified teacher status as defined under

 

the no child left behind act of 2001, Public Law 107-110.

 


     (d) Integrating technology into classroom instruction.

 

     (e) Maintaining teacher certification.

 

     (11) Subsections (3) and (8) do not apply to 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.

 

     (12) Subsections (3) and (8) do not apply to eligible pupils

 

enrolled in a dropout recovery program that meets the requirements

 

of section 23a. As used in this subsection, "eligible pupil" means

 

that term as defined in section 23a.

 

     (13) Beginning in 2013, at least every 2 years the

 

superintendent shall review the waiver standards set forth in the

 

pupil accounting and auditing manuals to ensure that the waiver

 

standards and waiver process continue to be appropriate and

 

responsive to changing trends in online learning. The

 

superintendent shall solicit and consider input from stakeholders

 

as part of this review.

 

     Sec. 102. (1) A district or intermediate district receiving

 

money under this act article shall not adopt or operate under a

 

deficit budget, and a district or intermediate district shall not

 

incur an operating deficit in a fund during a school fiscal year. A

 

district or intermediate district that has an existing deficit fund

 

balance, that incurs a deficit fund balance in the most recently

 

completed school fiscal year, or that adopts a current year budget

 

that projects a deficit fund balance shall not be allotted or paid

 

a further sum under this act article until the district or

 

intermediate district submits to the department for approval a

 


budget for the current school fiscal year and a plan to eliminate

 

the district's or intermediate district's deficit not later than

 

the end of the second school fiscal year after the deficit was

 

incurred or the budget projecting a deficit was adopted. Withheld

 

state aid payments shall be released after the department approves

 

the deficit reduction elimination plan and ensures that the budget

 

for the current school fiscal year is balanced. After the

 

department approves a district's or intermediate district's deficit

 

reduction elimination plan, the district or intermediate district

 

shall post the deficit elimination plan on the district's or

 

intermediate district's website.

 

     (2) Not later than March 1 of each year, the department shall

 

prepare a report of deficits incurred or projected by districts and

 

intermediate districts in the immediately preceding fiscal year and

 

the progress made in reducing those deficits and submit the report

 

to the standing committees of the legislature responsible for K-12

 

education legislation, the appropriations subcommittees of the

 

legislature responsible for K-12 education appropriations, the

 

house and senate fiscal agencies, the state treasurer, and the

 

state budget director. The department also shall submit quarterly

 

interim reports concerning the progress made by districts and

 

intermediate districts in reducing those deficits. On a quarterly

 

basis, the superintendent of public instruction shall publicly

 

present those reports to the appropriations subcommittees of the

 

legislature responsible for K-12 education appropriations.

 

     (3) The amount of the permissible deficit for each school

 

fiscal year shall not exceed the amount of state aid reduced by an

 


executive order during that school fiscal year.

 

     (4) A district or intermediate district that has an existing

 

deficit fund balance, that incurs a deficit fund balance in the

 

most recently completed school fiscal year, or that adopts a

 

current year budget that projects a deficit fund balance shall

 

submit to the department a monthly monitoring report on revenue and

 

expenditures in a form and manner prescribed by the department and

 

shall post these reports on its website.

 

     (5) If a district or intermediate district is not able to

 

comply with the provisions of this section, the district or

 

intermediate district shall submit to the department a plan to

 

eliminate its deficit. Upon approval of the plan submitted, the

 

superintendent of public instruction may continue allotment and

 

payment of funds under this act, article, extend the period of time

 

in which a district or intermediate district has to eliminate its

 

deficit, and set special conditions that the district or

 

intermediate district must meet during the period of the extension.

 

After the department approves a district's or intermediate

 

district's deficit reduction elimination plan under this

 

subsection, the district or intermediate district shall post the

 

deficit elimination plan on the district's or intermediate

 

district's website.

 

     (6) For the purposes of this section, "deficit fund balance"

 

means that term as defined in the Michigan public school accounting

 

manual published 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 2012-2013 2013-2014 an amount not to exceed

 

$26,694,400.00 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 2012-2013 2013-2014 an amount estimated at

 

$8,250,000.00, 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.

 

     (2) The results of each test administered as part of the

 

Michigan educational assessment program, 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.

 

     (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) 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.

 

     (5) 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.

 

     (c) "DED-OSERS" means the DED office of special education and

 

rehabilitative services.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $22,000,000.00 for 2012-2013

 

2013-2014 for adult education programs authorized under this

 

section. 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, a program

 

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, a person shall be enrolled in an adult basic education

 

program, an adult English as a second language program, a general

 

educational development (G.E.D.) test preparation program, a job-

 

or employment-related program, or a high school completion program,

 

that meets the requirements of this section, and shall meet either

 

of the following, as applicable:

 

     (a) If the individual has obtained a high school diploma or a

 


general educational development (G.E.D.) certificate, the

 

individual meets 1 of the following:

 

     (i) Is less than 20 years of age on September 1 of the school

 

year and is enrolled in the Michigan career and technical

 

institute.

 

     (ii) Is less than 20 years of age on September 1 of the school

 

year, is not attending an institution of higher education, and is

 

enrolled in a job- or employment-related program through a referral

 

by an employer.

 

     (iii) Is enrolled in an English as a second language program.

 

     (iv) Is enrolled in a high school completion program.

 

     (b) If the individual has not obtained a high school diploma

 

or G.E.D. certificate, the individual meets 1 of the following:

 

     (i) Is at least 20 years of age on September 1 of the school

 

year.

 

     (ii) Is at least 16 years of age on September 1 of the school

 

year, has been permanently expelled from school under section

 

1311(2) or 1311a of the revised school code, MCL 380.1311 and

 

380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

     (4) Except as otherwise provided in subsection (5), the money

 

allocated under this section shall be distributed as follows:

 

     (a) For districts and consortia that received payments for

 

2011-2012 2012-2013 under this section, the amount allocated to

 

each for 2012-2013 2013-2014 shall be based on the number of

 

participants served by the district or consortium for 2012-2013,

 

using the amount allocated per full-time equated participant under

 


subsection (7), up to a maximum total allocation under this

 

subsection in an amount equal to the amount the district or

 

consortium received for 2011-2012 2012-2013 under this section

 

before any reallocations made for 2011-2012 2012-2013 under

 

subsection (5).

 

     (b) A district or consortium that received funding in 2011-

 

2012 2012-2013 under this section may operate independently of a

 

consortium or join or form a consortium for 2012-2013. 2013-2014.

 

The allocation for 2012-2013 2013-2014 to the district or the newly

 

formed consortium under this subsection shall be determined by the

 

department and shall be based on the proportion of the amounts that

 

are attributable to the district or consortium that received

 

funding in 2011-2012. 2012-2013. A district or consortium described

 

in this subdivision shall notify the department of its intention

 

with regard to 2012-2013 2013-2014 by October 1, 2012.2013.

 

     (5) A district that operated an adult education program in

 

2011-2012 2012-2013 and does not intend to operate a program in

 

2012-2013 2013-2014 shall notify the department by October 1, 2012

 

2013 of its intention. The money intended to be allocated under

 

this section to a district that does not operate a program in 2012-

 

2013 2013-2014 and the unspent money originally allocated under

 

this section to a district or consortium that subsequently operates

 

a program at less than the level of funding allocated under

 

subsection (4) and any other unallocated money under this section

 

shall instead be proportionately reallocated to the other districts

 

described in subsection (4)(a) that are operating an adult

 

education program in 2012-2013 2013-2014 under this section.

 


     (6) The amount allocated under this section per full-time

 

equated participant is $2,850.00 for a 450-hour program. The amount

 

shall be proportionately reduced for a program offering less than

 

450 hours of instruction.

 

     (7) An adult basic 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 ninth 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.

 

     (c) A participant in an adult basic education program is

 

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 funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (11) 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.

 

     (8) A general educational development (G.E.D.) 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.

 

     (b) The program shall administer a G.E.D. pre-test approved by

 

the department before enrolling an individual to determine the

 

individual's potential for success on the G.E.D. test, and shall

 

administer a post-test upon completion of the program in compliance

 

with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant, and a participant may be

 

enrolled in the program until 1 of the following occurs:

 

     (i) The participant passes the G.E.D. test.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

the G.E.D. test after having completed at least 450 hours of

 

instruction.

 

     (9) 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.

 

     (c) A funding recipient shall receive funding according to

 

subsection (11) 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.

 

     (10) A job- or employment-related adult education 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 referred by their employer who

 

are less than 20 years of age, have a high school diploma, are

 

determined to be in need of remedial mathematics or communication

 

arts skills and are not attending an institution of higher

 

education.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the department-approved assessment policy.

 

     (c) An individual may be enrolled in this program and the

 

grant recipient shall receive funding according to subsection (11)

 

until 1 of the following occurs:

 


     (i) The individual achieves the requisite skills as determined

 

by department-approved assessment instruments.

 

     (ii) The individual fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (11) A funding recipient shall receive payments under this

 

section in accordance with the following:

 

     (a) Ninety percent for enrollment of eligible participants.

 

     (b) Ten percent for completion of the adult basic education

 

objectives by achieving an increase of at least 1 grade level of

 

proficiency in reading or mathematics; for achieving basic English

 

proficiency, as defined by the department in the adult education

 

guidebook; for obtaining a G.E.D. or passage of 1 or more

 

individual G.E.D. tests; for attainment of a high school diploma or

 

passage of a course required for a participant to attain a high

 

school diploma; or for completion of the course and demonstrated

 

proficiency in the academic skills to be learned in the course, as

 

applicable.

 

     (12) As used in this section, "participant" means the sum of

 

the number of full-time equated individuals enrolled in and

 

attending a department-approved adult education program under this

 

section, using quarterly participant count days on the schedule

 

described in section 6(7)(b).

 

     (13) 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 (7), (8), (9), or (10) 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.

 

     (14) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (15) A district shall not commingle money received under this

 

section or from another source for adult education purposes with

 

any other funds of the district. A district receiving adult

 

education funds shall establish a separate ledger account for those

 

funds. This subsection does not prohibit a district from using

 

general funds of the district to support an adult education or

 

community education program.

 

     (16) A district or intermediate district receiving funds under

 

this section may establish a sliding scale of tuition rates based

 

upon a participant's family income. A district or intermediate

 

district 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 district or intermediate district 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.

 

     (17) In order to receive funds under this section, a district

 

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.

 

     (18) All intermediate district participant audits of adult

 

education programs shall be performed pursuant to the adult

 

education participant auditing and accounting manuals published by

 

the department.

 

     (19) As used in this section, "department" means the Michigan

 

strategic fund.

 

     Sec. 147. (1) The allocation each fiscal year for 2012-2013

 

2013-2014 and for 2014-2015 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 actuarial 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 2013-2014 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 18.62% for pension and at 8.75%

 


for retiree health care for the 2012-2013 fiscal year, unless a

 

different contribution rate is calculated and applied by the office

 

of retirement services pursuant to provisions enacted under Senate

 

Bill No. 1040 of the 96th Legislature.29.35%, with 24.79% 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 29.12%, with 24.56% paid

 

directly by the employer. 17.39% for pension and 8.75% for retiree

 

health care for the 2012-2013 fiscal year, unless a different

 

contribution rate is calculated and applied by the office of

 

retirement services pursuant to provisions enacted under Senate

 

Bill No. 1040 of the 96th Legislature. For public school employees

 

who first worked for a public school reporting unit before July 1,

 

2010, the annual level percentage of payroll contribution rate is

 

estimated at 22.46% for pension and 8.75% for retiree health care

 

for the 2013-2014 fiscal year, unless a different contribution rate

 

is calculated and applied by the office of retirement services

 

pursuant to provisions enacted under Senate Bill No. 1040 of the

 

96th Legislature. For public school employees who first worked for

 

a public school reporting unit on or after July 1, 2010, the annual

 

level percentage of payroll contribution rate is estimated at

 

21.19% for pension and 8.75% for retiree health care for the 2013-

 

2014 fiscal year, unless a different contribution rate is

 

calculated and applied by the office of retirement services

 

pursuant to provisions enacted under Senate Bill No. 1040 of the

 


96th Legislature. The portion of the contribution rate assigned to

 

districts and intermediate districts for each fiscal year is all of

 

the total percentage points. This

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the pension plus plan and in the personal healthcare fund, the

 

annual level percentage of payroll contribution rate is estimated

 

at 28.19%, with 23.63% 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 25.52%, 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 26.45%, with 21.89% 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 25.52%, 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 28.42%, with 23.86% paid

 

directly by the employer.

 

     (3) The annual level percentage of payroll contribution rates

 

for the 2014-2015 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 33.10%, with 25.78% 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 32.02%, with 24.70% paid

 

directly by the employer.

 

     (c) For public school employees who first worked for a public

 

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 31.51%, with 24.19% 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 28.28%, with 20.96% paid directly

 

by the employer.

 

     (e) For public school employees who first worked for a public

 


Senate Bill No. 182 as amended April 24, 2013

 

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 28.79%, with 21.47% 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 28.28%, 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 32.59%, with 25.27% paid

 

directly by the employer.

 

     (4) In addition to the employer payments described in

subsections (2) and (3), 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.

     (5) The contribution rate reflects rates in subsection (2)

reflect an amortization period of 26 25years for 2012-2013. 2013-

2014. 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. From the appropriation in section 11, there is allocated for 2012-2013 2013-2014 an amount not to exceed $155,000,000.00 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 ending September 30, 2013. in which it is received. The amount allocated to each participating district under this section 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, "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.>>

     Sec. 147b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $133,000,000.00 for 2011-2012 and

 


an amount not to exceed $41,000,000.00 for 2012-2013 for the

 

purposes of this section. The money allocated in this section

 

represents a portion of the year-end school aid fund balance. Money

 

allocated under this section shall be deposited in the MPSERS

 

retirement obligation reform reserve fund.

 

     (1) (2) The MPSERS retirement obligation reform reserve fund

 

is created as a separate account within the state school aid fund.

 

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

 

any source for deposit into the MPSERS retirement obligation reform

 

reserve fund. The state treasurer shall direct the investment of

 

the MPSERS retirement obligation reform reserve fund. The state

 

treasurer shall credit to the MPSERS retirement obligation reform

 

reserve fund interest and earnings from the MPSERS retirement

 

obligation reform reserve fund.

 

     (3) Money available in the MPSERS retirement obligation reform

 

reserve fund shall not be expended without a specific

 

appropriation.

 

     (4) Money in the MPSERS retirement obligation reform reserve

 

fund at the close of the fiscal year shall remain in the MPSERS

 

retirement obligation reform reserve fund and shall not lapse to

 

the state school aid fund or to the general fund. The department of

 

treasury shall be the administrator of the MPSERS retirement

 

obligation reform reserve fund for auditing purposes.

 

     (3) It is the intent of the legislature that the speaker of

 

the house of representatives or the senate majority leader, or

 

both, shall convene a workgroup to examine retirement obligations

 

and potential reforms to the Michigan public school employees'

 


retirement system established under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408. The

 

chair of the senate appropriations committee and chair of the house

 

appropriations committee, or his or her designee, each shall be a

 

member of the workgroup, and the workgroup shall report to the

 

speaker of the house of representatives or the senate majority

 

leader, as applicable, by February 1, 2012, on reforms identified,

 

timelines for implementing reforms, and estimated costs and savings

 

of the identified reforms.

 

     (5) If the contributions described in section 43e of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1343e, as that section was added by 2010 PA 75, are determined

 

by a final order of a court of competent jurisdiction for which all

 

rights of appeal have been exhausted to be constitutional and if

 

the order for preliminary injunction in Case No. 10-45-MM issued on

 

July 13, 2010 is lifted, the money placed in a separate interest

 

bearing account as a result of implementing the preliminary

 

injunction shall be deposited into the MPSERS retirement obligation

 

reform reserve fund created in this section to be used solely for

 

health care unfunded accrued liabilities.

 

     Sec. 147c. (1) Except as otherwise provided in subsection (2),

 

from From the appropriation in section 11, there is allocated for

 

2012-2013 2013-2014 an amount not to exceed $130,000,000.00 to

 

$253,300,000.00 from the state school aid fund, and there is

 

appropriated for 2013-2014 an amount not to exceed $150,000,000.00

 

from the MPSERS retirement obligation reform reserve fund, for

 

payments to districts and intermediate districts that are

 


participating entities of the Michigan public school employees'

 

retirement system.

 

     (2) 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 $1,300,000.00 for payments to

 

district libraries that are participating entities of the

 

retirement system.

 

     (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.

 

     (2) If section 41 of the public school employees' retirement

 

act of 1979, 1980 PA 300, MCL 38.1341, is not amended by Senate

 

Bill No. 1040 of the 96th Legislature, then the allocation under

 

subsection (1) shall lapse to the state school aid fund unless the

 

legislature takes action to allocate the funding in another manner.

 

     (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) As used in this section:

 

     (a) "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 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     (b) "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.

 

     (c) "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, from the state school aid fund money

 

appropriated in section 11 there is allocated for 2012-2013 2013-

 

2014 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.

 


Senate Bill No. 182 as amended April 24, 2013

 

     (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.

 

     Enacting section 1. In accordance with section 30 of article I

 

of the state constitution of 1963, total state spending on school

 

aid under article I as amended by this amendatory act from state

 

sources for fiscal year 2013-2014 is estimated at

 

<<$11,461,265,600.00>> and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2013-2014 are

 

estimated at <<$11,309,482,500.00>>.

 

     Enacting section 2. Sections 11q, 11t, 11u, 22f, 22g, 22h,

 

22i, 25, 25d, 32g, 32l, 93, <<101a, and 147a and 101a>> of the state

school aid

 

act of 1979, 1979 PA 94, MCL 388.1611q, 388.1611t, 388.1611u,

 

388.1622f, 388.1622g, 388.1622h, 388.1622i, 388.1625, 388.1625d,

 

388.1632g, 388.1632l, 388.1693, <<388.1701a, and 388.1747a, and

388.1701a,>> are

 

repealed effective October 1, 2013.

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