Bill Text: MI SB0310 | 2009-2010 | 95th Legislature | Introduced


Bill Title: Appropriations; school aid; school aid appropriations; provide for fiscal year 2009-2010. Amends secs. 3, 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 11n, 15, 18, 20, 20d, 20j, 22a, 22b, 24, 24a, 24c, 26a, 26b, 29, 31a, 31d, 31f, 32b, 32d, 32l, 32n, 39, 39a, 51a, 51c, 51d, 53a, 54, 54a, 56, 61a, 62, 64, 74, 81, 94a, 98, 99, 101, 104, 107, 147 & 164c of 1979 PA 94 (MCL 388.1603 et seq.) & repeals secs. 22d, 22e, 32c, 32j, 37, 38, 41, 54c, 57, 65, 99a, 99e, 99i, 99j, 99k, 99n, 99p, 104a, 104b & 166 of 1979 PA 94 (MCL 388.1622d et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-03-03 - Referred To Committee On Appropriations [SB0310 Detail]

Download: Michigan-2009-SB0310-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 310

 

 

EXECUTIVE BUDGET BILL

 

 

March 3, 2009, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 3, 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 11n,

 

15, 18, 20, 20d, 20j, 22a, 22b, 24, 24a, 24c, 26a, 26b, 29, 31a,

 

31d, 31f, 32b, 32d, 32l, 32n, 39, 39a, 51a, 51c, 51d, 53a, 54, 54a,

 

56, 61a, 62, 64, 74, 81, 94a, 98, 99, 101, 104, 107, 147, and 164c

 

(MCL 388.1603, 388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g,

 

388.1611j, 388.1611k, 388.1611m, 388.1611n, 388.1615, 388.1618,

 

388.1620, 388.1620d, 388.1620j, 388.1622a, 388.1622b, 388.1624,

 

388.1624a, 388.1624c, 388.1626a, 388.1626b, 388.1629, 388.1631a,

 

388.1631d, 388.1631f, 388.1632b, 388.1632d, 388.1632l, 388.1632n,

 

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

 

388.1654, 388.1654a, 388.1656, 388.1661a, 388.1662, 388.1664,

 


388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1701,

 

388.1704, 388.1707, 388.1747, and 388.1764c), sections 3, 6, 11,

 

11a, 11g, 11j, 11k, 11m, 15, 18, 20, 20d, 20j, 22a, 22b, 24, 24a,

 

24c, 26a, 26b, 29, 31a, 31d, 31f, 32b, 32d, 32l, 39, 39a, 51a, 51c,

 

51d, 53a, 54, 54a, 56, 61a, 62, 64, 74, 81, 94a, 98, 99, 104, 107,

 

147, and 164c as amended and section 11n as added by 2008 PA 268,

 

section 8b as amended by 2007 PA 92, section 32n as added by 2007

 

PA 137, and section 101 as amended by 2006 PA 342; and to repeal

 

acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) "Average daily attendance", for the purposes of

 

complying with federal law, means 92% of the pupils counted in

 

membership on the pupil membership count day, as defined in section

 

6(7).

 

     (2) "Board" means the governing body of a district or public

 

school academy.

 

     (3) "Center" means the center for educational performance and

 

information created in section 94a.

 

     (4) "Cooperative education program" means a written voluntary

 

agreement between and among districts to provide certain

 

educational programs for pupils in certain groups of districts. The

 

written agreement shall be approved by all affected districts at

 

least annually and shall specify the educational programs to be

 

provided and the estimated number of pupils from each district who

 

will participate in the educational programs.

 

     (5) "Department", except in section 107, means the department

 

of education.

 


     (6) "District" means a local school district established under

 

the revised school code or, except in sections 6(4), 6(6), 11n, 13,

 

20, 22a, 23, 29, 31a, 99j, 99k, 51a(15), 105, and 105c, a public

 

school academy. Except in sections 6(4), 6(6), 11n, 13, 20, 22a,

 

29, 99j, 99k, 51a(15), 105, and 105c, district also includes a

 

university school.

 

     (7) "District of residence", except as otherwise provided in

 

this subsection, means the district in which a pupil's custodial

 

parent or parents or legal guardian resides. For a pupil described

 

in section 24b, the pupil's district of residence is the district

 

in which the pupil enrolls under that section. For a pupil

 

described in section 6(4)(d), the pupil's district of residence

 

shall be considered to be the district or intermediate district in

 

which the pupil is counted in membership under that section. For a

 

pupil under court jurisdiction who is placed outside the district

 

in which the pupil's custodial parent or parents or legal guardian

 

resides, the pupil's district of residence shall be considered to

 

be the educating district or educating intermediate district.

 

     (8) "District superintendent" means the superintendent of a

 

district, the chief administrator of a public school academy, or

 

the chief administrator of a university school.

 

     Sec. 6. (1) "Center program" means a program operated by a

 

district or 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 act,

 

means for a district, public school academy, university school, or

 

intermediate district the sum of the product of .75 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 .25

 

times the final audited count from the supplemental count day for

 

the immediately preceding school year. 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. 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, public school

 

academy, university school, or 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 vocational 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 university school shall be counted

 

in membership in the university school.

 

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

 

counted in membership in the public school academy.

 

     (i) For a new district, university school, or public school

 

academy beginning its operation after December 31, 1994, 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, public school academy, university school,

 


or 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) Pupils to be counted in membership shall be not less than

 

5 years of age on December 1 and less than 20 years of age on

 

September 1 of the school year except a special education pupil who

 

is enrolled and receiving instruction in a special education

 

program or service approved by the department and not having a high

 

school diploma who is less than 26 years of age as of September 1

 

of the current school year shall be counted in membership.

 

     (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. 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 the department of ENERGY, labor and economic

 

growth, 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 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 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 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 provides instruction for at

 

least 1/2 of the class hours specified in subdivision (q), the

 

public school academy 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 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 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.

 

     (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) Except as otherwise provided in this subdivision, 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. Beginning in 2009-2010, full-time equated

 

memberships for pupils enrolled in developmental kindergarten ,

 

prekindergarten, or a similar class intended to be the first of 2

 

school years before a pupil enters grade 1 shall be determined by

 

dividing the number of class hours scheduled and provided per year

 

per DEVELOPMENTAL kindergarten pupil by the number used for

 

determining full-time equated memberships for pupils in grades 1 to

 

12. For 2010-2011, full-time equated memberships for pupils

 

enrolled 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 60% of the number used for determining

 

full-time equated memberships for pupils in grades 1 to 12.

 

Beginning in 2011-2012, full-time equated memberships for pupils

 

enrolled 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 70% of the number used for determining

 

full-time equated memberships for pupils in grades 1 to 12.

 

     (s) For a district, university school, or public school

 

academy that has pupils enrolled in a grade level that was not

 

offered by the district, university school, or public school

 

academy 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) For 2007-2008 only, a A pupil enrolled in an alternative

 


or disciplinary education program described in section 25 shall be

 

counted in membership in the PUPIL’S EDUCATING district or public

 

school academy that expelled 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

 

within 45 days after the pupil membership count day, the department

 

shall adjust the district'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 .75 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 .25 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- 2-

 

fiscal-year period ending with that fiscal year, calculated by

 

adding the district's actual membership for each of those 3 2

 

fiscal years, as otherwise calculated under this subsection, and

 

dividing the sum of those 3 2 membership figures by 3 2.

 

     (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 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

 

receives the same amount of membership aid for the pupil as if the

 

pupil were counted in the district on the supplemental count day of

 

the preceding school year.

 

     (aa) Full-time equated memberships for preprimary-aged 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 preprimary-aged special education pupils

 

who are not enrolled in kindergarten but are receiving nonclassroom

 

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 described in section 64, 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.

 

     (5) "Public school academy" means a public school academy,

 

urban high school academy, or strict discipline academy operating

 

under 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 university

 

school.

 

     (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 750.90g, 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 high school, for

 

the pupil's enrollment in the Michigan virtual high school.

 

     (j) A pupil who is the child of a person who is employed by

 

the district. 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 program described in section 64 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.

 

     However, if a district that is not a first class district

 

educates pupils who reside in a first class district and if the

 

primary instructional site for those pupils is located within the

 

boundaries of the first class district, the educating district must

 

have the approval of the first class district to count those pupils

 

in membership. As used in this subsection, "first class district"

 

means a district organized as a school district of the first class

 

under the revised school code.

 


     (7) "Pupil membership count day" of a district or intermediate

 

district means:

 

     (a) Except as provided in subdivision (b), the fourth

 

Wednesday after Labor day 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) Fourth Wednesday after Labor day.

 

     (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, intermediate district, or public school

 

academy 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, or public school

 

academy 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", except in subsection

 

(6), 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. Tuition pupil does not include a

 

pupil who is a special education pupil or a pupil described in

 

subsection (6)(c) to (m). 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.

 

     (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 that is selected and approved by

 

the governing board of a district 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 act.

 

     (21) "University school" means an instructional program

 

operated by a public university under section 23 that meets the

 

requirements of section 23.

 

     Sec. 8b. (1) The department shall assign a district code to

 

each public school academy that is authorized under the revised

 

school code and is eligible to receive funding under this act

 

within 30 days after a COMPLETE contract is submitted to the

 

department by the authorizing body of a public school academy.

 

     (2) If the department does not assign a district code to a

 

public school academy within the 30-day period described in

 

subsection (1), the district code the department shall use to make

 

payments under this act to the newly authorized public school

 

academy shall be a number that is equivalent to the sum of the last

 

district code assigned to a public school academy located in the

 

same county as the newly authorized public school academy plus 1.

 

However, if there is not an existing public school academy located

 

in the same county as the newly authorized public school academy,

 

then the district code the department shall use to make payments

 

under this act to the newly authorized public school academy shall

 

be a 5-digit number that has the county code in which the public

 

school academy is located as its first 2 digits, 9 as its third

 

digit, 0 as its fourth digit, and 1 as its fifth digit. If the

 


number of public school academies in a county grows to exceed 100,

 

the third digit in this 5-digit number shall then be 8 7 for the

 

public school academies in excess of 100.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2008,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,386,866,600.00 from the state school aid fund established by

 

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

 

sum of $34,909,600.00 from the general fund. For the fiscal year

 

ending September 30, 2009, there is appropriated for the public

 

schools of this state and certain other state purposes relating to

 

education the sum of $11,776,098,200.00 $11,615,798,200.00 from the

 

state school aid fund established by section 11 of article IX of

 

the state constitution of 1963 and the sum of $40,800,000.00

 

$85,000,000.00 from the general fund. For the fiscal year ending

 

September 30, 2010, there is appropriated for the public schools of

 

this state and certain other state purposes relating to education

 

the sum of $11,360,990,600.00 from the state school aid fund

 

established by section 11 of article IX of the state constitution

 

of 1963 and the sum of $40,800,000.00 from the general fund. In

 

addition, available federal funds are appropriated for the fiscal

 

year ending September 30, 2008 2009 and for the fiscal year ending

 

September 30, 2009 2010.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this act. Money appropriated under this section from

 

the general fund shall be expended to fund the purposes of this act

 

before the expenditure of money appropriated under this section

 


from the state school aid fund. If the maximum amount appropriated

 

under this section from the state school aid fund for a fiscal year

 

exceeds the amount necessary to fully fund allocations under this

 

act from the state school aid fund, that excess amount shall not be

 

expended in that state fiscal year and shall not lapse to the

 

general fund, but instead shall be deposited into the school aid

 

stabilization fund created in section 11a.

 

     (3) If the maximum amount appropriated under this section from

 

the state school aid fund and the school aid stabilization fund for

 

a fiscal year exceeds the amount available for expenditure from the

 

state school aid fund for that fiscal year, payments under sections

 

11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,

 

and 56 shall be made in full. In addition, for districts beginning

 

operations after 1994-95 that qualify for payments under section

 

22b, payments under section 22b shall be made so that the

 

qualifying districts receive the lesser of an amount equal to the

 

1994-95 foundation allowance of the district in which the district

 

beginning operations after 1994-95 is located or $5,500.00. The

 

amount of the payment to be made under section 22b for these

 

qualifying districts shall be as calculated under section 22a, with

 

the balance of the payment under section 22b being subject to the

 

proration otherwise provided under this subsection and subsection

 

(4). If proration is necessary, state payments under each of the

 

other sections of this act from all state funding sources shall be

 

prorated in the manner prescribed in subsection (4) as necessary to

 

reflect the amount available for expenditure from the state school

 

aid fund for the affected fiscal year. However, if the department

 


of treasury determines that proration will be required under this

 

subsection, or if the department of treasury determines that

 

further proration is required under this subsection after an

 

initial proration has already been made for a fiscal year, the

 

department of treasury shall notify the state budget director, and

 

the state budget director shall notify the legislature at least 30

 

calendar days or 6 legislative session days, whichever is more,

 

before the department reduces any payments under this act because

 

of the proration. During the 30 calendar day or 6 legislative

 

session day period after that notification by the state budget

 

director, the department shall not reduce any payments under this

 

act because of proration under this subsection. The legislature may

 

prevent proration from occurring by, within the 30 calendar day or

 

6 legislative session day period after that notification by the

 

state budget director, enacting legislation appropriating

 

additional funds from the general fund, countercyclical budget and

 

economic stabilization fund, state school aid fund balance, or

 

another source to fund the amount of the projected shortfall.

 

     (4) If proration is necessary under subsection (3), the

 

department shall calculate the proration in district and

 

intermediate district payments that is required under subsection

 

(3) as follows:

 

     (a) The department shall calculate the percentage of total

 

state school aid allocated under this act for the affected fiscal

 

year for each of the following:

 

     (i) Districts.

 

     (ii) Intermediate districts.

 


     (iii) Entities other than districts or intermediate districts.

 

     (b) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(i) for districts by

 

reducing payments to districts. This reduction shall be made by

 

calculating an equal dollar amount per pupil as necessary to

 

recover this percentage of the proration amount and reducing each

 

district's total state school aid from state sources, other than

 

payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,

 

51a(2), 51a(12), 51c, and 53a, by that amount.

 

     (c) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(ii) for intermediate

 

districts by reducing payments to intermediate districts. This

 

reduction shall be made by reducing the payments to each

 

intermediate district, other than payments under sections 11f, 11g,

 

26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage

 

basis.

 

     (d) The department shall recover a percentage of the proration

 

amount required under subsection (3) that is equal to the

 

percentage calculated under subdivision (a)(iii) for entities other

 

than districts and intermediate districts by reducing payments to

 

these entities. This reduction shall be made by reducing the

 

payments to each of these entities, other than payments under

 

sections 11j, 26a, and 26b, on an equal percentage basis.

 

     (5) Except for the allocation under section 26a, any general

 

fund allocations under this act that are not expended by the end of

 


the state fiscal year are transferred to the school aid

 

stabilization fund created under section 11a.

 

     Sec. 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) 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).

 

     (7) For 2008-2009 AND 2009-2010, 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 act.

 

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

 

allocated for this section an amount not to exceed $42,000,000.00

 

for the fiscal year ending September 30, 2009 2010 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 act 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.

 

     (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 $3,900,000.00 for 2007-2008 and

 

an amount not to exceed $39,000,000.00 $40,000,000.00 EACH YEAR for

 

2008-2009 AND 2009-2010 for payments to the school loan bond

 

redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 11 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 2008-2009, 2009-2010, 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

 

municipal bond 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 shared credit rating act, 1985 PA 227, MCL

 

141.1066c.

 

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

 

allocated for 2008-2009 2009-2010 an amount not to exceed

 

$45,000,000.00 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. 11n. (1) From the appropriation in section 11, there is

 

allocated $15,000,000.00 for 2008-2009 2009-2010 for the purposes

 

of this section. Money allocated under this section shall be

 

deposited in the 21st century schools fund on November 15 of the

 

fiscal year for which it is allocated or on the next business day

 


following that date.

 

     (2) The 21st century schools fund is created as a separate

 

account within the state school aid fund. The state treasurer may

 

receive money or other assets from any source for deposit into the

 

21st century schools fund. The state treasurer shall direct the

 

investment of the 21st century schools fund. The state treasurer

 

shall credit to the 21st century schools fund interest and earnings

 

from 21st century schools fund investments. Money in the 21st

 

century schools fund at the close of the fiscal year shall remain

 

in the 21st century schools 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 21st century schools fund for

 

auditing purposes. Money from the 21st century schools fund shall

 

be expended, upon appropriation, only for purposes of this section.

 

     (3) For 2008-2009, 2009-2010, an amount not to exceed

 

$15,000,000.00 is allocated from the 21st century schools fund for

 

21st century schools grants under this section of up to

 

$3,000,000.00 for each school project to eligible districts that

 

meet the requirements of this section. The funds may be used for

 

planning and start-up costs of newly constructed or newly

 

configured schools or learning communities and renovations of

 

existing facilities as well as other expenditures outlined in the

 

applicants' proposals relating to planning and start-up costs and

 

approved by the department. Notwithstanding section 17b, the total

 

grant amount for 2008-2009 2009-2010 to each eligible district or

 

public school academy shall be distributed over a 4-year period on

 

a schedule to be determined by the department.

 


     (4) To apply for a 21st century schools grant, an eligible

 

district shall submit an application to the department, in a form

 

and manner prescribed by the department, that meets the application

 

criteria under this section. An application shall demonstrate to

 

the satisfaction of the department that the school or learning

 

community of an eligible district to be funded meets all of the

 

following:

 

     (a) Will be designed to achieve the following outcomes not

 

later than the school year in which the third high school

 

graduating class graduates from the school or learning community:

 

     (i) An 80% graduation rate, as determined by the department.

 

     (ii) At least 80% of the high school graduates from the school

 

or learning community are enrolled in postsecondary studies within

 

6 months after high school graduation. For purposes of this

 

subparagraph, "postsecondary studies" includes 4-year colleges and

 

universities, community colleges, technical schools,

 

apprenticeships, and military enlistment.

 

     (b) Will provide an open enrollment such that if there are

 

more applications to enroll than there are spaces available, pupils

 

shall be selected to attend using a random selection process.

 

However, a school or learning community may give enrollment

 

priority to a sibling of a pupil enrolled in the school or learning

 

community, and a school or learning community shall allow any pupil

 

who was enrolled in the school or learning community in the

 

immediately preceding school year to enroll in the school or

 

learning community in the next appropriate grade until the pupil

 

graduates from the school or learning community.

 


     (c) Will have a maximum of 110 pupils in each high school

 

grade level and an average of at least 75 pupils in each high

 

school grade level.

 

     (d) Will incorporate a relationship-building goal between the

 

teaching staff, administration, pupils, and parents.

 

     (e) Has a commitment of private matching funds at least equal

 

to the amount of the grant under this section.

 

     (5) If the department determines that a grant recipient has

 

failed to achieve the outcomes described in subsection (4)(a), the

 

grant recipient shall return to the state 50% of the total grant

 

awarded. To accomplish the return of these funds, the department

 

shall deduct an amount equal to 50% of the total grant awarded from

 

the grant recipient's state school aid installment payments, on a

 

schedule determined by the department. Funds returned under this

 

subsection shall be deposited in the 21st century schools fund.

 

     (6) In awarding grants under this section, the department

 

shall give preference to grant applications for starting a new

 

school or learning community that will implement strategies to

 

prepare middle school students likely to attend the school or

 

learning community or that will include grades 6 to 12 rather than

 

proposals for stand-alone schools including only grades 9 to 12 and

 

not implementing strategies to prepare middle school students.

 

     (7) The department shall not award more than 1/3 of the grants

 

under this section to public school academies.

 

     (8) The department shall establish and publicize the

 

application process and a schedule for the application process.

 

     (9) As used in this section, "eligible district" means all of

 


the following:

 

     (a) A district with a districtwide cohort graduation rate for

 

high school pupils below 70%, as determined by the center for

 

educational performance and information, for its most recent

 

graduating class for which data are available.

 

     (b) A public school academy if a majority of the pupils

 

enrolled in the public school academy reside in a district that

 

meets the criteria under subdivision (a).

 

     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

 

act, 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

 

act other than a special education or special education

 

transportation payment. State aid overpayments made in special

 

education or special education transportation payments may be

 

recovered from subsequent special education or special education

 

transportation payments.

 

     (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 if the district would otherwise experience a significant

 

hardship.

 

     (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 act 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.

 

     (4) Expenditures made by the department under this act 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 2008-2009 2009-

 

2010 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

 

act, each district or other entity shall apply the money received

 

by the district or entity under this act to salaries and other

 

compensation of teachers and other employees, tuition,

 

transportation, lighting, heating, ventilation, water service, the

 

purchase of textbooks which are designated by the board to be used

 

in the schools under the board's charge, 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 under

 

article 2 or intermediate district under article 8 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

 

act the apportionment otherwise due upon a violation by the

 

recipient.

 

     (2) Within 30 days after a board or intermediate board adopts

 

its annual operating budget for the following school fiscal year,

 

or after a board or intermediate board adopts a subsequent revision

 

to that budget, the district or intermediate district shall make

 

the budget and subsequent budget revisions available on its

 

website, or a district may make the information available on its

 

intermediate district's website, in a form and manner prescribed by

 

the department.

 

     (3) For the purpose of determining the reasonableness of

 

expenditures and whether a violation of this act has occurred, 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. An intermediate district's annual financial audit

 

shall be accompanied by the intermediate district's pupil

 

accounting procedures report. 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. The pupil 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. Except as otherwise provided in this

 

subsection, a district shall file the annual financial audit

 

reports with the intermediate district not later than 120 days

 

after the end of each school fiscal year and the intermediate

 

district shall forward the annual financial audit reports for its

 

constituent districts and for the intermediate district, and the

 

pupil accounting procedures report for the pupil membership count

 

day and supplemental count day, to the department not later than

 

November 15 of each year. 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. Not later than December 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.

 

     (4) 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. The department

 


shall make this information available online to districts and

 

intermediate districts, and shall include per-pupil amounts spent

 

on instruction and instructional support service functions, and

 

indicate how much of those costs were attributable to salaries.

 

Districts and intermediate districts shall include a link on their

 

websites to the website where the department posts this

 

information.

 

     (5) 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.

 

     (6) 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.

 

     (7) 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 act. As part of its annual

 

review process for 2007, not later than December 31, 2007, the

 

department shall revise the pupil auditing manual to establish

 

standardized procedures and processes for auditing pupil exit

 

statuses and other pupil data used in calculating annual graduation

 

and pupil dropout rates.

 

     (8) If a district that is a public school academy purchases

 

property using money received under this act, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.

 


     (9) If a district or intermediate district does not comply

 

with subsection (3), (4), (5), or (6), the department shall

 

withhold all state school aid due to the district or intermediate

 

district under this act, beginning with the next payment due to the

 

district or intermediate district, until the district or

 

intermediate district complies with subsections (3), (4), (5), and

 

(6). If the district or intermediate district does not comply with

 

subsections (3), (4), (5), and (6) by the end of the fiscal year,

 

the district or intermediate district forfeits the amount withheld.

 

     Sec. 20. (1) For 2007-2008, the basic foundation allowance is

 

$8,433.00. For 2008-2009 AND 2009-2010, the basic foundation

 

allowance is $8,489.00.

 

     (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 2007-2008, for a district that had a foundation

 

allowance for 2006-2007, including any adjustment under subdivision

 

(f), that was at least equal to $7,108.00 but less than $8,385.00,

 

the district shall receive a foundation allowance in an amount

 

equal to the sum of the district's foundation allowance for 2006-

 

2007 plus the difference between $96.00 and [($48.00 minus $20.00)

 

times (the difference between the district's foundation allowance

 

for 2006-2007, including any adjustment under subdivision (f), and

 


$7,108.00) divided by $1,325.00]. Beginning in FOR 2008-2009, 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 district's foundation allowance

 

for the immediately preceding state fiscal year plus the difference

 

between twice the dollar amount of the adjustment from the

 

immediately preceding state fiscal year to the current state fiscal

 

year made in the basic foundation allowance and [(the 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 2009-2010,

 

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, beginning

 

in 2008-2009, 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 in an amount equal to the sum of the

 

district's foundation allowance for the immediately preceding state

 

fiscal year plus the dollar amount of the adjustment from the

 

immediately preceding state fiscal year to the current state fiscal

 

year in the basic foundation allowance.

 

     (c) 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.

 

     (d) For a district that has a foundation allowance that is not

 

a whole dollar amount, the district's foundation allowance shall be

 

rounded up to the nearest whole dollar.

 

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

 

as that section was in effect for 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.

 

     (f) 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.

 

     (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. However, for a pupil enrolled in a district other

 

than the pupil's district of residence, if the foundation allowance

 

of the pupil's district of residence has been adjusted pursuant to

 

subsection (19) (13), the allocation calculated under this section

 

shall not include the adjustment described in subsection (19) (13).

 

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. The

 

calculation under this subsection shall take into account a

 

district's per pupil allocation under section 20j(2).

 

     (6) For 2007-2008, subject to subsection (7) and section

 

22b(3) and except as otherwise provided in this subsection, for

 

pupils in membership, other than special education pupils, in a

 

public school academy or a university school, the allocation

 


calculated under this section is an amount per membership pupil

 

other than special education pupils in the public school academy or

 

university school 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 or university

 

school is located and the state portion of that district's

 

foundation allowance, or $7,475.00, whichever is less. Beginning in

 

2008-2009, subject to subsection (7) and section 22b(3) and except

 

as otherwise provided in this subsection, for pupils in membership,

 

other than special education pupils, in a public school academy or

 

a university school, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy or university school 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 or university school is located and the state

 

portion of that district's foundation allowance, or the state

 

maximum public school academy allocation, whichever is less.

 

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) If more than 25% of the pupils residing within a district

 

are in membership in 1 or more public school academies located in

 

the district, then the amount per membership pupil calculated under

 

this section for a public school academy located in the district

 

shall be reduced by an amount equal to the difference between the

 

sum of the product of the taxable value per membership pupil of all

 

property in the district that is nonexempt property times the

 

district's certified mills and, for a district with certified mills

 

exceeding 12, the product of the taxable value per membership pupil

 

of property in the district that is commercial personal property

 

times the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership

 

excluding special education pupils, in the school fiscal year

 

ending in the current state fiscal year, calculated as if the

 

resident pupils in membership in 1 or more public school academies

 

located in the district were in membership in the district. In

 

order to receive state school aid under this act, a district

 

described in this subsection shall pay to the authorizing body that

 

is the fiscal agent for a public school academy located in the

 

district for forwarding to the public school academy an amount

 

equal to that local school operating revenue per membership pupil

 

for each resident pupil in membership other than special education

 

pupils in the public school academy, as determined by the

 

department.

 

     (8) If a district does not receive an amount calculated under

 


subsection (9); if the number of mills the district may levy on a

 

principal residence, qualified agricultural property, qualified

 

forest property, industrial personal property, and commercial

 

personal property under section 1211 of the revised school code,

 

MCL 380.1211, is 0.5 mills or less; and if the district elects not

 

to levy those mills, the district instead shall receive a separate

 

supplemental amount calculated under this subsection in an amount

 

equal to the amount the district would have received had it levied

 

those mills, as determined by the department of treasury. A

 

district shall not receive a separate supplemental amount

 

calculated under this subsection for a fiscal year unless in the

 

calendar year ending in the fiscal year the district levies the

 

district's certified mills on property that is nonexempt property.

 

     (9) For a district that had combined state and local revenue

 

per membership pupil in the 1993-94 state fiscal year of more than

 

$6,500.00 and that had fewer than 350 pupils in membership, if the

 

district elects not to reduce the number of mills from which a

 

principal residence, qualified agricultural property, qualified

 

forest property, industrial personal property, and commercial

 

personal property are exempt and not to levy school operating taxes

 

on a principal residence, qualified agricultural property,

 

qualified forest property, industrial personal property, and

 

commercial personal property as provided in section 1211 of the

 

revised school code, MCL 380.1211, and not to levy school operating

 

taxes on all property as provided in section 1211(2) of the revised

 

school code, MCL 380.1211, there is calculated under this

 

subsection for 1994-95 and each succeeding fiscal year a separate

 


supplemental amount in an amount equal to the amount the district

 

would have received per membership pupil had it levied school

 

operating taxes on a principal residence, qualified agricultural

 

property, qualified forest property, industrial personal property,

 

and commercial personal property at the rate authorized for the

 

district under section 1211 of the revised school code, MCL

 

380.1211, and levied school operating taxes on all property at the

 

rate authorized for the district under section 1211(2) of the

 

revised school code, MCL 380.1211, as determined by the department

 

of treasury. If in the calendar year ending in the fiscal year a

 

district does not levy the district's certified mills on property

 

that is nonexempt property, the amount calculated under this

 

subsection will be reduced by the same percentage as the millage

 

actually levied compares to the district's certified mills.

 

     (10) (8) Subject to subsection (4), for a district that is

 

formed or reconfigured after June 1, 2002 by consolidation of 2 or

 

more districts or by annexation, the resulting district's

 

foundation allowance under this section beginning after the

 

effective date of the consolidation or annexation shall be the

 

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. The calculation under this

 

subsection shall take into account a district's per pupil

 

allocation under section 20j(2).

 

     (11) (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.

 

     (12) (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.

 

     (13) (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, MCL18.1367b, 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

 

2008-2009, 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.

 

     (14) (12) If the principals at the revenue estimating

 

conference reach a consensus on the index described in

 

subsection(13)(11)(c), the lowest foundation allowance among all

 

districts for the subsequent state fiscal year shall be at least

 

the amount of that consensus index multiplied by the lowest

 

foundation allowance among all districts for the immediately

 


preceding state fiscal year.

 

     (15) If at the January revenue estimating conference it is

 

estimated that pupil membership, excluding intermediate district

 

membership, for the subsequent state fiscal year will be greater

 

than 101% of the pupil membership, excluding intermediate district

 

membership, for the current state fiscal year, then it is the

 

intent of the legislature that the executive budget proposal for

 

the school aid budget for the subsequent state fiscal year include

 

a general fund/general purpose allocation sufficient to support the

 

membership in excess of 101% of the current year pupil membership.

 

     (16) For a district that had combined state and local revenue

 

per membership pupil in the 1993-94 state fiscal year of more than

 

$6,500.00, that had fewer than 7 pupils in membership in the 1993-

 

94 state fiscal year, that has at least 1 child educated in the

 

district in the current state fiscal year, and that levies the

 

number of mills of school operating taxes authorized for the

 

district under section 1211 of the revised school code, MCL

 

380.1211, a minimum amount of combined state and local revenue

 

shall be calculated for the district as provided under this

 

subsection. The minimum amount of combined state and local revenue

 

for 1999-2000 shall be $67,000.00 plus the district's additional

 

expenses to educate pupils in grades 9 to 12 educated in other

 

districts as determined and allowed by the department. The minimum

 

amount of combined state and local revenue under this subsection,

 

before adding the additional expenses, shall increase each fiscal

 

year by the same percentage increase as the percentage increase in

 

the basic foundation allowance from the immediately preceding

 


fiscal year to the current fiscal year. The state portion of the

 

minimum amount of combined state and local revenue under this

 

subsection shall be calculated by subtracting from the minimum

 

amount of combined state and local revenue under this subsection

 

the sum of the district's local school operating revenue and an

 

amount equal to the product of the sum of the state portion of the

 

district's foundation allowance plus the amount calculated under

 

section 20j times the district's membership. As used in this

 

subsection, "additional expenses" means the district's expenses for

 

tuition or fees, not to exceed the basic foundation allowance for

 

the current state fiscal year, plus a room and board stipend not to

 

exceed $10.00 per school day for each pupil in grades 9 to 12

 

educated in another district, as approved by the department.

 

     (17) 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.

 

     (18) 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.

 

     (19) (13) 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 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, and

 

may also use these funds for an early intervening program described

 

in subsection (20) (14). 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.

 

     (20) (14) An early intervening program that uses funds

 

resulting from the adjustment under subsection (19) (13) shall meet

 

either or both of the following:

 

     (a) Shall monitor individual pupil learning for pupils in

 

grades K to 3 and provide specific support or learning strategies

 

to pupils in grades K to 3 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) Shall provide early intervening strategies for pupils in

 

grades K to 3 using schoolwide systems of academic and behavioral

 

supports and shall be 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 schoolwide 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.

 

     (21) 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.

 

(22) 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.

 

     (23) (15) Payments to districts, university schools, or public

 

school academies 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.

 

     (24) (16) 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.

 

     (25) (17) 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 2009-2010, "MAXIMUM PUBLIC SCHOOL ACADEMY

 

ALLOCATION" MEANS $7,580.00.

 

     (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, industrial personal property, or commercial

 

personal property.

 

     (k) "Principal residence", "qualified agricultural property",

 

"qualified forest property", "industrial personal property", and

 

"commercial personal property" mean those terms as defined in

 

section 7dd of the general property tax act, 1893 PA 206, MCL

 

211.7dd, and 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 2008-2009 2009-2010, 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. 20j. (1) Foundation allowance supplemental payments for

 

2008-2009 2009-2010 to districts that in the 1994-95 state fiscal

 

year had a foundation allowance greater than $6,500.00 shall be

 

calculated under this section.

 

     (2) FOR 2008-2009, The per pupil allocation to each district

 

under this section shall be the difference between the basic

 

foundation allowance for the 1998-99 state fiscal year and

 

$7,204.00 less $271.00 minus the dollar amount of the adjustment

 

from the 1998-99 state fiscal year to 2007-2008 in the district's

 


foundation allowance. BEGINNING IN 2009-2010, THE PER PUPIL

 

ALLOCATION TO EACH DISTRICT UNDER THIS SECTION SHALL BE THE

 

DISTRICT’S PER-PUPIL ALLOCATION UNDER THIS SECTION FOR THE 2008-

 

2009 STATE FISCAL YEAR MINUS (THE DIFFERENCE BETWEEN THE BASIC

 

FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL

 

YEAR AND THE SUM OF THE DISTRICT’S FOUNDATION ALLOWANCE AS

 

CALCULATED UNDER SECTION 20 AND THE AMOUNT OF THE PER-PUPIL

 

ALLOCATION UNDER THIS SECTION FOR THE IMMEDIATELY PRECEDING STATE

 

FISCAL YEAR DIVIDED BY THE BASIC FOUNDATION ALLOWANCE FOR THE

 

IMMEDIATELY PRECEDING STATE FISCAL YEAR TIMES THE DISTRICT’S PER-

 

PUPIL ALLOCATION UNDER THIS SECTION FOR THE 2008-2009 STATE FISCAL

 

YEAR TIMES 1.8).

 

     (3) If a district's local revenue per pupil does not exceed

 

the sum of its foundation allowance under section 20 plus the per

 

pupil allocation under subsection (2), the total payment to the

 

district calculated under this section shall be the product of the

 

per pupil allocation under subsection (2) multiplied by the

 

district's membership excluding special education pupils. If a

 

district's local revenue per pupil exceeds the foundation allowance

 

under section 20 but does not exceed the sum of the foundation

 

allowance under section 20 plus the per pupil allocation under

 

subsection (2), the total payment to the district calculated under

 

this section shall be the product of the difference between the sum

 

of the foundation allowance under section 20 plus the per pupil

 

allocation under subsection (2) minus the local revenue per pupil

 

multiplied by the district's membership excluding special education

 

pupils. If a district's local revenue per pupil exceeds the sum of

 


the foundation allowance under section 20 plus the per pupil

 

allocation under subsection (2), there is no payment calculated

 

under this section for the district.

 

     (4) Payments to districts shall not be made under this

 

section. Rather, the calculations under this section shall be made

 

and used to determine the amount of state payments under section

 

22b.

 

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

 

allocated an amount not to exceed $5,951,000,000.00

 

$5,998,400,000.00 for 2007-2008 and an amount not to exceed

 

$6,092,000,000.00 for 2008-2009 AND AN AMOUNT NOT TO EXCEED

 

$5,849,300,000.00 FOR 2009-2010 for payments to districts,

 

qualifying university schools, and qualifying public school

 

academies to guarantee each district, qualifying university school,

 

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 or qualifying university school,

 

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, or to the board

 

of the public university operating the qualifying university

 

school, an amount equal to the 1994-95 per pupil payment to the

 

qualifying public school academy or qualifying university school

 

under section 20.

 

     (4) A district, qualifying university school, or qualifying

 

public school academy may use funds allocated under this section in

 

conjunction with any federal funds for which the district,

 

qualifying university school, 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) 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, 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" means that term 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, industrial personal property, or commercial

 

personal property.

 

     (i) "Qualified agricultural property" means that term as

 

defined in section 1211 of the revised school code, MCL 380.1211.

 

     (j) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (k) "Qualifying university school" means a university school

 

that was in operation in the 1994-95 school year and is in

 

operation in the current fiscal year.

 


     (l) "School operating taxes" means local ad valorem property

 

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

 

380.1211, and retained for school operating purposes.

 

     (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (n) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, 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, industrial personal property,

 

and commercial personal property for the calendar year ending in

 

the 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 appropriation in section 11, there is

 


allocated an amount not to exceed $3,683,275,000.00

 

$3,802,000,000.00 for 2007-2008 and an amount not to exceed

 

$3,796,750,000.00 for 2008-2009 AND AN AMOUNT NOT TO EXCEED

 

$3,647,677,700.00 FOR 2009-2010 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 11, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 20j, 51a(2),

 

51a(3), and 51a(12), minus the sum of the allocations to the

 

district under sections 22a and 51c AND, FOR 2009-2010 ONLY, MINUS

 

AN ADDITIONAL AMOUNT EQUAL TO $59.00 TIMES THE DISTRICT’S 2009-2010

 

MEMBERSHIP.

 

     (3) In order to receive an allocation under this section, each

 

district shall do all of the following:

 

     (a) Administer in each grade level that it operates in grades

 

1 to 5 a standardized assessment approved by the department of

 

grade-appropriate basic educational skills. A district may use the

 

Michigan literacy progress profile to satisfy this requirement for

 

grades 1 to 3. Also, if the revised school code is amended to

 

require annual assessments at additional grade levels, in order to

 

receive an allocation under this section each district shall comply

 

with that requirement.

 


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

 

code, MCL 380.1278a and 380.1278b.

 

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

 

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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (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.

 

     (5) 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.

 

     (6) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, and 51c. If a claim is made by an

 

entity receiving funds under this act that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 


discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (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.

 

     (7) 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 (6) 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).

 

     (8) 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.

 

     (9) 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.

 

     (10) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

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

 

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

 

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

 

work project appropriation and the funds are carried forward into

 

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

 

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

 

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

 

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

 

right to terminate future federal title XIX medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

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

 

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

 

to 1396v.

 

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

 

allocated for 2008-2009 2009-2010 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 ENERGY, labor and economic

 

growth 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 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 $2,828,500.00 $2,523,200.00 for

 

2008-2009 2009-2010 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 $1,284,600.00 $1,295,100.00 for

 

2008-2009 2009-2010 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. A district receiving

 

payments under this section 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.

 

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

 

section 11, there is allocated an amount not to exceed

 

$41,400,000.00 $26,300,000.00 for 2008-2009, and from the general

 

fund appropriation in section 11, there is allocated an amount not

 

to exceed $16,100,000.00 $9,200,000.00 for 2008-2009 to reimburse

 

districts, intermediate districts, and the state school aid fund

 

pursuant to section 12 of the Michigan renaissance zone act, 1996

 


PA 376, MCL 125.2692, for taxes levied in 2008. From the state

 

school aid fund appropriation in section 11, there is allocated an

 

amount not to exceed $29,400,000.00 for 2009-2010, and from the

 

general fund appropriation in section 11, there is allocated an

 

amount not to exceed $10,100,000.00 for 2009-2010 to reimburse

 

districts, intermediate districts, and the state school aid fund

 

pursuant to section 12 of the Michigan renaissance zone act, 1996

 

PA 376, MCL 125.2692, for taxes levied in 2009. 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 2008-2009 2009-2010 an amount not to exceed

 

$3,400,000.00 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. 29. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $20,000,000.00 each fiscal year

 


for 2007-2008 and for 2008-2009 FOR 2009-2010 for additional

 

payments to eligible districts for declining enrollment assistance.

 

     (2) A district is eligible for a payment under this section if

 

all of the following apply:

 

     (a) The district's pupil membership for the current fiscal

 

year is less than the district's pupil membership for the

 

immediately preceding fiscal year and the district's pupil

 

membership for the immediately preceding fiscal year is less than

 

the district's pupil membership for the previously preceding fiscal

 

year as calculated under section 6 for that fiscal year.

 

     (b) The district's average pupil membership is greater than

 

the district's pupil membership for the current fiscal year as

 

calculated under section 6.

 

     (c) The district is not eligible to receive funding under

 

section 6(4)(y) or 22d(2).

 

     (3) Payments to each eligible district shall be equal to the

 

difference between the district's average pupil membership and the

 

district's pupil membership as calculated under section 6 for the

 

current fiscal year multiplied by the district's foundation

 

allowance as calculated under section 20. If the total amount of

 

the payments calculated under this subsection exceeds the

 

allocation for this section, the payment to each district shall be

 

prorated on an equal percentage basis.

 

     (4) For the purposes of this section, "average pupil

 

membership" means the average of the district's membership for the

 

3-fiscal-year period ending with the current fiscal year,

 

calculated by adding the district's actual membership for each of

 


those 3 fiscal years, as otherwise calculated under section 6, and

 

dividing the sum of those 3 membership figures by 3.

 

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

 

appropriated in section 11, there is allocated for 2008-2009 2009-

 

2010 an amount not to exceed $320,350,000.00 $314,475,000.00 for

 

payments to eligible districts and eligible public school academies

 

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 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 by October 31 of the

 

immediately preceding fiscal year and adjusted not later than

 

December 31 of the immediately preceding fiscal year. However, for

 

a public school academy that began operations as a public school

 

academy 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 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.

 

     (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 shall apply to the department, in a form and manner

 

prescribed by the department, and a district or public school

 

academy must meet all of the following:

 

     (a) The sum of the district's or public school academy's

 

combined state and local revenue per membership pupil in the

 

current state fiscal year, as calculated under section 20, plus the

 

amount of the district's per pupil allocation under section 20j(2),

 

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 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 shall receive

 

under this section for each membership pupil in the district or

 

public school academy 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

 

by October 31 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 public school academy's per

 

pupil amount calculated under section 20, plus the amount of the

 

district's per pupil allocation under section 20j(2), not to exceed

 

the basic foundation allowance under section 20 for the current

 

state fiscal year, or of the public school academy'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 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 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 by October 31 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 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 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; 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),

 

may use not more than 15% of the funds it receives under this

 

section for school security. A district or public school academy

 

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 under this section in the

 

immediately preceding year and already being used by the district

 

or public school academy 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, 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 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 2008-2009 2009-2010 an amount not to exceed

 


$4,743,000.00 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. Beginning in 2004-2005, 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 2008-2009 2009-2010 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 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 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 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 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 complies with

 

this subsection. If the district or public school academy 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 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 shall reimburse the state for all disallowances

 

found in the audit.

 

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

 

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-6, 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 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-6, 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 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 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 or public school academy may

 

submit to the department an application for flexibility in using

 

the funds received under this section 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 benefit at-risk pupils in the school,

 

but that may be different from the purposes otherwise allowable

 

under this section. The department shall approve the application if

 

the department determines that the purposes identified in the plan

 

are reasonably designed to benefit at-risk pupils in the school. 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.

 

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

 

under this section 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, 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) A district or public school academy that does not meet

 

the eligibility requirement under subsection (2)(a) is eligible for

 

funding under this section if at least 1/4 of the pupils in

 

membership in the district or public school academy 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), and at least 4,500 of the pupils in

 

membership in the district or public school academy 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). A district or public school academy

 

that is eligible for funding under this section because the

 

district meets the requirements of this subsection shall receive

 

under this section for each membership pupil in the district or

 


public school academy who met the income eligibility criteria for

 

free breakfast, lunch, or milk in the immediately preceding fiscal

 

year, as determined and reported as described in subsection (1), an

 

amount per pupil equal to 11.5% of the sum of the district's

 

foundation allowance or public school academy's per pupil

 

allocation under section 20, plus the amount of the district's per

 

pupil allocation under section 20j(2), not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 

     (17) A district that does not meet the eligibility requirement

 

under subsection (2)(a) is eligible for funding under this section

 

if at least 75% of the pupils in membership in the district 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), the district receives an

 

adjustment under section 20(19), and the district does not receive

 

any state portion of its foundation allowance as calculated under

 

section 20. A district that is eligible for funding under this

 

section because the district meets the requirements of this

 

subsection shall receive under this section for each membership

 

pupil in the district who met the income eligibility criteria for

 

free breakfast, lunch, or milk in the immediately preceding fiscal

 

year, as determined and reported as described in subsection (1), an

 

amount per pupil equal to 11.5% of the sum of the district's

 

foundation allowance under section 20, not to exceed the basic

 

foundation allowance under section 20 for the current state fiscal

 

year.

 


     (18) (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 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. 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, or

 

science test 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 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.

 


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

 

allocated an amount not to exceed $22,495,100.00 for 2008-2009

 

2009-2010 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 2008-2009 2009-2010 all available federal funding,

 

estimated at $330,000,000.00, for the national school lunch program

 

and all available federal funding, estimated at $2,506,000.00, 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.

 

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

 

allocated an amount not to exceed $9,625,000.00 for 2008-2009 2009-

 

2010 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.

 

     Sec. 32b. (1) From the funds appropriated under section 11,

 


there is allocated an amount not to exceed $6,750,000.00 for 2008-

 

2009 2009-2010 for competitive grants to intermediate districts for

 

the creation and continuance of great start communities or other

 

community purposes as identified by the early childhood investment

 

corporation. These dollars may not be expended until both of the

 

following conditions have been met:

 

     (a) The early childhood investment corporation has identified

 

matching dollars of at least an amount equal to the amount of the

 

matching dollars for 2006-2007.

 

     (b) The executive committee of the corporation includes, in

 

addition to the members of the executive committee provided for by

 

the interlocal agreement creating the corporation under the urban

 

cooperation act of 1967, 1967 (ExSess) PA 7, MCL 124.510 to

 

124.512, 4 members appointed by the governor as provided in this

 

subdivision. Not later than 30 days after the convening of a

 

regular legislative session in an odd-numbered year, the speaker of

 

the house of representatives, the house minority leader, the senate

 

majority leader, and the senate minority leader shall each submit

 

to the governor a list of 3 or more individuals as nominees for

 

appointment as members of the executive committee of the

 

corporation. The corporation shall notify each of the legislative

 

leaders of this requirement to submit a list of nominees not later

 

than 30 days before the date that the list is due. Within 60 days

 

of the submission to the governor of nominees by each of the 4

 

legislative leaders, the governor shall appoint 1 member of the

 

executive committee from each list of nominees submitted by each of

 

the 4 legislative leaders. A member appointed under this

 


subdivision shall serve a term as a member of the executive

 

committee through the next regular legislative session unless he or

 

she resigns or is otherwise unable to serve. When a vacancy occurs

 

other than by expiration of a term, the corporation shall notify

 

the legislative leader who originally nominated the member of the

 

vacancy and that legislative leader shall submit to the governor a

 

list of 3 or more individuals as nominees for appointment to fill

 

the vacancy within 30 days after being notified by the corporation

 

of the vacancy. The governor shall make an appointment to fill that

 

vacancy in the same manner as the original appointment not later

 

than 60 days after the date the vacancy occurs.

 

     (2) The early childhood investment corporation shall award

 

grants to eligible intermediate districts in an amount to be

 

determined by the corporation.

 

     (3) In order to receive funding, each intermediate district

 

applicant shall agree to convene A local great start collaboratives

 

COLLABORATIVE to address the availability of the 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,

 

to ensure that every child in the community is ready for

 

kindergarten. Specifically, each grant will fund the following:

 

     (a) The completion of a community needs assessment and

 

strategic plan for the creation of a comprehensive system of early

 

childhood services and supports, accessible to all children from

 

birth to kindergarten and their families.

 

     (b) Identification of local resources and services for

 


children with disabilities, developmental delays, or special needs

 

and their families.

 

     (c) Coordination and expansion of INFRASTRUCTURE TO SUPPORT

 

high-quality early childhood and childcare programs.

 

     (d) Evaluation of local programs.

 

     (4) Not later than December 1 of each fiscal year, for the

 

grants awarded under this section for the immediately preceding

 

fiscal year, the department shall provide to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a report

 

detailing the amount of each grant awarded under this section, the

 

grant recipients, the activities funded by each grant under this

 

section, and an analysis of each grant recipient's success in

 

addressing the development of a comprehensive system of early

 

childhood services and supports.

 

     (5) An intermediate district receiving funds under this

 

section may carry over any unexpended funds received under this

 

section 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.

 

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

 

may be made pursuant to an agreement with the department.

 

     Sec. 32d. (1) From FOR 2009-2010, FROM the state school aid

 

fund money appropriated under APPROPRIATION IN section 11, there is

 

allocated an amount not to exceed $88,100,000.00 TO ELIGIBLE

 


DISTRICTS FOR GREAT START READINESS PROGRAMS AND FROM THE GENERAL

 

FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT

 

TO EXCEED $15,150,000.00 for 2008-2009 for COMPETITIVE great start

 

readiness or preschool and parenting program grants. to enable

 

eligible districts as determined under section 37, to develop or

 

expand, in conjunction with whatever federal funds may be available

 

to the district and its community, including, but not limited to,

 

federal funds under title I of the elementary and secondary

 

education act of 1965, 20 USC 6301 to 6578, chapter 1 of title I of

 

the Hawkins-Stafford elementary and secondary school improvement

 

amendments of 1988, Public Law 100-297, and the head start act, 42

 

USC 9831 to 9852, FUNDS ALLOCATED UNDER THIS SECTION SHALL BE USED

 

TO PROVIDE part-day or full-day comprehensive FREE compensatory

 

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 show evidence of 2 or more risk factors as defined in BY

 

the state board. report entitled "children at risk" that was

 

adopted by the state board on April 5, 1988. To the extent

 

allowable under federal law, a district shall not use funds

 

received under this section to supplant any federal funds received

 

by the district or its community. For the purposes of this section,

 

"supplant" means to serve children eligible for a federally funded

 

existing preschool program that has capacity to serve those

 

children.

 


     (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 by a district for programs

 

described in this subdivision shall not exceed the lesser of the

 

amount spent by the district under this subdivision for 2006-2007

 

or the amount spent under this subdivision in any subsequent fiscal

 

year.

 

     (2) A comprehensive free compensatory program funded under

 

this section shall include an age-appropriate educational

 

curriculum, as described in the early childhood standards of

 

quality for prekindergarten children adopted by the state board,

 

that prepares children for success in school, including language,

 

early literacy, and early mathematics. In addition, the

 

comprehensive program shall include nutritional services, health

 

and developmental screening as described in the early childhood

 

standards of quality for prekindergarten for participating

 

children, a plan for parent and legal guardian involvement, and

 

provision of referral services for families eligible for community

 

social services. DISTRICTS SHALL COMPLY WITH THIS SECTION AND

 

SECTION 39 IN ORDER TO BE ELIGIBLE TO RECEIVE PAYMENTS. ELIGIBLE

 

COMPETITIVE GRANT RECIPIENTS SHALL COMPLY WITH THIS SECTION AND

 

SECTION 32L IN ORDER TO RECEIVE COMPETITIVE GRANT PAYMENTS.

 

     (3) (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 $279,100.00 $300,000.00 for 2008-

 

2009 2009-1010 for a competitive grant to continue a longitudinal

 

evaluation of children who have participated in the great start

 


readiness program PROGRAMS.

 

     (3) PROGRAMS ELIGIBLE FOR FUNDING UNDER THIS SECTION SHALL

 

PREPARE CHILDREN FOR SUCCESS IN SCHOOL THROUGH COMPREHENSIVE PART-

 

DAY OR FULL-DAY 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.

 

     (D) HEALTH 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 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 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) FOR GREAT START READINESS PROGRAMS OPERATED BY A DISTRICT

 

OR CONSORTIUM OF DISTRICTS, PROVIDE FOR THE ONGOING ARTICULATION OF

 

THE EARLY CHILDHOOD, KINDERGARTEN, AND FIRST GRADE PROGRAMS OFFERED

 

BY THE DISTRICT OR DISTRICTS.

 

     (4) 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 (3).

 

     (B) ENSURE THAT MORE THAN 50% OF THE CHILDREN PARTICIPATING IN

 

AN ELIGIBLE GREAT START READINESS PROGRAM 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 EMPLOYS QUALIFIED TEACHERS AND

 

PARAPROFESSIONALS PURSUANT TO ADMINISTRATIVE RULES PROMULGATED BY

 

THE DEPARTMENT.

 

     (D) INCLUDE A PROGRAM BUDGET THAT CONTAINS ONLY THOSE COSTS

 

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.

 

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 BY THE APPLICANT TO SERVE CHILDREN ELIGIBLE FOR A

 

FEDERALLY FUNDED EXISTING PRESCHOOL PROGRAM THAT HAS THE CAPACITY

 

TO SERVE THOSE CHILDREN.

 

     (5) FOR A GRANT RECIPIENT THAT ENROLLS PUPILS IN A FULL-DAY

 

PROGRAM FUNDED UNDER THIS SECTION, EACH CHILD ENROLLED IN THE FULL-

 

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 FULL-DAY

 

PROGRAM. AS USED IN THIS SUBSECTION, "FULL-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 FULL-DAY PROGRAM MUST

 

ENROLL ALL CHILDREN FOR THE FULL DAY TO BE CONSIDERED A FULL-DAY

 

PROGRAM.

 

     (4) (6) A district OR CONSORTIUM OF DISTRICTS receiving a

 

grant under this section may contract with for-profit or nonprofit

 

preschool center providers that meet all provisions of the early

 

childhood standards of quality for prekindergarten children adopted

 

by the state board for the provision of the comprehensive

 

compensatory program SUBSECTION (3) and retain for administrative

 

services an amount equal to not more than 5% of the grant amount. A

 

district OR CONSORTIUM OF DISTRICTS may expend not more than 10% of

 

the total grant amount for administration of the program.

 

     (7) 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 IS ACTING AS A LOCAL GRANTEE

 

FOR THE FEDERAL HEAD START PROGRAM OPERATING UNDER THE HEAD START

 

ACT, 42 USC 9831 TO 9852.

 

     (5) (8) A district receiving RECIPIENT OF funds under this

 

section shall report to the department on the midyear report the

 

number of children participating in the program who meet the income

 

or other eligibility criteria specified under section 37(3)(g)

 

PRESCRIBED BY THE DEPARTMENT 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 section 37(3)(g) SUBSECTION (4)(B), districts RECIPIENTS

 

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.

 

     Sec. 32l. (1) From the general fund money appropriated in

 

section 11, there is allocated for 2008-2009 an amount not to

 

exceed $15,150,000.00 for competitive great start readiness program

 

grants for the purposes of preparing children for success in

 

school, through comprehensive part-day or full-day programs that

 

include language, early literacy, early mathematics, nutritional

 

services, and health and developmental screening, as described in

 

the early childhood standards of quality for prekindergarten for

 

participating children; a plan for parent and legal guardian

 


involvement; and provision of referral services for families

 

eligible for community social services. These grants shall be made

 

available through a competitive application process as follows:

 

     (a) Any public or private nonprofit legal entity or agency may

 

apply for a grant under this section. However, a district or

 

intermediate district may not apply for a grant under this section

 

unless the district or intermediate district is acting as a local

 

grantee for the federal head start program operating under the head

 

start act, 42 USC 9831 to 9852.

 

     (b) An applicant shall submit an application in the form and

 

manner prescribed by the department.

 

     (c) (1) The department shall establish a diverse interagency

 

committee to review the applications FOR COMPETITIVE GRANTS

 

ALLOCATED UNDER SECTION 32D. The committee shall be composed of

 

representatives of the department, appropriate community,

 

volunteer, and social service agencies and organizations, and

 

parents.

 

     (d) (2) The superintendent shall award the COMPETITIVE grants

 

TO APPLICANTS THAT ARE IN COMPLIANCE WITH SECTION 32D and shall

 

give priority for awarding the COMPETITIVE grants based upon the

 

following criteria:

 

     (i) Compliance with the state board-approved early childhood

 

standards of quality for prekindergarten.

 

     (ii) Active and continuous involvement of the parents or

 

guardians of the children participating in the program.

 

     (iii) Employment of teachers possessing proper training,

 

including a valid Michigan teaching certificate with an early

 


childhood (ZA) endorsement, a valid Michigan teaching certificate

 

with a child development associate credential (CDA), or the

 

equivalent from another state, or a bachelor's degree in child

 

development with a specialization in preschool teaching. However,

 

both of the following apply to this subparagraph:

 

     (A) If an applicant demonstrates to the department that it is

 

unable to fully comply with this subparagraph after making

 

reasonable efforts to comply, the superintendent may still give

 

priority to the applicant if the applicant will employ teachers who

 

have significant but incomplete training in early childhood

 

education or child development 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 4 years of the

 

date of employment. Progress toward completion of the compliance

 

plan shall consist of at least 2 courses per calendar year.

 

     (B) For a subcontracted program, the department shall consider

 

a teacher with 90 credit hours and at least 4 years' teaching

 

experience in a qualified preschool program to meet the

 

requirements under this subparagraph.

 

     (iv) Employment of 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, or

 

the equivalent, as approved by the state board. If an applicant

 

demonstrates to the department that it is unable to fully comply

 

with this subparagraph, after making reasonable efforts to comply,

 


the superintendent of public instruction may still give priority to

 

an applicant if the applicant will employ paraprofessionals who

 

have completed at least 1 course 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.

 

     (v) Evidence of collaboration with the community of child

 

development programs, including, but not limited to, great start

 

readiness and head start providers, including documentation of the

 

total number of children in the community who would meet the

 

criteria established in subparagraph (vii), and who are being

 

served by other providers, and the number of children who will

 

remain unserved by other community early childhood programs if this

 

program is funded.

 

     (vi) The extent to which these funds will supplement other

 

federal, state, local, or private funds.

 

     (vii) The extent to which these funds will be targeted to

 

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

 

of December 1 of the year in which the programs are offered and who

 

show evidence of 2 or more risk factors as defined in the state

 

board report entitled "children at risk" that was adopted by the

 

state board on April 5, 1988.

 

     (viii) The program offers or contracts TO PROGRAMS THAT OFFER

 


OR CONTRACT with another nonprofit OR FOR-PROFIT early childhood

 

program to provide supplementary day care and thereby offers full-

 

day programs as part of its early childhood development program.

 

     (ix) The application contains a plan approved by the

 

department to conduct and report annual school readiness program

 

evaluations and continuous improvement plans using criteria

 

approved by the department. At a minimum, the evaluations shall

 

include a self-assessment of program quality and assessment of the

 

gains in educational readiness and progress of the children

 

participating in the program.

 

     (e) An application shall demonstrate that the program has

 

established or has joined a multidistrict, multiagency school

 

readiness advisory committee that is involved in the planning and

 

evaluation of the program and that provides for the involvement of

 

parents and appropriate community, volunteer, and social service

 

agencies and organizations. The advisory committee shall include at

 

least 1 parent or guardian of a program participant for every 18

 

children enrolled in the program, with a minimum of 2 parent or

 

guardian representatives. The advisory committee shall do all of

 

the following:

 

     (i) Review the mechanisms and criteria used to determine

 

referrals for participation in the great start readiness program.

 

     (ii) Review the health screening program for all participants.

 

     (iii) Review the nutritional services provided to all

 

participants.

 

     (iv) Review the mechanisms in place for the referral of

 

families to community social service agencies, as appropriate.

 


     (v) Review the collaboration with and the involvement of

 

appropriate community, volunteer, and social service agencies and

 

organizations in addressing all aspects of education disadvantage.

 

     (vi) Review, evaluate, and make recommendations for changes in

 

the school readiness program.

 

     (vii) Review the agency's participation in a collaborative

 

recruitment and enrollment process with, at a minimum, all other

 

funded preschool programs that may serve children in the same

 

geographic area, including school district part-day programs

 

described under section 32d and head start programs, 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. The collaborative recruitment and enrollment process should

 

be established to reflect the geographic service areas of the

 

collaborative partners. An effective process includes opportunities

 

for families to meet with and learn about each program for which

 

their child is eligible. A child who is income-eligible for head

 

start must be referred to head start. If, after referral to head

 

start, a family chooses to enroll a head-start-eligible child in

 

the great start readiness program, a waiver indicating that the

 

family has been informed of the child's eligibility to attend head

 

start must be completed by the family in a form and manner

 

determined by the department and submitted to the great start

 

readiness program before the child may be enrolled in the great

 

start readiness program. The great start readiness program shall

 

retain the waiver in the child's enrollment file.

 

     (2) To be eligible for a grant under this section, the agency

 


must demonstrate participation in a collaborative recruitment and

 

enrollment process with all other funded preschool programs serving

 

children in the same geographic area to assure that each child is

 

enrolled in the program most appropriate to his or her needs.

 

     (3) To be eligible for a grant under this section, a program

 

shall demonstrate that more than 50% of the children participating

 

in the program live with families with a household income that is

 

less than or equal to 300% of the federal poverty level.

 

     (4) (3) The superintendent may award COMPETITIVE grants under

 

this section ALLOCATED UNDER SECTION 32D at whatever level the

 

superintendent determines appropriate. However, the amount of a

 

COMPETITIVE grant under this section, when combined with other

 

sources of state revenue for this program, shall not exceed

 

$3,400.00 per participating child or the cost of the program,

 

whichever is less.

 

     (5) For a grant recipient that enrolls pupils in a full-day

 

program funded under this section, each child enrolled in the full-

 

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 full-day

 

program. As used in this subsection, "full-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 full-day program must

 

enroll all children for the full day to be considered a full-day

 

program.

 


     (6) (4) Except as otherwise provided in this subsection, an

 

applicant that received a new grant under this section for 2007-

 

2008 shall also receive priority for funding under this section for

 

2008-2009 and 2009-2010. However, after 3 fiscal years of

 

continuous funding, an applicant is required to compete openly with

 

new programs and other programs completing their third year. All

 

grant awards under this section are contingent on the availability

 

of funds and documented evidence of grantee compliance with early

 

childhood standards of quality for prekindergarten, as approved by

 

the state board, and with all operational, fiscal, administrative,

 

and other program requirements.

 

     (7) (5) Notwithstanding section 17b, COMPETITIVE GRANT

 

payments to eligible entities under this section SECTION 32D shall

 

be paid on a schedule and in a manner determined by the department.

 

     Sec. 32n. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $0.00 for a statewide before-

 

or after-school program for children and youth. Before-school

 

programs are limited to school-aged children. This allocation will

 

be distributed through grants to counties based upon demonstrated

 

need. A single county shall not receive any more than 20% of the

 

total allocation. The department shall give priority for

 

distribution of this funding to programs that have secured

 

additional governmental and nongovernmental matching funds.

 

     (2) The department shall share the administrative duties of

 

operating this program with the department of human services,

 

department of community health, department of history, arts, and

 

libraries, and department of ENERGY, labor and economic growth.

 


     (3) Funding priority in subsection (1) shall be reserved for

 

programs that use a curriculum focused upon improving academic

 

performance and healthy behavior, including abstinence from abuse

 

of alcohol and illegal drugs.

 

     Sec. 39. (1) A district RECEIVING FUNDS UNDER SECTION 32D

 

shall submit a preapplication, in a form and manner prescribed by

 

the department, by a date specified by the department in the

 

immediately preceding state fiscal year. The preapplication shall

 

include a comprehensive needs assessment and community

 

collaboration plan, WHICH IS ENDORSED BY THE LOCAL GREAT START

 

COLLABORATIVE AND IS PART OF THE COMMUNITY’S GREAT START STRATEGIC

 

PLAN that includes, but is not limited to, great start readiness

 

program and head start providers, and shall identify all of the

 

following:

 

     (A) The estimated total number of children in the community

 

who meet the criteria of section 32d and how that calculation was

 

made.

 

     (B) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served by other early

 

childhood development programs operating in the community, and how

 

that calculation was made.

 

     (C) The number of children the district will be able to serve

 

who meet the criteria of section 32d including a verification of

 

physical facility and staff resources capacity.

 

     (D) The estimated number of children who meet the criteria of

 

section 32d who will remain unserved after the district and

 

community early childhood programs have met their funded

 


enrollments. The school district shall maintain a waiting list of

 

identified unserved eligible children who would be served when

 

openings are available.

 

     (2) A district receiving FUNDS UNDER SECTION 32D shall ALSO

 

submit a final application for approval, in a form and manner

 

prescribed by the department, by a date specified by the

 

department, that details how the district complies with the PROGRAM

 

COMPONENTS ESTABLISHED BY THE DEPARTMENT PURSUANT TO SECTION 32D.

 

     (3) The number of prekindergarten children construed to be in

 

need of special readiness assistance under section 32d shall be

 

calculated for each district in the following manner: one-half of

 

the percentage of the district's pupils in grades 1-5 who are

 

eligible for free lunch, as determined by the district's FALL count

 

in the school year PRIOR TO the fiscal year for which the

 

calculation is made under the Richard B. Russell national school

 

lunch act, 42 USC 1751 to 1769i, shall be multiplied by the average

 

kindergarten enrollment of the district on the pupil membership

 

count day of the 2 immediately preceding years.

 

     (4) Beginning in 2008-2009, the initial allocation for each

 

fiscal year to each eligible district under section 32d shall be

 

determined by multiplying the number of children determined in

 

section 38 BY THE FORMULA UNDER SUBSECTION (3) or the number of

 

children the district indicates it will be able to serve under

 

section 37(2)(c) SUBSECTION (1)(C), whichever is less, by $3,400.00

 

and shall be distributed among districts in decreasing order of

 

concentration of eligible children as determined by section 38 THE

 

FORMULA UNDER SUBSECTION (3). If the number of children a district

 


indicates it will be able to serve under section 37(2)(c)

 

SUBSECTION (1)(C) includes children able to be served in a full-day

 

program, then the number able to be served in a full-day program

 

shall be doubled for the purposes of making this calculation of the

 

lesser of the number of children determined BY THE FORMULA in

 

section 38 UNDER SUBSECTION (3) and the number of children the

 

district indicates it will be able to serve under section 37(2)(c)

 

SUBSECTION (1)(C) and determining the amount of the initial

 

allocation to the district under section 32d. A district may

 

contract with a head start agency to serve children enrolled in

 

head start with a full-day program by blending head start funds

 

with a part-day great start readiness program allocation. All head

 

start and great start readiness program policies and regulations

 

apply to the blended program.

 

     (2) (5) If funds appropriated FOR ELIGIBLE DISTRICTS in

 

section 32d remain after the initial allocation under subsection

 

(1) (4), the allocation under this subsection shall be distributed

 

to each eligible district under section 32d in decreasing order of

 

concentration of eligible children as determined by section 38 THE

 

FORMULA UNDER SUBSECTION (3). The allocation shall be determined by

 

multiplying the number of children each eligible district served in

 

the immediately preceding fiscal year or the number of children the

 

district indicates it will be able to serve under section 37(2)(c),

 

SUBSECTION (1)(C) whichever is less, minus the number of children

 

for which the district received funding in subsection (1) (4) by

 

$3,400.00.

 

     (3) (6) If funds appropriated FOR ELIGIBLE DISTRICTS in

 


section 32d remain after the allocations under subsections (1) (4)

 

and (2) (5), remaining funds shall be distributed to each eligible

 

district under section 32d in decreasing order of concentration of

 

eligible children as determined by section 38 THE FORMULA UNDER

 

SUBSECTION (3). If the number of children the district indicates it

 

will be able to serve under section 37(2)(c) SUBSECTION (1)(C)

 

exceeds the number of children for which funds have been received

 

under subsections (1) (4) and (2) (5), the allocation under this

 

subsection shall be determined by multiplying the number of

 

children the district indicates it will be able to serve under

 

section 37(2)(c) SUBSECTION (1)(C) less the number of children for

 

which funds have been received under subsections (1) (4) and (2)

 

(5) by $3,400.00 until the funds allocated FOR ELIGIBLE DISTRICTS

 

in section 32d are distributed.

 

     (4) (7) If a district is participating in a program under

 

section 32d for the first year, the maximum allocation under this

 

section is 32 multiplied by $3,400.00.

 

(5) A district that received funds under this section in at least 1

 

of the 2 immediately preceding fiscal years shall receive priority

 

in funding over other eligible districts. However, funding beyond 3

 

state fiscal years is contingent upon the availability of funds and

 

documented evidence satisfactory to the department of compliance

 

with all operational, fiscal, administrative, and other program

 

requirements.

 

     (6) (8) A district that offers supplementary day care funded

 

by funds other than those received under this section and therefore

 

offers full-day programs as part of its early childhood development

 


program shall receive priority in the allocation of funds under

 

this section 32D over other eligible districts other than those

 

districts funded under subsection (5).

 

     (7) (9) For any district with 315 or more eligible pupils, the

 

number of eligible pupils shall be 65% of the number calculated

 

under section 38 USING THE FORMULA UNDER SUBSECTION (3). However,

 

none of these districts may have less than 315 pupils for purposes

 

of calculating the tentative allocation FOR ELIGIBLE DISTRICTS

 

under section 32d.

 

     (8) (10) If, taking into account the total amount to be

 

allocated to the district as calculated under this section, a

 

district determines that it is able to include additional eligible

 

children in the great start readiness program without additional

 

funds under this section 32D, the district may include additional

 

eligible children but shall not receive additional funding under

 

this section 32D for those children.

 

     (9) For a district that enrolls pupils in a full-day program

 

under section 32d, each child enrolled in the full-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 allocation under section 32d. A district’s

 

allocation shall not be increased solely on the basis of providing

 

a full-day program.

 

     (10) As used in this section, "part-day program" means a

 

program that operates at least 4 days per week, 30 weeks per year,

 

with at least 300 hours of teacher-child contact, and "full-day

 

program" means a program that operates for at least the same length

 


of day as the district's first grade program for a minimum of 4

 

days per week, 30 weeks per year. A classroom that offers a full-

 

day program must enroll all children for the full day to be

 

considered a full-day program.

 

     (11) A consortium of 2 or more districts shall be eligible for

 

an allocation under SECTION 32D if the districts designate a

 

DISTRICT OR INTERMEDIATE DISTRICT TO SERVE AS THE fiscal agent for

 

the CONSORTIUM’S allocation. A consortium shall submit a single

 

Application for the TOTAL NUMBER OF children to be served. The

 

consortium may decide, with approval of all consortium members, to

 

serve numbers of children based on the allocation to each district

 

or based on the allocation to the entire consortium, allowing

 

children residing in any district in the consortium to be served by

 

the consortium at any location.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated for 2008-2009 2009-2010 to districts,

 

intermediate districts, and other eligible entities all available

 

federal funding, estimated at $752,987,500.00, 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 $8,033,600.00 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 $7,461,800.00 for the purpose of

 

improving teaching and learning through a more effective use of

 

technology, funded from DED-OESE, educational technology state

 


grant funds.

 

     (c) An amount estimated at $109,411,900.00 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

     (d) An amount estimated at $10,322,300.00 for programs to

 

teach English to limited English proficient (LEP) children, funded

 

from DED-OESE, language acquisition state grant funds.

 

     (e) An amount estimated at $8,550,000.00 for the Michigan

 

charter school subgrant program, funded from DED-OESE, charter

 

school funds.

 

     (f) An amount estimated at $898,300.00 for rural and low

 

income schools, funded from DED-OESE, rural and low income school

 

funds.

 

     (g) An amount estimated at $1,000.00 to help schools develop

 

and implement comprehensive school reform programs, funded from

 

DED-OESE, title I and title X, comprehensive school reform funds.

 

     (h) An amount estimated at $517,479,800.00 to provide

 

supplemental programs to enable educationally disadvantaged

 

children to meet challenging academic standards, funded from DED-

 

OESE, title I, disadvantaged children funds.

 

     (i) An amount estimated at $2,152,700.00 for the purpose of

 

providing unified family literacy programs, funded from DED-OESE,

 

title I, even start funds.

 

     (j) An amount estimated at $7,797,700.00 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 


     (k) An amount estimated at $24,733,200.00 to promote high-

 

quality school reading instruction for grades K-3, funded from DED-

 

OESE, title I, reading first state grant funds.

 

     (l) An amount estimated at $2,849,000.00 for the purpose of

 

implementing innovative strategies for improving student

 

achievement, funded from DED-OESE, title VI, innovative strategies

 

funds.

 

     (m) An amount estimated at $35,710,100.00 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. Of these funds, $50,000.00 may be used to

 

support the Michigan after-school partnership. All of the following

 

apply to the Michigan after-school partnership:

 

     (i) The department shall collaborate with the department of

 

human services to extend the duration of the Michigan after-school

 

initiative, to be renamed the Michigan after-school partnership and

 

oversee its efforts to implement the policy recommendations and

 

strategic next steps identified in the Michigan after-school

 

initiative's report of December 15, 2003.

 

     (ii) Funds shall be used to leverage other private and public

 

funding to engage the public and private sectors in building and

 

sustaining high-quality out-of-school-time programs and resources.

 

The co-chairs, representing the department and the department of

 

human services, shall name a fiduciary agent and may authorize the

 

fiduciary to expend funds and hire people to accomplish the work of

 

the Michigan after-school partnership.

 


     (iii) Participation in the Michigan after-school partnership

 

shall be expanded beyond the membership of the initial Michigan

 

after-school initiative to increase the representation of parents,

 

youth, foundations, employers, and others with experience in

 

education, child care, after-school and youth development services,

 

and crime and violence prevention, and to include representation

 

from the department of community health. Each year, on or before

 

December 31, the Michigan after-school partnership shall report its

 

progress in reaching the recommendations set forth in the Michigan

 

after-school initiative's report to the legislature and the

 

governor.

 

     (n) An amount estimated at $17,586,100.00 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 2008-2009 2009-2010 to districts, intermediate

 

districts, and other eligible entities all available federal

 

funding, estimated at $32,559,700.00, 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 to provide services

 

to homeless children and youth, funded from DED-OVAE, homeless

 

children and youth funds.

 

     (c) An amount estimated at $200,000.00 for refugee children

 

school impact grants, funded from HHS-ACF, refugee children school

 


impact funds.

 

     (d) An amount estimated at $1,445,600.00 for serve America

 

grants, funded from the corporation for national and community

 

service funds.

 

     (e) 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)(h), (i), (k), and (n) 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) 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 2008-2009 an amount not to exceed $1,023,783,000.00

 

$1,018,533,000.00 AND FOR 2009-2010 AN AMOUNT NOT TO EXCEED

 

$1,064,683,000.00 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

 

$350,700,000.00, 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 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 $224,800,000.00

 


$227,700,000.00 for 2008-2009 AND THE AMOUNT NECESSARY, ESTIMATED

 

AT $240,800,000.00 FOR 2009-2010, 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 (12), times

 

the sum of the foundation allowance under section 20 of the pupil's

 

district of residence plus the amount of the district's per pupil

 

allocation under section 20j(2), 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 or university school, times an amount equal

 

to the amount per membership pupil calculated under section 20(6).

 

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 (12), 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, and that district's per pupil allocation under section

 

20j(2).

 


     (b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments 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 for 2008-2009 the amount necessary, estimated at

 

$1,600,000.00, $1,200,000.00 AND FOR 2009-2010 THE AMOUNT

 

NECESSARY, ESTIMATED AT $300,000.00 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 act 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 for 2008-2009 AND 2009-2010 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 for 2008-2009 AND

 


2009-2010 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 this article, 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 act. 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 2007-

 

2008 that the amounts allocated for 2007-2008 under subsections

 

(2), (3), (6), (8), and (12) and sections 53a, 54, and 56 will

 

exceed expenditures for 2007-2008 under subsections (2), (3), (6),

 

(8), and (12) and sections 53a, 54, and 56, then for 2007-2008

 

only, for a district or intermediate district whose reimbursement

 

for 2007-2008 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),

 

(8), and (12) 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.

 

     (d) (C) 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) (D) 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) From the allocation in subsection (1), there is allocated

 

EACH YEAR for 2008-2009 AND 2009-2010 an amount not to exceed

 

$15,313,900.00 to intermediate districts. The payment under this

 

subsection to each intermediate district shall be equal to the

 

amount of the 1996-97 allocation to the intermediate district under

 

subsection (6) of this section as in effect for 1996-97.

 

     (9) 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.

 

     (10) 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.

 

     (11) 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.

 

     (12) From the funds allocated in subsection (1), there is

 

allocated the amount necessary, estimated at $7,100,000.00

 

$7,900,000.00 for 2008-2009 AND AN AMOUNT NECESSARY, ESTIMATED AT

 

$8,500,000.00 FOR 2009-2010, 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 sum of the foundation

 

allowance under section 20 of the pupil's district of residence

 

plus the amount of the district's per pupil allocation under

 

section 20j(2), 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 or university school, times an amount

 

equal to the amount per membership pupil under section 20(6). 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, and that district's per

 

pupil allocation under section 20j(2). 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) Emotionally impaired pupils counted in membership by an

 

intermediate district and provided educational services by the

 

department of community health.

 

     (13) If it is determined that funds allocated under subsection

 

(2) or (12) 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 (12) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (12) 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 payment required under subsection (8).

 

     (f) 100% of the payments under section 56.

 

     (14) The allocations under subsections (2), (3), and (12)

 

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.

 

     (15) 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. 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 for 2008-2009 the amount necessary, estimated at

 

$721,400,000.00 $712,850,000.00, AND FOR 2009-2010 THE AMOUNT

 

NECESSARY, ESTIMATED AT $746,200,000.00 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 2008-2009 2009-2010 all available

 

federal funding, estimated at $74,000,000.00, 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 for 2008-2009 2009-2010:

 

     (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, and minus the amount calculated for

 

the district under section 20j. 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, and under section 20j.

 

     (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 $12,800,000.00 of the allocation for 2008-

 

2009 2009-2010 in section 51a(1) shall be allocated 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 2008-2009 2009-2010 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 54a. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $100,000.00 for 2008-2009 2009-2010 to the lending library

 

located at central Michigan university from which districts and

 

intermediate districts can borrow assessment materials designed

 

specifically for children with severe loss of vision or hearing,

 

severe cognitive or motor disabilities, or multiple disabilities

 

and for children who require the most specialized types of

 


psychological and educational assessment.

 

     (2) The lending library shall make test assessment materials

 

available through borrowing to districts and intermediate

 

districts. The lending library shall also provide information about

 

the lending library at meetings and conferences for school

 

personnel and shall develop a website to describe the services

 

offered by the lending library. The lending library also shall mail

 

information about the services offered by the lending library to

 

all districts and intermediate districts.

 

     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 2008-2009

 

2009-2010 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 2007-2008 2008-

 

2009 shall be made in 2008-2009 2009-2010 at an amount per 2007-

 

2008 2008-2009 membership pupil computed by subtracting from

 

$172,800.00 $179,700.00 the 2007-2008 2008-2009 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2007-2008 2008-2009 millage levied.

 

     Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $30,000,000.00 $29,611,300.00 for

 

2008-2009 2009-2010 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 vocational-technical education programs, including

 

parenthood 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 vocational-

 

technical program area. The allocation of added cost funds shall be

 


based on the type of vocational-technical 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 vocational-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

 

vocational administration, shared time vocational administration,

 

and career education planning district vocational-technical

 

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.

 

     (3) From the allocation in subsection (1), there is allocated

 

an amount not to exceed $388,700.00 for 2008-2009 to intermediate

 

districts with constituent districts that had combined state and

 

local revenue per membership pupil in the 1994-95 state fiscal year

 

of $6,500.00 or more, served as a fiscal agent for a state board

 

designated area vocational education center in the 1993-94 school

 

year, and had an adjustment made to their 1994-95 combined state

 

and local revenue per membership pupil pursuant to section 20d. The

 

payment under this subsection to the intermediate district shall

 


equal the amount of the allocation to the intermediate district for

 

1996-97 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 2008-2009 2009-2010 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 2007-2008 2008-

 

2009 shall be made in 2008-2009 2009-2010 at an amount per 2007-

 

2008 2008-2009 membership pupil computed by subtracting from

 

$181,900.00 $189,600.00 the 2007-2008 2008-2009 taxable value

 

behind each membership pupil and multiplying the resulting

 

difference by the 2008-2009 2009-2010 millage levied.

 

     Sec. 64. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $2,000,000.00 for 2008-2009 2009-

 

2010 for grants to intermediate districts or a district of the

 

first class that are in consortium with a community college or

 

state public university and a hospital OR OTHER APPROPRIATE ENTITY

 


to create and implement a middle college focused on the field of

 

health sciences OR OTHER FIELD AS IDENTIFIED BY THE STATE

 

SUPERINTENDENT OF PUBLIC INSTRUCTION.

 

     (2) Awards shall be made in a manner and form as determined by

 

the department; however, at a minimum, eligible consortia funded

 

under this section shall ensure the middle college provides all of

 

the following:

 

     (a) Outreach programs to provide information to middle school

 

and high school students about career opportunities in the health

 

sciences field OR OTHER FIELD APPROVED BY THE SUPERINTENDENT OF

 

PUBLIC INSTRUCTION.

 

     (b) An individualized education plan for each pupil enrolled

 

in the program.

 

     (c) Curriculum that includes entry-level college courses.

 

     (d) Clinical rotations that provide opportunities for pupils

 

to observe careers in the health sciences OR OTHER FIELD APPROVED

 

BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION.

 

     (e) Instruction in mathematics, science, and language arts

 

that is integrated, where appropriate, into the health sciences

 

courses IN THE APPROVED FIELD.

 

     (3) For the purposes of this section, "middle college" means a

 

series of courses and other requirements and conditions established

 

by the consortium that allow a pupil to graduate with a high school

 

diploma and a certificate or degree from a community college or

 

state public university.

 

     (4) Beginning in 2006-2007, a district or intermediate

 

district may receive a grant under this section for up to 4

 


consecutive fiscal years. For the first 2 fiscal years of the grant

 

period, the grant amount shall be 100% of the award determined by

 

the department. For each of the remaining 2 fiscal years of the

 

grant period, the grant amount shall be an amount equal to 50% of

 

the recipient's grant amount for the previous fiscal year.

 

     Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,028,500.00 $3,061,500.00

 

for 2008-2009 2009-2010 for the purposes of this section.

 

     (2) From the allocation in subsection (1), there is allocated

 

for 2008-2009 2009-2010 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 act for nonspecial education

 

auxiliary services transportation.

 

     (4) From the funds allocated in subsection (1), there is

 

allocated an amount not to exceed $1,403,500.00 $1,436,500.00 for

 

2008-2009 2009-2010 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 each affected district in a time and manner

 

determined jointly by the department and the department of state

 

police. The department shall reimburse each district and

 

intermediate district for costs detailed on the statement within 30

 

days after receipt of the statement. Districts for which services

 

are provided 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 2008-

 


2009 2009-2010 to the intermediate districts the sum necessary, but

 

not to exceed $81,721,100.00 $65,376,900.00, to provide state aid

 

to intermediate districts under this section. Except as otherwise

 

provided in this section, there shall be allocated to each

 

intermediate district for 2008-2009 2009-2010 an amount equal to

 

101.0% 80.0% of the amount appropriated under this subsection for

 

2007-2008 2008-2009. Funding provided under this section shall be

 

used to comply with requirements of this act and the revised school

 

code that are applicable to intermediate districts, and for which

 

funding is not provided elsewhere in this act, and to provide

 

technical assistance to districts as authorized by the intermediate

 

school board.

 

     (2) Intermediate districts receiving funds under this section

 

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.

 

     (3) 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.

 


     (4) 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) In order to receive funding under this section, 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 counting 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.

 

     Sec. 94a. (1) There is created within the office of the state

 

budget director in the department of 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 all entities receiving funds under this act.

 

     (b) Collect data in the most efficient manner possible in

 

order to reduce the administrative burden on reporting entities.

 

     (c) Establish procedures to ensure the reasonable validity and

 

reliability of the data and the collection process.

 

     (d) Develop state and model local data collection policies,

 

including, but not limited to, policies that ensure the privacy of

 

individual student data. State privacy policies shall ensure that

 

student social security numbers are not released to the public for

 

any purpose.

 

     (e) Provide data in a useful manner to allow state and local

 

policymakers to make informed policy decisions.

 

     (f) Provide 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) Assist all entities receiving funds under this act in

 

complying with audits performed according to generally accepted

 

accounting procedures.

 

     (h) To the extent funding is available, coordinate the

 

electronic exchange of student records using a unique

 


identification numbering system among entities receiving funds

 

under this act and postsecondary institutions for students

 

participating in public education programs from preschool through

 

postsecondary education.

 

     (i) Other functions as assigned by the state budget director.

 

     (2) Each state department, officer, or agency that collects

 

information from districts or intermediate districts as required

 

under state or federal law shall make arrangements with the center,

 

and with the districts or intermediate districts, to have the

 

center collect the information and to provide it to the department,

 

officer, or agency as necessary. To the extent that it does not

 

cause financial hardship, the center shall arrange to collect the

 

information in a manner that allows electronic submission of the

 

information to the center. Each affected state department, officer,

 

or agency shall provide the center with any details necessary for

 

the center to collect information as provided under this

 

subsection. 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 state budget director shall appoint a CEPI advisory

 

committee, consisting of the following members:

 

     (a) One representative from the house fiscal agency.

 

     (b) One representative from the senate fiscal agency.

 


     (c) One representative from the office of the state budget

 

director.

 

     (d) One representative from the state education agency.

 

     (e) One representative each from the department of ENERGY,

 

labor and economic growth and the department of treasury.

 

     (f) Three representatives from intermediate school districts.

 

     (g) One representative from each of the following educational

 

organizations:

 

     (i) Michigan association of school boards.

 

     (ii) Michigan association of school administrators.

 

     (iii) Michigan school business officials.

 

     (h) One representative representing private sector firms

 

responsible for auditing school records.

 

     (i) Other representatives as the state budget director

 

determines are necessary.

 

     (4) The CEPI advisory committee appointed under subsection (3)

 

shall provide advice to the director of the center regarding the

 

management of the center's data collection activities, including,

 

but not limited to:

 

     (a) Determining what data is necessary to collect and maintain

 

in order to perform the center's functions in the most efficient

 

manner possible.

 

     (b) Defining the roles of all stakeholders in the data

 

collection system.

 

     (c) Recommending timelines for the implementation and ongoing

 

collection of data.

 

     (d) Establishing and maintaining data definitions, data

 


transmission protocols, and system specifications and procedures

 

for the efficient and accurate transmission and collection of data.

 

     (e) Establishing and maintaining a process for ensuring the

 

reasonable accuracy of the data.

 

     (f) Establishing and maintaining state and model local

 

policies related to data collection, including, but not limited to,

 

privacy policies related to individual student data.

 

     (g) Ensuring the data is made available to state and local

 

policymakers and citizens of this state in the most useful format

 

possible.

 

     (h) Other matters as determined by the state budget director

 

or the director of the center.

 

     (5) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (6) From the general fund appropriation in section 11, there

 

is allocated an amount not to exceed $4,935,400.00 $3,435,400.00

 

for 2008-2009 AND $3,486,100.00 FOR 2009-2010 to the department of

 

management and budget to support the operations of the center and

 

the development and implementation of a comprehensive longitudinal

 

data collection management and reporting system that includes

 

student-level data. The center shall cooperate with the state

 

education agency 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. In addition, from the

 

federal funds appropriated in section 11 for 2008-2009 AND 2009-

 

2010, there is allocated the amount necessary, estimated at

 

$2,793,200.00, in order to fulfill federal reporting requirements.

 


     (7) From the federal funds allocated in subsection (6), there

 

is allocated EACH YEAR for 2008-2009 AND 2009-2010 an amount not to

 

exceed $750,000.00 funded from the competitive grants of DED-OESE,

 

title II, educational technology funds for the purposes of this

 

subsection. Not later than November 30, 2008 FOR 2008-2009 AND NOT

 

LATER THAN NOVEMBER 30, 2009 FOR 2009-2010, the department shall

 

award a single grant to an eligible partnership that includes an

 

intermediate district with at least 1 high-need local school

 

district and the center.

 

     (8) The center and the department shall work cooperatively to

 

develop a cost allocation plan that pays for center expenses from

 

the appropriate federal fund revenues.

 

     (9) 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.

 

     (10) 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 (6) to cover the costs associated with

 

salaries, benefits, supplies, materials, and equipment necessary to

 

provide such data, analysis, and reporting services.

 

     (11) As used in this section:

 

     (a) "DED-OESE" means the United States department of education

 

office of elementary and secondary education.

 


     (b) "High-need local school district" means a local

 

educational agency as defined in the enhancing education through

 

technology part of the no child left behind act of 2001, Public Law

 

107-110.

 

     (c) "State education agency" means the department.

 

     Sec. 98. (1) From the state school aid fund money appropriated

 

in section 11, there is allocated an amount not to exceed

 

$500,000.00 for 2008-2009 2009-2010 and from the general fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $1,750,000.00 for 2008-2009 2009-2010 to provide a grant to

 

the Michigan virtual university for the development,

 

implementation, and operation of the Michigan virtual high school;

 

to provide professional development opportunities for educators;

 

and to fund other purposes described in this section. In addition,

 

from the federal funds appropriated in section 11, there is

 

allocated for 2008-2009 2009-2010 an amount estimated at

 

$2,700,000.00.

 

     (2) The Michigan virtual high school shall have the following

 

goals:

 

     (a) Significantly expand curricular offerings for high schools

 

across this state through agreements with districts or licenses

 

from other recognized providers. The Michigan virtual high school

 

shall explore options for providing rigorous civics curricula

 

online.

 

     (b) Create statewide instructional models using interactive

 

multimedia tools delivered by electronic means, including, but not

 

limited to, the internet, digital broadcast, or satellite network,

 


for distributed learning at the high school level.

 

     (c) Provide pupils with opportunities to develop skills and

 

competencies through on-line learning.

 

     (d) Grant high school diplomas through a dual enrollment

 

method with districts.

 

     (e) Act as a broker for college level equivalent courses, as

 

defined in section 1471 of the revised school code, MCL 380.1471,

 

and dual enrollment courses from postsecondary education

 

institutions.

 

     (f) Maintain the accreditation status of the Michigan virtual

 

high school from recognized national and international accrediting

 

entities.

 

     (3) The Michigan virtual high school course offerings shall

 

include, but are 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 and services for

 

teachers THAT TEACH MICHIGAN EDUCATORS HOW TO DEVELOP AND DELIVER

 

ONLINE INSTRUCTIONAL SERVICES.

 

     (H) COURSES, RESOURCES AND INTERACTIVE LEARNING MATERIALS IN

 

THE FIELDS OF SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS FOR

 


MIDDLE AND HIGH SCHOOL STUDENTS AS PART OF A COMPREHENSIVE STEM

 

ACADEMY, DEVELOPED IN CONJUNCTION WITH THE MATHEMATICS AND SCIENCE

 

CENTERS NETWORK AND THE DEPARTMENT.

 

     (4) From the federal funds allocated in subsection (1), there

 

is allocated for 2008-2009 2009-2010 an amount estimated at

 

$1,700,000.00 from DED-OESE, title II, improving teacher quality

 

funds for a grant to the Michigan virtual university for the

 

purpose of this subsection. The state education agency shall sign a

 

memorandum of understanding with the Michigan virtual university

 

regarding the DED-OESE, title II, improving teacher quality funds

 

as provided under this subsection. The memorandum of understanding

 

under this subsection shall require that WITH THE APPROVAL OF THE

 

DEPARTMENT, the Michigan virtual university SHALL coordinate the

 

following activities related to DED-OESE, title II, improving

 

teacher quality funds in accordance with federal law:

 

     (a) Develop, and assist districts in the development and use

 

of, proven, innovative strategies to deliver intensive professional

 

development programs that are both cost-effective and easily

 

accessible, such as strategies that involve delivery through the

 

use of technology, peer networks, and distance learning.

 

     (b) Encourage and support the training of teachers and

 

administrators to effectively integrate technology into curricula

 

and instruction.

 

     (c) Coordinate the activities of eligible partnerships that

 

include higher education institutions for the purposes of providing

 

professional development activities for teachers,

 

paraprofessionals, and principals as defined in federal law.

 


     (d) Offer teachers opportunities to learn new skills and

 

strategies for developing and delivering instructional services.

 

     (e) Provide online professional development opportunities for

 

educators to update and expand knowledge and skills needed to

 

support the Michigan merit curriculum core content standards and

 

credit requirements.

 

     (F) IN CONJUNCTION WITH THE MATHEMATICS AND SCIENCE CENTERS

 

NETWORK AND THE DEPARTMENT, IMPLEMENT AN ALGEBRA 4 ALL INITIATIVE

 

TO OFFER ONLINE AND FACE-TO-FACE PROFESSIONAL DEVELOPMENT

 

OPPORTUNITIES FOR MATHEMATICS TEACHERS IN GRADES 8 THROUGH 12 THAT

 

PROMOTE BEST PRACTICES FOR TEACHING ALGEBRA TO ALL STUDENTS. IT IS

 

INTENDED THAT THE ALGEBRA 4 ALL INITIATIVE BE THE FIRST PHASE OF

 

ESTABLISHING A STEM ACADEMY THAT PROVIDES ONLINE PROFESSIONAL

 

DEVELOPMENT OPPORTUNITIES FOR ALL TEACHERS IN THE FIELDS OF

 

SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS.

 

     (5) The Michigan virtual university shall offer at least 200

 

hours of online professional development for classroom teachers

 

under this section each fiscal year beginning in 2006-2007 without

 

charge to the teachers or to districts or intermediate districts.

 

THESE FREE HOURS SHALL INCLUDE ALGEBRA 4 ALL AND SUBSEQUENT STEM

 

ACADEMY PROFESSIONAL DEVELOPMENT OPPORTUNITIES. A district or

 

intermediate district may require a full-time teacher to

 

participate in at least 5 hours of online professional development

 

provided by the Michigan virtual university under subsection (4).

 

Five hours of this professional development shall be considered to

 

be part of the 38 hours allowed to be counted as hours of pupil

 

instruction under section 101(10).

 


     (6) From the federal funds appropriated in subsection (1),

 

there is allocated for 2008-2009 2009-2010 an amount estimated at

 

$1,000,000.00 from the DED-OESE, title II, educational technology

 

grant funds to support e-learning and virtual school initiatives

 

consistent with the goals contained in the United States national

 

educational technology plan issued in January 2005. These funds

 

shall be used to support activities designed to build the capacity

 

of the Michigan virtual university and shall not be used to

 

supplant other funding. Not later than November 30, 2008, 2009,

 

from the funds allocated in this subsection, the department shall

 

award a single grant of $1,000,000.00 to a consortium or

 

partnership established by the Michigan virtual university that

 

meets the requirements of this subsection. To be eligible for this

 

funding, a consortium or partnership established by the Michigan

 

virtual university shall include at least 1 intermediate district

 

and at least 1 high-need local district. All of the following apply

 

to this funding:

 

     (a) An eligible consortium or partnership must demonstrate the

 

following:

 

     (i) Prior success in delivering online courses and

 

instructional services to K-12 pupils throughout this state.

 

     (ii) Expertise in designing, developing, and evaluating online

 

K-12 course content.

 

     (iii) Experience in maintaining a statewide help desk service

 

for pupils, online teachers, and other school personnel.

 

     (iv) Knowledge and experience in providing technical

 

assistance and support to K-12 schools in the area of online

 


education.

 

     (v) Experience in training and supporting K-12 educators in

 

this state to teach online courses.

 

     (vi) Demonstrated technical expertise and capacity in managing

 

complex technology systems.

 

     (vii) Experience promoting twenty-first century learning

 

skills through the use of online technologies.

 

     (b) The Michigan virtual university, which operates the

 

Michigan virtual high school, shall perform the following tasks

 

related to this funding:

 

     (i) Strengthen its capacity by pursuing activities, policies,

 

and practices that increase the overall number of Michigan virtual

 

high school course enrollments and course completions by at-risk

 

students.

 

     (ii) Examine the curricular and specific course content needs

 

of middle and high school students in the areas of mathematics and

 

science.

 

     (iii) Design, develop, and acquire online courses and related

 

supplemental resources aligned to state standards to create a

 

comprehensive and rigorous statewide catalog of online courses and

 

instructional services.

 

     (iv) Conduct a demonstration pilot to promote CONTINUE TO

 

EVALUATE AND PILOT new and innovative online TOOLS, RESOURCES AND

 

courses and instructional services.

 

     (v) Evaluate existing online teaching and learning practices

 

and develop continuous improvement strategies to enhance student

 

achievement.

 


     (vi) Develop, support, and maintain the technology

 

infrastructure and related software required to deliver online

 

courses and instructional services to students statewide.

 

     (7) From the state school aid fund allocation in subsection

 

(1), an amount not to exceed $500,000.00 for 2008-2009 2009-2010

 

shall be awarded as a single grant to an intermediate district

 

working in partnership with the Michigan virtual high school for a

 

statewide license for "my dream explorer", a career exploration and

 

planning tool, to be made available to all pupils at no cost. The

 

Michigan virtual high school shall work collaboratively with the

 

department, the presidents council of state universities of

 

Michigan, the Michigan community college association, the

 

association of independent colleges and universities of Michigan,

 

and the appropriate K-12 education organizations to develop a

 

comprehensive outreach and communications plan that provides

 

parents and students with access to online resources designed to

 

increase postsecondary enrollments and provide current information

 

related to career planning, college selection, financial aid, and

 

dual enrollment opportunities.

 

     (8) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan virtual high school, the student may use the services

 

provided by the Michigan virtual high school to the district

 

without charge to the student beyond what is charged to a district

 

pupil using the same services.

 

     (9) Not later than December 1, 2008, 2009, 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 high school for the preceding state fiscal

 

year:

 

     (a) A list of the Michigan schools served by the Michigan

 

virtual high school.

 

     (b) A list of online course titles available to Michigan

 

schools.

 

     (c) The total number of online course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (e) A summary of DED-OESE, title IIA, teacher quality grant

 

and DED-OESE, title IID, education technology grant expenditures.

 

     (f) Identification of unmet educational needs that could be

 

addressed by the Michigan virtual high school.

 

     (g) The total number of active users of "my dream explorer"

 

funded under subsection (7).

 

     (10) As used in this section:

 

     (a) "DED-OESE" means the United States department of education

 

office of elementary and secondary education.

 

     (b) "High-need local district" means a local educational

 

agency as defined in the enhancing education through technology

 

part of the no child left behind act of 2001, Public Law 107-110.

 

     (c) "State education agency" means the department.

 

     Sec. 99. (1) From the state school aid fund money appropriated

 

in section 11, there is allocated an amount not to exceed

 


$3,390,000.00 for 2008-2009 2009-2010 and from the general fund

 

appropriation in section 11, there is allocated an amount not to

 

exceed $110,000.00 for 2008-2009 for implementing the comprehensive

 

master plan for 2009-2010 TO SUPPORT THE ACTIVITIES AND PROGRAMS OF

 

mathematics and science centers developed by the department and

 

approved by the state board, and for other purposes as described in

 

this section. In addition, from the federal funds appropriated in

 

section 11, there is allocated for 2008-2009 2009-2010 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

 

described in subsection (1) FOR MATHEMATICS AND SCIENCE CENTERS

 

DEVELOPED BY THE DEPARTMENT AND APPROVED BY THE STATE BOARD, an

 

established mathematics and science center shall address 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 2007-2008 2008-2009 shall receive state funding in an

 

amount equal to 100% of the amount it was allocated under this

 

subsection for 2007-2008 2008-2009. 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 2008-2009 2009-2010 an amount not to exceed

 

$1,000,000.00 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) IN CONJUNCTION WITH THE MICHIGAN VIRTUAL UNIVERSITY AND

 

THE DEPARTMENT, THE MATHEMATICS AND SCIENCE CENTERS NETWORK SHALL

 

IMPLEMENT AN ALGEBRA 4 ALL INITIATIVE TO OFFER ONLINE AND FACE-TO-

 

FACE PROFESSIONAL DEVELOPMENT OPPORTUNITIES FOR MATHEMATICS

 

TEACHERS IN GRADES 8 THROUGH 12 THAT PROMOTE BEST PRACTICES FOR

 

TEACHING ALGEBRA TO ALL STUDENTS. IT IS INTENDED THAT THE ALGEBRA 4

 


ALL INITIATIVE BE THE FIRST PHASE OF ESTABLISHING A STEM ACADEMY

 

THAT PROVIDES ONLINE PROFESSIONAL DEVELOPMENT OPPORTUNITIES FOR ALL

 

TEACHERS IN THE FIELDS OF SCIENCE, TECHNOLOGY, ENGINEERING AND

 

MATHEMATICS. THE DEPARTMENT SHALL IDENTIFY ADDITIONAL FUNDING TO

 

ASSIST THE MATHEMATICS AND SCIENCE CENTERS NETWORK IN FULFILLING

 

ITS RESPONSIBILITIES UNDER THIS SUBSECTION.

 

     (7) (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.

 

     (8) (9) Not later than September 30, 2013, the department

 

shall reevaluate and update the comprehensive master plan described

 

in subsection (1).

 

     (9) (10) The department shall give preference in awarding the

 

federal grants allocated in subsection (1) to eligible existing

 

mathematics and science centers.

 

     (10) (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.

 

     (11) (12) 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, 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 through the

 

secretary of the district's board shall file with the intermediate

 

superintendent a certified and sworn copy of SUBMIT TO THE CENTER,

 

IN A 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 file

 

with the intermediate superintendent a certified and sworn copy of

 

SUBMIT TO THE CENTER, IN A 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

 

Wednesday after the pupil membership count day and not later than

 

the seventh Wednesday after the supplemental count day, the

 

intermediate district shall transmit to CERTIFY the center revised

 

data, as applicable, for each of its constituent districts IN A

 

FORM AND MANNER PRESCRIBED BY THE CENTER. If a district fails to

 

file the sworn and certified copy with the intermediate

 

superintendent in a timely manner SUBMIT AND CERTIFY THE DATA, as

 

required under this subsection, the intermediate district CENTER

 

shall notify the department and state aid due to be distributed

 

under this act 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 an intermediate district fails to transmit the data

 

in its possession in a timely and accurate manner to the center, as

 

required under this subsection, state aid due to be distributed

 

under this act 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 a district or

 

intermediate district does not comply with this subsection by the

 

end of the fiscal year, the district or intermediate 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 act, 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 transmit SUBMIT the audited data as

 

required under this subsection, state aid due to be distributed

 

under this act 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) 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 of pupil instruction.

 

Except as otherwise provided in this act, a district failing to

 

comply with the required minimum hours 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 the

 

district was in noncompliance in relation to the required minimum

 

number of hours under this subsection. Not later than August 1, the

 

board of each district shall certify to the department the number

 

of hours of pupil instruction in the previous school year. If the

 

district did not provide at least the required minimum number of

 

hours 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). Hours

 

lost because of strikes or teachers' conferences shall not be

 

counted as days or hours of pupil instruction.

 

     (b) Except as otherwise provided in subdivision (c), 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.

 

     (c) Beginning in 2005-2006, 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 shall grant a waiver for a period of 3

 

school years from the requirements of subdivision (b) in order to

 

conduct a pilot study. The waiver shall indicate that an eligible

 

district is subject to the proration provisions of subdivision (b)

 

only if the district does not have at least 50% of the district’s

 

membership in attendance on any day of pupil instruction. Not later

 

than 2008-2009, the department shall report on the impact of this

 

waiver on the academic achievement of pupils in these districts to

 

the state budget director and the senate and house appropriations

 

subcommittees on state school aid. In order to be eligible for this

 

waiver, a district must maintain records to substantiate its

 

compliance with the following requirements during the pilot study:

 

     (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.

 

     (d) The superintendent shall promulgate rules for the

 

implementation of this subsection.

 

     (4) Except as otherwise provided in this subsection, the first

 

30 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 of pupil instruction. Beginning in 2003-2004, with the

 

approval of the superintendent of public instruction, the

 

department shall count as hours of pupil instruction for a fiscal

 

year not more than 30 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 shall not be counted as hours 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) Not later than April 15 of each fiscal year, the board of

 

each district shall certify to the department the planned number of

 

hours of pupil instruction in the district for the school year

 

ending in the fiscal year. 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 act that is

 

equal to the proportion below the required minimum number of hours

 


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 of pupil instruction under

 

subsection (3) in a school year, including hours 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 of pupil instruction under subsection (3) in a school year,

 

including hours counted under subsection (4).

 

     (7) In providing the minimum number of hours 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) 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 of pupil instruction requirement of subsection (3)

 

for a department-approved alternative education program OR ANOTHER

 

INNOVATIVE PROGRAM APPROVED BY THE DEPARTMENT. If a district

 

applies for and receives a waiver under this subsection and

 

complies with the terms of the waiver, for the fiscal year covered

 

by 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 of pupil instruction actually provided to the

 

minimum number of hours of pupil instruction required under

 

subsection (3).

 

     (10) A district may count up to 38 hours of qualifying

 

professional development for teachers, including the PROVIDED THAT

 

AT LEAST 5 hours of online professional development IS provided

 

ONLINE by the Michigan virtual university under section 98 OR

 


ANOTHER DEPARTMENT-APPROVED INTERMEDIATE DISTRICT PROVIDER OF

 

ONLINE PROFESSIONAL DEVELOPMENT, as hours of pupil instruction.

 

However, if a collective bargaining agreement that provides more

 

than 38 but not more than 51 hours of professional development for

 

teachers is in effect for employees of a district as of the

 

effective date of the 2006 amendatory act that amended this

 

subsection, then until the fiscal year that begins after the

 

expiration of that collective bargaining agreement a district may

 

count up to 51 hours of qualifying professional development for

 

teachers, including the 5 hours of online professional development

 

provided by the Michigan virtual university under section 98, as

 

hours of pupil instruction. A district that elects to use this

 

exception shall notify the department of its election. 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) Maintaining teacher certification.

 

     Sec. 104. (1) in order to receive state aid under this act, a

 

district shall administer STUDENT assessments PURSUANT TO SECTIONS

 

1278a, 1278b, 1279, 1279g, and 1280b of the revised school code,

 


MCL 380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and

 

1970 PA 38, MCL 388.1081 to 388.1086. From the state school aid

 

fund money appropriated in section 11, there is allocated for 2008-

 

2009 2009-2010 an amount not to exceed $28,872,800.00

 

$28,130,700.00 for payments on behalf of districts for costs

 

associated with complying with sections 104a and 104b, sections

 

1278a, 1278b, 1279, 1279g, and 1280b of the revised school code,

 

MCL 380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and

 

1970 PA 38, MCL 388.1081 to 388.1086 THIS SECTION. In addition,

 

from the federal funds appropriated in section 11, there is

 

allocated for 2008-2009 2009-2010 an amount estimated at

 

$8,512,900.00 $8,313,700.00, funded from DED-OESE, title VI, state

 

assessments funds and 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 $24,000,000.00 $20,000,000.00 for

 

2008-2009 2009-2010 for adult education programs authorized under

 

this section GRANTS TO ELIGIBLE DISTRICTS AND INTERMEDIATE

 

DISTRICTS FOR COMPREHENSIVE PROGRAMS THAT IMPROVE BASIC SKILLS AND

 

INCREASE EDUCATIONAL ATTAINMENT. THESE GRANTS SHALL BE MADE

 

AVAILABLE THROUGH A COMPETITIVE APPLICATION PROCESS AS FOLLOWS:

 

     (A) THE APPLICANT MUST BE A DISTRICT OR INTERMEDIATE DISTRICT

 

SERVING AS THE FISCAL AGENT OF A REGIONAL PARTNERSHIP THAT INCLUDES

 

OTHER ENTITIES IN THE COMMUNITY THAT ARE POSITIONED TO DETERMINE

 

THE BASIC SKILLS DEVELOPMENT NEEDS OF THE REGION. THE REGIONAL

 

PARTNERSHIP, IN ADDITION TO THE APPLICANT DISTRICT OR INTERMEDIATE

 

DISTRICT, MUST ALSO INCLUDE AT LEAST ONE POSTSECONDARY INSTITUTION

 

AND ONE WORKFORCE DEVELOPMENT PARTNER. PARTNERS MAY ALSO INCLUDE,

 

BUT ARE NOT LIMITED TO, EMPLOYERS, LITERACY COUNCILS, LIBRARIES,

 

COMMUNITY-BASED ORGANIZATIONS, FAITH-BASED ORGANIZATIONS, LOCAL

 

OFFICES OF STATE GOVERNMENT, AND LOCAL FOUNDATIONS.

 


     (B) THE APPLICANT SHALL DEMONSTRATE THE PARTNERSHIP’S ABILITY

 

TO LEVERAGE OTHER RESOURCES THAT COMPLEMENT FUNDING RECEIVED UNDER

 

THIS SECTION TO SUPPORT A COMPREHENSIVE AND INTEGRATED APPROACH OF

 

DELIVERING EDUCATIONAL PROGRAMS TO ADULT LEARNERS IN THE REGION AND

 

SHALL IDENTIFY A PLAN TO COORDINATE THOSE RESOURCES IN A WAY THAT

 

PROVIDES GREATER LEARNING OPPORTUNITIES.

 

     (C) APPLICANTS SHALL APPLY FOR GRANTS UNDER THIS SECTION IN A

 

FORM AND MANNER DETERMINED BY THE DEPARTMENT. PROGRAMS ELIGIBLE FOR

 

FUNDING UNDER THIS SECTION SHALL COMPLY WITH DEPARTMENT-APPROVED

 

ADULT LEARNING OBJECTIVES AND CONTAIN ALL OF THE FOLLOWING PROGRAM

 

COMPONENTS, AS DETERMINED BY THE DEPARTMENT:

 

     (I) EMPLOYS CERTIFIED TEACHERS AND ADMINISTRATIVE STAFF AND

 

OFFERS CONTINUING EDUCATION OPPORTUNITIES TO MAINTAIN

 

CERTIFICATION.

 

     (II) OFFERS COMPREHENSIVE ASSESSMENTS AND DEVELOPS

 

INDIVIDUALIZED ADULT LEARNING PLANS THAT PROVIDE FOR CUSTOMIZED

 

LEARNING PROGRAMS.

 

     (III) PROVIDES FOR MULTIPLE MODES OF EDUCATIONAL DELIVERY FOR

 

ADULT LEARNERS USING CAREER PATHWAYS TO STRENGTHEN THE CONNECTION

 

BETWEEN LEARNING AND EMPLOYMENT.

 

     (IV) UTILIZES CURRENT RESEARCH-BASED INSTRUCTIONAL PRACTICES

 

THAT ARE PROVEN TO BE EFFECTIVE IN TEACHING ADULT LEARNERS.

 

     (V) SERVES PARTICIPANTS DETERMINED TO BE MOST IN NEED BASED ON

 

DEPARTMENT-APPROVED ASSESSMENTS OF ADULT LEARNERS’ BARRIERS TO

 

EDUCATIONAL PROGRESS.

 

     (VI) DEVELOPS PROGRAM ENTRY AND EXIT REQUIREMENTS TO

 

FACILITATE PARTICIPANT TRANSITION FROM AN ADULT EDUCATION PROGRAM

 


TO EMPLOYMENT OR OTHER EDUCATIONAL PROGRAMS.

 

     (VII) PROVIDES HIGH QUALITY CAREER COUNSELING AND SUPPORT

 

SERVICES FOR ALL PARTICIPANTS INCLUDING THOSE WITH DISABILITIES,

 

LEARNING DIFFICULTIES, SPECIAL NEEDS OR BARRIERS TO ATTENDING AND

 

COMPLETING PROGRAMS.

 

     (VIII) PERFORMS ONGOING PROGRAM EVALUATION USING DEPARTMENT-

 

ESTABLISHED PERFORMANCE MEASURES, AND TAKES CORRECTIVE MEASURES AS

 

NECESSARY.

 

     (IX) PROVIDES ACCESSIBLE SERVICES USING CONVENIENT LOCATIONS,

 

DISTANCE LEARNING, AND FLEXIBLE YEAR-ROUND SCHEDULING.

 

     (D) THE DEPARTMENT SHALL ESTABLISH A DIVERSE COMMITTEE TO

 

REVIEW THE APPLICATIONS. THE COMMITTEE SHALL BE COMPOSED OF

 

REPRESENTATIVES OF THE DEPARTMENT, OTHER STATE DEPARTMENTS, AND

 

REPRESENTATIVES OF VARIOUS AGENCIES THAT HAVE WORKING KNOWLEDGE AND

 

EXPERTISE IN THE AREA OF ADULT EDUCATION, POSTSECONDARY, COMMUNITY

 

AND WORKFORCE DEVELOPMENT, AS APPROPRIATE.

 

     (2) To be eligible to be a participant ENROLLED IN A PROGRAM

 

funded under this section, a person AN INDIVIDUAL 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 AFTER

 

HAVING OBTAINED A G.E.D.

 

     (V) IS ENROLLED IN AN ADULT BASIC EDUCATION PROGRAM AND IS

 

DETERMINED BY A DEPARTMENT-APPROVED ASSESSMENT TO BE BELOW NINTH

 

GRADE LEVEL IN READING OR MATHEMATICS, OR BOTH.

 

     (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.

 

     (3) Except as otherwise provided in subsection (4), from the

 

amount allocated under subsection (1), at least $23,300,000.00

 

shall be distributed as follows:

 

     (a) For districts and consortia that received payments for

 

2007-2008 under this section, the amount allocated to each for

 

2008-2009 shall be based on the number of participants served by

 


the district or consortium for 2008-2009, using the amount

 

allocated per full-time equated participant under subsection (6),

 

up to a maximum total allocation under this subsection in an amount

 

equal to the amount the district or consortium received for 2007-

 

2008 under this section before any reallocations made for 2007-2008

 

under subsection (4).

 

     (b) A district or consortium that received funding in 2007-

 

2008 under this section may operate independently of a consortium

 

or join or form a consortium for 2008-2009. The allocation for

 

2008-2009 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 2007-2008. A

 

district or consortium described in this subdivision shall notify

 

the department of its intention with regard to 2008-2009  by

 

October 1, 2008.

 

     (c) If a district had a declaration of financial emergency in

 

place under the local government fiscal responsibility act, 1990 PA

 

72, MCL 141.1201 to 141.1291, and that declaration was revoked

 

during 2005, the district may operate a program under this section

 

independently of a consortium or may join or form a consortium to

 

operate a program under this section. The allocation for 2008-2009

 

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 2007-2008 or, for a

 

district for which a declaration of financial emergency was revoked

 


during 2005, based on the amount the district received under this

 

section using a 3-year average of the 3 most recent fiscal years

 

the district received funding under this section. A district or

 

consortium described in this subdivision shall notify the

 

department of its intention with regard to 2008-2009 by October 1,

 

2008.

 

     (4) A district that operated an adult education program in

 

2007-2008 and does not intend to operate a program in 2008-2009

 

shall notify the department by October 1, 2008 of its intention.

 

The funds intended to be allocated under this section to a district

 

that does not operate a program in 2008-2009 and the unspent funds

 

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 (3) shall instead be

 

proportionately reallocated to the other districts described in

 

subsection (3)(a) that are operating an adult education program in

 

2008-2009 under this section.

 

     (5) From the amount allocated under subsection (1), up to a

 

maximum of $200,000.00 shall be allocated for not more than 1 grant

 

not to exceed $200,000.00 for expansion of an existing innovative

 

community college program that focuses on educating adults. Grants

 

may be used for program operating expenses such as staffing, rent,

 

equipment, and other expenses. To be eligible for this grant

 

funding, a program must meet the following criteria:

 

     (a) Collaborates with local districts and businesses to

 

determine area academic needs and to promote the learning

 

opportunities.

 


     (b) Is located off-campus in an urban residential setting with

 

documented high poverty and low high school graduation rates.

 

     (c) Provides general educational development (G.E.D.) test

 

preparation courses and workshops.

 

     (d) Provides developmental courses taught by college faculty

 

that prepare students to be successful in college-level courses.

 

     (e) Uses learning communities to allow for shared, rather than

 

isolated, learning experiences.

 

     (f) Provides on-site tutoring.

 

     (g) Provides access to up-to-date technology, including

 

personal computers.

 

     (h) Partners with a financial institution to provide financial

 

literacy education.

 

     (i) Assists students in gaining access to financial aid.

 

     (j) Provides on-site academic advising to students.

 

     (k) Provides vouchers for reduced G.E.D. testing costs.

 

     (l) Partners with local agencies to provide referrals for

 

social services as needed.

 

     (m) Enrolls participants as students of the community college.

 

     (n) Partners with philanthropic and business entities to

 

provide capital funding.

 

     (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) (3) 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 PARTICIPANTS who are determined

 

by an appropriate 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 PARTICIPANTS for eligibility

 

under subdivision (a) before enrollment and tests participants to

 

determine progress after every 90 hours of attendance, using

 

assessment instruments approved by the department of labor and

 

economic growth AND UPON COMPLETION OF THE PROGRAM IN A FORM AND

 

MANNER DETERMINED BY THE DEPARTMENT.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement TO BE ENROLLED IN THE PROGRAM 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 IMPROVEMENT on 2

 

successive DEPARTMENT-APPROVED assessments after having completed

 

at least 450 hours of instruction.

 

     (4) 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 PARTICIPANTS WHO ARE DETERMINED BY A

 

DEPARTMENT-APPROVED ASSESSMENT TO LACK BASIC ENGLISH PROFICIENCY.

 

     (B) THE PROGRAM TESTS PARTICIPANTS UNDER SUBDIVISION (A)

 


BEFORE ENROLLMENT AND UPON COMPLETION OF THE PROGRAM IN A FORM AND

 

MANNER DETERMINED BY THE DEPARTMENT.

 

     (d) (C) A funding recipient enrolling a participant in an

 

English as a second language program is eligible for funding

 

according to subsection (11) TO BE ENROLLED IN THE PROGRAM until

 

the participant meets 1 of the following:

 

     (i) The participant is assessed as having attained basic

 

English proficiency as defined by the department.

 

     (ii) The participant fails to show progress IMPROVEMENT 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) (5) 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 PARTICIPANTS who do not have a

 

high school diploma AND ARE ASSESSED TO BE AT OR ABOVE THE NINTH

 

GRADE LEVEL IN READING AS DETERMINED BY A DEPARTMENT-APPROVED

 

ASSESSMENT.

 

     (b) The program shall administer a G.E.D. pre-test approved by

 

the department before enrolling an individual A PARTICIPANT to

 

determine the individual's potential for success on the G.E.D.

 

test, and shall administer other tests after every 90 hours of

 

attendance to determine a participant's readiness to take the

 

G.E.D. test A POST-TEST UPON COMPLETION OF THE PROGRAM IN A FORM

 

AND MANNER DETERMINED BY THE DEPARTMENT.

 


     (c) A funding recipient shall receive funding according to

 

subsection (11) for a participant, and a participant may be

 

enrolled in the program A G.E.D. PROGRAM until 1 of the following

 

occurs:

 

     (i) The participant passes the OBTAINS A G.E.D. test.

 

     (ii) The participant fails to show progress IMPROVEMENT on 2

 

successive tests used to determine readiness to take the G.E.D.

 

test DEPARTMENT-APPROVED ASSESSMENTS after having completed at

 

least 450 hours of instruction.

 

     (9) (6) 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 PARTICIPANTS who do not have a

 

high school diploma AND ARE ASSESSED TO BE AT OR ABOVE THE NINTH

 

GRADE LEVEL IN READING AS DETERMINED BY A DEPARTMENT-APPROVED

 

ASSESSMENT.

 

     (B) THE PROGRAM TESTS PARTICIPANTS UNDER SUBDIVISION (A)

 

BEFORE ENROLLMENT AND UPON COMPLETION OF THE PROGRAM IN A FORM AND

 

MANNER DETERMINED BY THE DEPARTMENT.

 

     (b) (C) A funding recipient shall receive funding according to

 

subsection (11) for a participant in a course offered under this

 

subsection MAY BE ENROLLED IN A HIGH SCHOOL COMPLETION PROGRAM

 

until 1 of the following occurs:

 

     (i) The participant passes the course and earns OBTAINS 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) (7) 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 PARTICIPANTS 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) An individual A PARTICIPANT 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 PARTICIPANT achieves the requisite skills

 

as determined by appropriate DEPARTMENT-APPROVED assessment

 

instruments administered at least after every 90 hours of

 

attendance.

 

     (ii) The individual PARTICIPANT fails to show progress

 

IMPROVEMENT 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.

 

     (11) (8) A funding recipient shall receive payments FUNDING

 

under this section in accordance with the following PERFORMANCE

 

STANDARDS ESTABLISHED BY THE DEPARTMENT THAT MEASURE ALL OF 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.

 

     (A) PROGRAM EFFECTIVENESS, INCLUDING THE NUMBER OF

 

PARTICIPANTS THAT MEET OR EXCEED MINIMUM PROGRAM REQUIREMENTS, AS

 

MEASURED BY DEPARTMENT-APPROVED STANDARDS.

 

     (B) ACHIEVEMENT OF BASIC SKILLS, INCLUDING THE NUMBER OF

 

PARTICIPANTS THAT OBTAIN A HIGH SCHOOL DIPLOMA OR A G.E.D., ATTAIN

 

BASIC ENGLISH PROFICIENCY, OR INCREASE THEIR EDUCATIONAL

 

FUNCTIONING LEVEL TO A LEVEL REQUIRED FOR TRANSITION TO CONTINUING

 

EDUCATION OR EMPLOYMENT.

 

     (C) TRANSITION TO POSTSECONDARY EDUCATION, INCLUDING THE

 

NUMBER OF PARTICIPANTS THAT TRANSITION INTO JOB TRAINING OR

 

POSTSECONDARY EDUCATION PROGRAMS.

 

     (D) TRANSITION TO EMPLOYMENT, INCLUDING THE NUMBER OF

 

PARTICIPANTS THAT TRANSITION INTO EMPLOYMENT AND RETAIN EMPLOYMENT

 

FOR A PERIOD OF ONE YEAR OR, IF ALREADY EMPLOYED, ARE SUCCESSFUL IN

 

ADVANCING THEIR CAREERS.

 

     (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) (9) 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) (3), (8) (4), (9) (5), (6),

 

or (10) (7) 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) (10) An individual who is an inmate in a state

 

correctional facility shall not be counted as a participant under

 

this section. However, from the amount allocated under subsection

 

(1), up to a maximum of $500,000.00 shall be made available as

 

competitive grants to districts that enroll adults who do not have

 

a high school diploma or G.E.D. and who are incarcerated in a state

 

correctional facility in general education development (G.E.D.)

 

test preparation courses and workshops or high school completion

 

programs. Districts applying for grants under this subsection shall

 

do so in a form and manner determined by the department. Districts

 

receiving funding under this subsection shall provide G.E.D. and

 

high school diploma programs substantially similar to those

 

programs as described in this section and shall receive $2,850.00

 

per participant enrolled in the programs.

 

     (15) (11) A district OR INTERMEDIATE 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 OR INTERMEDIATE DISTRICT receiving adult education funds

 

shall establish a separate ledger account for those funds. This

 

subsection does not prohibit a district OR INTERMEDIATE DISTRICT

 

from using general funds of the district to support an adult

 

education or community education program.

 

     (16) (12) A district or intermediate district receiving funds

 

PARTNERSHIP SUPPORTED BY FUNDING under this section may establish a

 

sliding scale of tuition rates based upon a participant's family

 

income. A district or intermediate district PARTNERSHIP 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 PARTNERSHIP 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) (13) In order to receive funds under this section, a

 

district OR INTERMEDIATE DISTRICT SERVING AS THE FISCAL AGENT OF A

 

PARTNERSHIP shall furnish to the department, in a form and manner

 

determined by the department, all information needed to administer

 

this program and meet STATE AND 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) (14) All intermediate district participant audits AND

 

INDEPENDENT AUDITS of adult education programs shall be performed

 

pursuant to the adult education participant auditing and accounting

 

manuals published by the department.

 

     (19) (15) As used in this section, "department" means the

 

department of ENERGY, labor and economic growth.

 

     (16) NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SECTION

 

MAY BE MADE PURSUANT TO AN AGREEMENT WITH THE DEPARTMENT.

 

     Sec. 147. The allocation for 2008-2009 2009-2010 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 entry age normal cost actuarial

 

method and risk assumptions adopted by the public school employees

 

retirement board and the department of management and budget. The

 

annual level percentage of payroll contribution rate is estimated

 

at 16.54% 16.94% for the 2008-2009 2009-2010 state fiscal year. The

 

portion of the contribution rate assigned to districts and

 

intermediate districts for each fiscal year is all of the total

 

percentage points. This contribution rate reflects an amortization

 

period of 29 28 years for 2008-2009 2009-2010. 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. 164c. A district or intermediate district shall not use

 

funds appropriated under this act to purchase foreign goods or

 

services, or both, if COMPETITIVELY PRICED AND OF COMPARABLE

 


QUALITY American goods or services, or both, are available and are

 

competitively priced and of comparable quality. Preference should

 

SHALL be given to goods or services, or both, manufactured or

 

provided by Michigan businesses, if they are competitively priced

 

and of comparable quality. In addition, preference shall SHOULD be

 

given to goods or services, or both, that are manufactured or

 

provided by Michigan businesses owned and operated by veterans, if

 

they are competitively priced and of comparable quality.

 

     Enacting section 1. (1) In accordance with section 30 of

 

article I of the state constitution of 1963, total state spending

 

in this amendatory act from state sources for fiscal year 2008-2009

 

is estimated at $11,700,798,200.00 and state appropriations to be

 

paid to local units of government for fiscal year 2008-2009 are

 

estimated at $11,564,105,900.00.

 

     (2) In accordance with section 30 of article I of the state

 

constitution of 1963, total state spending in this amendatory act

 

from state sources for fiscal year 2009-2010 is estimated at

 

$11,401,790,600.00 and state appropriations to be paid to local

 

units of government for fiscal year 2009-2010 are estimated at

 

$11,267,973,800.00.

 

     Enacting section 2. Sections 22d, 22e, 32c, 32j, 37, 38, 41,

 

54c, 57, 65, 99a, 99e, 99i, 99j, 99k, 99n, 99p, 104a, 104b, and 166

 

of the state school aid act of 1979, 1979 PA 94, MCL 388.1622d,

 

388.1622e, 388.1632c, 388.1632j, 388.1637, 388.1638, 388.1641,

 

388.1654c, 388.1657, 388.1665, 388.1699a, 388.1699e, 388.1699i,

 

388.1699j, 388.1699k, 388.1699n, 388.1699p, 388.1704a, 388.1704b,

 

and 388.1766 are repealed effective October 1, 2009.

 


     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2009.

 

     (2) Sections 11, 11j, 22a, 22b, 26a, 51a, 51c, and 94a of the

 

state school aid act of 1979, 1979 PA 94, MCL 388.1611, 388.1611j,

 

388.1622a, 388.1622b, 388.1626a, 388.1651a, 388.1651c, and

 

388.1694a, as amended by this amendatory act, take effect upon

 

enactment of this amendatory act.

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