Bill Text: MI SB0183 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Appropriations; zero budget; multisection school aid; provide for fiscal year 2011-2012. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2011-05-25 - For Final Disposition Of Budget, See Hb 4325 [SB0183 Detail]
Download: Michigan-2011-SB0183-Engrossed.html
SB-0183, As Passed House, May 12, 2011
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 183
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11 and 17b (MCL 388.1611 and 388.1617b),
section 11 as amended by 2010 PA 217 and section 17b as amended by
2007 PA 137.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) Subject to subsection (5), for the fiscal year
ending
September 30, 2011 2012
and for the fiscal year ending
September 30, 2013, there is appropriated each fiscal year for the
public schools of this state and certain other state purposes
relating
to education the sum of $10,937,260,500.00 $100.00 from
the
state school aid fund and the sum of $18,642,400.00 $100.00
from
the general fund. For the fiscal year ending September 30,
2011,
there is also appropriated the remaining balance of the
federal
funding awarded to this state under title XIV of the
American
recovery and reinvestment act of 2009, Public Law 111-5,
estimated
at $184,256,600.00, to be used solely for the purpose of
funding
the primary funding formula calculated under section 20, in
accordance
with federal law. In addition, all other
available
federal funds, except those otherwise appropriated under section
11p, are appropriated each fiscal year for the fiscal year ending
September
30, 2011 2012 and for the
fiscal year ending September
30, 2013.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization
fund created in section 11a. For 2009-2010 only, if
the
department determines before bookclosing for the 2009-2010
state
fiscal year that the maximum amount appropriated under this
section
from the state school aid fund for 2009-2010 exceeds the
amount
necessary to fully fund allocations under this act from the
state
school aid fund for 2009-2010 and that state support for
elementary
and secondary education for 2009-2010 will fall below
the
level of support needed to comply with the maintenance of
effort
provisions under title XIV of the American recovery and
reinvestment
act of 2009, Public Law 111-5, then there is
appropriated
for 2009-2010 from the school aid stabilization fund
an
amount equal to $30,000,000.00 or the amount that the department
determines
is necessary for the state support for elementary and
secondary
education to meet the level of support needed to comply
with
the maintenance of effort provisions under title XIV of the
American
recovery and reinvestment act of 2009, Public Law 111-5,
whichever
is greater. The department shall use any funds
appropriated
under this subsection as follows:
(a)
First, to allocate $10,000,000.00 to provide funding to
each
intermediate district in an amount equal to the product of
14.75%
multiplied by the amount of funding allocated to that
intermediate
district under section 81 for 2009-2010 under 2010 PA
110.
(b)
Second, to allocate the amount necessary, estimated at
$10,000,000.00,
to provide funding under this subdivision to
districts
for which the amount of per-pupil funding calculated and
allocated
under section 11p(2) is less than $154.00. The payment to
a
district under this subdivision is an amount equal to the
difference
between $154.00 and the per-pupil funding amount
calculated
and allocated under section 11p(2) for the district,
multiplied
by the district's 2010-2011 membership used for the
October
2010 payment.
(c)
Third, to allocate any remaining funds to reduce the
amount
of the per-pupil reduction under section 11d(1) for 2009-
2010.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
56, and 152a shall be made in full. In addition, for districts
beginning operations after 1994-95 that qualify for payments under
section 22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, 53a, and 152a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, 56, and 152a, on an equal
percentage basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Any general fund allocations under this act that are not
expended by the end of the state fiscal year are transferred to the
school aid stabilization fund created under section 11a.
Sec. 17b. (1) Not later than October 20, November 20, December
20, January 20, February 20, March 20, April 20, May 20, June 20,
July 20, and August 20, the department shall prepare electronic
files of the amount to be distributed under this act in the
installment to the districts and intermediate districts and deliver
the electronic files to the state treasurer, and the state
treasurer shall pay the installments on each of those dates or, if
the date is not a business day, on the next business day following
that date. Except as otherwise provided in this act, the portion of
the district's or intermediate district's state fiscal year
entitlement to be included in each installment shall be 1/11. A
district or intermediate district shall accrue the payments
received in July and August to the school fiscal year ending the
immediately preceding June 30.
(2) The state treasurer shall make payment under this section
by drawing a warrant in favor of the treasurer of each district or
intermediate district for the amount payable to the district or
intermediate district according to the electronic files and
delivering the warrant to the treasurer of each district or
intermediate district, or if the state treasurer receives a written
request by the treasurer of the district or intermediate district
specifying an account, by electronic funds transfer to that account
of the amount payable to the district or intermediate district
according to the electronic files. The department may make
adjustments in payments made under this section through additional
payments when changes in law or errors in computation cause the
regularly scheduled payment to be less than the amount to which the
district or intermediate district is entitled pursuant to this act.
(3) Except as otherwise provided in this act, grant payments
to districts and intermediate districts under this act shall be
paid according to the installment payment schedule under subsection
(1).
(4) Upon the written request of a district or intermediate
district and the submission of proof satisfactory to the department
of a need of a temporary and nonrecurring nature, the
superintendent, with the written concurrence of the state treasurer
and the state budget director, may authorize an advance release of
funds due a district or intermediate district under this act. An
advance authorized under this subsection shall not cause funds to
be paid to a district or intermediate district more than 30 days
earlier than the established payment date for those funds.
