Bill Text: MI SB0838 | 2013-2014 | 97th Legislature | Introduced


Bill Title: Appropriations; school aid; omnibus appropriations for school aid, higher education, and community colleges; provide for. Amends secs. 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 17a, 18, 19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c, 25e, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 99h, 101, 102, 104, 104b, 107, 147, 147b, 147c, 152a, 161, 163, 168, 201, 201a, 202a, 206, 209, 210, 213, 222, 224, 225, 229, 229a, 230, 236, 236a, 236b, 236c, 241, 242, 245, 252, 256, 263, 263a, 264, 265, 265a, 267, 268, 269, 270, 272a, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 286 & 296 of 1979 PA 94 (MCL 388.1606 et seq.); adds secs. 11r, 31b, 64b, 64c, 94, 95a, 102a, 207a, 207b, 230a, 298, 298a, 298b & 298c & repeals secs. 22c, 22k, 64a, 82, 93, 95, 101a, 147a, 166, 208, 210b, 212, 217, 227, 228, 229b, 239a, 261, 262a, 273, 274, 274a, 275a & 293 of 1979 PA 94 (MCL 388.1622c et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-27 - Referred To Committee On Appropriations [SB0838 Detail]

Download: Michigan-2013-SB0838-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 838

 

 

February 27, 2014, Introduced by Senator KAHN 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 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 12, 15,

 

17a, 18, 19, 20, 20d, 20f, 20g, 21f, 22a, 22b, 22d, 22f, 22g, 22i,

 

22j, 24, 24a, 24c, 25e, 26a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39,

 

39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99,

 

99h, 101, 102, 104, 104b, 107, 147, 147b, 147c, 152a, 161, 163,

 

168, 201, 201a, 202a, 206, 209, 210, 213, 222, 224, 225, 229, 229a,

 

230, 236, 236a, 236b, 236c, 241, 242, 245, 252, 256, 263, 263a,

 

264, 265, 265a, 267, 268, 269, 270, 272a, 275, 276, 277, 278, 279,

 

280, 281, 282, 283, 284, 286, and 296 (MCL 388.1606, 388.1608b,

 

388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 388.1611m,

 


388.1612, 388.1615, 388.1617a, 388.1618, 388.1619, 388.1620,

 

388.1620d, 388.1620f, 388.1620g, 388.1621f, 388.1622a, 388.1622b,

 

388.1622d, 388.1622f, 388.1622g, 388.1622i, 388.1622j, 388.1624,

 

388.1624a, 388.1624c, 388.1625e, 388.1626a, 388.1626b, 388.1626c,

 

388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639,

 

388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a,

 

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

 

388.1694a, 388.1698, 388.1699, 388.1699h, 388.1701, 388.1702,

 

388.1704, 388.1704b, 388.1707, 388.1747, 388.1747b, 388.1747c,

 

388.1752a, 388.1761, 388.1763, 388.1768, 388.1801, 388.1801a,

 

388.1802a, 388.1806, 388.1809, 388.1810, 388.1813, 388.1822,

 

388.1824, 388.1825, 388.1829, 388.1829a, 388.1830, 388.1836,

 

388.1836a, 388.1836b, 388.1836c, 388.1841, 388.1842, 388.1845,

 

388.1852, 388.1856, 388.1863, 388.1863a, 388.1864, 388.1865,

 

388.1865a, 388.1867, 388.1868, 388.1869, 388.1870, 388.1872a,

 

388.1875, 388.1876, 388.1877, 388.1878, 388.1879, 388.1880,

 

388.1881, 388.1882, 388.1883, 388.1884, 388.1886, and 388.1896),

 

sections 6, 20, 21f, 24c, 25e, 26a, 74, 104b, and 107 as amended by

 

2013 PA 130, section 8b as amended by 2007 PA 92, sections 11, 11g,

 

17a, and 22a as amended and section 20g as added by 2013 PA 97,

 

sections 11a, 11j, 11k, 11m, 12, 15, 18, 19, 20d, 22b, 22d, 22f,

 

22g, 22i, 22j, 24, 24a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a,

 

41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 81, 94a, 98, 99, 101, 102,

 

104, 147, 147b, 147c, 152a, 201, 201a, 206, 209, 210, 224, 225,

 

229, 229a, 230, 236, 236a, 236b, 241, 245, 252, 263, 263a, 264,

 

265, 265a, 267, 268, 269, 270, 275, 276, 277, 278, 279, 280, 281,

 

and 282 as amended and sections 20f, 99h, 236c, and 272a as added

 


by 2013 PA 60, section 161 as amended by 1990 PA 207, section 163

 

as amended by 2007 PA 137, section 168 as added by 1993 PA 175,

 

sections 213, 222, 242, 256, 283, 284, and 286 as amended and

 

section 202a as added by 2012 PA 201, and section 296 as added by

 

2011 PA 62, and by adding sections 11r, 31b, 64b, 64c, 94, 95a,

 

102a, 207a, 207b, 230a, 298, 298a, 298b, and 298c; and to repeal

 

acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

ARTICLE I

 

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

 

intermediate district for special education pupils from several districts in programs

 

for pupils with autism spectrum disorder, pupils with severe cognitive impairment,

 

pupils with moderate cognitive impairment, pupils with severe multiple impairments,

 

pupils with hearing impairment, pupils with visual impairment, and pupils with

 

physical impairment or other health impairment. Programs for pupils with emotional

 

impairment housed in buildings that do not serve regular education pupils also

 

qualify. Unless otherwise approved by the department, a center program either shall

 

serve all constituent districts within an intermediate district or shall serve several

 

districts with less than 50% of the pupils residing in the operating district. In

 

addition, special education center program pupils placed part-time in noncenter

 

programs to comply with the least restrictive environment provisions of section 612 of

 

part B of the individuals with disabilities education act, 20 USC 1412, may be

 

considered center program pupils for pupil accounting purposes for the time scheduled

 

in either a center program or a noncenter program.

 

       (2) "District and high school graduation rate" means the annual completion and

 

pupil dropout rate that is calculated by the center pursuant to nationally recognized

 

standards.

 


       (3) "District and high school graduation report" means a report of the number

 

of pupils, excluding adult participants, in the district for the immediately preceding

 

school year, adjusted for those pupils who have transferred into or out of the

 

district or high school, who leave high school with a diploma or other credential of

 

equal status.

 

       (4) "Membership", except as otherwise provided in this article, means for a

 

district, a public school academy, the education achievement system, or an

 

intermediate district the sum of the product of .90 times the number of full-time

 

equated pupils in grades K to 12 actually enrolled and in regular daily attendance on

 

the pupil membership count day for the current school year, plus the product of .10

 

times the final audited count from the supplemental count day for the current school

 

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

 

shall be adjusted as provided under section 25 25E for pupils who enroll in the

 

district, public school academy, or intermediate district after the pupil membership

 

count day. All pupil counts used in this subsection are as determined by the

 

department and calculated by adding the number of pupils registered for attendance

 

plus pupils received by transfer and minus pupils lost as defined by rules promulgated

 

by the superintendent, and as corrected by a subsequent department audit. For the

 

purposes of this section and section 6a, for a school of excellence that is a cyber

 

school, as defined in section 551 of the revised school code, MCL 380.551, and is in

 

compliance with section 553a of the revised school code, MCL 380.553a, a pupil's

 

participation in the cyber school's educational program is considered regular daily

 

attendance; for the education achievement system, a pupil's participation in an online

 

educational program of the education achievement system or of an achievement school is

 

considered regular daily attendance; and for a district a pupil's participation in an

 

online course as defined in section 21f is considered regular daily attendance. The

 

amount of the foundation allowance for a pupil in membership is determined under

 


section 20. In making the calculation of membership, all of the following, as

 

applicable, apply to determining the membership of a district, a public school

 

academy, the education achievement system, or an intermediate district:

 

       (a) Except as otherwise provided in this subsection, and pursuant to subsection

 

(6), a pupil shall be counted in membership in the pupil's educating district or

 

districts. An individual pupil shall not be counted for more than a total of 1.0 full-

 

time equated membership.

 

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

 

residence, if the pupil is not being educated as part of a cooperative education

 

program, if the pupil's district of residence does not give the educating district its

 

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

 

is not covered by an exception specified in subsection (6) to the requirement that the

 

educating district must have the approval of the pupil's district of residence to

 

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

 

district.

 

       (c) A special education pupil educated by the intermediate district shall be

 

counted in membership in the intermediate district.

 

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

 

juvenile detention facility, a child caring institution, or a mental health

 

institution, or a pupil funded under section 53a, shall be counted in membership in

 

the district or intermediate district approved by the department to operate the

 

program.

 

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

 

counted in membership in the pupil's intermediate district of residence.

 

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

 

millage levied over an area larger than a single district or in an area vocational-

 

technical education program established pursuant to section 690 of the revised school

 


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

 

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

 

in the public school academy.

 

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

 

the education achievement system.

 

       (i) For a new district or public school academy beginning its operation after

 

December 31, 1994, or for the education achievement system or an achievement school,

 

membership for the first 2 full or partial fiscal years of operation shall be

 

determined as follows:

 

       (i) If operations begin before the pupil membership count day for the fiscal

 

year, membership is the average number of full-time equated pupils in grades K to 12

 

actually enrolled and in regular daily attendance on the pupil membership count day

 

for the current school year and on the supplemental count day for the current school

 

year, as determined by the department and calculated by adding the number of pupils

 

registered for attendance on the pupil membership count day plus pupils received by

 

transfer and minus pupils lost as defined by rules promulgated by the superintendent,

 

and as corrected by a subsequent department audit, plus the final audited count from

 

the supplemental count day for the current school year, and dividing that sum by 2.

 

       (ii) If operations begin after the pupil membership count day for the fiscal

 

year and not later than the supplemental count day for the fiscal year, membership is

 

the final audited count of the number of full-time equated pupils in grades K to 12

 

actually enrolled and in regular daily attendance on the supplemental count day for

 

the current school year.

 

       (j) If a district is the authorizing body for a public school academy, then, in

 

the first school year in which pupils are counted in membership on the pupil

 

membership count day in the public school academy, the determination of the district's

 

membership shall exclude from the district's pupil count for the immediately preceding

 


supplemental count day any pupils who are counted in the public school academy on that

 

first pupil membership count day who were also counted in the district on the

 

immediately preceding supplemental count day.

 

       (k) In a district, a public school academy, the education achievement system,

 

or an intermediate district operating an extended school year program approved by the

 

superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance

 

on a pupil membership count day, shall be counted.

 

       (l) To be counted in membership, a pupil shall meet the minimum age requirement

 

to be eligible to attend school under section 1147 of the revised school code, MCL

 

380.1147, or shall be enrolled under subsection (3) of that section, and shall be less

 

than 20 years of age on September 1 of the school year except as follows:

 

       (i) A special education pupil who is enrolled and receiving instruction in a

 

special education program or service approved by the department, who does not have a

 

high school diploma, and who is less than 26 years of age as of September 1 of the

 

current school year shall be counted in membership.

 

       (ii) A pupil who is determined by the department to meet all of the following

 

may be counted in membership:

 

       (A) Is enrolled in a public school academy or an alternative education high

 

school diploma program, that is primarily focused on educating homeless pupils and

 

that is located in a city with a population of more than 175,000.

 

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

 

       (C) Is less than 22 years of age as of September 1 of the current school year.

 

       (iii) If a child does not meet the minimum age requirement to be eligible to

 

attend school for that school year under section 1147 of the revised school code, MCL

 

380.1147, but will be 5 years of age not later than December 1 of that school year,

 

the district may count the child in membership for that school year if the parent or

 

legal guardian has notified the district in writing that he or she intends to enroll

 


the child in kindergarten for that school year.

 

       (m) An individual who has obtained a high school diploma shall not be counted

 

in membership. An individual who has obtained a general educational development

 

(G.E.D.) certificate shall not be counted in membership unless the individual is a

 

pupil with a disability as defined in R 340.1702 of the Michigan administrative code.

 

An individual participating in a job training program funded under former section 107a

 

or a jobs program funded under former section 107b, administered by the Michigan

 

strategic fund, or participating in any successor of either of those 2 programs, shall

 

not be counted in membership.

 

       (n) If a pupil counted in membership in a public school academy or the

 

education achievement system is also educated by a district or intermediate district

 

as part of a cooperative education program, the pupil shall be counted in membership

 

only in the public school academy or the education achievement system unless a written

 

agreement signed by all parties designates the party or parties in which the pupil

 

shall be counted in membership, and the instructional time scheduled for the pupil in

 

the district or intermediate district shall be included in the full-time equated

 

membership determination under subdivision (q). However, for pupils receiving

 

instruction in both a public school academy or the education achievement system and in

 

a district or intermediate district but not as a part of a cooperative education

 

program, the following apply:

 

       (i) If the public school academy or the education achievement system provides

 

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

 

public school academy or the education achievement system shall receive as its

 

prorated share of the full-time equated membership for each of those pupils an amount

 

equal to 1 times the product of the hours of instruction the public school academy or

 

the education achievement system provides divided by the number of hours specified in

 

subdivision (q) for full-time equivalency, and the remainder of the full-time

 


membership for each of those pupils shall be allocated to the district or intermediate

 

district providing the remainder of the hours of instruction.

 

       (ii) If the public school academy or the education achievement system provides

 

instruction for less than 1/2 of the class hours specified in subdivision (q), the

 

district or intermediate district providing the remainder of the hours of instruction

 

shall receive as its prorated share of the full-time equated membership for each of

 

those pupils an amount equal to 1 times the product of the hours of instruction the

 

district or intermediate district provides divided by the number of hours specified in

 

subdivision (q) for full-time equivalency, and the remainder of the full-time

 

membership for each of those pupils shall be allocated to the public school academy or

 

the education achievement system.

 

       (o) An individual less than 16 years of age as of September 1 of the current

 

school year who is being educated in an alternative education program shall not be

 

counted in membership if there are also adult education participants being educated in

 

the same program or classroom.

 

       (p) The department shall give a uniform interpretation of full-time and part-

 

time memberships.

 

       (q) The number of class hours used to calculate full-time equated memberships

 

shall be consistent with section 101(3). In determining full-time equated memberships

 

for pupils who are enrolled in a postsecondary institution, a pupil shall not be

 

considered to be less than a full-time equated pupil solely because of the effect of

 

his or her postsecondary enrollment, including necessary travel time, on the number of

 

class hours provided by the district to the pupil.

 

       (r) Beginning in 2012-2013, full-time equated memberships for pupils in

 

kindergarten shall be determined by dividing the number of instructional hours

 

scheduled and provided per year per kindergarten pupil by the same number used for

 

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

 


the extent allowable under federal law, for a district or public school academy that

 

provides evidence satisfactory to the department that it used federal title I money in

 

the 2 immediately preceding school fiscal years to fund full-time kindergarten, full-

 

time equated memberships for pupils in kindergarten shall be determined by dividing

 

the number of class hours scheduled and provided per year per kindergarten pupil by a

 

number equal to 1/2 the number used for determining full-time equated memberships for

 

pupils in grades 1 to 12. The change in the counting of full-time equated memberships

 

for pupils in kindergarten that took effect for 2012-2013 is not a mandate.

 

       (s) For a district, a public school academy, or the education achievement

 

system that has pupils enrolled in a grade level that was not offered by the district,

 

the public school academy, or the education achievement system in the immediately

 

preceding school year, the number of pupils enrolled in that grade level to be counted

 

in membership is the average of the number of those pupils enrolled and in regular

 

daily attendance on the pupil membership count day and the supplemental count day of

 

the current school year, as determined by the department. Membership shall be

 

calculated by adding the number of pupils registered for attendance in that grade

 

level on the pupil membership count day plus pupils received by transfer and minus

 

pupils lost as defined by rules promulgated by the superintendent, and as corrected by

 

subsequent department audit, plus the final audited count from the supplemental count

 

day for the current school year, and dividing that sum by 2.

 

       (t) A pupil enrolled in a cooperative education program may be counted in

 

membership in the pupil's district of residence with the written approval of all

 

parties to the cooperative agreement.

 

       (u) If, as a result of a disciplinary action, a district determines through the

 

district's alternative or disciplinary education program that the best instructional

 

placement for a pupil is in the pupil's home or otherwise apart from the general

 

school population, if that placement is authorized in writing by the district

 


superintendent and district alternative or disciplinary education supervisor, and if

 

the district provides appropriate instruction as described in this subdivision to the

 

pupil at the pupil's home or otherwise apart from the general school population, the

 

district may count the pupil in membership on a pro rata basis, with the proration

 

based on the number of hours of instruction the district actually provides to the

 

pupil divided by the number of hours specified in subdivision (q) for full-time

 

equivalency. For the purposes of this subdivision, a district shall be considered to

 

be providing appropriate instruction if all of the following are met:

 

       (i) The district provides at least 2 nonconsecutive hours of instruction per

 

week to the pupil at the pupil's home or otherwise apart from the general school

 

population under the supervision of a certificated teacher.

 

       (ii) The district provides instructional materials, resources, and supplies

 

that are comparable to those otherwise provided in the district's alternative

 

education program.

 

       (iii) Course content is comparable to that in the district's alternative

 

education program.

 

       (iv) Credit earned is awarded to the pupil and placed on the pupil's

 

transcript.

 

       (v) A pupil enrolled in an alternative or disciplinary education program

 

described in section 25 shall be counted in membership in the district, the public

 

school academy, or the education achievement system that is educating the pupil.

 

       (V) (w) If a pupil was enrolled in a public school academy on the pupil

 

membership count day, if the public school academy's contract with its authorizing

 

body is revoked or the public school academy otherwise ceases to operate, and if the

 

pupil enrolls in a district or the education achievement system within 45 days after

 

the pupil membership count day, the department shall adjust the district's or the

 

education achievement system's pupil count for the pupil membership count day to

 


include the pupil in the count.

 

       (W) (x) For a public school academy that has been in operation for at least 2

 

years and that suspended operations for at least 1 semester and is resuming

 

operations, membership is the sum of the product of .90 times the number of full-time

 

equated pupils in grades K to 12 actually enrolled and in regular daily attendance on

 

the first pupil membership count day or supplemental count day, whichever is first,

 

occurring after operations resume, plus the product of .10 times the final audited

 

count from the most recent pupil membership count day or supplemental count day that

 

occurred before suspending operations, as determined by the superintendent.

 

       (X) (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 if the

 

district does not receive funding under section 22d(2), the district's membership

 

shall be considered to be the membership figure calculated under this subdivision. If

 

a district educates and counts in its membership pupils in grades 9 to 12 who reside

 

in a contiguous district that does not operate grades 9 to 12 and if 1 or both of the

 

affected districts request the department to use the determination allowed under this

 

sentence, the department shall include the square mileage of both districts in

 

determining the number of pupils per square mile for each of the districts for the

 

purposes of this subdivision. The membership figure calculated under this subdivision

 

is the greater of the following:

 

       (i) The average of the district's membership for the 3-fiscal-year period

 

ending with that fiscal year, calculated by adding the district's actual membership

 

for each of those 3 fiscal years, as otherwise calculated under this subsection, and

 

dividing the sum of those 3 membership figures by 3.

 

       (ii) The district's actual membership for that fiscal year as otherwise

 

calculated under this subsection.

 


       (z) If a public school academy that is not in its first or second year of

 

operation closes at the end of a school year and does not reopen for the next school

 

year, the department shall adjust the membership count of the district or the

 

education achievement system in which a former pupil of the public school academy

 

enrolls and is in regular daily attendance for the next school year to ensure that the

 

district or the education achievement system receives the same amount of membership

 

aid for the pupil as if the pupil were counted in the district or the education

 

achievement system on the supplemental count day of the preceding school year.

 

       (Y) (aa) Full-time equated memberships for special education pupils who are not

 

enrolled in kindergarten but are enrolled in a classroom program under R 340.1754 of

 

the Michigan administrative code shall be determined by dividing the number of class

 

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

 

special education pupils who are not enrolled in kindergarten but are receiving early

 

childhood special education services under R 340.1755 or 340.1862 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.

 

       (Z) (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.

 

       (AA) (cc) For the first year in which a pupil is counted in membership on the

 

pupil membership count day in a middle college program, the membership is the average

 

of the full-time equated membership on the pupil membership count day and on the

 

supplemental count day for the current school year, as determined by the department.

 

If a pupil was counted by the operating district on the immediately preceding

 

supplemental count day, the pupil shall be excluded from the district's immediately

 

preceding supplemental count for purposes of determining the district's membership.

 


       (BB) (dd) A district, a public school academy, or the education achievement

 

system that educates a pupil who attends a United States Olympic education center may

 

count the pupil in membership regardless of whether or not the pupil is a resident of

 

this state.

 

       (CC) (ee) A pupil enrolled in a district other than the pupil's district of

 

residence pursuant to section 1148(2) of the revised school code, MCL 380.1148, shall

 

be counted in the educating district or the education achievement system.

 

       (DD) (ff) For a pupil enrolled in a dropout recovery program that meets the

 

requirements of section 23a, the pupil shall be counted as 1/12 of a full-time equated

 

membership for each month that the district operating the program reports that the

 

pupil was enrolled in the program and was in full attendance. However, a pupil counted

 

under this subdivision shall not be counted as more than 1.0 FTE in a fiscal year. The

 

district operating the program shall report to the center the number of pupils who

 

were enrolled in the program and were in full attendance for a month not later than

 

the tenth day of the next month. A district shall not report a pupil as being in full

 

attendance for a month unless both of the following are met:

 

       (i) A personalized learning plan is in place on or before the first school day

 

of the month for the first month the pupil participates in the program.

 

       (ii) The pupil meets the district's definition under section 23a of

 

satisfactory monthly progress for that month or, if the pupil does not meet that

 

definition of satisfactory monthly progress for that month, the pupil did meet that

 

definition of satisfactory monthly progress in the immediately preceding month and

 

appropriate interventions are implemented within 10 school days after it is determined

 

that the pupil does not meet that definition of satisfactory monthly progress.

 

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

 

code.

 

       (6) "Pupil" means a person in membership in a public school. A district must

 


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

 

membership, except approval by the pupil's district of residence is not required for

 

any of the following:

 

       (a) A nonpublic part-time pupil enrolled in grades 1 to 12 in accordance with

 

section 166b.

 

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

 

than the pupil's district of residence.

 

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

 

system.

 

       (d) A pupil enrolled in a district other than the pupil's district of residence

 

under an intermediate district schools of choice pilot program as described in section

 

91a or former section 91 if the intermediate district and its constituent districts

 

have been exempted from section 105.

 

       (e) A pupil enrolled in a district other than the pupil's district of residence

 

if the pupil is enrolled in accordance with section 105 or 105c.

 

       (f) A pupil who has made an official written complaint or whose parent or legal

 

guardian has made an official written complaint to law enforcement officials and to

 

school officials of the pupil's district of residence that the pupil has been the

 

victim of a criminal sexual assault or other serious assault, if the official

 

complaint either indicates that the assault occurred at school or that the assault was

 

committed by 1 or more other pupils enrolled in the school the pupil would otherwise

 

attend in the district of residence or by an employee of the district of residence. A

 

person who intentionally makes a false report of a crime to law enforcement officials

 

for the purposes of this subdivision is subject to section 411a of the Michigan penal

 

code, 1931 PA 328, MCL 750.411a, which provides criminal penalties for that conduct.

 

As used in this subdivision:

 

       (i) "At school" means in a classroom, elsewhere on school premises, on a school

 


bus or other school-related vehicle, or at a school-sponsored activity or event

 

whether or not it is held on school premises.

 

       (ii) "Serious assault" means an act that constitutes a felony violation of

 

chapter XI of the Michigan penal code, 1931 PA 328, MCL 750.81 to 750.90h, or that

 

constitutes an assault and infliction of serious or aggravated injury under section

 

81a of the Michigan penal code, 1931 PA 328, MCL 750.81a.

 

       (g) A pupil whose district of residence changed after the pupil membership

 

count day and before the supplemental count day and who continues to be enrolled on

 

the supplemental count day as a nonresident in the district in which he or she was

 

enrolled as a resident on the pupil membership count day of the same school year.

 

       (h) A pupil enrolled in an alternative education program operated by a district

 

other than his or her district of residence who meets 1 or more of the following:

 

       (i) The pupil has been suspended or expelled from his or her district of

 

residence for any reason, including, but not limited to, a suspension or expulsion

 

under section 1310, 1311, or 1311a of the revised school code, MCL 380.1310, 380.1311,

 

and 380.1311a.

 

       (ii) The pupil had previously dropped out of school.

 

       (iii) The pupil is pregnant or is a parent.

 

       (iv) The pupil has been referred to the program by a court.

 

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

 

described in section 25.

 

       (i) A pupil enrolled in the Michigan virtual school, for the pupil's enrollment

 

in the Michigan virtual school.

 

       (j) A pupil who is the child of a person who works at the district or who is

 

the child of a person who worked at the district as of the time the pupil first

 

enrolled in the district but who no longer works at the district due to a workforce

 

reduction. As used in this subdivision, "child" includes an adopted child, stepchild,

 


or legal ward.

 

       (k) An expelled pupil who has been denied reinstatement by the expelling

 

district and is reinstated by another school board under section 1311 or 1311a of the

 

revised school code, MCL 380.1311 and 380.1311a.

 

       (l) A pupil enrolled in a district other than the pupil's district of residence

 

in a middle college program if the pupil's district of residence and the enrolling

 

district are both constituent districts of the same intermediate district.

 

       (m) A pupil enrolled in a district other than the pupil's district of residence

 

who attends a United States Olympic education center.

 

       (n) A pupil enrolled in a district other than the pupil's district of residence

 

pursuant to section 1148(2) of the revised school code, MCL 380.1148.

 

       (o) A pupil who enrolls in a district other than the pupil's district of

 

residence as a result of the pupil's school not making adequate yearly progress under

 

the no child left behind act of 2001, Public Law 107-110.

 

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

 

district of residence as an eligible pupil under section 21f.

 

       However, if a district educates pupils who reside in another district and if

 

the primary instructional site for those pupils is established by the educating

 

district after 2009-2010 and is located within the boundaries of that other district,

 

the educating district must have the approval of that other district to count those

 

pupils in membership.

 

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

 

       (a) Except as provided in subdivision (b), the first Wednesday in October each

 

school year or, for a district or building in which school is not in session on that

 

Wednesday due to conditions not within the control of school authorities, with the

 

approval of the superintendent, the immediately following day on which school is in

 

session in the district or building.

 


       (b) For a district or intermediate district maintaining school during the

 

entire school year, the following days:

 

       (i) Fourth Wednesday in July.

 

       (ii) First Wednesday in October.

 

       (iii) Second Wednesday in February.

 

       (iv) Fourth Wednesday in April.

 

       (8) "Pupils in grades K to 12 actually enrolled and in regular daily

 

attendance" means pupils in grades K to 12 in attendance and receiving instruction in

 

all classes for which they are enrolled on the pupil membership count day or the

 

supplemental count day, as applicable. Except as otherwise provided in this

 

subsection, a pupil who is absent from any of the classes in which the pupil is

 

enrolled on the pupil membership count day or supplemental count day and who does not

 

attend each of those classes during the 10 consecutive school days immediately

 

following the pupil membership count day or supplemental count day, except for a pupil

 

who has been excused by the district, shall not be counted as 1.0 full-time equated

 

membership. A pupil who is excused from attendance on the pupil membership count day

 

or supplemental count day and who fails to attend each of the classes in which the

 

pupil is enrolled within 30 calendar days after the pupil membership count day or

 

supplemental count day shall not be counted as 1.0 full-time equated membership. In

 

addition, a pupil who was enrolled and in attendance in a district, an intermediate

 

district, a public school academy, or the education achievement system before the

 

pupil membership count day or supplemental count day of a particular year but was

 

expelled or suspended on the pupil membership count day or supplemental count day

 

shall only be counted as 1.0 full-time equated membership if the pupil resumed

 

attendance in the district, intermediate district, public school academy, or education

 

achievement system within 45 days after the pupil membership count day or supplemental

 

count day of that particular year. Pupils not counted as 1.0 full-time equated

 


membership due to an absence from a class shall be counted as a prorated membership

 

for the classes the pupil attended. For purposes of this subsection, "class" means a

 

period of time in 1 day when pupils and a certificated teacher or legally qualified

 

substitute teacher are together and instruction is taking place.

 

       (9) "Rule" means a rule promulgated pursuant to the administrative procedures

 

act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

       (10) "The revised school code" means 1976 PA 451, MCL 380.1 to 380.1852.

 

       (11) "School district of the first class", "first class school district", and

 

"district of the first class" mean a district that had at least 60,000 45,000 pupils

 

in membership for the immediately preceding fiscal year.

 

       (12) "School fiscal year" means a fiscal year that commences July 1 and

 

continues through June 30.

 

       (13) "State board" means the state board of education.

 

       (14) "Superintendent", unless the context clearly refers to a district or

 

intermediate district superintendent, means the superintendent of public instruction

 

described in section 3 of article VIII of the state constitution of 1963.

 

       (15) "Supplemental count day" means the day on which the supplemental pupil

 

count is conducted under section 6a.

 

       (16) "Tuition pupil" means a pupil of school age attending school in a district

 

other than the pupil's district of residence for whom tuition may be charged to the

 

district of residence. Tuition pupil does not include a pupil who is a special

 

education pupil, a pupil described in subsection (6)(c) to (p), or a pupil whose

 

parent or guardian voluntarily enrolls the pupil in a district that is not the pupil's

 

district of residence. A pupil's district of residence shall not require a high school

 

tuition pupil, as provided under section 111, to attend another school district after

 

the pupil has been assigned to a school district.

 

       (17) "State school aid fund" means the state school aid fund established in

 


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

 

       (18) "Taxable value" means the taxable value of property as determined under

 

section 27a of the general property tax act, 1893 PA 206, MCL 211.27a.

 

       (19) "Textbook" means a book, electronic book, or other instructional print or

 

electronic resource that is selected and approved by the governing board of a district

 

or, for an achievement school, by the chancellor of the achievement authority and that

 

contains a presentation of principles of a subject, or that is a literary work

 

relevant to the study of a subject required for the use of classroom pupils, or

 

another type of course material that forms the basis of classroom instruction.

 

       (20) "Total state aid" or "total state school aid" means the total combined

 

amount of all funds due to a district, intermediate district, or other entity under

 

all of the provisions of this article.

 

       Sec. 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 ARTICLE within 30 days after a 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 ARTICLE 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 ARTICLE 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, 2013, there is

 

appropriated for the public schools of this state and certain other state purposes

 

relating to education the sum of $10,928,614,200.00 from the state school aid fund and

 

the sum of $282,400,000.00 from the general fund. For the fiscal year ending September

 

30, 2014 2015, there is appropriated for the public schools of this state and certain

 

other state purposes relating to education the sum of $11,211,382,300.00

 

$11,790,976,900.00 from the state school aid fund, the sum of $156,000,000.00

 

$18,000,000.00 from the MPSERS retirement obligation reform reserve fund created under

 

section 147b, and the sum of $234,900,000.00 $180,000,000.00 from the general fund. In

 

addition, all other available federal funds, except those otherwise appropriated under

 

section 11p, are appropriated for the fiscal year ending September 30, 2013 and for

 

the fiscal year ending September 30, 2014 2015.

 

       (2) The appropriations under this section shall be allocated as provided in

 

this article. Money appropriated under this section from the general fund shall be

 

expended to fund the purposes of this article before the expenditure of money

 

appropriated under this section from the state school aid fund.

 

       (3) Any general fund allocations under this article that are not expended by

 

the end of the state fiscal year are transferred to the school aid stabilization fund

 

created under section 11a.

 

       Sec. 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 296(2) and state payments in an amount equal to the remainder of the projected

 

shortfall shall be prorated in the manner provided under section 296(3).

 

       (7) For 2013-2014 2014-2015, in addition to the appropriations in section 11,

 

there is appropriated from the school aid stabilization fund to the state school aid

 


fund the amount necessary to fully fund the allocations under this article.

 

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

 

section an amount not to exceed $39,500,000.00 for the fiscal year ending September

 

30, 2014 and for the fiscal year ending September 30, 2015, after which these payments

 

will cease. These allocations are for paying the amounts described in subsection (3)

 

to districts and intermediate districts, other than those receiving a lump-sum payment

 

under section 11f(2), that were not plaintiffs in the consolidated cases known as

 

Durant v State of Michigan, Michigan supreme court docket no. 104458-104492 and that,

 

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

 

described in section 11f. The amounts paid under this section represent offers of

 

settlement and compromise of any claim or claims that were or could have been asserted

 

by these districts and intermediate districts, as described in this section.

 

       (2) This section does not create any obligation or liability of this state to

 

any district or intermediate district that does not submit a waiver resolution

 

described in section 11f. This section and any other provision of this article are not

 

intended to admit liability or waive any defense that is or would be available to this

 

state or its agencies, employees, or agents in any litigation or future litigation

 

with a district or intermediate district regarding these claims or potential claims.

 

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

 

under this section shall be 1 of the following:

 

       (a) If the district or intermediate district does not borrow money and issue

 

bonds under section 11i, 1/30 of the total amount listed in section 11h for the

 

district or intermediate district through the fiscal year ending September 30, 2015.

 

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

 

under section 11i, an amount in each fiscal year calculated by the department of

 

treasury that is equal to the debt service amount in that fiscal year on the bonds

 

issued by that district or intermediate district under section 11i and that will

 


result in the total payments made to all districts and intermediate districts in each

 

fiscal year under this section being no more than the amount appropriated under this

 

section in each fiscal year.

 

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

 

be paid on May 15 of the applicable fiscal year or on the next business day following

 

that date. If a district or intermediate district borrows money and issues bonds under

 

section 11i, the district or intermediate district shall use funds received under this

 

section to pay debt service on bonds issued under section 11i. If a district or

 

intermediate district does not borrow money and issue bonds under section 11i, the

 

district or intermediate district shall use funds received under this section only for

 

the following purposes, in the following order of priority:

 

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

 

or intermediate district before the effective date of this section.

 

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

 

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

 

intermediate district under the revised school code.

 

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

 

intermediate district to pay debt service on debt payable from millage revenues, and

 

to the extent permitted by law, the district or intermediate district may make a

 

corresponding reduction in the number of mills levied for debt service.

 

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

 

this section as security for bonds issued under section 11i, but shall not otherwise

 

pledge or assign payments under this section.

 

       (7) If a district eligible for payments under this section is dissolved under

 

section 12 of the revised school code, MCL 380.12, the payment otherwise due to the

 

dissolved district under this section shall be paid instead to the intermediate

 

district of the dissolved district. The intermediate district of the dissolved

 


district shall perform any functions and responsibilities of the board and other

 

officers of the dissolved district necessary under this section on behalf of the

 

dissolved district. As used in this subsection, "dissolved district" and "receiving

 

district" mean those terms as defined in section 20.

 

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

 

not to exceed $131,660,000.00 $142,600,000.00 for 2013-2014 2014-2015 for payments to

 

the school loan bond redemption fund in the department of treasury on behalf of

 

districts and intermediate districts. Notwithstanding section 296 or any other

 

provision of this act, funds allocated under this section are not subject to proration

 

and shall be paid in full.

 

       Sec. 11k. For 2013-2014 2014-2015, there is appropriated from the general fund

 

to the school loan revolving fund an amount equal to the amount of school bond loans

 

assigned to the Michigan finance authority, not to exceed the total amount of school

 

bond loans held in reserve as long-term assets. As used in this section, "school loan

 

revolving fund" means that fund created in section 16c of the shared credit rating

 

act, 1985 PA 227, MCL 141.1066c.

 

       Sec. 11m. From the appropriations in section 11, there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $4,000,000.00 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. 11r. (1) From the appropriation in section 11, there is allocated an

 

amount not to exceed $10,000,000.00 to be deposited into the Distressed Districts

 

Emergency Grant Fund created under this section for the purpose of funding grants

 

under this section.

 

       (2) The Distressed Districts Emergency Grant Fund is created as a separate

 

account within the state school aid fund.  The state treasurer may receive money or

 

other assets from any source for deposit into the Distressed Districts Emergency Grant

 


Fund. The state treasurer shall direct the investment of the Distressed Districts

 

Emergency Grant Fund and shall credit to the Distressed Districts Emergency Grant Fund

 

interest and earnings from the fund.

 

       (3) A district is eligible to receive a grant from the fund if either of the

 

following apply:

 

       (a) the district has adopted a resolution authorizing the voluntary dissolution

 

of the district approved by the state treasurer under section 12(1)(C) of the revised

 

school code, MCL 380.12, but the dissolution has not yet taken effect under section

 

12(2) of the revised school code, mcl 380.12.

 

       (b) The district is a receiving district under section 12 of the revised school

 

code, mcl 380.12, and the district enrolls pupils who were previously enrolled in a

 

district that was dissolved under section 12 of the revised school code, MCL 380.12,

 

in the previous school year.

 

       (4) A district receiving funds under section 20g is not eligible to receive

 

funds under this section.

 

       (5) the amount of A grant UNDER THIS SECTION shall be determined by the state

 

treasurer after consultation with the superintendent of public instruction, but shall

 

not exceed the estimated amount of remaining district costs in excess of available

 

revenues, including, but not limited to, payroll, benefits, RETIREMENT System

 

CONTRIBUTIONS, pupil transportation, food serviceS, special education, building

 

security, and other costs necessary to allow the district to operate schools directly

 

and provide public education services until the end of the current school FISCAL year.

 

For A district that meetS the eligibility criteria under subsection (3)(B), the amount

 

of the grant shall be determined IN THE SAME MANNER AS TRANSITION COSTS UNDER section

 

20g.

 

       (6) Money in the Distressed Districts Emergency Grant Fund at the close of the

 

fiscal year shall remain in the Distressed Districts Emergency Grant Fund and shall

 


not lapse to the state school aid fund or to the general fund.

 

       Sec. 12. It is the intent of the legislature to appropriate and allocate for

 

FOR the fiscal year ending September 30, 2015 2016, the same amounts of money from the

 

same sources for the same purposes as are appropriated and allocated under this

 

article for the fiscal year ending September 30, 2014 2015, as adjusted for changes in

 

pupil membership, taxable values, special education costs, interest costs, RETIREMENT

 

COSTS and available revenue. These adjustments will be determined after the January

 

2014 2015 consensus revenue estimating conference.

 

       Sec. 15. (1) If a district or intermediate district fails to receive its proper

 

apportionment, the department, upon satisfactory proof that the district or

 

intermediate district was entitled justly, shall apportion the deficiency in the next

 

apportionment. Subject to subsections (2) and (3), if a district or intermediate

 

district has received more than its proper apportionment, the department, upon

 

satisfactory proof, shall deduct the excess in the next apportionment. Notwithstanding

 

any other provision in this article, state aid overpayments to a district, other than

 

overpayments in payments for special education or special education transportation,

 

may be recovered from any payment made under this article other than a special

 

education or special education transportation payment, from the proceeds of a loan to

 

the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

 

revised school code, MCL 380.1211. State aid overpayments made in special education or

 

special education transportation payments may be recovered from subsequent special

 

education or special education transportation payments, from the proceeds of a loan to

 

the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

 

141.942, or from the proceeds of millage levied or pledged under section 1211 of the

 

revised school code, MCL 380.1211.

 

       (2) If the result of an audit conducted by or for the department affects the

 


current fiscal year membership, affected payments shall be adjusted in the current

 

fiscal year. A deduction due to an adjustment made as a result of an audit conducted

 

by or for the department, or as a result of information obtained by the department

 

from the district, an intermediate district, the department of treasury, or the office

 

of auditor general, shall be deducted from the district's apportionments when the

 

adjustment is finalized. At the request of the district and upon the district

 

presenting evidence satisfactory to the department of the hardship, the department may

 

grant up to an additional 4 years for the adjustment and may advance payments to the

 

district otherwise authorized under this article if the district would otherwise

 

experience a significant hardship in satisfying its financial obligations.

 

       (3) If, BASED ON AN AUDIT BY THE DEPARTMENT OR THE DEPARTMENT’S DESIGNEE OR

 

because of the receipt of new or updated data INFORMATION RECEIVED BY THE DEPARTMENT,

 

the department determines during a fiscal year that the amount paid to a district or

 

intermediate district under this article for THE CURRENT FISCAL YEAR OR a prior fiscal

 

year was incorrect under the law in effect for that year, the department may SHALL

 

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 IN THE NEXT

 

APPORTIONMENT AFTER THE ADJUSTMENT IS FINALIZED. The deduction or payment shall be

 

calculated according to the law in effect in the fiscal year in which the improper

 

INCORRECT amount was paid. If the district does not receive an allocation for the

 

fiscal year or if the allocation is not sufficient to pay the amount of any deduction,

 

the amount of any deduction otherwise applicable shall be satisfied from the proceeds

 

of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL

 

141.931 to 141.942, or from the proceeds of millage levied or pledged under section

 

1211 of the revised school code, MCL 380.1211, as determined by the department.

 

       (4) THE DEPARTMENT MAY CONDUCT AUDITS, OR MAY DIRECT AUDITS BY DESIGNEE OF THE

 

DEPARTMENT, OF ALL RECORDS FOR THE CURRENT FISCAL YEAR AND THE PRECEDING THREE FISCAL

 


YEARS RELATED TO A PROGRAM FOR WHICH A DISTRICT OR INTERMEDIATE DISTRICT HAS RECEIVED

 

FUNDS UNDER THIS ARTICLE.

 

       (5) (4) Expenditures made by the department under this article that are caused

 

by the write-off of prior year accruals may be funded by revenue from the write-off of

 

prior year accruals.

 

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

 

services, there is appropriated for 2013-2014 2014-2015 for obligations in excess of

 

applicable appropriations an amount equal to the collection of overpayments, but not

 

to exceed amounts available from overpayments.

 

       Sec. 17a. (1) The department may withhold all or part of any payment that a

 

district or intermediate district is entitled to receive under this act ARTICLE to the

 

extent the withholdings are a component part of a plan, developed and implemented

 

pursuant to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821,

 

the emergency municipal loan act, 1980 pa 243, mcl 141.931 to 141.942, the local

 

financial stability and choice act, 2012 pa 436, mcl 141.1541 to 141.1575, or other

 

statutory authority, for financing an outstanding obligation upon which the district

 

or intermediate district defaulted or for other financial obligations of the district

 

or intermediate district. Amounts withheld shall be used to pay, on behalf of the

 

district or intermediate district, unpaid amounts or subsequently due amounts, or

 

both, of principal and interest on the outstanding obligation upon which the district

 

or intermediate district defaulted.

 

       (2) The state treasurer may withhold all or part of any payment that a district

 

or intermediate district is entitled to receive under this act ARTICLE to the extent

 

authorized or required under section 15 of the school bond qualification, approval,

 

and loan act, 2005 PA 92, MCL 388.1935, the emergency municipal loan act, 1980 pa 243,

 

mcl 141.931 to 141.942, the local financial stability and choice act, 2012 pa 436, mcl

 

141.1541 to 141.1575, or other statutory authority.

 


       (3) Under an agreement entered into by a district or intermediate district

 

assigning all or a portion of the payment that it is eligible to receive under this

 

act ARTICLE to the Michigan finance authority or to the trustee of a pooled

 

arrangement or pledging the amount for payment of an obligation it incurred with the

 

Michigan finance authority or with the trustee of a pooled arrangement, the state

 

treasurer shall transmit to the Michigan finance authority or a trustee designated by

 

the Michigan finance authority or to the trustee of a pooled arrangement or other

 

designated depository the amount of the payment that is assigned or pledged under the

 

agreement.

 

       (4) If a district or intermediate district for which an emergency manager has

 

been appointed pursuant to is in place under the local financial stability and choice

 

act, 2012 PA 436, MCL 141.1541 to 141.1575, or that has an approved deficit

 

elimination plan or an approved enhanced deficit elimination plan under section 102,

 

enters into or has entered into an agreement described in subsection (3) pursuant to

 

section 1225(2) of the revised school code, MCL 380.1225, whether the obligation was

 

issued before or after the effective date of this subsection, the portion of state

 

school aid paid or to be paid on behalf of the district or intermediate district

 

directly to the Michigan finance authority, or to a trustee designated by the Michigan

 

finance authority, for the sole purpose of paying the principal of and interest on the

 

obligation is subject to a lien and trust that is a statutory lien and trust,

 

paramount and superior to all other liens and interests of any kind, for the sole

 

purpose of paying the principal of and interest on the obligation. The statutory lien

 

and trust applies to the state school aid received or to be received by the Michigan

 

finance authority, or trustee designated by the Michigan finance authority, on behalf

 

of the district or intermediate district, immediately upon the later of the effective

 

date of this subsection or the time when the state school aid is allocated to the

 

district or intermediate district, but is subject to any subsequent reduction of the

 


state school aid allocation by operation of law or executive order. The lien and trust

 

imposed by this section with respect to state school aid has a priority as established

 

in the agreement, except that the agreement shall not impair any existing lien and

 

trust previously created pursuant to this section, including any lien and trust

 

applicable to a multi-year repayment agreement under section 1225 of the revised

 

school code, MCL 380.1225. Except as otherwise provided in this subsection, the lien

 

and trust created under this subsection for the benefit of holders of the obligation

 

issued pursuant to this section is valid and binding against a party having a claim of

 

any kind in tort, contract, or otherwise against the district or intermediate district

 

that has issued the obligation secured by a pledge of state school aid pursuant to

 

this section, regardless of whether that party has notice of the pledge. A pledge made

 

pursuant to this section for the benefit of the holders of obligations or others is

 

perfected without delivery, recording, or notice. The state school aid paid or to be

 

paid on behalf of a district or intermediate district to the Michigan finance

 

authority, or trustee designated by the Michigan finance authority, shall be held in

 

trust for the sole benefit of the holders of the obligation issued pursuant to this

 

section or section 1225 of the revised school code, MCL 380.1225, and is exempt from

 

being levied upon, taken, sequestered, or applied toward paying the debts or

 

liabilities of the district or intermediate district other than for payment of the

 

obligation to which the lien applies. However, nothing in this subsection alters the

 

ability of the state treasurer to withhold state school aid from a district or

 

intermediate district as provided by law.

 

       (5) Notwithstanding the payment dates prescribed by this act ARTICLE for

 

distributions under this act ARTICLE, the state treasurer may advance all or part of a

 

payment that is dedicated for distribution or for which the appropriation authorizing

 

the payment has been made if and to the extent, under the terms of an agreement

 

entered into by a district or intermediate district and the Michigan finance

 


authority, the payment that the district or intermediate district is eligible to

 

receive has been assigned to or pledged for payment of an obligation it incurred with

 

the Michigan finance authority.

 

       (6) This section does not require the state to make an appropriation to any

 

school district or intermediate school district and shall not be construed as creating

 

an indebtedness of the state, and any agreement made pursuant to this section shall

 

contain a statement to that effect.

 

       (7) As used in this section, "trustee of a pooled arrangement" means the

 

trustee of a trust approved by the state treasurer and, subject to the conditions and

 

requirements of that approval, established for the purpose of offering for sale, as

 

part of a pooled arrangement, certificates representing undivided interests in notes

 

issued by districts or intermediate districts under section 1225 of the revised school

 

code, MCL 380.1225.

 

       (8) If a trustee applies to the state treasurer for approval of a trust for the

 

purposes of this section, the state treasurer shall approve or disapprove the trust

 

within 10 days after receipt of the application.

 

       Sec. 18. (1) Except as provided in another section of this article, each

 

district or other entity shall apply the money received by the district or entity

 

under this article to salaries and other compensation of teachers and other employees,

 

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

 

of textbooks, other supplies, and any other school operating expenditures defined in

 

section 7. However, not more than 20% of the total amount received by a district UNDER

 

SECTIONS 22A AND 22B or intermediate district under this article UNDER SECTION 81 may

 

be transferred by the board to either the capital projects fund or to the debt

 

retirement fund for debt service. The money shall not be applied or taken for a

 

purpose other than as provided in this section. The department shall determine the

 

reasonableness of expenditures and may withhold from a recipient of funds under this

 


article the apportionment otherwise due upon a violation by the recipient.

 

       (2) Within 30 15 days after a board adopts its annual operating budget for the

 

following school fiscal year, or after a board adopts a subsequent revision to that

 

budget, the district shall make all of the following available through a link on its

 

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

 

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

 

department:

 

       (a) The annual operating budget and subsequent budget revisions.

 

       (b) Using data that have already been collected and submitted to the

 

department, a summary of district expenditures for the most recent fiscal year for

 

which they are available, expressed in the following 2 pie charts:

 

       (i) A chart of personnel expenditures, broken into the following subcategories:

 

       (A) Salaries and wages.

 

       (B) Employee benefit costs, including, but not limited to, medical, dental,

 

vision, life, disability, and long-term care benefits.

 

       (C) Retirement benefit costs.

 

       (D) All other personnel costs.

 

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

 

subcategories:

 

       (A) Instruction.

 

       (B) Support services.

 

       (C) Business and administration.

 

       (D) Operations and maintenance.

 

       (c) Links to all of the following:

 

       (i) The current collective bargaining agreement for each bargaining unit.

 

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

 

dental, vision, disability, long-term care, or any other type of benefits that would

 


constitute health care services, offered to any bargaining unit or employee in the

 

district.

 

       (iii) The audit report of the audit conducted under subsection (4) for the most

 

recent fiscal year for which it is available.

 

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

 

act, 2007 PA 106, MCL 124.75.

 

       (d) The total salary and a description and cost of each fringe benefit included

 

in the compensation package for the superintendent of the district and for each

 

employee of the district whose salary exceeds $100,000.00.

 

       (e) The annual amount spent on dues paid to associations.

 

       (f) The annual amount spent on lobbying or lobbying services. As used in this

 

subdivision, "lobbying" means that term as defined in section 5 of 1978 PA 472, MCL

 

4.415.

 

       (g) any deficit elimination plan or enhanced deficit elimination plan the

 

district was required to submit under this ARTICLE.

 

       (3) For the information required under subsection (2)(a), (2)(b)(i), and

 

(2)(c), an intermediate district shall provide the same information in the same manner

 

as required for a district under subsection (2).

 

       (4) For the purpose PURPOSES of determining the reasonableness of expenditures,

 

WHETHER A DISTRICT OR INTERMEDIATE DISTRICT HAS RECEIVED THE PROPER AMOUNT OF FUNDS

 

UNDER THIS ARTICLE, and whether a violation of this article has occurred, all of the

 

following apply:

 

       (a) The department shall require that each district and intermediate district

 

have an audit of the district's or intermediate district's financial and pupil

 

accounting records conducted at least annually at the expense of the district or

 

intermediate district, as applicable, AND AT SUCH OTHER TIMES AS DETERMINED BY THE

 

DEPARTMENT. AUDITS MUST BE PERFORMED 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. RECORDS SHALL BE

 

RETAINED BY THE DISTRICT OR INTERMEDIATE DISTRICT FOR THE CURRENT FISCAL

 

YEAR AND FOR THE THREE PREVIOUS FISCAL YEARS.

 

       (b) If a district operates in a single building with fewer than 700 full-time

 

equated pupils, if the district has stable membership, and if the error rate of the

 

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

 

the district may have a pupil accounting field audit conducted biennially but must

 

continue to have desk audits for each pupil count. The auditor must document

 

compliance with the audit cycle in the pupil auditing manual. As used in this

 

subdivision, "stable membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the immediately preceding fiscal

 

year by less than 5%.

 

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

 

include an analysis of the financial and pupil accounting data used as the basis for

 

distribution of state school aid.

 

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

 

management letters are subject to requirements established in the auditing and

 

accounting manuals approved and published by the department.

 

       (e) All of the following shall be done not later than November October 15 each

 

year:

 

       (i) A district shall file the annual financial audit reports with the

 

intermediate district and the department.

 

       (ii) The intermediate district shall file the annual financial audit reports

 

for the intermediate district with the department.

 

       (iii) The intermediate district shall enter the pupil membership audit reports

 


for its constituent districts and for the intermediate district, for the pupil

 

membership count day and supplemental count day, in the Michigan student data system.

 

       (f) The annual financial audit reports and pupil accounting procedures reports

 

shall be available to the public in compliance with the freedom of information act,

 

1976 PA 442, MCL 15.231 to 15.246.

 

       (g) Not later than January 31 of each year, the department shall notify the

 

state budget director and the legislative appropriations subcommittees responsible for

 

review of the school aid budget of districts and intermediate districts that have not

 

filed an annual financial audit and pupil accounting procedures report required under

 

this section for the school year ending in the immediately preceding fiscal year.

 

       (5) By November OCTOBER 15 of each year, each district and intermediate

 

district shall submit to the center, in a manner prescribed by the center, annual

 

comprehensive financial data consistent with accounting manuals and charts of accounts

 

approved and published by the department. For an intermediate district, the report

 

shall also contain the website address where the department can access the report

 

required under section 620 of the revised school code, MCL 380.620. The department

 

shall ensure that the prescribed Michigan public school accounting manual chart of

 

accounts includes standard conventions to distinguish expenditures by allowable fund

 

function and object. The functions shall include at minimum categories for

 

instruction, pupil support, instructional staff support, general administration,

 

school administration, business administration, transportation, facilities operation

 

and maintenance, facilities acquisition, and debt service; and shall include object

 

classifications of salary, benefits, including categories for active employee health

 

expenditures, purchased services, supplies, capital outlay, and other. Districts shall

 

report the required level of detail consistent with the manual as part of the

 

comprehensive annual financial report.

 

       (6) By September 30 of each year, each district and intermediate district shall

 


file with the department the special education actual cost report, known as "SE-4096",

 

on a form and in the manner prescribed by the department.

 

       (7) By October 7 of each year, each district and intermediate district shall

 

file with the center the transportation expenditure report, known as "SE-4094", on a

 

form and in the manner prescribed by the center.

 

       (8) The department shall review its pupil accounting and pupil auditing manuals

 

at least annually and shall periodically update those manuals to reflect changes in

 

this article.

 

       (9) If a district that is a public school academy purchases property using

 

money received under this article, the public school academy shall retain ownership of

 

the property unless the public school academy sells the property at fair market value.

 

       (10) If a district or intermediate district does not comply with subsections

 

(4), (5), (6), and (7), the department shall withhold all state school aid due to the

 

district or intermediate district under this article, beginning with the next payment

 

due to the district or intermediate district, until the district or intermediate

 

district complies with subsections (4), (5), (6), and (7). If the district or

 

intermediate district does not comply with subsections (4), (5), (6), and (7) by the

 

end of the fiscal year, the district or intermediate district forfeits the amount

 

withheld.

 

       (11) Not later than September 1, 2014, if a district or intermediate district

 

offers online learning, the district or intermediate district shall submit to the

 

department a report that details the per-pupil costs of operating the online learning.

 

The report shall include at least all of the following information concerning the

 

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

 

       (a) The name of the district operating the online learning and of each district

 

that enrolled students in the online learning.

 

       (b) The total number of students enrolled in the online learning and the total

 


number of membership pupils enrolled in the online learning.

 

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

 

offering online learning, the name of that district.

 

       (d) The district in which the pupil was enrolled before enrolling in the

 

district offering online learning.

 

       (e) The number of participating students who had previously dropped out of

 

school.

 

       (f) The number of participating students who had previously been expelled from

 

school.

 

       (g) The total cost to enroll a student in the program. This cost shall be

 

reported on a per-pupil, per-course, per-semester or trimester basis. The total shall

 

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

 

payment to each online learning provider, and other costs associated with operating

 

online learning.

 

       (h) The name of each online education provider contracted by the district and

 

the state in which each online education provider is headquartered.

 

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

 

applicable reporting requirements specified in state and federal law. Data provided to

 

the center, in a form and manner prescribed by the center, shall be aggregated and

 

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

 

intermediate district shall cooperate with all measures taken by the center to

 

establish and maintain a statewide P-20 longitudinal data system.

 

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

 

pupil membership count day and by June 30 of the school fiscal year ending in the

 

fiscal year, in a manner prescribed by the center, the information necessary for the

 

preparation of the district and high school graduation report. This information shall

 

meet requirements established in the pupil auditing manual approved and published by

 


the department. The center shall calculate an annual graduation and pupil dropout rate

 

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

 

recognized standards for these calculations. The center shall report all graduation

 

and dropout rates to the senate and house education committees and appropriations

 

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

 

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

 

       (3) By the first business day in December and by June 30 of each year, a

 

district shall furnish to the center, in a manner prescribed by the center,

 

information related to educational personnel as necessary for reporting required by

 

state and federal law.

 

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

 

manner prescribed by the center, information related to safety practices and criminal

 

incidents as necessary for reporting required by state and federal law.

 

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

 

this section, the department shall withhold 5% of the total funds for which the

 

district or intermediate district qualifies under this article until the district or

 

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

 

intermediate district does not comply with all of those subsections by the end of the

 

fiscal year, the department shall place the amount withheld in an escrow account until

 

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

 

       (6) Before publishing a list of school or district accountability designations

 

as required by the no child left behind act of 2001, Public Law 107-110, the

 

department shall allow a school or district to appeal that determination. The

 

department shall consider and act upon the appeal within 30 days after it is submitted

 

and shall not publish the list until after all appeals have been considered and

 

decided.

 

       (7) It is the intent of the legislature to implement not later than 2014-2015

 


statewide standard reporting requirements for education data approved by the

 

department in conjunction with the center. The department shall work with the center,

 

intermediate districts, districts, and other interested stakeholders to develop

 

recommendations on the implementation of this policy change. A district or

 

intermediate district shall implement the statewide standard reporting requirements

 

not later than 2014-2015 or when a district or intermediate district updates its

 

education data reporting system, whichever is later.

 

       Sec. 20. (1) For 2013-2014, 2014-2015:

 

       (A) the EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, THE basic foundation

 

allowance is $8,049.00 $8,132.00. HOWEVER, FOR PURPOSES OF THE CALCULATION IN

 

SUBSECTION (3), THE BASIC FOUNDATION ALLOWANCE IS $8,077.00.

 

       (B) THE MINIMUM FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR IS

 

$7,187.00.

 

       (2) The amount of each district's foundation allowance shall be calculated as

 

provided in this section, using a basic foundation allowance in the amount specified

 

in subsection (1).

 

       (3) Except as otherwise provided in this section, the amount of a district's

 

foundation allowance shall be calculated as follows, using in all calculations the

 

total amount of the district's foundation allowance as calculated before any

 

proration:

 

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

 

preceding state fiscal year that was at least equal to the sum of $7,108.00 plus the

 

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

 

preceding state fiscal year in the lowest foundation allowance among all districts,

 

MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR but less

 

than the basic foundation allowance for the immediately preceding state fiscal year,

 

the district shall receive a foundation allowance in an amount equal to the sum of the

 


greater of $6,966.00 or 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 DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT

 

STATE FISCAL YEAR AND BASIC FOUNDATION ALLOWANCE FOR THE immediately preceding state

 

fiscal year to the current state fiscal year made in the basic foundation allowance

 

minus $10.00 $8.00) 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

 

MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR) divided

 

by the difference between the basic foundation allowance for the current state fiscal

 

year and the 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 MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY

 

PRECEDING STATE FISCAL YEAR]. For 2011-2012, for a district that had a foundation

 

allowance for the immediately preceding state fiscal year that was at least equal to

 

the sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-

 

2007 to the immediately preceding state fiscal year in the lowest foundation allowance

 

among all districts, but less than the basic foundation allowance for the immediately

 

preceding state fiscal year, the district shall receive a foundation allowance in an

 

amount equal to the district's foundation allowance for 2010-2011, minus $470.00.

 

However, the foundation allowance for a district that had less than the basic

 

foundation allowance for the immediately preceding state fiscal year shall not exceed

 

the basic foundation allowance for the current state fiscal year.

 

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

 


immediately preceding state fiscal year had a foundation allowance in an amount at

 

least equal to the amount of the basic foundation allowance for the immediately

 

preceding state fiscal year, the district shall receive a foundation allowance for

 

2011-2012 in an amount equal to the district's foundation allowance for 2010-2011,

 

minus $470.00.

 

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

 

that in the 1994-95 state fiscal year had a foundation allowance FOR THE IMMEDIATELY

 

PRECEDING STATE FISCAL YEAR THAT WAS AT LEAST EQUAL TO OR greater than $6,500.00 THE

 

BASIC FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, the

 

district's foundation allowance is an amount equal to the sum of the district's

 

foundation allowance for the immediately preceding state fiscal year plus the lesser

 

of the increase in the basic foundation allowance for the current state fiscal year,

 

as compared to the immediately preceding state fiscal year, or the product of the

 

district's foundation allowance for the immediately preceding state fiscal year times

 

the percentage increase in the United States consumer price index in the calendar year

 

ending in the immediately preceding fiscal year as reported by the May revenue

 

estimating conference conducted under section 367b of the management and budget act,

 

1984 PA 431, MCL 18.1367b. Except as otherwise provided in subdivision (d), for 2011-

 

2012, for a district that in the 1994-1995 state fiscal year had a foundation

 

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

 

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

 

$470.00.

 

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

 

allowance greater than $6,500.00 and that had a foundation allowance for the 2009-2010

 

state fiscal year, as otherwise calculated under this section, that was less than the

 

basic foundation allowance, the district's foundation allowance for 2011-2012 and each

 

succeeding fiscal year shall be considered to be an amount equal to the basic

 


foundation allowance.

 

       (C) (e) For a district that has a foundation allowance that is not a whole

 

dollar amount, the district's foundation allowance shall be rounded up to the nearest

 

whole dollar.

 

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

 

was in effect for 2001-2002, the district's 2001-2002 foundation allowance shall be

 

considered to have been an amount equal to the sum of the district's actual 2001-2002

 

foundation allowance as otherwise calculated under this section plus the per pupil

 

amount of the district's equity payment for 2001-2002 under section 22c as that

 

section was in effect for 2001-2002.

 

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

 

section was in effect for 2006-2007 2013-2014, the district's 2013-2014 foundation

 

allowance shall be considered to have been an amount equal to the sum of the

 

district's actual 2006-2007 2013-2014 foundation allowance as otherwise calculated

 

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

 

2006-2007 2013-2014 under section 22c as that section was in effect for 2006-2007

 

2013-2014.

 

       (h) For 2012-2013, for a district that had a foundation allowance for the 2011-

 

2012 state fiscal year of less than $6,966.00, the district's foundation allowance is

 

an amount equal to $6,966.00.

 

       (E) FOR 2014-2015, EACH DISTRICT’S FOUNDATION ALLOWANCE SHALL BE THE SUM OF THE

 

FOUNDATION ALLOWANCE OTHERWISE CALCULATED UNDER THIS SUBSECTION AND $55.00.

 

       (4) Except as otherwise provided in this subsection, the state portion of a

 

district's foundation allowance is an amount equal to the district's foundation

 

allowance or the basic foundation allowance for the current state fiscal year,

 

whichever is less, minus the difference between the sum of the product of the taxable

 

value per membership pupil of all property in the district that is nonexempt property

 


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

 

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

 

district that is commercial personal property times the certified mills minus 12 mills

 

and the quotient of the ad valorem property tax revenue of the district captured under

 

tax increment financing acts LOCAL PORTION OF THE DISTRICT’S FOUNDATION ALLOWANCE

 

divided by the district's membership excluding special education pupils. For a

 

district described in subsection (3)(c) THAT IN THE 1994-95 STATE FISCAL YEAR HAD A

 

FOUNDATION ALLOWANCE GREAT THAN $6,500.00, 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 LOCAL PORTION OF THE DISTRICT’S

 

FOUNDATION ALLOWANCE divided by the district's membership excluding special education

 

pupils. For a district that has a millage reduction required under section 31 of

 

article IX of the state constitution of 1963, the state portion of the district's

 

foundation allowance shall be calculated as if that reduction did not occur. For a

 

receiving district, if school operating taxes continue to be levied on behalf of a

 

dissolved district that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, the taxable value per membership pupil of property in

 

the receiving district used for the purposes of this subsection  ,  does not include

 

the taxable value of property within the geographic area of the dissolved district.

 


       (5) The allocation calculated under this section for a pupil shall be based on

 

the foundation allowance of the pupil's district of residence. For a pupil enrolled

 

pursuant to section 105 or 105c in a district other than the pupil's district of

 

residence, the allocation calculated under this section shall be based on the lesser

 

of the foundation allowance of the pupil's district of residence or the foundation

 

allowance of the educating district. For a pupil in membership in a K-5, K-6, or K-8

 

district who is enrolled in another district in a grade not offered by the pupil's

 

district of residence, the allocation calculated under this section shall be based on

 

the foundation allowance of the educating district if the educating district's

 

foundation allowance is greater than the foundation allowance of the pupil's district

 

of residence.

 

       (6) Except as otherwise provided in this subsection, for pupils in membership,

 

other than special education pupils, in a public school academy, the allocation

 

calculated under this section is an amount per membership pupil other than special

 

education pupils in the public school academy equal to the foundation allowance of the

 

district in which the public school academy is located or the state maximum public

 

school academy allocation, whichever is less. However, a public school academy that

 

had an allocation under this subsection before 2009-2010 that was equal to the sum of

 

the local school operating revenue per membership pupil other than special education

 

pupils for the district in which the public school academy is located and the state

 

portion of that district's foundation allowance shall not have that allocation reduced

 

as a result of the 2010 amendment to this subsection. Notwithstanding section 101, for

 

a public school academy that begins operations after the pupil membership count day,

 

the amount per membership pupil calculated under this subsection shall be adjusted by

 

multiplying that amount per membership pupil by the number of hours of pupil

 

instruction provided by the public school academy after it begins operations, as

 

determined by the department, divided by the minimum number of hours of pupil

 


instruction required under section 101(3). The result of this calculation shall not

 

exceed the amount per membership pupil otherwise calculated under this subsection.

 

       (7) Except as otherwise provided in this subsection, for pupils attending an

 

achievement school and in membership in the education achievement system, other than

 

special education pupils, the allocation calculated under this section is an amount

 

per membership pupil other than special education pupils equal to the foundation

 

allowance of the district in which the achievement school is located, not to exceed

 

the basic foundation allowance. Notwithstanding section 101, for an achievement school

 

that begins operation after the pupil membership count day, the amount per membership

 

pupil calculated under this subsection shall be adjusted by multiplying that amount

 

per membership pupil by the number of hours of pupil instruction provided by the

 

achievement school after it begins operations, as determined by the department,

 

divided by the minimum number of hours of pupil instruction required under section

 

101(3). The result of this calculation shall not exceed the amount per membership

 

pupil otherwise calculated under this subsection. For the purposes of this subsection,

 

if a public school is transferred from a district to the state school reform/redesign

 

district or the achievement authority under section 1280c of the revised school code,

 

MCL 380.1280c, that public school is considered to be an achievement school within the

 

education achievement system and not a school that is part of a district, and a pupil

 

attending that public school is considered to be in membership in the education

 

achievement system and not in membership in the district that operated the school

 

before the transfer.

 

       (8) Subject to subsection (4), for a district that is formed or reconfigured

 

after June 1, 2002 by consolidation of 2 or more districts or by annexation, the

 

resulting district's foundation allowance under this section beginning after the

 

effective date of the consolidation or annexation shall be the lesser of the sum of

 

the average of the foundation allowances of each of the original or affected

 


districts, calculated as provided in this section, weighted as to the percentage of

 

pupils in total membership in the resulting district who reside in the geographic area

 

of each of the original or affected districts plus $100.00 or the highest foundation

 

allowance among the original or affected districts. This subsection does not apply to

 

a receiving district unless there is a subsequent consolidation or annexation that

 

affects the district.

 

       (9) Each fraction used in making calculations under this section shall be

 

rounded to the fourth decimal place and the dollar amount of an increase in the basic

 

foundation allowance shall be rounded to the nearest whole dollar.

 

       (10) State payments related to payment of the foundation allowance for a

 

special education pupil are not calculated under this section but are instead

 

calculated under section 51a.

 

       (11) To assist the legislature in determining the basic foundation allowance

 

for the subsequent state fiscal year, each revenue estimating conference conducted

 

under section 367b of the management and budget act, 1984 PA 431, MCL 18.1367b, shall

 

calculate a pupil membership factor, a revenue adjustment factor, and an index as

 

follows:

 

       (a) The pupil membership factor shall be computed by dividing the estimated

 

membership in the school year ending in the current state fiscal year, excluding

 

intermediate district membership, by the estimated membership for the school year

 

ending in the subsequent state fiscal year, excluding intermediate district

 

membership. If a consensus membership factor is not determined at the revenue

 

estimating conference, the principals of the revenue estimating conference shall

 

report their estimates to the house and senate subcommittees responsible for school

 

aid appropriations not later than 7 days after the conclusion of the revenue

 

conference.

 

       (b) The revenue adjustment factor shall be computed by dividing the sum of the

 


estimated total state school aid fund revenue for the subsequent state fiscal year

 

plus the estimated total state school aid fund revenue for the current state fiscal

 

year, adjusted for any change in the rate or base of a tax the proceeds of which are

 

deposited in that fund and excluding money transferred into that fund from the

 

countercyclical budget and economic stabilization fund under the management and budget

 

act, 1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated total school aid

 

fund revenue for the current state fiscal year plus the estimated total state school

 

aid fund revenue for the immediately preceding state fiscal year, adjusted for any

 

change in the rate or base of a tax the proceeds of which are deposited in that fund.

 

If a consensus revenue factor is not determined at the revenue estimating conference,

 

the principals of the revenue estimating conference shall report their estimates to

 

the house and senate subcommittees responsible for school aid appropriations not later

 

than 7 days after the conclusion of the revenue conference.

 

       (c) The index shall be calculated by multiplying the pupil membership factor by

 

the revenue adjustment factor. If a consensus index is not determined at the revenue

 

estimating conference, the principals of the revenue estimating conference shall

 

report their estimates to the house and senate subcommittees responsible for school

 

aid appropriations not later than 7 days after the conclusion of the revenue

 

conference.

 

       (12) 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. All of the following apply to districts

 

receiving a foundation allowance adjustment under this subsection:

 


       (a) Except as otherwise provided in this subdivision, a district qualifying for

 

a foundation allowance adjustment under this subsection shall use the funds resulting

 

from this adjustment for at least 1 of grades K to 3 for purposes allowable under

 

former section 32e as in effect for 2001-2002. For an individual school or schools

 

operated by a district qualifying for a foundation allowance adjustment 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

 

subdivision. 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.

 

       (b) A district receiving an adjustment under this subsection shall not receive

 

as a result of this adjustment an amount that exceeds 68.5% of the amount the district

 

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

 

       (c) Notwithstanding subsection (8), for a district that is formed or

 

reconfigured by consolidation of 2 or more districts, 1 of which received an

 

adjustment under this subsection for 2012-2013, the resulting district's foundation

 

allowance for 2013-2014 and each succeeding fiscal year shall be adjusted to be an

 


amount equal to the sum of the resulting district's foundation allowance as calculated

 

under subsection (8) excluding any adjustment calculated under this subsection plus

 

[(the original district's adjustment under this subsection in 2012-2013 times the

 

number of pupils in the original district's membership for 2012-2013) divided by the

 

number of pupils in the resulting district's membership for 2013-2014].

 

       (d) Beginning in 2013-2014, for a district that received an adjustment for the

 

immediately preceding fiscal year and that had a foundation allowance as adjusted by

 

this subsection for the immediately preceding fiscal year equal to $6,966.00, the

 

district shall not receive an adjustment under this section for the current fiscal

 

year.

 

       (12) (13) Payments to districts, public school academies, or the education

 

achievement system shall not be made under this section. Rather, the calculations

 

under this section shall be used to determine the amount of state payments under

 

section 22b.

 

       (13) (14) If an amendment to section 2 of article VIII of the state

 

constitution of 1963 allowing state aid to some or all nonpublic schools is approved

 

by the voters of this state, each foundation allowance or per pupil payment

 

calculation under this section may be reduced.

 

       (14) (15) As used in this section:

 

       (a) "Certified mills" means the lesser of 18 mills or the number of mills of

 

school operating taxes levied by the district in 1993-94.

 

       (b) "Combined state and local revenue" means the aggregate of the district's

 

state school aid received by or paid on behalf of the district under this section and

 

the district's local school operating revenue.

 

       (c) "Combined state and local revenue per membership pupil" means the

 

district's combined state and local revenue divided by the district's membership

 

excluding special education pupils.

 


       (d) "Current state fiscal year" means the state fiscal year for which a

 

particular calculation is made.

 

       (e) "Dissolved district" means a district that loses its organization, has its

 

territory attached to 1 or more other districts, and is dissolved as provided under

 

section 12 of the revised school code, MCL 380.12.

 

       (f) "Immediately preceding state fiscal year" means the state fiscal year

 

immediately preceding the current state fiscal year.

 

       (G) "LOCAL PORTION OF THE DISTRICT’S FOUNDATION ALLOWANCE" MEANS AN AMOUNT THAT

 

IS EQUAL TO THE DIFFERENCE BETWEEN THE SUM OF THE PRODUCT OF THE TAXABLE VALUE PER

 

MEMBERSHIP PUPIL OF ALL PROPERTY IN THE DISTRICT THAT IS NONEXEMPT PROPERTY TIMES THE

 

DISTRICT’S CERTIFIED MILLS AND, FOR A DISTRICT WITH CERTIFIED MILLS EXCEEDING 12, THE

 

PRODUCT OF THE TAXABLE VALUE PER MEMBERSHIP PUPIL OF PROPERTY IN THE DISTRICT THAT IS

 

COMMERCIAL PERSONAL PROPERTY TIMES THE CERTIFIED MILLS MINUS 12 MILLS AND THE QUOTIENT

 

OF THE PRODUCT OF THE CAPTURED ASSESSED VALUATION UNDER TAX INCREMENT FINANCING ACTS

 

TIMES THE DISTRICT’S CERTIFIED MILLS DIVIDED BY THE DISTRICT’S MEMBERSHIP EXCLUDING

 

SPECIAL EDUCATION PUPILS.

 

       (H) (g) "Local school operating revenue" means school operating taxes levied

 

under section 1211 of the revised school code, MCL 380.1211. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved district that has

 

been attached in whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the revised school code, MCL

 

380.12, local school operating revenue does not include school operating taxes levied

 

within the geographic area of the dissolved district.

 

       (I) (h) "Local school operating revenue per membership pupil" means a

 

district's local school operating revenue divided by the district's membership

 

excluding special education pupils.

 

       (J) (i) "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 AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION

 

ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR AND THE BASIC FOUNDATION FOR the

 

immediately preceding state fiscal year to the current state fiscal year made in the

 

basic foundation allowance and [(the dollar amount of the adjustment from the AMOUNT

 

OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL

 

YEAR AND THE BASIC FOUNDATION FOR THE immediately preceding state fiscal year to the

 

current state fiscal year made in the basic foundation allowance minus $10.00 $8.00)

 

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 MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL

 

YEAR) divided by the difference between the basic foundation allowance for the current

 

state fiscal year and the 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 MINIMUM FOUNDATION

 

ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR].

 

       (K) (j) "Membership" means the definition of that term under section 6 as in

 

effect for the particular fiscal year for which a particular calculation is made.

 

       (L) "MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL

 

YEAR," MEANS $7,076.00.

 

       (M) (k) "Nonexempt property" means property that is not a principal residence,

 

qualified agricultural property, qualified forest property, supportive housing

 

property, industrial personal property, or commercial personal property.

 


       (N) (l) "Principal residence", "qualified agricultural property", "qualified

 

forest property", "supportive housing property", "industrial personal property", and

 

"commercial personal property" mean those terms as defined in section 1211 of the

 

revised school code, MCL 380.1211.

 

       (O) (m) "Receiving district" means a district to which all or part of the

 

territory of a dissolved district is attached under section 12 of the revised school

 

code, MCL 380.12.

 

       (P) (n) "School operating purposes" means the purposes included in the

 

operation costs of the district as prescribed in sections 7 and 18 and purposes

 

authorized under section 1211 of the revised school code, MCL 380.1211.

 

       (Q) (o) "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.

 

       (R) (p) "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.

 

       (S) (q) "Taxable value per membership pupil" means taxable value, as certified

 

by the department of treasury COUNTY TREASURER AND REPORTED TO THE DEPARTMENT, for the

 

calendar year ending in the current state fiscal year divided by the district's

 

membership excluding special education pupils for the school year ending in the

 

current state fiscal year.

 

       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 2013-2014 2014-2015, the department and

 

the department of treasury shall comply with all of the following:

 


       (a) For a district that had combined state 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. 20f. (1) From the funds appropriated in section 11, there is allocated an

 

amount not to exceed $6,000,000.00 for 2013-2014 2014-2015 for payments to eligible

 


districts under this section. A district is eligible for funding under this section if

 

the sum of the following is less than $5.00:

 

       (a) The increase in the district's foundation allowance or per pupil payment as

 

calculated under section 20 from 2012-2013 to 2013-2014.

 

       (b) The district's equity payment per membership pupil under section 22c.

 

       (c) The quotient of the district's allocation under section 147a for 2012-2013

 

divided by the district's membership pupils for 2012-2013 minus the quotient of the

 

district's allocation under section 147a for 2013-2014 divided by the district's

 

membership pupils for 2013-2014 DISTRICT RECEIVED A PAYMENT UNDER THIS SECTION AS IT

 

WAS IN EFFECT FOR 2013-2014.

 

       (2) The amount allocated to each eligible district under this section is an

 

amount per membership pupil equal to $5.00 minus the sum of the following:

 

       (a) The increase in the district's foundation allowance or per pupil payment as

 

calculated under section 20 from 2012-2013 to 2013-2014.

 

       (b) The district's equity payment per membership pupil under section 22c.

 

       (c) The quotient of the district's allocation under section 147a for 2012-2013

 

divided by the district's membership pupils for 2012-2013 minus the quotient of the

 

district's allocation under section 147a for 2013-2014 divided by the district's

 

membership pupils for 2013-2014 THE AMOUNT PER MEMBERSHIP PUPIL THE DISTRICT RECEIVED

 

IN 2013-2014.

 

       (3) IF THE ALLOCATION UNDER SUBSECTION (1) IS INSUFFICIENT TO FULLY FUND

 

PAYMENTS AS OTHERWISE CALCULATED UNDER THIS SECTION, THE DEPARTMENT SHALL PRORATE

 

PAYMENTS UNDER THIS SECTION ON AN EQUAL PER-PUPIL BASIS.

 

       Sec. 20g. (1) From the general fund money FUNDS appropriated under section 11,

 

there is allocated an amount not to exceed $2,200,000.00 for 2013-2014 2014-2015 for

 

grants to eligible districts for transition costs related to the enrollment of pupils

 

who were previously enrolled in a district that was dissolved under section 12 of the

 


revised school code, MCL 380.12 AND FIRST RECEIVED PAYMENTS UNDER THIS SECTION IN

 

2013-2014. It is the intent of the legislature to continue this transition funding

 

FUNDING UNDER THIS SECTION WILL CONTINUE for a total of 4 fiscal years following the

 

dissolution of a district, AT WHICH TIME PAYMENTS WILL CEASE.

 

       (2) A receiving school district, as that term is defined in section 12 of the

 

revised school code, MCL 380.12, is an eligible district under this section.

 

       (3) The amount allocated to each eligible district under this section is an

 

amount equal to the product of the number of membership pupils enrolled in the

 

eligible district who were previously enrolled in the dissolved district in the school

 

year immediately preceding the dissolution, or who reside in the geographic area of

 

the dissolved district and are entering kindergarten, times 10.0% of the lesser of the

 

foundation allowance of the eligible district as calculated under section 20 or the

 

basic foundation allowance under section 20(1).

 

       Sec. 21f. (1) A pupil enrolled in a district in any of grades  5  7 to 12 is

 

eligible to enroll in an online course as provided for in this section. However, this

 

section does not apply to a pupil enrolled in a school of excellence that is a cyber

 

school, as defined in section 551 of the revised school code, MCL 380.551.

 

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

 

enroll an eligible pupil in up to 2 online courses as DEFINED IN THIS SECTION AND

 

requested by the pupil during an academic term, semester, or trimester. It is the

 

intent of the legislature to consider increasing the limit on the number of online

 

courses that a pupil may enroll in beginning in 2014-2015 for pupils who have

 

demonstrated previous success with online courses. A district may not establish

 

additional requirements which would prohibit a pupil from taking an online course. IF

 

A PUPIL HAS DEMONSTRATED PREVIOUS SUCCESS WITH ONLINE COURSES AND THE SCHOOL

 

LEADERSHIP AND THE PUPIL'S PARENT OR GUARDIAN DETERMINE THAT IT IS IN THE BEST

 

INTEREST OF THE PUPIL, A PUPIL MAY BE ENROLLED IN MORE THAN 2 ONLINE COURSES IN A

 


SPECIFIC ACADEMIC TERM, SEMESTER, OR TRIMESTER. Consent of the pupil's parent or legal

 

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

 

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

 

educating district's catalog of online courses described in subsection (7)(a) or the

 

statewide catalog of online courses maintained by the Michigan virtual university

 

pursuant to section 98.

 

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

 

applications for enrollment from nonresident applicants in online courses and may use

 

that limit as the reason for refusal to enroll an applicant. If the number of

 

nonresident applicants eligible for acceptance in an online course does not exceed the

 

capacity of the district to provide the online course, the district shall accept for

 

enrollment all of the nonresident applicants eligible for acceptance. If the number of

 

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

 

the district shall use a random draw system, subject to the need to abide by state and

 

federal antidiscrimination laws and court orders.

 

       (5) A district may deny a pupil enrollment in an online course if any of the

 

following apply, as determined by the district:

 

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

 

the online course.

 

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

 

       (c) The online course is inconsistent with the remaining graduation

 

requirements or career interests of the pupil.

 

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

 

successful in the online course or has demonstrated failure in previous online

 

coursework in the same subject.

 

       (e) The online course is of insufficient quality or rigor. A district that

 

denies a pupil enrollment for this reason shall make a reasonable effort to assist the

 


pupil to find an alternative course in the same or a similar subject that is of

 

acceptable rigor and quality.

 

       (f) If the cost of the online course exceeds the amount identified in

 

SUBSECTION (8).

 

       (G) the online course enrollment request does not occur within the same

 

timelines established by the district for face-to-face enrollment and schedule

 

changes.

 

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

 

pupil may appeal the denial by submitting a letter to the superintendent of the

 

intermediate district in which the pupil's educating district is located. The letter

 

of appeal shall include the reason provided by the district for not enrolling the

 

pupil and the reason why the pupil is claiming that the enrollment should be approved.

 

The intermediate district superintendent or designee shall respond to the appeal

 

within 5 days after it is received. If the intermediate district superintendent or

 

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

 

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

 

the online course.

 

       (7) To offer or provide an online course UNDER THIS SECTION, a district OR

 

INTERMEDIATE DISTRICT shall do all of the following:

 

       (a) Provide the Michigan virtual university with the course syllabus in a form

 

and method prescribed by the Michigan virtual university for inclusion in a statewide

 

online course catalog. The district OR INTERMEDIATE DISTRICT shall also provide on its

 

publicly accessible website a link to the course syllabi for all of the online courses

 

offered by the district OR INTERMEDIATE DISTRICT and a link to the statewide catalog

 

of online courses maintained by the Michigan virtual university.

 

       (b) Offer the online course on an open entry and exit method, or aligned to a

 

semester, trimester, or accelerated academic term format.

 


       (c) Not later than OCTOBER 1, 2014, provide the Michigan virtual university with

 

the number of enrollments in each online course the district OR INTERMEDIATE DISTRICT

 

offered to pupils PURSUANT TO THIS SECTION in the prior school year, and The number of

 

enrollments that earned 60 percent or More of the total course points for each online

 

course.

 

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

 

educating district's catalog of online courses under subsection (7) or in the

 

statewide catalog of online courses maintained by the Michigan virtual university, the

 

district shall use foundation allowance or per pupil funds calculated under section 20

 

to pay for the expenses associated with the online course or courses. The district

 

shall pay 80% of the cost of the online course upon enrollment and 20% upon completion

 

as determined by the district. A district is not required to pay toward the cost of an

 

online course an amount that exceeds 1/12 6.25% of the district's MINIMUM foundation

 

allowance or per pupil payment FOR THE CURRENT FISCAL YEAR as calculated under section

 

20 per semester or an amount that exceeds 1/18 of the district's foundation allowance

 

or per pupil payment as calculated under section 20 per trimester.

 

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

 

technology in his or her PRIMARY educating district's school facilities as all other

 

pupils enrolled in the PRIMARY educating district.

 

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

 

PRIMARY district, the pupil's PRIMARY district shall grant appropriate academic credit

 

for completion of the course and shall count that credit toward completion of

 

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

 

identify the online course title as it appears in the online course syllabus.

 

       (11) The enrollment of a pupil in 1 or more online courses shall not result in

 

a pupil being counted as more than 1.0 full-time equivalent pupils under this act

 

ARTICLE.

 


       (12) As used in this section:

 

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

 

credit or a grade, that is provided in an interactive internet-connected learning

 

environment, in which pupils are separated from their teachers by time or location, or

 

both, and in which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for each pupil,

 

diagnosing learning needs, assessing pupil learning, prescribing intervention

 

strategies, reporting outcomes, and evaluating the effects of instruction and support

 

strategies.

 

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

 

following:

 

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

 

       (ii) The online course content outline.

 

       (iii) The online course required assessments.

 

       (iv) The online course prerequisites.

 

       (v) Expectations for actual instructor contact time with the online learning

 

pupil and other pupil-to-instructor communications.

 

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

 

       (vii) The online course learning outcomes and objectives.

 

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

 

content.

 

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

 

instructor.

 

       (x) The course titles assigned by the district OR INTERMEDIATE DISTRICT and the

 

course titles and course codes from the national center for education statistics

 

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

 

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

 


district OR INTERMEDIATE DISTRICT in the online course.

 

       (xii) The results of the online course quality review using the guidelines and

 

model review process published by the Michigan virtual university.

 

       (c) "Online learning pupil" means a pupil enrolled in 1 or more online courses.

 

       (D) "PRIMARY DISTRICT" MEANS THE DISTRICT THAT ENROLLS THE PUPIL AND REPORTS

 

THE FTE FOR PUPIL MEMBERSHIP PURPOSES.

 

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

 

amount not to exceed $5,630,000,000.00 for 2012-2013 and there is allocated an amount

 

not to exceed $5,536,700,000.00 $5,403,000,000.00 for 2013-2014 2014-2015 for payments

 

to districts and qualifying public school academies to guarantee each district and

 

qualifying public school academy an amount equal to its 1994-95 total state and local

 

per pupil revenue for school operating purposes under section 11 of article IX of the

 

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

 

constitution of 1963, this guarantee does not apply to a district in a year in which

 

the district levies a millage rate for school district operating purposes less than it

 

levied in 1994. However, subsection (2) applies to calculating the payments under this

 

section. Funds allocated under this section that are not expended in the state fiscal

 

year for which they were allocated, as determined by the department, may be used to

 

supplement the allocations under sections 22b and 51c in order to fully fund those

 

calculated allocations for the same fiscal year.

 

       (2) To ensure that a district receives an amount equal to the district's 1994-

 

95 total state and local per pupil revenue for school operating purposes, there is

 

allocated to each district a state portion of the district's 1994-95 foundation

 

allowance in an amount calculated as follows:

 

       (a) Except as otherwise provided in this subsection, the state portion of a

 

district's 1994-95 foundation allowance is an amount equal to the district's 1994-95

 

foundation allowance or $6,500.00, whichever is less, minus the difference between the

 


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

 

district that is nonexempt property times the district's certified mills and, for a

 

district with certified mills exceeding 12, the product of the taxable value per

 

membership pupil of property in the district that is commercial personal property

 

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

 

tax revenue of the district captured under tax increment financing acts divided by the

 

district's membership. For a district that has a millage reduction required under

 

section 31 of article IX of the state constitution of 1963, the state portion of the

 

district's foundation allowance shall be calculated as if that reduction did not

 

occur. For a receiving district, if school operating taxes are to be levied on behalf

 

of a dissolved district that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, taxable value per membership pupil of all property in

 

the receiving district that is nonexempt property and taxable value per membership

 

pupil of property in the receiving district that is commercial personal property do

 

not include property within the geographic area of the dissolved district; ad valorem

 

property tax revenue of the receiving district captured under tax increment financing

 

acts does not include ad valorem property tax revenue captured within the geographic

 

boundaries of the dissolved district under tax increment financing acts; and certified

 

mills do not include the certified mills of the dissolved district.

 

       (b) For a district that had a 1994-95 foundation allowance greater than

 

$6,500.00, the state payment under this subsection shall be the sum of the amount

 

calculated under subdivision (a) plus the amount calculated under this subdivision.

 

The amount calculated under this subdivision shall be equal to the difference between

 

the district's 1994-95 foundation allowance minus $6,500.00 and the current year hold

 

harmless school operating taxes per pupil. If the result of the calculation under

 

subdivision (a) is negative, the negative amount shall be an offset against any state

 


payment calculated under this subdivision. If the result of a calculation under this

 

subdivision is negative, there shall not be a state payment or a deduction under this

 

subdivision. The taxable values per membership pupil used in the calculations under

 

this subdivision are as adjusted by ad valorem property tax revenue captured under tax

 

increment financing acts divided by the district's membership. For a receiving

 

district, if school operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the revised school code, MCL

 

380.12, ad valorem property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the geographic boundaries

 

of the dissolved district under tax increment financing acts.

 

       (3) Beginning in 2003-2004, for pupils in membership in a qualifying public

 

school academy, there is allocated under this section to the authorizing body that is

 

the fiscal agent for the qualifying public school academy for forwarding to the

 

qualifying public school academy an amount equal to the 1994-95 per pupil payment to

 

the qualifying public school academy under section 20.

 

       (4) A district or qualifying public school academy may use funds allocated

 

under this section in conjunction with any federal funds for which the district or

 

qualifying public school academy otherwise would be eligible.

 

       (5) Except as otherwise provided in this subsection, for a district that is

 

formed or reconfigured after June 1, 2000 by consolidation of 2 or more districts or

 

by annexation, the resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or annexation shall be

 

the average of the 1994-95 foundation allowances of each of the original or affected

 

districts, calculated as provided in this section, weighted as to the percentage of

 

pupils in total membership in the resulting district in the state fiscal year in which

 

the consolidation takes place who reside in the geographic area of each of the

 


original districts. If an affected district's 1994-95 foundation allowance is less

 

than the 1994-95 basic foundation allowance, the amount of that district's 1994-95

 

foundation allowance shall be considered for the purpose of calculations under this

 

subsection to be equal to the amount of the 1994-95 basic foundation allowance. This

 

subsection does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

       (6) As used in this section:

 

       (a) "1994-95 foundation allowance" means a district's 1994-95 foundation

 

allowance calculated and certified by the department of treasury or the superintendent

 

under former section 20a as enacted in 1993 PA 336 and as amended by 1994 PA 283.

 

       (b) "Certified mills" means the lesser of 18 mills or the number of mills of

 

school operating taxes levied by the district in 1993-94.

 

       (c) "Current state fiscal year" means the state fiscal year for which a

 

particular calculation is made.

 

       (d) "Current year hold harmless school operating taxes per pupil" means the per

 

pupil revenue generated by multiplying a district's 1994-95 hold harmless millage by

 

the district's current year taxable value per membership pupil. For a receiving

 

district, if school operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the revised school code, MCL

 

380.12, taxable value per membership pupil does not include the taxable value of

 

property within the geographic area of the dissolved district.

 

       (e) "Dissolved district" means a district that loses its organization, has its

 

territory attached to 1 or more other districts, and is dissolved as provided under

 

section 12 of the revised school code, MCL 380.12.

 

       (f) "Hold harmless millage" means, for a district with a 1994-95 foundation

 

allowance greater than $6,500.00, the number of mills by which the exemption from the

 


levy of school operating taxes on a homestead, qualified agricultural property,

 

qualified forest property, supportive housing property, industrial personal property,

 

and commercial personal property could be reduced as provided in section 1211 of the

 

revised school code, MCL 380.1211, and the number of mills of school operating taxes

 

that could be levied on all property as provided in section 1211(2) of the revised

 

school code, MCL 380.1211, as certified by the department of treasury for the 1994 tax

 

year. For a receiving district, if school operating taxes are to be levied on behalf

 

of a dissolved district that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not include school

 

operating taxes levied within the geographic area of the dissolved district.

 

       (g) "Homestead", "qualified agricultural property", "qualified forest

 

property", "supportive housing property", "industrial personal property", and

 

"commercial personal property" mean those terms as defined in section 1211 of the

 

revised school code, MCL 380.1211.

 

       (h) "Membership" means the definition of that term under section 6 as in effect

 

for the particular fiscal year for which a particular calculation is made.

 

       (i) "Nonexempt property" means property that is not a principal residence,

 

qualified agricultural property, qualified forest property, supportive housing

 

property, industrial personal property, or commercial personal property.

 

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

 

in operation in the 1994-95 school year and is in operation in the current state

 

fiscal year.

 

       (k) "Receiving district" means a district to which all or part of the territory

 

of a dissolved district is attached under section 12 of the revised school code, MCL

 

380.12.

 

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

 


section 1211 of the revised school code, MCL 380.1211, and retained for school

 

operating purposes as defined in section 20.

 

       (m) "Tax increment financing acts" means 1975 PA 197, MCL 125.1651 to 125.1681,

 

the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the

 

local development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor

 

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.

 

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

 

the district's membership:

 

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

 

operating taxes on a homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal property, and commercial

 

personal property may be reduced as provided in section 1211 of the revised school

 

code, MCL 380.1211, the taxable value of homestead, qualified agricultural property,

 

qualified forest property, supportive housing property, industrial personal property,

 

and commercial personal property for the calendar year ending in the current state

 

fiscal year. For a receiving district, if school operating taxes are to be levied on

 

behalf of a dissolved district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved district under section

 

12 of the revised school code, MCL 380.12, mills do not include mills within the

 

geographic area of the dissolved district.

 

       (ii) For the number of mills of school operating taxes that may be levied on

 

all property as provided in section 1211(2) of the revised school code, MCL 380.1211,

 

the taxable value of all property for the calendar year ending in the current state

 

fiscal year. For a receiving district, if school operating taxes are to be levied on

 

behalf of a dissolved district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved district under section

 


12 of the revised school code, MCL 380.12, school operating taxes do not include

 

school operating taxes levied within the geographic area of the dissolved district.

 

       Sec. 22b. (1) From the appropriation in section 11, there is allocated an

 

amount not to exceed $3,215,000,000.00 for 2012-2013 and there is allocated an amount

 

not to exceed $3,373,700,000.00 $3,578,000,000.00 for 2013-2014 2014-2015 for

 

discretionary nonmandated payments to districts under this section. Funds allocated

 

under this section that are not expended in the state fiscal year for which they were

 

allocated, as determined by the department, may be used to supplement the allocations

 

under sections 22a and 51c in order to fully fund those calculated allocations for the

 

same fiscal year.

 

       (2) Subject to subsection (3) and section 296, the allocation to a district

 

under this section shall be an amount equal to the sum of the amounts calculated under

 

sections 20, 51a(2), 51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c.

 

       (3) In order to receive an allocation under subsection (1), each district shall

 

do all of the following:

 

       (a) Comply with section 1280b of the revised school code, MCL 380.1280b.

 

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

 

380.1278a and 380.1278b.

 

       (c) Furnish data and other information required by state and federal law to the

 

center and the department in the form and manner specified by the center or the

 

department, as applicable.

 

       (d) Comply with section 1230g of the revised school code, MCL 380.1230g.

 

       (e) Comply with section 21f.

 

       (4) 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 related to commercial or

 

industrial property tax appeals, including, but not limited to, appeals of

 

classification, that impact revenues dedicated to the state school aid fund.

 

       (6) From the allocation in subsection (1), the department shall pay up to

 

$1,000,000.00 in litigation costs incurred by this state associated with lawsuits

 

filed by 1 or more districts or intermediate districts against this state. If the

 

allocation under this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be made in full before

 

any proration of remaining payments under this section.

 

       (7) It is the intent of the legislature that all constitutional obligations of

 

this state have been fully funded under sections 22a, 31d, 51a, 51c, and 152a. If a

 

claim is made by an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or alleges that there exists

 

an unfunded constitutional requirement, the state budget director may escrow or

 

allocate from the discretionary funds for nonmandated payments under this section the

 

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

 

districts under subsection (2). If funds are escrowed, the escrowed funds are a work

 

project appropriation and the funds are carried forward into the following fiscal

 

year. The purpose of the work project is to provide for any payments that may be

 

awarded to districts as a result of litigation. The work project shall be completed

 

upon resolution of the litigation.

 

       (8) If the local claims review board or a court of competent jurisdiction makes

 

a final determination that this state is in violation of section 29 of article IX of

 

the state constitution of 1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) 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).

 

       (9) If a claim is made in court that challenges the legislative determination

 

of the adequacy of funding for this state's constitutional obligations or alleges that

 

there exists an unfunded constitutional requirement, any interested party may seek an

 

expedited review of the claim by the local claims review board. If the claim exceeds

 

$10,000,000.00, this state may remove the action to the court of appeals, and the

 

court of appeals shall have and shall exercise jurisdiction over the claim.

 

       (10) If payments resulting from a final determination by the local claims

 

review board or a court of competent jurisdiction that there has been a violation of

 

section 29 of article IX of the state constitution of 1963 exceed the amount allocated

 

for discretionary nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional obligations at its next

 

legislative session.

 

       (11) If a lawsuit challenging payments made to districts related to costs

 

reimbursed by federal title XIX medicaid funds is filed against this state, then, for

 

the purpose of addressing potential liability under such a lawsuit, the state budget

 

director 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. 22d. (1) From the appropriation in section 11, an amount not to exceed

 

$2,584,600.00 is allocated for 2013-2014 2014-2015 for supplemental payments to rural

 

districts under this section.

 

       (2) From the allocation under subsection (1), there is allocated for 2013-2014

 

2014-2015 an amount not to exceed $957,300.00 for payments under this subsection to

 

districts that meet all of the following:

 

       (a) Operates grades K to 12.

 

       (b) Has fewer than 250 pupils in membership.

 

       (c) Each school building operated by the district meets at least 1 of the

 

following:

 

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

 

school building.

 

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

 

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

 

subsection (2) shall be determined under a spending plan developed as provided in this

 

subsection and approved by the superintendent of public instruction. The spending plan

 

shall be developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The intermediate

 

superintendents shall review the financial situation of each eligible district,

 

determine the minimum essential financial needs of each eligible district, and develop

 

and agree on a spending plan that distributes the available funding under subsection

 

(2) to the eligible districts based on those financial needs. The intermediate

 

superintendents shall submit the spending plan to the superintendent of public

 

instruction for approval. Upon approval by the superintendent of public instruction,

 

the amounts specified for each eligible district under the spending plan are allocated

 


under subsection (2) and shall be paid to the eligible districts in the same manner as

 

payments under section 22b.

 

       (4) Subject to subsection (6), from the allocation in subsection (1), there is

 

allocated for 2013-2014 2014-2015 an amount not to exceed $1,627,300.00 for payments

 

under this subsection to districts that meet all of the following:

 

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

 

department.

 

       (b) The district has a total square mileage greater than 200.0 or is 1 of 2

 

districts that have consolidated transportation services and have a combined total

 

square mileage greater than 200.0.

 

       (5) The funds allocated under subsection (4) shall be allocated on an equal per

 

pupil basis.

 

       (6) A district receiving funds allocated under subsection (2) is not eligible

 

for funding allocated under subsection (4).

 

       Sec. 22f. (1) From the appropriation in section 11, there is allocated for

 

2013-2014 2014-2015 an amount not to exceed $80,000,000.00 to provide incentive

 

payments to districts that meet best practices under this section. Payments received

 

under this section may be used for any purpose for which payments under sections 22a

 

and 22b may be used.

 

       (2) The amount of the incentive payment under this section is an amount equal

 

to $52.00 per pupil. A district shall receive an incentive payment under this section

 

if the district satisfies at least 7 of the following requirements not later than June

 

1, 2014 2015:

 

       (a) If a district provides medical, pharmacy, dental, vision, disability, long-

 

term care, or any other type of benefit that would constitute a health care services

 

benefit, to employees and their dependents, the district is the policyholder for each

 

of its insurance policies that covers 1 or more of these benefits. A district that

 


does not directly employ its staff or a district with a voluntary employee beneficiary

 

association that pays no more than the maximum per employee contribution amount and

 

that contributes no more than the maximum employer contribution percentage of total

 

annual costs for the medical benefit plans as described in sections 3 and 4 of the

 

publicly funded health insurance contribution act, 2011 PA 152, MCL 15.563 and 15.564,

 

is considered to have satisfied this requirement.

 

       (b) The district has obtained competitive bids on the provision of pupil

 

transportation, food service, custodial, or 1 or more other noninstructional services

 

for 2013-2014 2014-2015. In comparing competitive bids to the current costs of

 

providing 1 or more of these services, a district shall exclude the unfunded accrued

 

liability costs for retirement and other benefits from the district's current costs.

 

       (c) The district accepts applications for enrollment by nonresident applicants

 

under section 105 or 105c. A public school academy is considered to have met this

 

requirement.

 

       (d) The district monitors individual pupil academic growth in each subject area

 

at least twice during the school year using competency-based online assessments and

 

reports those results to the pupil and his or her parent or guardian, or provides the

 

department with a plan and is able to show progress toward developing the technology

 

infrastructure necessary for the implementation of pupil academic growth assessments

 

by 2014-2015.

 

       (e) The district supports opportunities for pupils to receive postsecondary

 

credit while attending secondary school, by doing at least 1 of the following, and

 

makes all eligible pupils and their parents or guardians aware of these opportunities:

 

       (i) Supports attendance of district pupils under the postsecondary enrollment

 

options act, MCL 388.511 to 388.524, or under the career and technical preparation

 

act, MCL 388.1901 to 388.1913, consistent with provisions under section 21b.

 

       (ii) Offers college-level equivalent courses, as defined in section 1471 of the

 


revised school code, MCL 380.1471.

 

       (iii) Participates in a middle college. For the purposes of this subparagraph,

 

"middle college" means a series of courses and other requirements and conditions that

 

allow a pupil to graduate with a high school diploma and a certificate or degree from

 

a community college or state public university.

 

       (iv) Provides other opportunities to pupils that allow those pupils to graduate

 

with a high school diploma and also complete coursework that a postsecondary

 

institution normally applies toward satisfaction of degree requirements.

 

       (v) If a district does not offer any high school grades, the district informs

 

all pupils and parents of the opportunities that are available for postsecondary

 

options during high school.

 

       (f) The district offers online courses or blended learning opportunities to all

 

eligible pupils. In order to satisfy this requirement, a district must make all

 

eligible pupils and their parents or guardians aware of these opportunities and must

 

publish an online course syllabus as described in section 21f for each online course

 

that the district offers. For the purposes of this subdivision:

 

       (i) "Blended learning" means a hybrid instructional delivery model where pupils

 

are provided content, instruction, and assessment in part at a supervised educational

 

facility away from home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through internet-connected

 

learning environments with some degree of pupil control over time, location, and pace

 

of instruction.

 

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

 

credit or a grade, that is provided in an interactive internet-connected learning

 

environment, in which pupils are separated from their teachers by time or location, or

 

both, and in which a teacher with a valid Michigan teaching certificate is responsible

 

for determining appropriate instructional methods for each pupil, diagnosing learning

 


needs, assessing pupil learning, prescribing intervention strategies, reporting

 

outcomes, and evaluating the effects of instruction and support strategies.

 

       (g) The district provides to parents and community members a dashboard or

 

report card demonstrating the district's efforts to manage its finances responsibly.

 

The dashboard or report card shall include revenue and expenditure projections for the

 

district for fiscal year 2013-2014 and fiscal year 2014-2015 AND FISCAL YEAR 2015-

 

2016, a listing of all debt service obligations, detailed by project, including

 

anticipated fiscal year 2013-2014 2014-2015 payment for each project, a listing of

 

total outstanding debt, and at least all of the following for the 3 most recent school

 

years for which the data are available:

 

       (i) Graduation and dropout rates.

 

       (ii) Average class size in grades kindergarten to 3.

 

       (iii) College readiness as measured by Michigan merit examination test scores.

 

       (iv) Elementary and middle school MEAP scores.

 

       (v) Teacher, principal, and superintendent salary information including at

 

least minimum, average, and maximum pay levels.

 

       (vi) General fund balance.

 

       (vii) The total number of days of instruction provided.

 

       (h) The district provides physical education or provides health education.

 

       (3) If the department determines that a district has intentionally submitted

 

false information in order to qualify for an incentive payment under this section, the

 

district forfeits an amount equal to the amount it received under this section from

 

its total state school aid for 2014-2015 2015-2016.

 

       (4) If the department determines that funds allocated under this section will

 

remain unexpended after the initial allocation of $52.00 per pupil to eligible

 

districts under subsection (2), the remaining unexpended amount is allocated on an

 

equal per pupil basis to districts that meet the requirements of subsection (2) and

 


that have a foundation allowance, as calculated under section 20, in an amount that is

 

less than the basic foundation allowance under that section.

 

       Sec. 22g. (1) From the funds appropriated in section 11, there is allocated for

 

2013-2014 2014-2015 only an amount not to exceed $5,000,000.00 for competitive

 

assistance grants to districts and intermediate districts.

 

       (2) Funds received under this section may be used for reimbursement of

 

transition costs associated with the consolidation of OPERATIONS OR SERVICES BETWEEN 2

 

OR MORE DISTRICTS, INTERMEDIATE DISTRICTS, OR OTHER LOCAL UNITS OF GOVERNMENT OR THE

 

CONSOLIDATION OF districts or intermediate districts. Grant funding shall be available

 

for consolidations that occur on or after June 1, 2013 2014. The department shall

 

develop an application process and method of grant distribution.

 

       Sec. 22i. (1) From the state school aid fund money FUNDS appropriated in

 

section 11, there is allocated for 2013-2014 2014-2015 an amount not to exceed

 

$45,000,000.00 $50,000,000.00 for the technology infrastructure grant program for

 

districts or intermediate districts on behalf of their constituent districts. Funds

 

received under this subsection shall be used for the development or improvement of a

 

district's technology infrastructure, the shared services consolidation of technology

 

and data, and hardware in preparation for the planned implementation in 2014-2015 of

 

online growth assessments.

 

       (2) The department shall develop a competitive application process and method

 

of grant distribution to eligible districts and intermediate districts that

 

demonstrate need for grants under subsection (1). The department may consult with the

 

department of technology, management, and budget during the grant process and grant

 

distribution. Grants to districts shall not exceed $2,000,000.00 per district. A grant

 

to an intermediate district on behalf of its constituent districts shall not exceed

 

$2,000,000.00 per constituent district. To receive a grant under subsection (1), an

 

intermediate district shall demonstrate that a grant awarded to the intermediate

 


district on behalf of its constituent districts would provide savings compared to

 

providing grants to individual districts.

 

       (3) From the general fund money appropriated in section 11, there is allocated

 

an amount not to exceed $5,000,000.00 for 2013-2014 to be awarded through a

 

competitive bid process to a single provider of whole-school technology as described

 

in this subsection. The department shall issue a single request for proposal with

 

application rules written and administered by the department, and with a focus on

 

economic and geographic diversity. To be eligible to receive the grant under this

 

section, a provider shall meet all of the following:

 

       (a) Agrees to submit evaluation criteria in a form and manner determined by the

 

department.

 

       (b) Provides at least all of the following:

 

       (i) One-to-one mobile devices.

 

       (ii) Laptop or desktop computers for each classroom.

 

       (iii) On- and off-campus filtering.

 

       (iv) Wireless networks and peripherals.

 

       (v) Wireless audio equipment.

 

       (vi) Operating software.

 

       (vii) Instructional software.

 

       (viii) Repairs and replacements.

 

       (ix) Professional development.

 

       (x) Ongoing support.

 

       (3) FROM THE AMOUNT ALLOCATED IN SUBSECTION (1), THERE IS ALLOCATED FOR 2014-

 

2015 AN AMOUNT NOT TO EXCEED $8,500,000.00 FOR the FOLLOWING PURPOSES:

 

       (A) Converting existing student assessments to online assessments.

 

       (B) Providing paper and pencil test versions to districts not prepared to

 

implement online assessments.

 


       (C) Expanding writing assessments to additional grade levels.

 

       (D) Providing an increased number of constructed response test questions so

 

that pupils can demonstrate higher-order skills such as problem solving and

 

communicating reasoning.

 

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

 

2013-2014 2014-2015 an amount not to exceed $46,400,000.00 to provide separate

 

incentive payments to districts that meet student academic performance funding goals

 

under subsections (2) to (5). Payments received under this section may be used for any

 

purpose for which payments under sections 22a and 22b may be used.

 

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

 

performance is an amount equal to $100.00 per pupil. Payments calculated and awarded

 

to qualifying districts under subsections (3) to (5) shall be calculated and awarded

 

separately, and a district may receive a payment under any or all of subsections (3)

 

to (5).

 

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

 

subsection (2) shall be used to make performance incentive payments to qualifying

 

districts under this subsection based on pupil performance on state assessments in

 

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

 

amount equal to $30.00 per pupil for all pupils in membership in a qualifying

 

district. The department shall determine the qualifying districts under this

 

subsection as follows:

 

       (a) Using a model determined by the department that incorporates the most

 

recent cut scores adopted for the Michigan educational assessment program for each

 

pupil in grades 3 to 8 in the 2011-2012 2012-2013 school year, the department shall

 

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

 

follows:

 

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

 


mathematics and who declines in proficiency, as determined by the department, over the

 

school year, 0 points.

 

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

 

mathematics and declines in proficiency, as determined by the department, over the

 

school year, 0 points.

 

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

 

mathematics and who maintains his or her level of proficiency, as determined by the

 

department, over the school year, 1 point.

 

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

 

mathematics and who maintains his or her level of proficiency, as determined by the

 

department, over the school year, 2 points.

 

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

 

mathematics and who improves in proficiency, as determined by the department, over the

 

school year, 3 points.

 

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

 

mathematics and who improves in proficiency, as determined by the department, over the

 

school year, 2 points.

 

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

 

the 2011-2012 2012-2013 school year by totaling the number of points for all pupils in

 

grades 3 to 8 under subdivision (a) and dividing that total by the number of those

 

pupils.

 

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

 

if the district average for the 2011-2012 2012-2013 school year under subdivision (b)

 

is at least equal to a factor of 1.5, and the district tested at least 95% of its

 

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

 

grades 3 to 8 with a performance level change designation in mathematics.

 

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

 


subsection (2) shall be used to make performance incentive payments to qualifying

 

districts under this subsection based on pupil performance on state assessments in

 

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

 

equal to $30.00 per pupil for all pupils in membership in the district. The department

 

shall determine the qualifying districts under this subsection as follows:

 

       (a) Using a model determined by the department that incorporates the most

 

recent cut scores adopted for the Michigan educational assessment program for each

 

pupil in grades 3 to 8 in the 2011-2012 2012-2013 school year, the department shall

 

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

 

follows:

 

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

 

reading and who declines in proficiency, as determined by the department, over the

 

school year, 0 points.

 

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

 

reading and declines in proficiency, as determined by the department, over the school

 

year, 0 points.

 

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

 

reading and who maintains proficiency, as determined by the department, over the

 

school year, 1 point.

 

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

 

reading and who maintains proficiency, as determined by the department, over the

 

school year, 2 points.

 

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

 

reading and who improves in proficiency, as determined by the department, over the

 

school year, 3 points.

 

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

 

reading and who improves in proficiency, as determined by the department, over the

 


school year, 2 points.

 

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

 

the 2011-2012 2012-2013 school year by totaling the number of points for all pupils in

 

grades 3 to 8 under subdivision (a) and dividing that total by the number of those

 

pupils.

 

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

 

if the district average for the 2011-2012 2012-2013 school year under subdivision (b)

 

is at least equal to a factor of 1.5, and the district tested at least 95% of its

 

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

 

grades 3 to 8 reading with a performance level change designation in reading.

 

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

 

subsection (2) shall be used to make performance incentive payments to qualifying

 

districts under this subsection for high school improvement using a metric based on

 

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

 

district testing as proficient in all tested subject areas on the state assessments of

 

high school pupils. The amount of a payment under this subsection is an amount equal

 

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

 

determine the qualifying districts under this subsection as follows:

 

       (a) Calculate a linear regression of the percentage of high school pupils in

 

the district testing as proficient in all tested subject areas on state assessments of

 

high school pupils on school year over the 4-year period ending with the 2011-2012

 

2012-2013 school year as adjusted for changes in cut scores most recently adopted for

 

the Michigan merit examination.

 

       (b) Calculate a statewide average for all districts operating a high school of

 

the linear regression of the percentage of high school pupils testing as proficient in

 

all tested subject areas on state assessments of high school pupils on school year

 

over the 4-year period ending with the 2011-2012 2012-2013 school year, as adjusted

 


for changes in cut scores most recently adopted for the Michigan merit examination as

 

the base year for all comparisons.

 

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

 

if the district's linear regression over the 4-year period ending with the 2011-2012

 

2012-2013 school year under subdivision (a) is at least equal to the statewide average

 

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

 

(b), and the district's linear regression over the 4-year period ending with the 2011-

 

2012 2012-2013 school year under subdivision (a) is positive, and the district tested

 

95% of high school pupils in each tested subject on state assessments, and the

 

district had at least 20 full academic year pupils take all tested subjects on state

 

assessments of high school pupils over each of the most recent 4 years.

 

       (6) If the allocation under subsection (1) is insufficient to fully fund

 

payments as otherwise calculated under this section, the department shall prorate

 

payments under this section on an equal percentage basis.

 

       Sec. 24. (1) From the appropriation in section 11, there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $8,000,000.00 for payments to the educating

 

district or intermediate district for educating pupils assigned by a court or the

 

department of human services to reside in or to attend a juvenile detention facility

 

or child caring institution licensed by the department of human services and approved

 

by the department to provide an on-grounds education program. The amount of the

 

payment under this section to a district or intermediate district shall be calculated

 

as prescribed under subsection (2).

 

       (2) The total amount allocated under this section shall be allocated by paying

 

to the educating district or intermediate district an amount equal to the lesser of

 

the district's or intermediate district's added cost or the department's approved per

 

pupil allocation for the district or intermediate district. For the purposes of this

 

subsection:

 


       (a) "Added cost" means 100% of the added cost each fiscal year for educating

 

all pupils assigned by a court or the department of human services to reside in or to

 

attend a juvenile detention facility or child caring institution licensed by the

 

department of human services or the department of licensing and regulatory affairs and

 

approved by the department to provide an on-grounds education program. Added cost

 

shall be computed by deducting all other revenue received under this article for

 

pupils described in this section from total costs, as approved by the department, in

 

whole or in part, for educating those pupils in the on-grounds education program or in

 

a program approved by the department that is located on property adjacent to a

 

juvenile detention facility or child caring institution. Costs reimbursed by federal

 

funds are not included.

 

       (b) "Department's approved per pupil allocation" for a district or intermediate

 

district shall be determined by dividing the total amount allocated under this section

 

for a fiscal year by the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year for the district

 

or intermediate district.

 

       (3) A district or intermediate district educating pupils described in this

 

section at a residential child caring institution may operate, and receive funding

 

under this section for, a department-approved on-grounds educational program for those

 

pupils that is longer than 181 days, but not longer than 233 days, if the child caring

 

institution was licensed as a child caring institution and offered in 1991-92 an on-

 

grounds educational program that was longer than 181 days but not longer than 233 days

 

and that was operated by a district or intermediate district.

 

       (4) Special education pupils funded under section 53a shall not be funded under

 

this section.

 

       Sec. 24a. From the appropriation in section 11, there is allocated an amount

 

not to exceed $2,167,500.00 $2,195,500.00 for 2013-2014 2014-2015 for payments to

 


intermediate districts for pupils who are placed in juvenile justice service

 

facilities operated by the department of human services. Each intermediate district

 

shall receive an amount equal to the state share of those costs that are clearly and

 

directly attributable to the educational programs for pupils placed in facilities

 

described in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under this section shall

 

cooperate with the department of human services to ensure that all funding allocated

 

under this section is utilized by the intermediate district and department of human

 

services for educational programs for pupils described in this section. Pupils

 

described in this section are not eligible to be funded under section 24. However, a

 

program responsibility or other fiscal responsibility associated with these pupils

 

shall not be transferred from the department of human services to a district or

 

intermediate district unless the district or intermediate district consents to the

 

transfer.

 

       Sec. 24c. From the appropriation in section 11, there is allocated an amount

 

not to exceed $1,500,000.00 for 2013-2014 2014-2015 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 administered by

 

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

 

district receiving payments under this section:

 

       (a) The district shall contract with the department of military and veterans

 

affairs to ensure that all funding allocated under this section is utilized by the

 

district and the department of military and veterans affairs for the youth challenge

 

program.

 

       (b) The district may retain for its administrative expenses an amount not to

 

exceed 3% of the amount of the payment the district receives under this section.

 

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

 


intermediate districts to develop a PUPIL TRANSFERS UNDER THIS SECTION SHALL BE

 

PROCESSED USING THE pupil membership transfer application and a pupil transfer process

 

ADMINISTERED BY THE CENTER under this section. The center shall complete development

 

of this pupil membership transfer application not later than November 1, 2013.

 

       (2) If a pupil counted in membership for the pupil membership count day

 

transfers from a district or intermediate district to enroll in another district or

 

intermediate district after the pupil membership count day and before the supplemental

 

count day and, due to the pupil's enrollment and attendance status as of the pupil

 

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

 

district or intermediate district, the educating district or intermediate district may

 

report the enrollment and attendance information to the center through the pupil

 

transfer process within 30 days after the transfer or within 30 days after the sixth

 

Wednesday after the pupil membership count day, whichever is later. Pupil transfers

 

may be submitted no earlier than the first day after the certification deadline for

 

the pupil membership count day and before the supplemental count day. Upon receipt of

 

the transfer information under this subsection indicating that a pupil has enrolled

 

and is in attendance in an educating district or intermediate district as described in

 

this subsection, the pupil transfer process shall do the following:

 

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

 

       (b) Notify both the pupil auditing staff of the intermediate district in which

 

the educating district is located and the pupil auditing staff of the intermediate

 

district in which the district that previously enrolled the pupil is located. The

 

pupil auditing staff shall approve or deny the pupil membership transfer.

 

       (c) Aggregate the districtwide changes and notify the department for use in

 

adjusting the state aid payment system.

 

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

 

       (a) Adjust the membership calculation for each district or intermediate

 


district in which the pupil was previously counted in membership or that previously

 

received an adjustment in its membership calculation under this section due to a

 

change in the pupil's enrollment and attendance so that the district's or intermediate

 

district's membership is prorated to allow the district or intermediate district to

 

receive for each school day, as determined by the financial calendar furnished by the

 

center, in which the pupil was enrolled and in attendance in the district or

 

intermediate district an amount equal to 1/105 of a full-time equated membership

 

claimed in the fall pupil membership count. The district or intermediate district

 

shall receive a prorated foundation allowance in an amount equal to the product of the

 

adjustment under this subdivision for the district or intermediate district multiplied

 

by the foundation allowance or per pupil payment as calculated under section 20 for

 

the district or intermediate district. The foundation allowance or per pupil payment

 

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

 

membership definition under section 6(4).

 

       (b) Adjust the membership calculation for the educating district or

 

intermediate district in which the pupil is enrolled and is in attendance so that the

 

district's or intermediate district's membership is increased to allow the district or

 

intermediate district to receive an amount equal to the difference between the full-

 

time equated membership claimed in the fall pupil membership count and the sum of the

 

adjustments calculated under subdivision (a) for each district or intermediate

 

district in which the pupil was previously enrolled and in attendance. The educating

 

district or intermediate district shall receive a prorated foundation allowance in an

 

amount equal to the product of the adjustment under this subdivision for the educating

 

district or intermediate district multiplied by the foundation allowance or per pupil

 

payment as calculated under section 20 for the educating district or intermediate

 

district. The foundation allowance or per pupil payment shall be adjusted by the

 

pupil's full-time equated status as affected by the membership definition under

 


section 6(4).

 

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

 

(3) shall take effect as of the date that the pupil becomes enrolled and in attendance

 

in the educating district or intermediate district, and the department shall base all

 

subsequent payments under this article for the fiscal year to the affected districts

 

or intermediate districts on this recalculation of state school aid.

 

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

 

described in subsection (2), the district or intermediate district in which the pupil

 

is counted in membership or another educating district or intermediate district that

 

received an adjustment in its membership calculation under subsection (3), if any, and

 

the educating district or intermediate district shall provide to the center and the

 

department all information they require to comply with this section.

 

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

 

means the district or intermediate district in which a pupil enrolls after the pupil

 

membership count day or after an adjustment was made in another district's or

 

intermediate district's membership calculation under this section due to the pupil's

 

enrollment and attendance.

 

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

 

in section 11, there is allocated an amount not to exceed $26,300,000.00 for 2013-2014

 

2014-2015 to reimburse districts and intermediate districts pursuant to section 12 of

 

the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2013

 

2014. The allocations shall be made not later than 60 days after the department of

 

treasury certifies to the department and to the state budget director that the

 

department of treasury has received all necessary information to properly determine

 

the amounts due to each eligible recipient.

 

       (2) In addition to the allocation under subsection (1), from the general fund

 

money appropriated under section 11, there is allocated an amount not to exceed

 


$3,200,000.00 for 2013-2014 to reimburse public libraries pursuant to section 12 of

 

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

 

2013. The allocations shall be made not later than 60 days after the department of

 

treasury certifies to the department and to the state budget director that the

 

department of treasury has received all necessary information to properly determine

 

the amounts due to each eligible recipient.

 

       Sec. 26b. (1) From the appropriation in section 11, there is allocated for

 

2013-2014 2014-2015 an amount not to exceed $4,009,500.00 $4,210,000.00 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. 26c. (1) From the appropriation in section 11, there is allocated an

 

amount not to exceed $209,400.00 for 2012-2013 and an amount not to exceed $266,200.00

 

$293,100.00 for 2013-2014 2014-2015 to the promise zone fund created in subsection

 

(3).

 

       (2) Funds allocated to the promise zone fund under this section shall be used

 

solely for payments to eligible districts and intermediate districts that have a

 

promise zone development plan approved by the department of treasury under section 7

 

of the Michigan promise zone authority act, 2008 PA 549, MCL 390.1667.

 

       (3) The promise zone fund is created as a separate account within the state

 

school aid fund to be used solely for the purposes of the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679. All of the following apply to

 

the promise zone fund:

 


       (a) The state treasurer shall direct the investment of the promise zone fund.

 

The state treasurer shall credit to the promise zone fund interest and earnings from

 

fund investments.

 

       (b) Money in the promise zone fund at the close of a fiscal year shall remain

 

in the promise zone fund and shall not lapse to the general fund.

 

       (4) Subject to subsection (2), the state treasurer may make payments from the

 

promise zone fund to eligible districts and intermediate districts pursuant to the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that act.

 

       Sec. 31a. (1) From the state school aid fund money appropriated in section 11,

 

there is allocated for 2013-2014 2014-2015 an amount not to exceed $317,695,500.00 for

 

payments to eligible districts, eligible public school academies, and the education

 

achievement system under this section. Subject to subsection (14), the amount of the

 

additional allowance under this section, other than funding under subsection (6) or

 

(7), shall be based on the number of actual pupils in membership in the district or

 

public school academy or the education achievement system who met the income

 

eligibility criteria for free breakfast, lunch, or milk in the immediately preceding

 

state fiscal year, as determined under the Richard B. Russell national school lunch

 

act, 42 USC 1751 to 1769i, and reported to the department not later than the fifth

 

Wednesday after the pupil membership count day of the immediately preceding fiscal

 

year and adjusted not later than December 31 of the immediately preceding fiscal year

 

in the form and manner prescribed by the center. However, for a public school academy

 

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

 

began operations as an achievement school, after the pupil membership count day of the

 

immediately preceding school year, the basis for the additional allowance under this

 

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

 

academy or the education achievement system who met the income eligibility criteria

 


for free breakfast, lunch, or milk in the current state fiscal year, as determined

 

under the Richard B. Russell national school lunch act and reported to the department

 

not later than the fifth Wednesday after the pupil membership count day FOR THE

 

PURPOSES OF ENSURING THAT THIRD GRADERS ARE PROFICIENT IN READING BY THE END OF THE

 

THIRD GRADE AND THAT HIGH SCHOOL GRADUATES ARE CAREER AND COLLEGE READY.

 

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

 

under subsection (6) or (7), a district or public school academy that has not been

 

previously determined to be eligible or the education achievement system shall apply

 

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

 

or public school academy or the education achievement system must meet all of the

 

following:

 

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

 

achievement system's combined state and local revenue per membership pupil in the

 

current state fiscal year, as calculated under section 20, is SHALL BE less than or

 

equal to the basic foundation allowance under section 20 for the current state fiscal

 

year.

 

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

 

agrees to use the funding only for purposes allowed under this section and to comply

 

with the program and accountability requirements under this section.

 

       (3) Except as otherwise provided in this subsection, an eligible district or

 

eligible public school academy or the education achievement system shall receive under

 

this section for each membership pupil in the district or public school academy or the

 

education achievement system who met the income eligibility criteria for free

 

breakfast, lunch, or milk, as determined under the Richard B. Russell national school

 

lunch act, 42 USC 1751 TO 1769, and as reported to the department IN A FORM AND MANNER

 

PRESCRIBED BY THE DEPARTMENT, not later than the fifth Wednesday after the pupil

 

membership count day of the immediately preceding fiscal year and adjusted not later

 


than December 31 of the immediately preceding fiscal year, an amount per pupil equal

 

to 11.5% of the sum of the district's foundation allowance or the public school

 

academy's or the education achievement system's per pupil amount calculated under

 

section 20, not to exceed the basic foundation allowance under section 20 for the

 

current state fiscal year, or of the public school academy's or the education

 

achievement system's per membership pupil amount calculated under section 20 for the

 

current state fiscal year. A HOWEVER, A public school academy that began operations as

 

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

 

achievement school, after the pupil membership count day of the immediately preceding

 

school year shall receive under this section for each membership pupil in the public

 

school academy or in the education achievement system who met the income eligibility

 

criteria for free breakfast, lunch, or milk, as determined under the Richard B.

 

Russell national school lunch act and as reported to the department not later than the

 

fifth Wednesday after the pupil membership count day of the current fiscal year and

 

adjusted not later than December 31 of the current fiscal year, an amount per pupil

 

equal to 11.5% of the public school academy's or the education achievement system's

 

per membership pupil amount calculated under section 20 for the current state fiscal

 

year.

 

       (4) Except as otherwise provided in this section, a district or public school

 

academy, or the education achievement system, receiving funding under this section

 

shall use that money only to provide instructional programs and direct

 

noninstructional services, including, but not limited to, medical, MENTAL HEALTH, or

 

counseling services, for at-risk pupils; for school health clinics; and for the

 

purposes of subsection (5), (6), or (7), OR (10). 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) (3), or the education

 

achievement system if it meets this requirement, may use not more than 20% of the

 

funds it receives under this section for school security. A district, the public

 

school academy, or the education achievement system shall not use any of that money

 

for administrative costs or to supplant another program or other funds, except for

 

funds allocated to the district or public school academy or the education achievement

 

system under this section in the immediately preceding year and already being used by

 

the district or public school academy or the education achievement system for at-risk

 

pupils. The instruction or direct noninstructional services provided under this

 

section may be conducted before or after regular school hours or by adding extra

 

school days to the school year and may include, but are not limited to, tutorial

 

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

 

as described in former section 32f as in effect for 2001-2002. A tutorial method may

 

be conducted with paraprofessionals working under the supervision of a certificated

 

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

 

1 certificated teacher is required to supervise instruction using a tutorial method.

 

As used in this subsection, "to supplant another program" means to take the place of a

 

previously existing instructional program or direct noninstructional services funded

 

from a funding source other than funding under this section.

 

       (5) Except as otherwise provided in subsection (12), a A district or public

 

school academy that receives funds under this section and that operates a school

 

breakfast program under section 1272a of the revised school code, MCL 380.1272a, or

 

the education achievement system if it operates a school breakfast program, shall use

 

from the funds received under this section an amount, not to exceed $10.00 per pupil

 

for whom the district or public school academy or the education achievement system

 

receives funds under this section, necessary to pay for costs associated with the

 

operation of the school breakfast program.

 


       (6) From the funds allocated under subsection (1), there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $3,557,300.00 to support child and adolescent

 

health centers. These grants shall be awarded for 5 consecutive years beginning with

 

2003-2004 in a form and manner approved jointly by the department and the department

 

of community health. Each grant recipient shall remain in compliance with the terms of

 

the grant award or shall forfeit the grant award for the duration of the 5-year period

 

after the noncompliance. To continue to receive funding for a child and adolescent

 

health center under this section a grant recipient shall ensure that the child and

 

adolescent health center has an advisory committee and that at least one-third of the

 

members of the advisory committee are parents or legal guardians of school-aged

 

children. A child and adolescent health center program shall recognize the role of a

 

child's parents or legal guardian in the physical and emotional well-being of the

 

child. Funding under this subsection shall be used to support child and adolescent

 

health center services provided to children up to age 21. If any funds allocated under

 

this subsection are not used for the purposes of this subsection for the fiscal year

 

in which they are allocated, those unused funds shall be used that fiscal year to

 

avoid or minimize any proration that would otherwise be required under subsection (14)

 

(11) for that fiscal year.

 

       (7) From the funds allocated under subsection (1), there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $5,150,000.00 for the state portion of the

 

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

 

1978 PA 368, MCL 333.9301. A local public health department shall pay at least 50% of

 

the total cost of the screenings. The frequency of the screenings shall be as required

 

under R 325.13091 to R 325.13096 and R 325.3271 to R 325.3276 of the Michigan

 

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

 

the department and the department of community health. Notwithstanding section 17b,

 

payments to eligible entities under this subsection shall be paid on a schedule

 


determined by the department.

 

       (8) Each district or public school academy receiving funds under this section

 

and the education achievement system shall submit to the department by July 15 of each

 

fiscal year a report, not to exceed 10 pages, on the usage by the district or public

 

school academy or the education achievement system of funds under this section, which

 

report shall include at least a brief description of each program conducted OR

 

SERVICES PERFORMED by the district or public school academy or the education

 

achievement system using funds under this section, the amount of funds under this

 

section allocated to each of those programs OR SERVICES, 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 OR

 

SERVICES, AND THE DATA NECESSARY FOR THE DEPARTMENT AND THE DEPARTMENT OF HUMAN

 

SERVICES TO VERIFY MATCHING FUNDS FOR THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

 

PROGRAM. If a district or public school academy or the education achievement system

 

does not comply with this subsection, the department shall withhold an amount equal to

 

the August payment due under this section until the district or public school academy

 

or the education achievement system complies with this subsection. If the district or

 

public school academy or the education achievement system does not comply with this

 

subsection by the end of the state fiscal year, the withheld funds shall be forfeited

 

to the school aid fund.

 

       (9) In order to receive funds under this section, a district or public school

 

academy or the education achievement system shall allow access for the department or

 

the department's designee to audit all records related to the program for which it

 

receives those funds. The district or public school academy or the education

 

achievement system shall reimburse the state for all disallowances found in the audit.

 

       (10) Subject to subsections (5), (6), AND (7), (12), and (13), a district may

 

use up to 100% of the funds it receives under this section to reduce the ratio of

 


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

 

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

 

district's aggregate percentage of those pupils. Subject to subsections (5), (6), (7),

 

(12), and (13), a district may use up to 100% of the funds it receives under this

 

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

 

of those grades, in school buildings in which the percentage of pupils described in

 

subsection (1) is at least 60% of the district's aggregate percentage of those pupils

 

and at least 30% of the total number of pupils enrolled in the school building TO

 

IMPLEMENT SCHOOL WIDE REFORM IN SCHOOLS WITH 40% OR MORE OF ITS PUPILS IDENTIFIED AS

 

AT RISK BY PROVIDING SUPPLEMENTAL INSTRUCTIONAL OR NONINSTRUCTIONAL SERVICES

 

CONSISTENT WITH THE SCHOOL’S IMPROVEMENT PLAN.

 

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

 

may use funds received under this section for adult high school completion, general

 

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

 

or adult basic education programs described in section 107.

 

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

 

school academy receiving funds under this section or the education achievement system

 

that have been determined by the department to meet the adequate yearly progress

 

standards of the no child left behind act of 2001, Public Law 107-110, in both

 

mathematics and English language arts at all applicable grade levels for all

 

applicable subgroups, the district or public school academy or the education

 

achievement system may use not more than 20% of the funds it receives under this

 

section for specific alternative purposes identified by the district or public school

 

academy or the education achievement system that are designed to benefit at-risk

 

pupils in the school, but that may be different from the purposes otherwise allowable

 

under this section. If a district or public school academy or the education

 

achievement system uses funds for alternative purposes allowed under the flexibility

 


provisions under this subsection, the district or public school academy or the

 

education achievement system shall maintain documentation of the amounts used for

 

those alternative purposes and shall make that information available to the department

 

upon request.

 

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

 

or the education achievement system may use funds it receives under this section to

 

implement and operate an early intervening program for pupils in grades K to 3 that

 

meets either or both of the following:

 

       (a) Monitors individual pupil learning and provides specific support or

 

learning strategies to pupils as early as possible in order to reduce the need for

 

special education placement. The program shall include literacy and numeracy supports,

 

sensory motor skill development, behavior supports, instructional consultation for

 

teachers, and the development of a parent/school learning plan. Specific support or

 

learning strategies may include support in or out of the general classroom in areas

 

including reading, writing, math, visual memory, motor skill development, behavior, or

 

language development. These would be provided based on an understanding of the

 

individual child's learning needs.

 

       (b) Provides early intervening strategies using school-wide systems of academic

 

and behavioral supports and is scientifically research-based. The strategies to be

 

provided shall include at least pupil performance indicators based upon response to

 

intervention, instructional consultation for teachers, and ongoing progress

 

monitoring. A school-wide system of academic and behavioral support should be based on

 

a support team available to the classroom teachers. The members of this team could

 

include the principal, special education staff, reading teachers, and other

 

appropriate personnel who would be available to systematically study the needs of the

 

individual child and work with the teacher to match instruction to the needs of the

 

individual child.

 


       (11) (14) If necessary, and before any proration required under section 296,

 

the department shall prorate payments under this section by reducing the amount of the

 

per pupil payment under this section by a dollar amount calculated by determining the

 

amount by which the amount necessary to fully fund the requirements of this section

 

exceeds the maximum amount allocated under this section and then dividing that amount

 

by the total statewide number of pupils who met the income eligibility criteria for

 

free breakfast, lunch, or milk in the immediately preceding fiscal year, as described

 

in subsection (1) (3).

 

       (12) (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) (3) 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. IN ADDITION, IF A DISTRICT IS DISSOLVED

 

PURSUANT TO SECTION 12 OF THE REVISED SCHOOL CODE, MCL 380.12, THE INTERMEDIATE

 

DISTRICT TO WHICH THE DISSOLVED SCHOOL DISTRICT IS CONSTITUENT SHALL DETERMINE THE

 

ESTIMATED NUMBER OF PUPILS THAT MEET THE INCOME ELIGIBILITY CRITERIA FOR FREE

 

BREAKFAST, LUNCH, OR MILK, AS DESCRIBED UNDER SUBSECTION (3), ENROLLED IN EACH OF THE

 

OTHER DISTRICTS WITHIN THE INTERMEDIATE DISTRICT AND PROVIDE THAT ESTIMATE TO THE

 

DEPARTMENT FOR THE PURPOSES OF DISTRIBUTING FUNDS UNDER THIS SECTION WITHIN 60 DAYS

 

AFTER THE SCHOOL DISTRICT IS DECLARED DISSOLVED.

 

       (13) (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 ANY of the following

 

criteria: is a victim of child abuse or neglect; is below grade level in English

 

language arts or mathematics; is a pregnant teenager or teenage parent; is eligible

 

for a federal free or reduced-price lunch subsidy; has atypical behavior or attendance

 


patterns; or has a family history of school failure, incarceration, or substance

 

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

 

elementary and secondary education act of 2001 flexibility request approved by the

 

United States department of education. For pupils for whom the results of at least the

 

applicable Michigan education assessment program (MEAP) test have been received, at-

 

risk pupil also includes a pupil who does not meet the other criteria under this

 

subsection but who did not achieve at least a score of level 2 on the most recent MEAP

 

English language arts, mathematics, science test, or social studies for which results

 

for the pupil have been received. For pupils for whom the results of the Michigan

 

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

 

meet the other criteria under this subsection but who did not achieve proficiency on

 

the reading, writing, mathematics, science, or social studies components 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.

 

       (A) THE PUPIL IS ENROLLED IN A PRIORITY OR PRIORITY-SUCCESSOR SCHOOL, AS

 

DEFINED IN THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 2001 FLEXIBILITY WAIVER

 

APPROVED BY THE UNITED STATES DEPARTMENT OF EDUCATION.

 

       (B) THE PUPIL IS ENROLLED IN A FOCUS SCHOOL, AS DEFINED IN THE ELEMENTARY AND

 

SECONDARY EDUCATION ACT OF 2001 FLEXIBILITY WAIVER APPROVED BY THE UNITED STATES

 

DEPARTMENT OF EDUCATION AND IS IN THE BOTTOM 30 PERCENT OF ACHIEVEMENT AS DETERMINED

 

BY THE DEPARTMENT.

 

       (C) THE PUPIL DID NOT ACHIEVE A SCORE OF PROFICENT ON 2 OR MORE STATE

 

ADMINISTERED ASSESSMENTS FOR ENGLISH LANGUAGE ARTS, MATHEMATICS, SCIENCE OR SOCIAL

 

STUDIES.

 

       (D) THE PUPIL DID NOT RECEIVE A SATISFACTORY SCORE ON 2 OR MORE LOCALLY

 


ADMINISTERED ASSESSMENTS THAT ARE ALIGNED WITH STATE STANDARDS FOR ENGLISH LANGUAGE

 

ARTS, MATHEMATICS, SCIENCE OR SOCIAL SCIENCES IN GRADES NOT ASSESSED BY THE STATE.

 

       (E) IN THE ABSENCE OF STATE OR LOCAL ASSESSMENT DATA, THE PUPIL MEETS AT LEAST

 

2 OF THE FOLLOWING CRITERIA, AS DOCUMENTED IN A FORM AND MANNER APPROVED BY THE

 

DEPARTMENT:

 

       (I) THE PUPIL IS ELIGIBLE FOR FREE BREAKFAST, LUNCH OR MILK.

 

       (II) THE PUPIL IS ABSENT MORE THAN 10 PERCENT OF ENROLLED DAYS OR 10 SCHOOL

 

DAYS DURING THE SCHOOL YEAR.

 

       (III) THE PUPIL IS HOMELESS.

 

       (IV) THE PUPIL IS A MIGRANT.

 

       (V)  THE PUPIL IS AN ENGLISH LANGUAGE LEARNER.

 

       (VI) THE PUPIL IS AN IMMIGRANT.

 

            (VII) THE PUPIL DID NOT COMPLETE HIGH SCHOOL IN FOUR YEARS AND IS STILL

 

CONTINUING IN SCHOOL AS IDENTIFIED IN THE MICHIGAN COHORT GRADUATION AND DROPOUT

 

REPORT.

 

       (14) BEGINNING IN 2014-2015, IF A DISTRICT, PUBLIC SCHOOL ACADEMY OR

 

ACHIEVEMENT SCHOOL CANNOT DEMONSTRATE TO THE SATISFACTION OF THE DEPARTMENT

 

IMPROVEMENT IN THE PERCENTAGE OF AT-RISK PUPILS PROFICIENT IN READING AT THE END OF

 

THIRD GRADE AND IMPROVEMENT IN THE PERCENTAGE OF AT-RISK PUPILS THAT ARE CAREER AND

 

COLLEGE READY AS MEASURED BY THE ACT COMPOSITE SCORE AFTER 3 SUBSEQUENT SCHOOL YEARS,

 

THE DISTRICT, PUBLIC SCHOOL ACADEMY OR EDUCATION ACHIEVEMENT SYSTEM SHALL REVISE ITS

 

SCHOOL IMPROVEMENT PLAN REGARDING THE EXPENDITURE OF FUNDING FROM THIS SECTION.

 

       (15) (17) A district or public school academy that receives funds under this

 

section or the education achievement system may use funds received under this section

 

to provide an anti-bullying or crisis intervention program.

 

       Sec. 31B. (1) From the appropriations in section 11, there is allocated an

 

amount not to exceed $2,000,000.00 for 2014-2015 for payments to at-risk districts

 


selected to participate in a pilot project under this section for a year-round

 

instructional program for the 2015-2016 school year.

 

       (2) The department shall select districts to participate in the project from

 

among districts that are eligible for the community eligibility option for free and

 

reduced price lunch under 42 USC 1759a. A district seeking to participate shall apply

 

to the department in the form and manner prescribed by the department not later than

 

December 1, 2014. The department shall select districts for participation not later

 

than February 1, 2015.

 

       (3) A district participating in the pilot project is not required to provide

 

more than the minimum number of days and hours of pupil instruction prescribed under

 

section 101 but shall spread the instruction over the entire year in at least 1 of its

 

schools. The district shall commit to providing the year-round instructional calendar

 

for at least 3 school years.

 

       (4) For a district participating in the pilot project, excessive heat is

 

considered to be a condition not within the control of school authorities for the

 

purpose of days or hours being counted as days or hours of pupil instruction under

 

section 101(4).

 

       (5) The payments made under this section to districts shall be used for

 

necessary modifications to instructional facilities, modifications to current

 

contracts, and other nonrecurring costs of preparing for the operation of a year-round

 

instructional program as approved by the department.

 

       (6) Notwithstanding section 17b, payments to districts under this section shall

 

be paid on a schedule determined by the department.

 

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

 

amount not to exceed $22,495,100.00 for 2013-2014 2014-2015 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

 

2013-2014 2014-2015 all available federal funding, estimated at $460,000,000.00

 

$510,000,000.00 for the national school lunch program and all available federal

 

funding, estimated at $3,200,000.00 for the emergency food assistance program.

 

       (6) Notwithstanding section 17b, payments to eligible entities other than

 

districts under this section shall be paid on a schedule determined by the department.

 

       (7) In purchasing food for a school lunch program funded under this section,

 

preference shall be given to food that is grown or produced by Michigan businesses if

 

it is competitively priced and of comparable quality.

 

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

 

amount not to exceed $5,625,000.00 for 2013-2014 2014-2015 for the purpose of making

 

payments to districts to reimburse for the cost of providing breakfast.

 

       (2) The funds allocated under this section for school breakfast programs shall

 


be made available to all eligible applicant districts that meet all of the following

 

criteria:

 

       (a) The district participates in the federal school breakfast program and meets

 

all standards as prescribed by 7 CFR parts 220 and 245.

 

       (b) Each breakfast eligible for payment meets the federal standards described

 

in subdivision (a).

 

       (3) The payment for a district under this section is at a per meal rate equal

 

to the lesser of the district's actual cost or 100% of the statewide average cost of a

 

breakfast served, as determined and approved by the department, less federal

 

reimbursement, participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as reported in a manner

 

approved by the department for the preceding school year.

 

       (4) Notwithstanding section 17b, payments under this section may be made

 

pursuant to an agreement with the department.

 

       (5) In purchasing food for a school breakfast program funded under this

 

section, preference shall be given to food that is grown or produced by Michigan

 

businesses if it is competitively priced and of comparable quality.

 

       Sec. 32d. (1) From the funds appropriated in section 11, there is allocated to

 

eligible intermediate districts and consortia of intermediate districts for great

 

start readiness programs an amount not to exceed $149,275,000.00 $239,275,000.00 for

 

2013-2014 2014-2015. In addition, from the funds appropriated in section 11, there is

 

allocated to the great start readiness reserve fund created under subsection (14) an

 

amount not to exceed $25,000,000.00 for 2013-2014. Funds allocated under this section

 

for great start readiness programs shall be used to provide part-day, school-day, or

 

GSRP/head start blended comprehensive free compensatory classroom programs designed to

 

improve the readiness and subsequent achievement of educationally disadvantaged

 

children who meet the participant eligibility and prioritization guidelines as defined

 


by the department. Beginning in 2013-2014, for FOR a child to be eligible to

 

participate in a program under this section, the child shall be at least 4, but less

 

than 5, years of age as of the date specified for determining a child's eligibility to

 

attend school under section 1147 of the revised school code, MCL 380.1147.

 

       (2) Funds allocated under subsection (1) shall be allocated to intermediate

 

districts or consortia of intermediate districts based on the formula in section 39.

 

An intermediate district or consortium of intermediate districts receiving funding

 

under this section shall act as the fiduciary for the great start readiness programs.

 

In order to be eligible to receive funds allocated under this subsection from an

 

intermediate district or consortium of intermediate districts, a district, a

 

consortium of districts, or a public or private for-profit or nonprofit legal entity

 

or agency shall comply with this section and section 39.

 

       (3) In addition to the allocation under subsection (1), from the general fund

 

money appropriated under section 11, there is allocated an amount not to exceed

 

$300,000.00 for 2013-2014 2014-2015 for a competitive grant to continue a longitudinal

 

evaluation of children who have participated in great start readiness programs.

 

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

 

children for success in school through comprehensive part-day, school-day, or

 

GSRP/head start blended programs that contain all of the following program components,

 

as determined by the department:

 

       (a) Participation in a collaborative recruitment and enrollment process to

 

assure that each child is enrolled in the program most appropriate to his or her needs

 

and to maximize the use of federal, state, and local funds.

 

       (b) An age-appropriate educational curriculum that is in compliance with the

 

early childhood standards of quality for prekindergarten children adopted by the state

 

board.

 

       (c) Nutritional services for all program participants supported by federal,

 


state, and local resources as applicable.

 

       (d) Health PHYSICAL AND DENTAL HEALTH and developmental screening services for

 

all program participants.

 

       (e) Referral services for families of program participants to community social

 

service agencies, INCLUDING MENTAL HEALTH SERVICES, as appropriate.

 

       (f) Active and continuous involvement of the parents or guardians of the

 

program participants.

 

       (g) A plan to conduct and report annual great start readiness program

 

evaluations and continuous improvement plans using criteria approved by the

 

department.

 

       (h) Participation in a multidistrict, multiagency, school readiness advisory

 

committee convened as a workgroup of the great start collaborative that provides for

 

the involvement of classroom teachers, parents or guardians of program participants,

 

and community, volunteer, and social service agencies and organizations, as

 

appropriate. The advisory committee annually shall review AND MAKE RECOMMENDATIONS

 

REGARDING 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. THE ADVISORY COMMITTEE SHALL ALSO MAKE RECOMMENDATIONS ABOUT OTHER

 

COMMUNITY SERVICES DESIGNED TO IMPROVE ALL CHILDREN’S SCHOOL READINESS TO THE GREAT

 

START COLLABORATIVE.

 

       (i) The ongoing articulation of the kindergarten and first grade programs

 

offered by the program provider.

 

       (j) Participation in this state's great start to quality process with a rating

 

of at least 3 stars.

 

       (5) An application for funding under this section shall provide for the

 

following, in a form and manner determined by the department:

 

       (a) Ensure compliance with all program components described in subsection (4).

 


       (b) Ensure EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, ENSURE that at

 

least 90% of the children participating in an eligible great start readiness program

 

for whom the provider INTERMEDIATE DISTRICT is receiving funds under this section are

 

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

 

250% of the federal poverty level. IF THE INTERMEDIATE DISTRICT DETERMINES THAT ALL

 

ELIGIBLE CHILDREN ARE BEING SERVED AND THAT THERE ARE NO CHILDREN ON THE WAITING LIST

 

THAT IS REQUIRED TO BE MAINTAINED PURSUANT TO SECTION 39(1)(D) WHO LIVE WITH FAMILIES

 

WITH A HOUSEHOLD INCOME THAT IS EQUAL TO OR LESS THAN 250% OF THE FEDERAL POVERTY

 

LEVEL, THE INTERMEDIATE DISTRICT MAY THEN ENROLL CHILDREN THAT LIVE WITH FAMILIES WITH

 

A HOUSEHOLD INCOME THAT IS EQUAL TO OR LESS THAN 300% OF THE FEDERAL POVERTY LEVEL.

 

THE ENROLLMENT PROCESS SHALL CONSIDER INCOME AND RISK FACTORS, SUCH THAT CHILDREN

 

DETERMINED WITH HIGHER NEED ARE ENROLLED PRIOR TO THOSE CHILDREN WITH LESSER NEED. FOR

 

PURPOSES OF THIS SUBDIVISION, ALL AGE-ELIGIBLE CHILDREN SERVED IN FOSTER CARE OR WHO

 

ARE EXPERIENCING HOMELESSNESS OR WHO HAVE INDIVIDUALIZED EDUCATION PLANS RECOMMENDING

 

PLACEMENT IN AN INCLUSIVE PRESCHOOL SETTING SHALL BE CONSIDERED TO LIVE WITH FAMILIES

 

WITH HOUSEHOLD INCOME EQUAL TO OR LESS THAN 250% OF THE FEDERAL POVERTY LEVEL

 

REGARDLESS OF ACTUAL FAMILY INCOME.

 

       (c) Ensure that the applicant only uses qualified personnel for this program,

 

as follows:

 

       (i) Teachers possessing proper training. For programs managed directly by a

 

district or intermediate district A LEAD TEACHER MUST HAVE a valid teaching

 

certificate and WITH an early childhood (ZA or ZS) endorsement are required. This

 

provision does not apply to an eligible child development program. In that situation,

 

a teacher must have a valid Michigan teaching certificate with an early childhood (ZA

 

or ZS) endorsement, a valid Michigan elementary teaching certificate with a child

 

development associate credential, or a bachelor's degree in child development OR EARLY

 

CHILDHOOD DEVELOPMENT with specialization in preschool teaching. However, if an

 


applicant demonstrates to the department that it is unable to fully comply with this

 

subparagraph after making reasonable efforts to comply, teachers who have significant

 

but incomplete training in early childhood education or child development may be used

 

if the applicant provides to the department, and the department approves, a plan for

 

each teacher to come into compliance with the standards in this subparagraph. A

 

teacher's compliance plan must be completed within 2 years of the date of employment.

 

Progress toward completion of the compliance plan shall consist of at least 2 courses

 

per calendar year.

 

       (ii) Paraprofessionals possessing proper training in early childhood

 

development, including an associate's degree in early childhood education or child

 

development or the equivalent, or a child development associate (CDA) credential.

 

However, if an applicant demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to comply, the applicant

 

may use paraprofessionals who have completed at least 1 course that earns college

 

credit in early childhood education or child development if the applicant provides to

 

the department, and the department approves, a plan for each paraprofessional to come

 

into compliance with the standards in this subparagraph. A paraprofessional's

 

compliance plan must be completed within 2 years of the date of employment. Progress

 

toward completion of the compliance plan shall consist of at least 2 courses or 60

 

clock hours of training per calendar year.

 

       (d) Include a program budget that contains only those costs that are not

 

reimbursed or reimbursable by federal funding, that are clearly and directly

 

attributable to the great start readiness program, and that would not be incurred if

 

the program were not being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will supplement other

 

federal, state, local, or private funds. Funds received under this section shall not

 

be used to supplant any federal funds received by the applicant to serve children

 


eligible for a federally funded preschool program that has the capacity to serve those

 

children.

 

       (6) For a grant recipient that enrolls pupils in a school-day program funded

 

under this section, each child enrolled in the school-day program shall be counted as

 

2 children served by the program for purposes of determining the number of children to

 

be served and for determining the amount of the grant award. A grant award shall not

 

be increased solely on the basis of providing a school-day program.

 

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

 

program, the grant recipient shall ensure that all head start and GSRP policies and

 

regulations are applied to the blended slots, with adherence to the highest standard

 

from either program, to the extent allowable under federal law.

 

       (8) An intermediate district or consortium of intermediate districts receiving

 

a grant under this section MUST DESIGNATE AN EARLY CHILDHOOD COORDINATOR, AND may

 

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

 

private for-profit or nonprofit providers that meet all requirements of subsection (4)

 

and retain for administrative services PROVIDED BY THE INTERMEDIATE DISTRICT AND THE

 

SUB-RECIPIENTS LOCATED WITHIN THE INTERMEDIATE DISTRICT an amount equal to not more

 

than 7% of the grant amount. In addition, an intermediate district or consortium of

 

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

 

OUTREACH, recruiting and public awareness of the program.

 

       (9) Each grant recipient shall enroll children identified under subsection

 

(5)(b) according to how far the child's household income is below 250%  of the federal

 

poverty level by ranking each applicant child's household income from lowest to

 

highest and dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty level, and then

 

enrolling children in the quintile with the lowest household income before enrolling

 

children in the quintile with the next lowest household income until slots are

 


completely filled. IF THE GRANT RECIPIENT DETERMINES THAT ALL ELIGIBLE CHILDREN WHO

 

LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME THAT IS EQUAL TO OR LESS THAN 250% OF THE

 

FEDERAL POVERTY LEVEL ARE BEING SERVED AND THAT THERE ARE NO CHILDREN ON THE WAITING

 

LIST THAT IS REQUIRED TO BE MAINTAINED PURSUANT TO SECTION 39(1)(D), THE GRANT

 

RECIPIENT MAY ENROLL CHILDREN THAT DO NOT LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME

 

THAT IS EQUAL TO OR LESS THAN 300% OF THE FEDERAL POVERTY LEVEL ONLY IF THE ENROLLMENT

 

PROCESS CONSIDERS INCOME AND RISK FACTORS, SUCH THAT CHILDREN DETERMINED WITH HIGHER

 

NEED ARE ENROLLED PRIOR TO THOSE CHILDREN WITH LESSER NEED. FOR PURPOSES OF THIS

 

SUBDIVISION, ALL AGE-ELIGIBLE CHILDREN SERVED IN FOSTER CARE OR WHO ARE EXPERIENCING

 

HOMELESSNESS OR WHO HAVE INDIVIDUALIZED EDUCATION PLANS RECOMMENDING PLACEMENT IN AN

 

INCLUSIVE PRESCHOOL SETTING SHALL BE CONSIDERED TO LIVE WITH FAMILIES WITH HOUSEHOLD

 

INCOME EQUAL TO OR LESS THAN 250% OF THE FEDERAL POVERTY LEVEL REGARDLESS OF ACTUAL

 

FAMILY INCOME.

 

       (10) An intermediate district or consortium of intermediate districts receiving

 

a grant under this section shall conduct a local process to contract with interested

 

and eligible public and private for-profit and nonprofit community-based providers

 

that meet all requirements of subsection (4) for at least 30% of its total slot

 

allocation. If the intermediate district or consortium is not able to contract for at

 

least 30% of its total slot allocation, the grant recipient shall notify the

 

department and, if the department verifies that the intermediate district or

 

consortium attempted to contract for at least 30% of its total slot allocation and was

 

not able to do so, then the intermediate district or consortium may retain and use all

 

of its allocated slots as provided under this section.

 

       (11) A recipient of funds under this section shall report to the department in

 

a form and manner prescribed by the department the number of children participating in

 

the program who meet the income eligibility criteria under subsection (5)(b) and the

 

total number of children participating in the program. For children participating in

 


the program who meet the income eligibility criteria specified under subsection

 

(5)(b), a recipient shall also report whether or not a parent is available to provide

 

care based on employment status. For the purposes of this subsection, "employment

 

status" shall be defined by the department of human services in a manner consistent

 

with maximizing the amount of spending that may be claimed for temporary assistance

 

for needy families maintenance of effort purposes.

 

       (12) As used in this section:

 

       (a) "GSRP/head start blended program" means a part-day program funded under

 

this section and a head start program, which are combined for a school-day program.

 

       (b) "Part-day program" means a program that operates at least 4 days per week,

 

30 weeks per year, for at least 3 hours of teacher-child contact time per day but for

 

fewer hours of teacher-child contact time per day than a school-day program.

 

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

 

length of day as a district's first grade program for a minimum of 4 days per week, 30

 

weeks per year. A classroom that offers a school-day program must enroll all children

 

for the school day to be considered a school-day program.

 

       (13) An intermediate district or consortium of intermediate districts receiving

 

funds under this section shall establish a sliding scale of tuition rates based upon

 

household income for children participating in an eligible great start readiness

 

program who live with families with a household income that is more than 250% 300% of

 

the federal poverty level to be used by all of its providers, as approved by the

 

department. A grant recipient shall charge tuition according to that sliding scale of

 

tuition rates on a uniform basis for any child who does not meet the income

 

eligibility requirements under this section.

 

       (14) The great start readiness reserve 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. Money available in the great start readiness reserve fund may

 


not be expended for 2013-2014 unless transferred by the legislature not later than

 

January 31, 2014 to the allocation under subsection (1) for great start readiness

 

programs. Money in the great start readiness reserve fund shall be expended only for

 

purposes for which state school aid fund money may be expended. The state treasurer

 

shall direct the investment of the great start readiness reserve fund. The state

 

treasurer shall credit to the great start readiness reserve fund interest and earnings

 

from fund investments. Money in the great start readiness reserve fund at the close of

 

a fiscal year shall remain in the great start readiness reserve fund and shall not

 

lapse to the unreserved school aid fund balance or the general fund.

 

       Sec. 32p. (1) From the school aid fund appropriation FUNDS APPROPRIATED in

 

section 11, there is allocated an amount not to exceed $10,900,000.00 to intermediate

 

districts for 2013-2014 2014-2015 for the purpose of providing early childhood funding

 

to intermediate school districts in block grants, supporting the activities under

 

subsection (2), and providing early childhood programs for children from birth through

 

age 8. Beginning in 2013-2014, the THE funding provided to each intermediate district

 

under this section shall be determined by the distribution formula established by the

 

department's office of great start to provide equitable funding statewide. In order to

 

receive funding under this section, each intermediate district shall provide an

 

application to the office of great start not later than September 15 of the

 

immediately preceding fiscal year indicating the activities planned to be provided.

 

       (2) Each intermediate district or consortium of intermediate districts that

 

receives funding under this section shall convene a local great start collaborative

 

and a parent coalition. The goal of each great start collaborative and parent

 

coalition shall be to ensure the coordination and expansion of local early childhood

 

infrastructure and programs that allow every child in the community to achieve the

 

following outcomes:

 

       (a) Children born healthy.

 


       (b) Children healthy, thriving, and developmentally on track from birth to

 

third grade.

 

       (c) Children developmentally ready to succeed in school at the time of school

 

entry.

 

       (d) Children prepared to succeed in fourth grade and beyond by reading

 

proficiently by the end of third grade.

 

       (3) Each local great start collaborative and parent coalition shall convene a

 

workgroup to serve as a school readiness advisory committee as required under section

 

32d and shall WORKGROUPS TO MAKE RECOMMENDATIONS ABOUT COMMUNITY SERVICES DESIGNED TO

 

ACHIEVE THE OUTCOMES DESCRIBED ABOVE AND TO ensure that its local great start system

 

includes the following supports for children from birth through age 8:

 

       (a) Physical health.

 

       (b) Social-emotional health.

 

       (c) Family supports and basic needs.

 

       (d) Parent education and child advocacy.

 

       (e) Early education and care.

 

       (4) Not later than December 1 of each year, each intermediate district shall

 

provide a report to the department detailing the activities actually provided during

 

the immediately preceding school year and the families and children actually served.

 

The department shall compile and summarize these reports and submit its summary to the

 

house and senate appropriations subcommittees on school aid and to the house and

 

senate fiscal agencies NO LATER THAN FEBRUARY 15 OF EACH YEAR. The block grants

 

allocated under this section implement legislative intent language for this purpose

 

enacted in 2011 PA 62.

 

       (5) An intermediate district or consortium of intermediate districts that

 

receives funding 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

 


THROUGH JUNE 30 OF THE next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed by the department

 

not later than September 30 of the next fiscal year after the fiscal year in which the

 

funds are received.

 

       Sec. 39. (1) An eligible applicant receiving funds under section 32d shall

 

submit a preapplication AN APPLICATION, 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 APPLICATION shall include a comprehensive needs

 

assessment using aggregated data from the applicant's entire service area and a

 

community collaboration plan that 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 applicant 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 applicant and community early childhood programs have

 

met their funded enrollments. The applicant shall maintain a waiting list of

 

identified unserved eligible children who would be served when openings are available.

 

       (2) An AFTER NOTIFICATION OF FUNDING ALLOCATIONS, AN applicant receiving funds

 

under section 32d shall also submit a final application AN IMPLEMENTATION PLAN for

 


approval, in a form and manner prescribed by the department, by a date specified by

 

the department, that details how the applicant complies with the program components

 

established by the department pursuant to section 32d.

 

       (3) The FOR 2014-2015, THE number of prekindergarten children construed to be

 

in need of special readiness assistance under section 32d shall be calculated for each

 

applicant in the following manner: 1/2 of the percentage of the applicant's pupils in

 

grades 1 to 5 in all districts served by the applicant who are eligible for free

 

lunch, as determined using the district's pupil membership count as of the pupil

 

membership count day 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

 

districts served by the applicant on the pupil membership count day of the 2

 

immediately preceding fiscal years.

 

       (4) The initial allocation for each fiscal year to each eligible applicant

 

under section 32d shall be determined by multiplying the number of children determined

 

by the formula under subsection (3) or the number of children the applicant indicates

 

it will be able to serve under subsection (1)(c), whichever is less, by $3,625.00

 

$3,725.00 and shall be distributed among applicants in decreasing order of

 

concentration of eligible children as determined by the formula under subsection (3).

 

If the number of children an applicant indicates it will be able to serve under

 

subsection (1)(c) includes children able to be served in a school-day program, then

 

the number able to be served in a school-day program shall be doubled for the purposes

 

of making this calculation of the lesser of the number of children determined by the

 

formula under subsection (3) and the number of children the applicant indicates it

 

will be able to serve under subsection (1)(c) and determining the amount of the

 

initial allocation to the applicant under section 32d. A district may contract with a

 

head start agency to serve children enrolled in head start with a school-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.

 

       (5) If funds allocated for eligible applicants or to the great start readiness

 

reserve fund under section 32d remain after the initial allocation under subsection

 

(4), the allocation under this subsection shall be distributed to each eligible

 

applicant under section 32d in decreasing order of concentration of eligible children

 

as determined by the formula under subsection (3). The allocation shall be determined

 

by multiplying the number of children each district within the applicant's service

 

area served in the immediately preceding fiscal year or the number of children the

 

applicant indicates it will be able to serve under subsection (1)(c), whichever is

 

less, minus the number of children for which the applicant received funding in

 

subsection (4) by $3,625.00 $3,725.00.

 

       (6) If funds allocated for eligible applicants or to the great start readiness

 

reserve fund under section 32d remain after the allocations under subsections (4) and

 

(5), remaining funds shall be distributed to each eligible applicant under section 32d

 

in decreasing order of concentration of eligible children as determined by the formula

 

under subsection (3). If the number of children the applicant indicates it will be

 

able to serve under subsection (1)(c) exceeds the number of children for which funds

 

have been received under subsections (4) and (5), the allocation under this subsection

 

shall be determined by multiplying the number of children the applicant indicates it

 

will be able to serve under subsection (1)(c) less the number of children for which

 

funds have been received under subsections (4) and (5) by $3,625.00 $3,725.00 until

 

the funds allocated for eligible applicants in section 32d are distributed.

 

       (7) An applicant that offers supplementary child care funded by funds other

 

than those received under section 32d and therefore offers full-day programs as part

 

of its early childhood development program shall receive priority in the allocation of

 


funds under section 32d over other eligible applicants. As used in this subsection,

 

"full-day program" means a program that provides supplementary child care that totals

 

at least 10 hours of programming per day.

 

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

 

as calculated under this section, an applicant determines that it is able to include

 

additional eligible children in the great start readiness program without additional

 

funds under section 32d, the applicant may include additional eligible children but

 

shall not receive additional funding under section 32d for those children.

 

       Sec. 39a. (1) From the federal funds appropriated in section 11, there is

 

allocated for 2013-2014 2014-2015 to districts, intermediate districts, and other

 

eligible entities all available federal funding, estimated at $811,828,500.00

 

$807,969,900.00, for the federal programs under the no child left behind act of 2001,

 

Public Law 107-110. These funds are allocated as follows:

 

       (a) An amount estimated at $10,808,600.00 $8,000,000.00 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 $111,111,900.00 for the purpose of preparing,

 

training, and recruiting high-quality teachers and class size reduction, funded from

 

DED-OESE, improving teacher quality funds.

 

       (c) An amount estimated at $12,200,000.00 for programs to teach English to

 

limited English proficient (LEP) children, funded from DED-OESE, language acquisition

 

state grant funds.

 

       (d) An amount estimated at $10,286,500.00 for the Michigan charter school

 

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

 

       (e) An amount estimated at $2,393,500.00 for rural and low income schools,

 

funded from DED-OESE, rural and low income school funds.

 

       (f) An amount estimated at $591,500,000.00 to provide supplemental programs to

 


enable educationally disadvantaged children to meet challenging academic standards,

 

funded from DED-OESE, title I, disadvantaged children funds.

 

       (g) An amount estimated at $8,878,000.00 for the purpose of identifying and

 

serving migrant children, funded from DED-OESE, title I, migrant education funds.

 

       (h) An amount estimated at $40,050,000.00 $39,000,000.00 for the purpose of

 

providing high-quality extended learning opportunities, after school and during the

 

summer, for children in low-performing schools, funded from DED-OESE, twenty-first

 

century community learning center funds.

 

       (i) An amount estimated at $24,600,000.00 to help support local school

 

improvement efforts, funded from DED-OESE, title I, local school improvement grants.

 

       (2) From the federal funds appropriated in section 11, there is allocated for

 

2013-2014 2014-2015 to districts, intermediate districts, and other eligible entities

 

all available federal funding, estimated at $31,700,000.00 $31,300,000.00 for the

 

following programs that are funded by federal grants:

 

       (a) An amount estimated at $600,000.00 $200,000.00 for acquired

 

immunodeficiency syndrome education grants, funded from HHS – center for disease

 

control, AIDS funding.

 

       (b) An amount estimated at $2,600,000.00 to provide services to homeless

 

children and youth, funded from DED-OVAE, homeless children and youth funds.

 

       (c) An amount estimated at $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)(f) and (i) may be used for 1 or more reading improvement programs that

 

meet at least 1 of the following:

 

       (a) A research-based, validated, structured reading program that aligns

 

learning resources to state standards and includes continuous assessment of pupils and

 

individualized education plans for pupils.

 


       (b) A mentoring program that is a research-based, validated program or a

 

statewide 1-to-1 mentoring program and is designed to enhance the independence and

 

life quality of pupils who are mentally impaired by providing opportunities for

 

mentoring and integrated employment.

 

       (c) A cognitive development program that is a research-based, validated

 

educational service program focused on assessing and building essential cognitive and

 

perceptual learning abilities to strengthen pupil concentration and learning.

 

       (d) A structured mentoring-tutorial reading program for pupils in preschool to

 

grade 4 that is a research-based, validated program that develops individualized

 

educational plans based on each pupil's age, assessed needs, reading level, interests,

 

and learning style.

 

       (3) (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.

 

       (4) (5) For the purposes of applying for federal grants appropriated under this

 

article, the department shall allow an intermediate district to submit a consortium

 

application on behalf of 2 or more districts with the agreement of those districts as

 

appropriate according to federal rules and guidelines.

 

       (5) (6) As used in this section:

 

       (a) "DED" means the United States department of education.

 

       (b) "DED-OESE" means the DED office of elementary and secondary education.

 

       (c) "DED-OVAE" means the DED office of vocational and adult education.

 

       (d) "HHS" means the United States department of health and human services.

 

       (e) "HHS-ACF" means the HHS administration for children and families.

 


       Sec. 41. (1) From the appropriation in section 11, there is allocated an amount

 

not to exceed $1,200,000.00 for 2013-2014 2014-2015 to applicant districts and

 

intermediate districts offering programs of instruction for pupils of limited English-

 

speaking ability under section 1153 of the revised school code, MCL 380.1153. Subject

 

to subsection (2), reimbursement REIMBURSEMENT shall be on a per-pupil basis and shall

 

be based on the number of pupils of limited English-speaking ability in membership on

 

the pupil membership count day. Funds allocated under this section shall be used

 

solely for instruction in speaking, reading, writing, or comprehension of English. A

 

pupil shall not be counted under this section or instructed in a program under this

 

section for more than 3 years.

 

       (2) A district or intermediate district shall not receive funds under this

 

section if it allows pupils to participate in the program of instruction who are not

 

residing in the United States legally.

 

       Sec. 51a.(1) From the appropriation in section 11, there is allocated an amount

 

not to exceed $952,569,100.00 $938,946,100.00 for 2012-2013 and there is allocated an

 

amount not to exceed $980,446,100.00 for 2013-2014 2014-2015 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 $365,000,000.00 for

 

2012-2013, and estimated at $370,000,000.00 for 2013-2014 2014-2015, plus any

 

carryover federal funds from previous year appropriations. The allocations under this

 

subsection are for the purpose of reimbursing districts and intermediate districts for

 

special education programs, services, and special education personnel as prescribed in

 

article 3 of the revised school code, MCL 380.1701 to 380.1766; net tuition payments

 

made by intermediate districts to the Michigan schools for the deaf and blind; and

 

special education programs and services for pupils who are eligible for special

 

education programs and services according to statute or rule. For meeting the costs of

 

special education programs and services not reimbursed under this article, a district

 


or intermediate district may use money in general funds or special education funds,

 

not otherwise restricted, or contributions from districts to intermediate districts,

 

tuition payments, gifts and contributions from individuals or other entities, or

 

federal funds that may be available for this purpose, as determined by the

 

intermediate district plan prepared pursuant to article 3 of the revised school code,

 

MCL 380.1701 to 380.1766. All federal funds allocated under this section in excess of

 

those allocated under this section for 2002-2003 may be distributed in accordance with

 

the flexible funding provisions of the individuals with disabilities education act,

 

Public Law 108-446, including, but not limited to, 34 CFR 300.206 and 300.208.

 

Notwithstanding section 17b, payments of federal funds to districts, intermediate

 

districts, and other eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

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

 

amount necessary, estimated at $251,000,000.00 $252,000,000.00 for 2012-2013, and

 

estimated at $257,800,000.00 for 2013-2014 2014-2015, for payments toward reimbursing

 

districts and intermediate districts for 28.6138% of total approved costs of special

 

education, excluding costs reimbursed under section 53a, and 70.4165% of total

 

approved costs of special education transportation. Allocations under this subsection

 

shall be made as follows:

 

       (a) The initial amount allocated to a district under this subsection toward

 

fulfilling the specified percentages shall be calculated by multiplying the district's

 

special education pupil membership, excluding pupils described in subsection (11),

 

times the foundation allowance under section 20 of the pupil's district of residence,

 

not to exceed the basic foundation allowance under section 20 for the current fiscal

 

year, or, for a special education pupil in membership in a district that is a public

 

school academy, times an amount equal to the amount per membership pupil calculated

 

under section 20(6) or, for a pupil described in this subsection who is counted in

 


membership in the education achievement system, times an amount equal to the amount

 

per membership pupil under section 20(7). For an intermediate district, the amount

 

allocated under this subdivision toward fulfilling the specified percentages shall be

 

an amount per special education membership pupil, excluding pupils described in

 

subsection (11), and shall be calculated in the same manner as for a district, using

 

the foundation allowance under section 20 of the pupil's district of residence, not to

 

exceed the basic foundation allowance under section 20 for the current fiscal year.

 

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

 

districts for which the payments calculated under subdivision (a) do not fulfill the

 

specified percentages shall be paid the amount necessary to achieve the specified

 

percentages for the district or intermediate district.

 

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

 

fiscal year for 2012-2013 and for 2013-2014 FOR 2014-2015 an amount not to exceed

 

$1,000,000.00 to make payments to districts and intermediate districts under this

 

subsection. If the amount allocated to a district or intermediate district for a

 

fiscal year under subsection (2)(b) is less than the sum of the amounts allocated to

 

the district or intermediate district for 1996-97 under sections 52 and 58, there is

 

allocated to the district or intermediate district for the fiscal year an amount equal

 

to that difference, adjusted by applying the same proration factor that was used in

 

the distribution of funds under section 52 in 1996-97 as adjusted to the district's or

 

intermediate district's necessary costs of special education used in calculations for

 

the fiscal year. This adjustment is to reflect reductions in special education program

 

operations or services between 1996-97 and subsequent fiscal years. Adjustments for

 

reductions in special education program operations or services shall be made in a

 

manner determined by the department and shall include adjustments for program or

 

service shifts.

 

       (4) If the department determines that the sum of the amounts allocated for a

 


fiscal year to a district or intermediate district under subsection (2)(a) and (b) is

 

not sufficient to fulfill the specified percentages in subsection (2), then the

 

shortfall shall be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and payments under

 

subsection (3) shall be adjusted as necessary. If the department determines that the

 

sum of the amounts allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) exceeds the sum of the amount necessary to fulfill the

 

specified percentages in subsection (2), then the department shall deduct the amount

 

of the excess from the district's or intermediate district's payments under this

 

article for the fiscal year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. However, if the amount

 

allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill

 

the specified percentages in subsection (2), there shall be no deduction under this

 

subsection.

 

       (5) State funds shall be allocated on a total approved cost basis. Federal

 

funds shall be allocated under applicable federal requirements, except that an amount

 

not to exceed $3,500,000.00 may be allocated by the department each fiscal year for

 

2012-2013 and for 2013-2014 FOR 2014-2015 to districts, intermediate districts, or

 

other eligible entities on a competitive grant basis for programs, equipment, and

 

services that the department determines to be designed to benefit or improve special

 

education on a statewide scale.

 

       (6) From the amount allocated in subsection (1), there is allocated an amount

 

not to exceed $2,200,000.00 each fiscal year for 2012-2013 and for 2013-2014 FOR 2014-

 

2015 to reimburse 100% of the net increase in necessary costs incurred by a district

 

or intermediate district in implementing the revisions in the administrative rules for

 

special education that became effective on July 1, 1987. As used in this subsection,

 

"net increase in necessary costs" means the necessary additional costs incurred solely

 


because of new or revised requirements in the administrative rules minus cost savings

 

permitted in implementing the revised rules. Net increase in necessary costs shall be

 

determined in a manner specified by the department.

 

       (7) For purposes of sections 51a to 58, all of the following apply:

 

       (a) "Total approved costs of special education" shall be determined in a manner

 

specified by the department and may include indirect costs, but shall not exceed 115%

 

of approved direct costs for section 52 and section 53a programs. The total approved

 

costs include salary and other compensation for all approved special education

 

personnel for the program, including payments for social security and medicare and

 

public school employee retirement system contributions. The total approved costs do

 

not include salaries or other compensation paid to administrative personnel who are

 

not special education personnel as defined in section 6 of the revised school code,

 

MCL 380.6. Costs reimbursed by federal funds, other than those federal funds included

 

in the allocation made under this article, are not included. Special education

 

approved personnel not utilized full time in the evaluation of students or in the

 

delivery of special education programs, ancillary, and other related services shall be

 

reimbursed under this section only for that portion of time actually spent providing

 

these programs and services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or juvenile detention

 

programs approved by the department to provide an on-grounds education program.

 

       (b) Beginning with the 2004-2005 fiscal year, a district or intermediate

 

district that employed special education support services staff to provide special

 

education support services in 2003-2004 or in a subsequent fiscal year and that in a

 

fiscal year after 2003-2004 receives the same type of support services from another

 

district or intermediate district shall report the cost of those support services for

 

special education reimbursement purposes under this article. This subdivision does not

 

prohibit the transfer of special education classroom teachers and special education

 


classroom aides if the pupils counted in membership associated with those special

 

education classroom teachers and special education classroom aides are transferred and

 

counted in membership in the other district or intermediate district in conjunction

 

with the transfer of those teachers and aides.

 

       (c) If the department determines before bookclosing for a fiscal year that the

 

amounts allocated for that fiscal year under subsections (2), (3), (6), and (11) and

 

sections 53a, 54, and 56 will exceed expenditures for that fiscal year under

 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56, then for a district

 

or intermediate district whose reimbursement for that fiscal year would otherwise be

 

affected by subdivision (b), subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and reimbursement for that

 

district or intermediate district shall be calculated in the same manner as it was for

 

2003-2004. If the amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully fund the calculation

 

of reimbursement to those districts and intermediate districts under this subdivision,

 

then the calculations and resulting reimbursement under this subdivision shall be

 

prorated on an equal percentage basis. This reimbursement shall not be made after

 

2014-2015.

 

       (d) Reimbursement for ancillary and other related services, as defined by R

 

340.1701c of the Michigan administrative code, shall not be provided when those

 

services are covered by and available through private group health insurance carriers

 

or federal reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is approved by the state

 

budget director. Expenses, other than the incidental expense of filing, shall not be

 

borne by the parent. In addition, the filing of claims shall not delay the education

 

of a pupil. A district or intermediate district shall be responsible for payment of a

 

deductible amount and for an advance payment required until the time a claim is paid.

 


       (e) Beginning with calculations for 2004-2005, if an intermediate district

 

purchases a special education pupil transportation service from a constituent district

 

that was previously purchased from a private entity; if the purchase from the

 

constituent district is at a lower cost, adjusted for changes in fuel costs; and if

 

the cost shift from the intermediate district to the constituent does not result in

 

any net change in the revenue the constituent district receives from payments under

 

sections 22b and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to report the cost

 

associated with the specific identified special education pupil transportation service

 

and shall adjust the costs reported by the constituent district to remove the cost

 

associated with that specific service.

 

       (8) A pupil who is enrolled in a full-time special education program conducted

 

or administered by an intermediate district or a pupil who is enrolled in the Michigan

 

schools for the deaf and blind shall not be included in the membership count of a

 

district, but shall be counted in membership in the intermediate district of

 

residence.

 

       (9) Special education personnel transferred from 1 district to another to

 

implement the revised school code shall be entitled to the rights, benefits, and

 

tenure to which the person would otherwise be entitled had that person been employed

 

by the receiving district originally.

 

       (10) If a district or intermediate district uses money received under this

 

section for a purpose other than the purpose or purposes for which the money is

 

allocated, the department may require the district or intermediate district to refund

 

the amount of money received. Money that is refunded shall be deposited in the state

 

treasury to the credit of the state school aid fund.

 

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

 

necessary, estimated at $4,300,000.00 for 2012-2013, and estimated at $4,300,000.00

 


$3,300,000.00 for 2013-2014 2014-2015, to pay the foundation allowances for pupils

 

described in this subsection. The allocation to a district under this subsection shall

 

be calculated by multiplying the number of pupils described in this subsection who are

 

counted in membership in the district times the foundation allowance under section 20

 

of the pupil's district of residence, not to exceed the basic foundation allowance

 

under section 20 for the current fiscal year, or, for a pupil described in this

 

subsection who is counted in membership in a district that is a public school academy,

 

times an amount equal to the amount per membership pupil under section 20(6) or, for a

 

pupil described in this subsection who is counted in membership in the education

 

achievement system, times an amount equal to the amount per membership pupil under

 

section 20(7). The allocation to an intermediate district under this subsection shall

 

be calculated in the same manner as for a district, using the foundation allowance

 

under section 20 of the pupil's district of residence, not to exceed the basic

 

foundation allowance under section 20 for the current fiscal year. This subsection

 

applies to all of the following pupils:

 

       (a) Pupils described in section 53a.

 

       (b) Pupils counted in membership in an intermediate district who are not

 

special education pupils and are served by the intermediate district in a juvenile

 

detention or child caring facility.

 

       (c) Pupils with an emotional impairment counted in membership by an

 

intermediate district and provided educational services by the department of community

 

health.

 

       (12) If it is determined that funds allocated under subsection (2) or (11) or

 

under section 51c will not be expended, funds up to the amount necessary and available

 

may be used to supplement the allocations under subsection (2) or (11) or under

 

section 51c in order to fully fund those allocations. After payments under subsections

 

(2) and (11) and section 51c, the remaining expenditures from the allocation in

 


subsection (1) shall be made in the following order:

 

       (a) 100% of the reimbursement required under section 53a.

 

       (b) 100% of the reimbursement required under subsection (6).

 

       (c) 100% of the payment required under section 54.

 

       (d) 100% of the payment required under subsection (3).

 

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

 

       (13) The allocations under subsections (2), (3), and (11) shall be allocations

 

to intermediate districts only and shall not be allocations to districts, but instead

 

shall be calculations used only to determine the state payments under section 22b.

 

       (14) If a public school academy enrolls pursuant to this section a pupil who

 

resides outside of the intermediate district in which the public school academy is

 

located and who is eligible for special education programs and services according to

 

statute or rule, or who is a child with disabilities, as defined under the individuals

 

with disabilities education act, Public Law 108-446, the provision of special

 

education programs and services and the payment of the added costs of special

 

education programs and services for the pupil are the responsibility of the district

 

and intermediate district in which the pupil resides unless the enrolling district or

 

intermediate district has a written agreement with the district or intermediate

 

district in which the pupil resides or the public school academy for the purpose of

 

providing the pupil with a free appropriate public education and the written agreement

 

includes at least an agreement on the responsibility for the payment of the added

 

costs of special education programs and services for the pupil.

 

       Sec. 51c. As required by the court in the consolidated cases known as Durant v

 

State of Michigan, Michigan supreme court docket no. 104458-104492, from the

 

allocation under section 51a(1), there is allocated each fiscal year for 2012-2013 and

 

for 2013-2014 the amount necessary, estimated at $642,000,000.00 for 2012-2013, and

 

estimated at $662,200,000.00 $630,500,000.00 for 2013-2014 2014-2015, 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 2013-2014 2014-2015 all available federal funding, estimated at

 

$74,000,000.00, for special education programs AND SERVICES 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 2013-2014 2014-2015:

 

       (a) An amount estimated at $15,000,000.00 for handicapped infants and toddlers,

 

funded from DED-OSERS, handicapped infants and toddlers funds.

 

       (b) An amount estimated at $14,000,000.00 for preschool grants (Public Law 94-

 

142), funded from DED-OSERS, handicapped preschool incentive funds.

 

       (c) An amount estimated at $45,000,000.00 for special education programs funded

 

by DED-OSERS, handicapped program, individuals with disabilities act funds.

 

       (3) As used in this section, "DED-OSERS" means the United States department of

 

education office of special education and rehabilitative services.

 

       Sec. 53a. (1) For districts, reimbursement for pupils described in subsection

 

(2) shall be 100% of the total approved costs of operating special education programs

 

and services approved by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766,

 


minus the district's foundation allowance calculated under section 20. For

 

intermediate districts, reimbursement for pupils described in subsection (2) shall be

 

calculated in the same manner as for a district, using the foundation allowance under

 

section 20 of the pupil's district of residence, not to exceed the basic foundation

 

allowance under section 20 for the current fiscal year.

 

       (2) Reimbursement under subsection (1) is for the following special education

 

pupils:

 

       (a) Pupils assigned to a district or intermediate district through the

 

community placement program of the courts or a state agency, if the pupil was a

 

resident of another intermediate district at the time the pupil came under the

 

jurisdiction of the court or a state agency.

 

       (b) Pupils who are residents of institutions operated by the department of

 

community health.

 

       (c) Pupils who are former residents of department of community health

 

institutions for the developmentally disabled who are placed in community settings

 

other than the pupil's home.

 

       (d) Pupils enrolled in a department-approved on-grounds educational program

 

longer than 180 days, but not longer than 233 days, at a residential child care

 

institution, if the child care institution offered in 1991-92 an on-grounds

 

educational program longer than 180 days but not longer than 233 days.

 

       (e) Pupils placed in a district by a parent for the purpose of seeking a

 

suitable home, if the parent does not reside in the same intermediate district as the

 

district in which the pupil is placed.

 

       (3) Only those costs that are clearly and directly attributable to educational

 

programs for pupils described in subsection (2), and that would not have been incurred

 

if the pupils were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 


       (4) The costs of transportation shall be funded under this section and shall

 

not be reimbursed under section 58.

 

       (5) Not more than $13,500,000.00 $10,500,000.00 of the allocation for 2013-2014

 

2014-2015 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 2013-2014 2014-2015 in section 51a(1) shall be

 

allocated under this section.

 

       Sec. 56. (1) For the purposes of this section:

 

       (a) "Membership" means for a particular fiscal year the total membership for

 

the immediately preceding fiscal year of the intermediate district and the districts

 

constituent to the intermediate district.

 

       (b) "Millage levied" means the millage levied for special education pursuant to

 

part 30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for

 

debt service obligations.

 

       (c) "Taxable value" means the total taxable value of the districts constituent

 

to an intermediate district, except that if a district has elected not to come under

 

part 30 of the revised school code, MCL 380.1711 to 380.1743, membership and taxable

 

value of the district shall not be included in the membership and taxable value of the

 

intermediate district.

 

       (2) From the allocation under section 51a(1), there is allocated an amount not

 

to exceed $37,758,100.00 for 2013-2014 2014-2015 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 2012-2013 2013-2014 shall be

 

made in 2013-2014 2014-2015 at an amount per 2012-2013 2013-2014 membership pupil

 

computed by subtracting from $169,900.00 $172,200.00 the 2012-2013 2013-2014 taxable

 

value behind each membership pupil and multiplying the resulting difference by the

 

2012-2013 2013-2014 millage levied.

 

       (4) The amount paid to a single intermediate district under this section shall

 

not exceed 62.9% of the total amount allocated under subsection (2).

 

       (5) The amount paid to a single intermediate district under this section shall

 

not be less than 75% of the amount allocated to the intermediate district under this

 

section for the immediately preceding fiscal year.

 

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

 

amount not to exceed $26,611,300.00 for 2013-2014 2014-2015 to reimburse on an added

 

cost basis districts, except for a district that served as the fiscal agent for a

 

vocational education consortium in the 1993-94 school year, and secondary area

 

vocational-technical education centers for secondary-level career and technical

 

education programs according to rules approved by the superintendent. Applications for

 

participation in the programs shall be submitted in the form prescribed by the

 

department. The department shall determine the added cost for each career and

 

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

 

the type of career and technical education programs provided, the number of pupils

 

enrolled, and the length of the training period provided, and shall not exceed 75% of

 

the added cost of any program. With the approval of the department, the board of a

 

district maintaining a secondary career and technical education program may offer the

 


program for the period from the close of the school year until September 1. The

 

program shall use existing facilities and shall be operated as prescribed by rules

 

promulgated by the superintendent.

 

       (2) Except for a district that served as the fiscal agent for a vocational

 

education consortium in the 1993-94 school year, districts and intermediate districts

 

shall be reimbursed for local career and technical education administration, shared

 

time career and technical education administration, and career education planning

 

district career and technical education administration. The definition of what

 

constitutes administration and reimbursement shall be pursuant to guidelines adopted

 

by the superintendent. Not more than $800,000.00 of the allocation in subsection (1)

 

shall be distributed under this subsection.

 

       (3) In addition to the funds allocated in subsection (1), from the

 

appropriation in section 11, there is allocated an amount not to exceed $1,000,000.00

 

for 2013-2014 2014-2015 districts or intermediate districts for area career and

 

technical education centers for the purpose of integrating the Michigan merit

 

curriculum content standards under sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b, into state-approved career and technical education

 

instructional programs for the purpose of awarding academic credit. The department

 

shall determine the allocation to each career and technical education center in a

 

manner that provides for maximum integration of Michigan merit curriculum content

 

standards statewide.

 

       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 $9,190,000.00 for 2013-2014 2014-2015 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 2012-2013 2013-2014 shall be made

 


in 2013-2014 2014-2015 at an amount per 2012-2013 2013-2014 membership pupil computed

 

by subtracting from $186,500.00 $188,100.00 the 2012-2013 2013-2014 taxable value

 

behind each membership pupil and multiplying the resulting difference by the 2012-2013

 

2013-2014 millage levied.

 

       (4) The amount paid to a single intermediate district under this section shall

 

not exceed 38.4% of the total amount allocated under subsection (2).

 

       (5) The amount paid to a single intermediate district under this section shall

 

not be less than 75% of the amount allocated to the intermediate district under this

 

section for the immediately preceding fiscal year.

 

       Sec. 64b. (1) From the appropriation in section 11, there is allocated an

 

amount not to exceed $1,750,000.00 for 2014-2015 for supplemental payments to

 

districts that support the attendance of district pupils in grades 9 to 12 under the

 

postsecondary enrollment options act, mcl 388.511 to 388.524, or under the career and

 

technical preparation act, mcl 388.1901 to 388.1913, consistent with provisions under

 

section 21b.

 

       (2) to be eligible for payments under this section, a district shall do all of

 

the following:

 

       (a) provide information to all high school students on postsecondary enrollment

 

options, including enrollment eligibility, the institutions and types of courses that

 

are eligible for participation, the decision making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by the school

 

district.

 

       (b) enters into a written agreement with a postsecondary institution prior to

 

the enrollment of district pupils.

 

       (c) agrees to pay all eligible charges pursuant to section 21b.

 

       (d) awards high school credit for the postsecondary course if the pupil

 

successfully completes the course.

 


       (3) funds shall be awarded to districts in the following manner:

 

       (a) a payment of $10.00 per credit, for up to 3 credits, For each pupil that

 

enrolls in a credit-bearing course at an eligible postsecondary institution during the

 

2014-2015 fiscal year.

 

       (b) an additional payment of $30.00 per pupil per course identified in (a), if

 

the pupil successfully completes, and is awarded both high school and postsecondary

 

credit for the course in 2014-2015.

 

       (4) a district requesting payment under this section shall submit an

 

application to the department in a form and manner prescribed by the department.

 

notwithstanding section 17b, payments under this section shall be made on a schedule

 

determined by the department.

 

       Sec. 64c. (1) The department shall commission an independent third party at a

 

cost of no more than $250,000.00 to conduct a study and prepare a report analyzing the

 

State’s current career readiness education system.

 

       (2) The purpose of the study shall be to research current high school and

 

postsecondary curriculum and facilities and develop recommendations FOR the

 

implementation of a statewide system to support career pathways that lead to education

 

and training opportunities to lessen the existing talent gap in the state.

 

       (3) The study shall, AT A MINIMUM, include recommendations that address the

 

following:

 

       (A) Identification of redundancy of roles, programs and capital infrastructure

 

among public schools, intermediate districts, community colleges and universities in

 

providing high-skilled degrees and credentials and make recommendations to better

 

coordinate those roles, programs and facilities.

 

       (b) DEVELOPMENT OF a statewide strategy and related policies that will result

 

in more coordinated and expedited pathways for students to obtain high-skilled college

 

degrees and credentials, regardless of point of entry.

 


       (c) PROPOSED metrics that can BE useD to measure THE STATE’S success towardS

 

achieving the DESIRED OUTCOMES.

 

       (d) IDENTIFICATION OF specific barriers for students, AND POTENTIAL WAYS TO

 

ADDRESS THOSE BARRIERS.

 

       (4) the department shall ensure that educators and the business community are

 

solicited for their input as part of the study.

 

       (5) the report summarizing the results of the study under this section shall be

 

presented to the department no later than september 30, 2015.

 

       Sec. 74. (1) From the amount appropriated in section 11, there is allocated an

 

amount not to exceed $3,299,000.00 $3,316,500.00 for 2013-2014 2014-2015 for the

 

purposes of this section.

 

       (2) From the allocation in subsection (1), there is allocated for each fiscal

 

year the amount necessary for payments to state supported colleges or universities and

 

intermediate districts providing school bus driver safety instruction pursuant to

 

section 51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The payments

 

shall be in an amount determined by the department not to exceed 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

 

for 2014-2015 the amount necessary to pay the reasonable costs of nonspecial education

 

auxiliary services transportation provided pursuant to section 1323 of the revised

 

school code, MCL 380.1323. Districts funded under this subsection shall not receive

 

funding under any other section of this article for nonspecial education auxiliary

 


services transportation.

 

       (4) From the funds allocated in subsection (1), there is allocated an amount

 

not to exceed $1,674,000.00 $1,691,500.00 for 2013-2014 2014-2015 for reimbursement to

 

districts and intermediate districts for costs associated with the inspection of

 

school buses and pupil transportation vehicles by the department of state police as

 

required under section 715a of the Michigan vehicle code, 1949 PA 300, MCL 257.715a,

 

and section 39 of the pupil transportation act, 1990 PA 187, MCL 257.1839. The

 

department of state police shall prepare a statement of costs attributable to each

 

district for which bus inspections are provided and submit it to the department and to

 

an intermediate district serving as fiduciary in a time and manner determined jointly

 

by the department and the department of state police. Upon review and approval of the

 

statement of cost, the department shall forward to the designated intermediate

 

district serving as fiduciary the amount of the reimbursement on behalf of each

 

district and intermediate district for costs detailed on the statement within 45 days

 

after receipt of the statement. The designated intermediate district shall make

 

payment in the amount specified on the statement to the department of state police

 

within 45 days after receipt of the statement. The total reimbursement of costs under

 

this subsection shall not exceed the amount allocated under this subsection.

 

Notwithstanding section 17b, payments to eligible entities under this subsection shall

 

be paid on a schedule prescribed by the department.

 

       Sec. 81. (1) Except as otherwise provided in this section, from the

 

appropriation in section 11, there is allocated each fiscal year for 2012-2013 and for

 

2013-2014 2014-2015 to the intermediate districts the sum necessary, but not to exceed

 

$64,115,100.00 each fiscal year $64,115,000.00, to provide state aid to intermediate

 

districts under this section.

 

       (2) From the allocation in subsection (1), there is allocated an amount not to

 

exceed $62,108,000.00 for allocations to each intermediate district for 2012-2013

 


2014-2015 in an amount equal to 100% of the amount allocated to the intermediate

 

district under this subsection for 2011-2012. From the allocation in subsection (1),

 

there is allocated an amount not to exceed $62,108,000.00 for allocations to each

 

intermediate district for 2013-2014 in an amount equal to 100.0% of the amount

 

allocated to the intermediate district under this subsection for 2012-2013 2013-2014.

 

Funding provided under this section shall be used to comply with requirements of this

 

article and the revised school code that are applicable to intermediate districts, and

 

for which funding is not provided elsewhere in this article, and to provide technical

 

assistance to districts as authorized by the intermediate school board.

 

       (3) Intermediate districts receiving funds under subsection (2) shall

 

collaborate with the department to develop expanded professional development

 

opportunities for teachers to update and expand their knowledge and skills needed to

 

support the Michigan merit curriculum.

 

       (4) From the allocation in subsection (1), there is allocated to an

 

intermediate district, formed by the consolidation or annexation of 2 or more

 

intermediate districts or the attachment of a total intermediate district to another

 

intermediate school district or the annexation of all of the constituent K-12

 

districts of a previously existing intermediate school district which has

 

disorganized, an additional allotment of $3,500.00 each fiscal year for each

 

intermediate district included in the new intermediate district for 3 years following

 

consolidation, annexation, or attachment. From the allocation in subsection (1), there

 

is allocated $7,000.00 for purposes of this subsection for 2012-2013, for 2013-2014,

 

and for 2014-2015, after which the payment under this subsection will cease.

 

       (5) In order to receive funding under subsection (2), an intermediate district

 

shall do all of the following:

 

       (a) Demonstrate to the satisfaction of the department that the intermediate

 

district employs at least 1 person who is trained in pupil accounting and auditing

 


procedures, rules, and regulations.

 

       (b) Demonstrate to the satisfaction of the department that the intermediate

 

district employs at least 1 person who is trained in rules, regulations, and district

 

reporting procedures for the individual-level student data that serves as the basis

 

for the calculation of the district and high school graduation and dropout rates.

 

       (c) Comply with sections 1278a and 1278b of the revised school code, MCL

 

380.1278a and 380.1278b.

 

       (d) Furnish data and other information required by state and federal law to the

 

center and the department in the form and manner specified by the center or the

 

department, as applicable.

 

       (e) Comply with section 1230g of the revised school code, MCL 380.1230g.

 

       (f) Comply with section 761 of the revised school code, MCL 380.761.

 

       (6) From the allocation in subsection (1), there is allocated an amount not to

 

exceed $2,000,000.00 for 2012-2013 for an incentive payment to each intermediate

 

district that meets best practices as determined by the department under this

 

subsection. The amount of the incentive payment is an amount equal to 3.2% of the

 

amount allocated to the intermediate district under subsection (2). An intermediate

 

district is eligible for an incentive payment under this subsection if the

 

intermediate district satisfies at least 4 of the following requirements not later

 

than June 1, 2013:

 

       (a) The intermediate district enters into an agreement with the department to

 

do all of the following:

 

       (i) Develop a service consolidation plan in 2012-2013 to reduce operating costs

 

that is in compliance with guidelines that were developed by the department for former

 

section 11d as that section was in effect for 2010-2011.

 

       (ii) Implement the service consolidation plan in 2013-2014 and report to the

 

department not later than February 1, 2014 on the intermediate district's progress in

 


implementing the service consolidation plan.

 

       (b) The intermediate district has obtained competitive bids on the provision of

 

1 or more noninstructional services for the intermediate district or its constituent

 

districts with a value of at least $50,000.00.

 

       (c) The intermediate district develops a technology plan in accordance with

 

department policy on behalf of all constituent districts within the intermediate

 

district that integrates technology into the classroom and prepares teachers to use

 

digital technologies as part of the instructional program of each of its constituent

 

districts.

 

       (d) The intermediate district provides to parents and community members a

 

dashboard or report card demonstrating the intermediate district's efforts to manage

 

its finances responsibly. The dashboard or report card shall include at least all of

 

the following for the 3 most recent school years for which the data are available:

 

       (i) A list of services offered by the intermediate district that are shared by

 

other local or intermediate districts and a list of the districts or intermediate

 

districts that participate.

 

       (ii) The total cost savings to local or other intermediate districts that share

 

services with the intermediate district.

 

       (iii) The number and percentage of teachers in the intermediate district

 

service area that are trained to integrate technology into the classroom.

 

       (iv) The total funds received from levying special education and vocational

 

education millages, and the number of special education and vocational education

 

pupils served with those dollars.

 

       (v) The number and percentage of individualized education programs developed

 

for special education pupils that contain academic goals.

 

       (e) The intermediate district works in a consortium with 1 or more other

 

intermediate districts to develop information management system requirements and bid

 


specifications that can be used as statewide models. At a minimum, these

 

specifications shall include pupil management systems for both general and special

 

education, learning management tools, and business services.

 

       (6) (7) From the allocation in subsection (1), there is allocated an amount not

 

to exceed $2,000,000.00 for 2013-2014 2014-2015 for an incentive payment to each

 

intermediate district that meets best practices as determined by the department under

 

this subsection. The amount of the incentive payment is an amount equal to 3.2% of the

 

amount allocated to the intermediate district under subsection (2). An intermediate

 

district is eligible for an incentive payment under this subsection if the

 

intermediate district satisfies at least 5 of the following requirements not later

 

than June 1, 2014 2015:

 

       (a) The intermediate district enters into an agreement with the department to

 

comply with all of the following:

 

       (i) If the intermediate district developed a service consolidation plan in

 

2012-2013 2013-2014, implement the service consolidation plan in 2013-2014 2014-2015

 

and report to the department not later than February 1, 2014 2015 on the intermediate

 

district's progress in implementing the service consolidation plan.

 

       (ii) If the intermediate district did not develop a service consolidation plan

 

in 2012-2013 OR 2013-2014, develop a service consolidation plan in 2013-2014 2014-2015

 

to reduce operating costs that is in compliance with guidelines that were developed by

 

the department for former section 11d as that section was in effect for 2010-2011.

 

       (iii) If the intermediate district developed a service consolidation plan in

 

2013-2014, implement the service consolidation plan in 2014-2015 and report to the

 

department not later than February 1, 2015 on the intermediate district's progress in

 

implementing the service consolidation plan.

 

       (III) (iv) Make the intermediate district's service consolidation plan publicly

 

available on the intermediate district's website.

 


       (b) The intermediate district has obtained competitive bids on the provision of

 

1 or more noninstructional services for the intermediate district or its constituent

 

districts with a value of at least $50,000.00. The unfunded accrued liability costs

 

for retirement and other benefits shall be excluded from the intermediate district's

 

current costs for the purpose of comparing competitive bids to the current costs of

 

providing services.

 

       (c) The intermediate district develops a technology plan in accordance with

 

department policy on behalf of all constituent districts within the intermediate

 

district that integrates technology into the classroom and prepares teachers to use

 

digital technologies as part of the instructional program of each of its constituent

 

districts. An intermediate district that developed a technology plan in 2012-2013 OR

 

2013-2014 shall begin implementing CONTINUE TO IMPLEMENT that technology plan in 2013-

 

2014 2014-2015.

 

       (d) The intermediate district provides to parents and community members a

 

dashboard or report card demonstrating the intermediate district's efforts to manage

 

its finances responsibly. The dashboard or report card shall include revenue and

 

expenditure projections for the intermediate district for 2013-2014 and 2014-2015 AND

 

2015-2016, a listing of all debt service obligations, detailed by project, including

 

anticipated 2013-2014 2014-2015 payment for each project, a listing of total

 

outstanding debt, and at least all of the following for the 3 most recent school years

 

for which the data are available:

 

       (i) A list of services offered by the intermediate district that are shared by

 

other local or intermediate districts and a list of the districts or intermediate

 

districts that participate.

 

       (ii) The total cost savings to local or other intermediate districts that share

 

services with the intermediate district.

 

       (iii) The number and percentage of teachers in the intermediate district

 


service area that are trained to integrate technology into the classroom.

 

       (iv) The total funds received from levying special education and vocational

 

education millages, and the number of special education and vocational education

 

pupils served with those dollars.

 

       (v) The number and percentage of individualized education programs developed

 

for special education pupils that contain academic goals.

 

       (e) The intermediate district works in a consortium with 1 or more other

 

intermediate districts and the center to develop local information management system

 

requirements and bid specifications that result in a recommended model information

 

system that supports interoperability to ensure linkage and connectivity in a manner

 

that facilitates the efficient exchange of data among districts, intermediate

 

districts, and the center. At a minimum, these specifications shall include pupil

 

management systems for both general and special education, learning management tools,

 

and business services.

 

       (f) If an intermediate district provides medical, pharmacy, dental, vision,

 

disability, long-term care, or any other type of benefit that would constitute a

 

health care services benefit, to employees and their dependents, the intermediate

 

district is the policyholder for each of its insurance policies that covers 1 or more

 

of these benefits. An intermediate district that does not directly employ its staff or

 

an intermediate district with a voluntary employee beneficiary association that pays

 

no more than the maximum per employee contribution amount and that contributes no more

 

than the maximum employer contribution percentage of total annual costs for the

 

medical benefit plans as described in sections 3 and 4 of the publicly funded health

 

insurance contribution act, 2011 PA 152, MCL 15.563 and 15.564, is considered to have

 

satisfied this requirement.

 

       SEC. 94. (1) From the general fund appropriation in Section 11, there is

 

allocated for 2014-2015 an amount not to exceed $250,000.00 for efforts to increasE

 


the number of PUPILS who participate and succeed in advanced placement AND

 

INTERNATIONAL BACCALAUREATE programs.

 

       (2) FUNDS awarded under this section shall be used to cover part or all of the

 

costs of advanced placement test fees OR INTERNATIONAL BACCALAUREATE TEST FEES for low

 

income PUPILS who take an advanced placement OR AN INTERNATIONAL BACCALAUREATE TEST.

 

payments are estimated at $20.00 per test completed.

 

       (3) FUNDs under this section shall be awarded if the following criteria are

 

met:

 

       (a) pupils for whom payment is made must meet eligibility requirements of the

 

federal Advanced Placement Test Fee program under section 1701 of the no child left

 

behind act of 2001, public law 107-110.

 

       (b) the tests are administered by the college board, the international

 

baccalaureate organization or other approved test provider.

 

       (4) Notwithstanding Section 17b, payments under this section shall be made on a

 

schedule determined by the department.

 

       Sec. 94a. (1) There is created within the state budget office in the department

 

of technology, management, and budget the center for educational performance and

 

information. The center shall do all of the following:

 

       (a) Coordinate the collection of all data required by state and federal law

 

from districts, intermediate districts, and postsecondary institutions.

 

       (b) Create, maintain, and enhance this state's P-20 longitudinal data system

 

and ensure that it meets the requirements of subsection (4).

 

       (c) Collect data in the most efficient manner possible in order to reduce the

 

administrative burden on reporting entities, including, but not limited to, electronic

 

transcript services.

 

       (d) Create, maintain, and enhance this state's web-based educational portal to

 

provide information to school leaders, teachers, researchers, and the public in

 


compliance with all federal and state privacy laws. Data shall include, but are not

 

limited to, all of the following:

 

       (i) Data sets that link teachers to student information, allowing districts to

 

assess individual teacher impact on student performance and consider student growth

 

factors in teacher and principal evaluation systems.

 

       (ii) Data access or, if practical, data sets, provided for regional data

 

warehouses that, in combination with local data, can improve teaching and learning in

 

the classroom.

 

       (iii) Research-ready data sets for researchers to perform research that

 

advances this state's educational performance.

 

       (e) Provide data in a useful manner to allow state and local policymakers to

 

make informed policy decisions.

 

       (f) Provide public reports to the citizens of this state to allow them to

 

assess allocation of resources and the return on their investment in the education

 

system of this state.

 

       (g) Other functions as assigned by the state budget director.

 

       (2) Each state department, officer, or agency that collects information from

 

districts, intermediate districts, or postsecondary institutions as required under

 

state or federal law shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection (1). This subsection

 

does not apply to information collected by the department of treasury under the

 

uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised

 

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to 388.1939; or

 

section 1351a of the revised school code, MCL 380.1351a.

 

       (3) The center may enter into any interlocal agreements necessary to fulfill

 

its functions.

 


       (4) The center shall ensure that the P-20 longitudinal data system required

 

under subsection (1)(b) meets all of the following:

 

       (a) Includes data at the individual student level from preschool through

 

postsecondary education and into the workforce.

 

       (b) Supports interoperability by using standard data structures, data formats,

 

and data definitions to ensure linkage and connectivity in a manner that facilitates

 

the exchange of data among agencies and institutions within the state and between

 

states.

 

       (c) Enables the matching of individual teacher and student records so that an

 

individual student may be matched with those teachers providing instruction to that

 

student.

 

       (d) Enables the matching of individual teachers with information about their

 

certification and the institutions that prepared and recommended those teachers for

 

state certification.

 

       (e) Enables data to be easily generated for continuous improvement and

 

decision-making, including timely reporting to parents, teachers, and school leaders

 

on student achievement.

 

       (f) Ensures the reasonable quality, validity, and reliability of data contained

 

in the system.

 

       (g) Provides this state with the ability to meet federal and state reporting

 

requirements.

 

       (h) For data elements related to preschool through grade 12 and postsecondary,

 

meets all of the following:

 

       (i) Contains a unique statewide student identifier that does not permit a

 

student to be individually identified by users of the system, except as allowed by

 

federal and state law.

 

       (ii) Contains student-level enrollment, demographic, and program participation

 


information.

 

       (iii) Contains student-level information about the points at which students

 

exit, transfer in, transfer out, drop out, or complete education programs.

 

       (iv) Has the capacity to communicate with higher education data systems.

 

       (i) For data elements related to preschool through grade 12 only, meets all of

 

the following:

 

       (i) Contains yearly test records of individual students for assessments

 

approved by DED-OESE for accountability purposes under section 1111(b) of the

 

elementary and secondary education act of 1965, 20 USC 6311, including information on

 

individual students not tested, by grade and subject.

 

       (ii) Contains student-level transcript information, including information on

 

courses completed and grades earned.

 

       (iii) Contains student-level college readiness test scores.

 

       (j) For data elements related to postsecondary education only:

 

       (i) Contains data that provide information regarding the extent to which

 

individual students transition successfully from secondary school to postsecondary

 

education, including, but not limited to, all of the following:

 

       (A) Enrollment in remedial coursework.

 

       (B) Completion of 1 year's worth of college credit applicable to a degree

 

within 2 years of enrollment.

 

       (ii) Contains data that provide other information determined necessary to

 

address alignment and adequate preparation for success in postsecondary education.

 

       (5) From the general fund appropriation in section 11, there is allocated an

 

amount not to exceed $9,535,100.00 $12,022,800.00 for 2013-2014 2014-2015 to the

 

department of technology, management, and budget to support the operations of the

 

center. In addition, from the federal funds appropriated in section 11 there is

 

allocated for 2013-2014 2014-2015 the amount necessary, estimated at $193,500.00, to

 


support the operations of the center and to establish a P-20 longitudinal data system

 

as provided under this section in compliance with the assurance provided to the United

 

States department of education in order to receive state fiscal stabilization funds.

 

The center shall cooperate with the department to ensure that this state is in

 

compliance with federal law and is maximizing opportunities for increased federal

 

funding to improve education in this state.

 

       (6) From the funds allocated in subsection (5), there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $850,000.00 for competitive grants to support

 

collaborative efforts on the P-20 longitudinal data system. All of the following apply

 

to grants awarded under this subsection:

 

       (a) The center shall award competitive grants to eligible intermediate

 

districts or a consortium of intermediate districts based on criteria established by

 

the center.

 

       (b) Activities funded under the grant shall support the P-20 longitudinal data

 

system portal and may include portal hosting, hardware and software acquisition,

 

maintenance, enhancements, user support and related materials, and professional

 

learning tools and activities aimed at improving the utility of the P-20 longitudinal

 

data system.

 

       (c) An applicant that received a grant under this subsection for the

 

immediately preceding fiscal year shall receive priority for funding under this

 

section. However, after 3 fiscal years of continuous funding, an applicant is required

 

to compete openly with new applicants.

 

       (7) From the funds allocated in subsection (5), there is allocated for 2013-

 

2014 an amount not to exceed $100,000.00 for the center to develop the pupil transfer

 

application as required under section 25e.

 

       (7) (8) Funds allocated under this section that are not expended in the fiscal

 

year in which they were allocated may be carried forward to a subsequent fiscal year

 


and are appropriated for the purposes for which the funds were originally allocated.

 

       (9) It is the intent of the legislature that, beginning in 2014-2015, a

 

district shall report to the center by June 30, in a manner prescribed by the center,

 

the number of pupils in the district who have had 10 or more unexcused absences each

 

school year. For pupils in grades 9 to 12, the report shall include both the total

 

number of unexcused absences in any single course and the total number of unexcused

 

absences in all courses. Each district shall define unexcused absence. It is the

 

intent of the legislature that a district that reports false information under this

 

subsection shall forfeit an amount equal to 5% of its total state aid allocation under

 

this act.

 

       (8) (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 (5) to cover the costs associated with salaries, benefits, supplies,

 

materials, and equipment necessary to provide such data, analysis, and reporting

 

services.

 

       (9) (11) As used in this section:

 

       (a) "DED-OESE" means the United States department of education office of

 

elementary and secondary education.

 

       (b) "State education agency" means the department.

 

       Sec. 95a. (1) From the appropriation in section 11, there is allocated for

 

2014-2015 an amount not to exceed $22,070,000.00 from the state school aid fund and an

 

amount not to exceed $5,730,000.00 from the general fund for the purpose of

 

implementing evaluation systems for educators and administrators pursuant to section

 

1249, MCL 380.1249, and section 1249B, MCL 380.1249B, of the revised school code.

 


       (2) The department of technology, management and budget and the department

 

shall request proposals from vendors for the educator and administrator observation

 

tools specified in section 1249(5)(A)(i) and section 1249B. The department, with the

 

assistance of the department of technology, management and budget, shall review the

 

submitted proposals and determine the lowest responsive, responsible bidder consistent

 

with the requirements for educator and administrator observation tools contained in

 

section 1249 and 1249B. Up to $22,070,000.00 from the state school aid fund allocation

 

in subsection (1) shall be distributed to districts and intermediate districts on a

 

per educator basis to implement one of the four teacher observation tools specified in

 

section 1249(5)(A)(i) and one of the two administrator observation tools specified in

 

section 1249B.

 

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

 

the center for educational performance and information an amount not to exceed

 

$2,700,000.00 for the purposes of developing mechanisms for educators and evaluators

 

to edit and verify educator-student rosters necessary for local calculations of

 

student growth data.

 

       (4) From the general fund allocation in subsection (1), there is allocated an

 

amount not to exceed $3,030,000.00 for the following purposes:

 

       (A) Provide value-added modeling components that are utilized in the student

 

growth and assessment component of the evaluation process.

 

       (B) Procure an electronic reporting system that will integrate observation tool

 

data and data from value-added modeling of student growth and assessment components of

 

the evaluation systems for districts and intermediate districts.

 

       (C) Pilot alternative evaluations with districts for any student populations

 

that cannot be evaluated by the evaluation system implemented pursuant to section 1249

 

and 1249B of the revised school code.

 

       Sec. 98. (1) From the general fund money appropriated in section 11, there is

 


allocated an amount not to exceed $9,387,500.00 for 2013-2014 2014-2015 for the

 

purposes described in this section.

 

       (2) The Michigan virtual university shall operate the Michigan virtual learning

 

research institute. The Michigan virtual learning research institute shall do all of

 

the following:

 

       (a) Support and accelerate innovation in education through the following

 

activities:

 

       (i) Test, evaluate, and recommend as appropriate new technology-based

 

instructional tools and resources.

 

       (ii) Research, design, and recommend digital education delivery models for use

 

by pupils and teachers that include age-appropriate multimedia instructional content.

 

       (iii) Research, design, and recommend competency-based online assessments.

 

       (III) (iv) Research, develop, and recommend annually to the department criteria

 

by which cyber schools and online course providers should be monitored and evaluated

 

to ensure a quality education for their pupils.

 

       (IV) (v) Based on pupil completion and performance data reported to the

 

department or the center for educational performance and information from cyber

 

schools and other online course providers operating in this state, analyze the

 

effectiveness of online learning delivery models in preparing pupils to be college-

 

and career-ready and publish a report that highlights enrollment totals, completion

 

rates, and the overall impact on pupils. The report shall be submitted to the house

 

and senate appropriations subcommittees on state school aid, the state budget

 

director, the house and senate fiscal agencies, and the department not later than

 

December 1, 2014 2015.

 

       (V) (vi) Before August 31, 2014 2015, provide an extensive professional

 

development program to at least 500 educational personnel, including teachers, school

 

administrators, and school board members, that focuses on the effective integration of

 


digital learning into curricula and instruction. Not later than December 1, 2014 2015,

 

the Michigan virtual learning research institute shall submit a report to the house

 

and senate appropriations subcommittees on state school aid, the state budget

 

director, the house and senate fiscal agencies, and the department on the number and

 

percentage of teachers, school administrators, and school board members who have

 

received professional development services from the Michigan virtual university. The

 

report shall also identify barriers and other opportunities to encourage the adoption

 

of digital learning in the public education system.

 

       (VI) (vii) Identify and share best practices for planning, implementing, and

 

evaluating online and blended education delivery models with intermediate districts,

 

districts, and public school academies to accelerate the adoption of innovative

 

education delivery models statewide.

 

       (b) Provide leadership for this state's system of digital learning education by

 

doing the following activities:

 

       (i) Develop and report policy recommendations to the governor and the

 

legislature that accelerate the expansion of effective online learning in this state's

 

schools.

 

       (ii) Provide a clearinghouse for research reports, academic studies,

 

evaluations, and other information related to online learning.

 

       (iii) Promote and distribute the most current instructional design standards

 

and guidelines for online teaching.

 

       (iv) In collaboration with the department and interested colleges and

 

universities in this state, recommend to the superintendent guidelines and standards

 

for a new teacher endorsement credential SUPPORT IMPLEMENTATION AND IMPROVEMENTS

 

related to effective digital learning instruction.

 

       (v) Pursue public/private partnerships that include districts to study and

 

implement competency-based technology-rich online learning models.

 


       (vi) Convene focus groups and conduct annual surveys of teachers,

 

administrators, pupils, parents, and others to identify barriers and opportunities

 

related to online learning.

 

       (vii) Produce an annual consumer awareness report for schools and parents about

 

effective online education providers and education delivery models, performance data,

 

cost structures, and research trends.

 

       (viii) Research and establish an internet-based platform that educators can use

 

to create student-centric learning tools and resources and facilitate a user network

 

that assists educators in using the platform. As part of this initiative, the Michigan

 

virtual university shall work collaboratively with districts and intermediate

 

districts to establish a plan to make available online resources that align to

 

Michigan's K-12 curriculum standards for use by students, educators, and parents.

 

       (ix) Create and maintain a public statewide catalog of online learning courses

 

being offered by all public schools in this state. The Michigan virtual learning

 

research institute shall identify and develop a list of nationally recognized best

 

practices for online learning and use this list to provide SUPPORT reviews of online

 

course vendors, courses, and instructional practices. The Michigan virtual learning

 

research institute shall also provide a mechanism for intermediate districts to use

 

the identified best practices to review content offered by constituent districts. The

 

Michigan virtual learning research institute shall review the online course offerings

 

of the Michigan virtual university, and make the results from these reviews available

 

to the public as part of the statewide catalog. The Michigan virtual learning research

 

institute shall ensure that the statewide catalog is made available to the public on

 

the Michigan virtual university website and linked to ALLOW THE ABILITY TO LINK IT TO

 

each district's website as provided for in section 21f. Beginning in 2014-2015, the

 

statewide catalog shall also contain all of the following:

 

       (A) The number of pupils enrolled ENROLLMENTS in each online course in the

 


2012-2013 PRIOR school year.

 

       (B) The number of pupils who successfully completed enrollments that earned 60

 

percent or More of the total course points for each online course in the 2012-2013

 

PRIOR school year.

 

       (C) The completion rate for each online course.

 

       (x) Collaborate with key stakeholders to examine the need and process for

 

incorporating registration, payment services and transcript functionality to the

 

statewide catalog.

 

       (xi) Collaborate with key stakeholders to examine district level accountability

 

and teacher effectiveness issues related to online learning under Section 21f and make

 

FINDINGS AND RECOMMENDATIONS publicly availabLE.

 

       (3) In order for the Michigan virtual university to receive any funds allocated

 

under this section, the Michigan virtual school must maintain its accreditation status

 

from recognized national and international accrediting entities.

 

       (4) If the course offerings are included in the statewide catalog of online

 

courses under subsection (2)(b)(ix), the Michigan virtual school operated by the

 

Michigan virtual university may offer online course offerings, including, but not

 

limited to, all of the following:

 

       (a) Information technology courses.

 

       (b) College level equivalent courses, as defined in section 1471 of the revised

 

school code, MCL 380.1471.

 

       (c) Courses and dual enrollment opportunities.

 

       (d) Programs and services for at-risk pupils.

 

       (e) General education development test preparation courses for adjudicated

 

youth.

 

       (f) Special interest courses.

 

       (g) Professional development programs for teachers, school administrators,

 


other school employees, and school board members.

 

       (5) If a home-schooled or nonpublic school student is a resident of a district

 

that subscribes to services provided by the Michigan virtual school, the student may

 

use the services provided by the Michigan virtual school to the district without

 

charge to the student beyond what is charged to a district pupil using the same

 

services.

 

       (6) Not later than December 1 of each fiscal year, the Michigan virtual

 

university shall provide a report to the house and senate appropriations subcommittees

 

on state school aid, the state budget director, the house and senate fiscal agencies,

 

and the department that includes at least all of the following information related to

 

the Michigan virtual school for the preceding state fiscal year:

 

       (a) A list of the districts served by the Michigan virtual school.

 

       (b) A list of online course titles available to districts.

 

       (c) The total number of online course enrollments and information on

 

registrations and completions by course.

 

       (d) The overall course completion rate percentage.

 

       (7) The governor may appoint an advisory group for the Michigan virtual

 

learning research institute established under subsection (2). The members of the

 

advisory group shall serve at the pleasure of the governor and shall serve without

 

compensation. The purpose of the advisory group is to make recommendations to the

 

governor, the legislature, and the president and board of the Michigan virtual

 

university that will accelerate innovation in this state's education system in a

 

manner that will prepare elementary and secondary students to be career and college

 

ready and that will promote the goal of increasing the percentage of citizens of this

 

state with high-quality degrees and credentials to at least 60% by 2025.

 

       (8) Not later than November 1, 2013 2014, the Michigan virtual university shall

 

submit to the house and senate appropriations subcommittees on state school aid, the

 


state budget director, and the house and senate fiscal agencies a detailed budget for

 

the 2013-2014 2014-2015 fiscal year that includes a breakdown on its projected costs

 

to deliver online educational services to districts and a summary of the anticipated

 

fees to be paid by districts for those services. Beginning in 2013-2014, not later

 

than February 1, the Michigan virtual university shall submit to the house and senate

 

appropriations subcommittees on state school aid, the state budget director, and the

 

house and senate fiscal agencies a breakdown on its actual costs to deliver online

 

educational services to districts and a summary of the actual fees paid by districts

 

for those services based on audited financial statements for the immediately preceding

 

fiscal year.

 

       (9) As used in this section:

 

       (a) "Blended learning" means a hybrid instructional delivery model where pupils

 

are provided content, instruction, and assessment, in part at a supervised educational

 

facility away from home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through internet-connected

 

learning environments with some degree of pupil control over time, location, and pace

 

of instruction.

 

       (b) "Cyber school" means a full-time instructional program of online courses

 

for pupils that may or may not require attendance at a physical school location.

 

       (c) "Digital learning" means instruction delivered via a web-based educational

 

delivery system that uses various information technologies to provide a structured

 

learning environment, including online and blended learning instructional methods.

 

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

 

credit or a grade, that is provided in an interactive internet-connected learning

 

environment, in which pupils are separated from their teachers by time or location, or

 

both, and in which a teacher who holds a valid Michigan teaching certificate is

 

responsible for determining appropriate instructional methods for each pupil,

 


diagnosing learning needs, assessing pupil learning, prescribing intervention

 

strategies, reporting outcomes, and evaluating the effects of instruction and support

 

strategies.

 

       Sec. 99. (1) From the funds appropriated in section 11, there is allocated for

 

2013-2014 2014-2015 an amount not to exceed $2,850,000.00 $2,750,000.00 from the state

 

school aid fund and an amount not to exceed $375,000.00 $475,000.00 from the general

 

fund to support the activities and programs of mathematics and science centers and for

 

other purposes as described in this section. In addition, from the federal funds

 

appropriated in section 11, there is allocated for 2013-2014 2014-2015 an amount

 

estimated at $5,249,300.00 from DED-OESE, title II, mathematics and science

 

partnership grants.

 

       (2) Within a service area designated locally, approved by the department, and

 

consistent with the comprehensive master plan for mathematics and science centers

 

developed by the department and approved by the state board, an established

 

mathematics and science center shall provide 2 or more of the following 6 basic

 

services, as described in the master plan, to constituent districts and communities:

 

leadership, pupil services, curriculum support, community involvement, professional

 

development, and resource clearinghouse services.

 

       (3) The department shall not award a state grant under this section to more

 

than 1 mathematics and science center located in a designated region as prescribed in

 

the 2007 2012 master plan unless each of the grants serves a distinct target

 

population or provides a service that does not duplicate another program in the

 

designated region.

 

       (4) As part of the technical assistance process, the department shall provide

 

minimum standard guidelines that may be used by the mathematics and science center for

 

providing fair access for qualified pupils and professional staff as prescribed in

 

this section.

 


       (5) Allocations under this section to support the activities and programs of

 

mathematics and science centers shall be continuing support grants to all 33

 

established mathematics and science centers. Each established mathematics and science

 

center that was funded in the immediately preceding fiscal year shall receive state

 

funding in an amount equal to 100% of the amount it was allocated under this

 

subsection for the immediately preceding fiscal year. If a center declines state

 

funding or a center closes, the remaining money available under this section shall be

 

distributed to the remaining centers, as determined by the department.

 

       (6) From the funds allocated in subsection (1), there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $750,000.00 in a form and manner determined by

 

the department to those centers able to provide curriculum and professional

 

development support to assist districts in implementing the Michigan merit curriculum

 

components for mathematics and science. Funding under this subsection is in addition

 

to funding allocated under subsection (5).

 

       (7) From the state school aid GENERAL fund money allocated in subsection (1),

 

there is allocated for 2013-2014 2014-2015 an amount not to exceed $100,000.00 in a

 

form and manner determined by the department to a single mathematics and science

 

center that is a participant in TO the Michigan STEM partnership, to be used to

 

administer the grant process under this subsection. From the general fund money

 

allocated in subsection (1), there is allocated for 2013-2014 2014-2015 an amount not

 

to exceed $375,000.00 to the Michigan STEM partnership to be used for a competitive

 

grant process to award competitive grants to organizations conducting student-focused,

 

project-based programs and competitions, either in the classroom or extracurricular,

 

in science, technology, engineering, and mathematics subjects such as, but not limited

 

to, robotics, coding, and design-build-test projects, from pre-kindergarten through

 

college level. Funding under this subsection is in addition to funding allocated under

 

subsection (5) and shall be used for connecting mathematics and science centers for

 


science, technology, engineering, and mathematics purposes AND TO SUPPORT THE GOALS

 

AND MISSION OF THE MICHIGAN STEM PARTNERSHIP. A program receiving funds under section

 

99h may not receive funds under this subsection.

 

       (8) In order to receive state or federal funds under this section, a grant

 

recipient shall allow access for the department or the department's designee to audit

 

all records related to the program for which it receives such funds. The grant

 

recipient shall reimburse the state for all disallowances found in the audit.

 

       (9) Not later than September 30, 2013 2018, the department shall reevaluate and

 

update the comprehensive master plan described in subsection (1).

 

       (10) The department shall give preference in awarding the federal grants

 

allocated in subsection (1) to eligible existing mathematics and science centers.

 

       (11) In order to receive state funds under this section, a grant recipient

 

shall provide at least a 10% local match from local public or private resources for

 

the funds received under this section.

 

       (12) Not later than July 1 of each year, a mathematics and science center that

 

receives funds under this section shall report to the department in a form and manner

 

prescribed by the department on the following performance measures:

 

       (a) Statistical change in pre- and post-assessment scores for students who

 

enrolled in mathematics and science activities provided to districts by the

 

mathematics and science center.

 

       (b) Statistical change in pre- and post-assessment scores for teachers who

 

enrolled in professional development activities provided by the mathematics and

 

science center.

 

       (13) As used in this section:

 

       (a) "DED" means the United States department of education.

 

       (b) "DED-OESE" means the DED office of elementary and secondary education.

 

       Sec. 99h. (1) From the appropriation in section 11, there is allocated an

 


amount not to exceed $3,000,000.00 $2,000,000.00 for 2013-2014 2014-2015 for

 

competitive grants to districts that provide pupils in grades 7 to 12 with expanded

 

opportunities to improve mathematics, science, and technology skills by participating

 

in events hosted by a science and technology development program known as FIRST (for

 

inspiration and recognition of science and technology) robotics.

 

       (2) A district applying for a FIRST tech challenge or FIRST robotics

 

competition program grant shall submit an application in a form and manner determined

 

by the department. To be eligible for a grant, a district shall demonstrate in its

 

application that the district has established a partnership for the purposes of the

 

FIRST program with at least 1 sponsor, business entity, higher education institution,

 

or technical school.

 

       (3) The department shall distribute the grant funding under this section for

 

the following purposes:

 

       (a) Except as otherwise provided in subparagraph (iii), not more than

 

$1,000,000.00 for grants GRANTS to districts to pay for stipends of $1,500.00 for 1

 

coach per team, distributed as follows:

 

       (i) Not more than 500 stipends for coaches of high school teams, including

 

existing teams.

 

       (ii) Not more than 100 stipends for coaches of middle school or junior high

 

teams, including existing teams.

 

       (iii) If the requests for stipends exceed the numbers of stipends allowed under

 

subparagraphs (i) and (ii), and if there is funding remaining unspent under

 

subdivisions (b) and (c), the department shall use that remaining unspent funding for

 

grants to districts to pay for additional stipends in a manner that expands the

 

geographical distribution of teams.

 

       (b) not more than $1,000,000.00 for grants GRANTS to districts for event

 

registrations, materials, travel costs, and other expenses associated with the

 


preparation for and attendance at FIRST tech challenge and FIRST robotics

 

competitions. Each grant recipient shall provide a local match from other private or

 

local funds for the funds received under this subdivision equal to at least 50% of the

 

costs of participating in an event. The department shall set maximum grant amounts

 

under this subdivision in a manner that maximizes the number of teams that will be

 

able to receive funding.

 

       (c) not more than $1,000,000.00 for grants GRANTS to districts for awards to

 

teams that advance to the state and world championship competitions. The department

 

shall determine an equal amount per team for those teams that advance to the state

 

championship and a second equal award amount to those teams that advance to the world

 

championship.

 

       (4) THE FUNDS ALLOCATED UNDER THIS SECTION ARE A WORK PROJECT APPROPRIATION,

 

AND ANY UNEXPENDED FUNDS FOR 2014-2015 ARE CARRIED FORWARD INTO 2015-2016. THE PURPOSE

 

OF THE WORK PROJECT IS TO CONTINUE TO IMPLEMENT THE PROJECTS DESCRIBED UNDER

 

SUBSECTION (1). THE ESTIMATED COMPLETION DATE OF THE WORK PROJECT IS SEPTEMBER 30,

 

2017.

 

       Sec. 101. (1) To be eligible to receive state aid under this article, not later

 

than the fifth Wednesday after the pupil membership count day and not later than the

 

fifth Wednesday after the supplemental count day, each district superintendent shall

 

submit to the center and the intermediate superintendent, in the form and manner

 

prescribed by the center, the number of pupils enrolled and in regular daily

 

attendance in the district as of the pupil membership count day and as of the

 

supplemental count day, as applicable, for the current school year. In addition, a

 

district maintaining school during the entire year, as provided under section 1561 of

 

the revised school code, MCL 380.1561, shall submit to the center and the intermediate

 

superintendent, in the form and manner prescribed by the center, the number of pupils

 

enrolled and in regular daily attendance in the district for the current school year

 


pursuant to rules promulgated by the superintendent. Not later than the sixth

 

Wednesday after the pupil membership count day and not later than the sixth Wednesday

 

after the supplemental count day, the district shall certify the data in a form and

 

manner prescribed by the center and file the certified data with the intermediate

 

superintendent. If a district fails to submit and certify the attendance data, as

 

required under this subsection, the center shall notify the department and state aid

 

due to be distributed under this article shall be withheld from the defaulting

 

district immediately, beginning with the next payment after the failure and continuing

 

with each payment until the district complies with this subsection. If a district does

 

not comply with this subsection by the end of the fiscal year, the district forfeits

 

the amount withheld. A person who willfully falsifies a figure or statement in the

 

certified and sworn copy of enrollment shall be punished in the manner prescribed by

 

section 161.

 

       (2) To be eligible to receive state aid under this article, not later than the

 

twenty-fourth Wednesday after the pupil membership count day and not later than the

 

twenty-fourth Wednesday after the supplemental count day, an intermediate district

 

shall submit to the center, in a form and manner prescribed by the center, the audited

 

enrollment and attendance data for the pupils of its constituent districts and of the

 

intermediate district. If an intermediate district fails to submit the audited data as

 

required under this subsection, state aid due to be distributed under this article

 

shall be withheld from the defaulting intermediate district immediately, beginning

 

with the next payment after the failure and continuing with each payment until the

 

intermediate district complies with this subsection. If an intermediate district does

 

not comply with this subsection by the end of the fiscal year, the intermediate

 

district forfeits the amount withheld.

 

       (3) Except as otherwise provided in subsections (11) and (12), all of the

 

following apply to the provision of pupil instruction:

 


       (a) Except as otherwise provided in this section, each district shall provide

 

at least 1,098 hours and, beginning in 2010-2011, the required minimum number of days

 

of pupil instruction. Beginning in 2012-2013, the required minimum number of days of

 

pupil instruction is 170. Beginning in 2014-2015, the required minimum number of days

 

of pupil instruction is 175. However, a district shall not provide fewer days of pupil

 

instruction than the district provided for 2009-2010. If a collective bargaining

 

agreement that provides a complete school calendar was in effect for employees of a

 

district as of june 13, 2013, and if that school calendar is not in compliance with

 

this subsection, then this subsection does not apply to that district until after the

 

expiration of that collective bargaining agreement. A district may apply for a waiver

 

under subsection (9) from the requirements of this subdivision. For 2012-2013 only, if

 

a district is unable to provide the required minimum number of days of pupil

 

instruction because of school closures occurring before April 20, 2013 due to

 

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, but the district does

 

provide at least the required minimum number of hours of pupil instruction, the

 

district is not subject to the minimum number of days of pupil instruction requirement

 

of this subsection. A district that uses the 2012-2013 exception from the minimum

 

number of days of pupil instruction requirement shall submit to the department not

 

later than July 1, 2013, in the form and manner prescribed by the department, a report

 

that details the amount of instructional time that was lost due to school closures and

 

the amount of additional instructional time that was added to compensate; when the

 

additional instructional time was provided; the activities that were carried out and

 

subject areas addressed during the additional instructional time; and other

 

information specified by the department to assess whether appropriate instruction

 

occurred during the additional instructional time. The department shall aggregate and

 


provide these reports to the senate and house standing committees on education.

 

       (b) Except as otherwise provided in this article, a district failing to comply

 

with the required minimum hours and days of pupil instruction under this subsection

 

shall forfeit from its total state aid allocation an amount determined by applying a

 

ratio of the number of hours or days the district was in noncompliance in relation to

 

the required minimum number of hours and days under this subsection. Not later than

 

August 1, the board of each district shall certify to the department the number of

 

hours and days of pupil instruction in the previous school year. If the district did

 

not provide at least the required minimum number of hours and days of pupil

 

instruction under this subsection, the deduction of state aid shall be made in the

 

following fiscal year from the first payment of state school aid. A district is not

 

subject to forfeiture of funds under this subsection for a fiscal year in which a

 

forfeiture was already imposed under subsection (6).

 

       (c) Hours or days lost because of strikes or teachers' conferences shall not be

 

counted as hours or days of pupil instruction.

 

       (d) If a collective bargaining agreement that provides a complete school

 

calendar is in effect for employees of a district as of October 19, 2009, and if that

 

school calendar is not in compliance with this subsection, then this subsection does

 

not apply to that district until after the expiration of that collective bargaining

 

agreement.

 

       (e) Except as otherwise provided in subdivision (f), a district not having at

 

least 75% of the district's membership in attendance on any day of pupil instruction

 

shall receive state aid in that proportion of 1/180 that the actual percent of

 

attendance bears to the specified percentage.

 

       (f) At the request of a district that operates a department-approved

 

alternative education program and that does not provide instruction for pupils in all

 

of grades K to 12, the superintendent may grant a waiver from the requirements of

 


subdivision (e). The waiver shall indicate that an eligible district is subject to the

 

proration provisions of subdivision (e) only if the district does not have at least

 

50% of the district's membership in attendance on any day of pupil instruction. In

 

order to be eligible for this waiver, a district must maintain records to substantiate

 

its compliance with the following requirements:

 

       (i) The district offers the minimum hours of pupil instruction as required

 

under this section.

 

       (ii) For each enrolled pupil, the district uses appropriate academic

 

assessments to develop an individual education plan that leads to a high school

 

diploma.

 

       (iii) The district tests each pupil to determine academic progress at regular

 

intervals and records the results of those tests in that pupil's individual education

 

plan.

 

       (g) All of the following apply to a waiver granted under subdivision (f):

 

       (i) If the waiver is for a blended model of delivery, a waiver that is granted

 

for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

       (ii) If the waiver is for a 100% online model of delivery and the educational

 

program for which the waiver is granted makes educational services available to pupils

 

for a minimum of at least 1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours during a school year,

 

a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year

 

remains in effect unless it is revoked by the superintendent.

 

       (iii) A waiver that is not a waiver described in subparagraph (i) or (ii) is

 

valid for 1 fiscal year and must be renewed annually to remain in effect.

 

       (h) The superintendent shall promulgate rules for the implementation of this

 

subsection.

 


       (4) Except as otherwise provided in this subsection, the first 6 days or the

 

equivalent number of hours for which pupil instruction is not provided because of

 

conditions not within the control of school authorities, such as severe storms, fires,

 

epidemics, utility power unavailability, water or sewer failure, or health conditions

 

as defined by the city, county, or state health authorities, shall be counted as hours

 

and days of pupil instruction. With the approval of the superintendent of public

 

instruction, the department shall count as hours and days of pupil instruction for a

 

fiscal year not more than 6 additional days or the equivalent number of additional

 

hours for which pupil instruction is not provided in a district after April 1 of the

 

applicable school year due to unusual and extenuating occurrences resulting from

 

conditions not within the control of school authorities such as those conditions

 

described in this subsection. Subsequent such hours or days shall not be counted as

 

hours or days of pupil instruction.

 

       (5) A district shall not forfeit part of its state aid appropriation because it

 

adopts or has in existence an alternative scheduling program for pupils in

 

kindergarten if the program provides at least the number of hours required under

 

subsection (3) for a full-time equated membership for a pupil in kindergarten as

 

provided under section 6(4).

 

       (6) In addition to any other penalty or forfeiture under this section, if at

 

any time the department determines that 1 or more of the following have occurred in a

 

district, the district shall forfeit in the current fiscal year beginning in the next

 

payment to be calculated by the department a proportion of the funds due to the

 

district under this article that is equal to the proportion below the required minimum

 

number of hours and days of pupil instruction under subsection (3), as specified in

 

the following:

 

       (a) The district fails to operate its schools for at least the required minimum

 

number of hours and days of pupil instruction under subsection (3) in a school year,

 


including hours and days counted under subsection (4).

 

       (b) The board of the district takes formal action not to operate its schools

 

for at least the required minimum number of hours and days of pupil instruction under

 

subsection (3) in a school year, including hours and days counted under subsection

 

(4).

 

       (7) In providing the minimum number of hours and days of pupil instruction

 

required under subsection (3), a district shall use the following guidelines, and a

 

district shall maintain records to substantiate its compliance with the following

 

guidelines:

 

       (a) Except as otherwise provided in this subsection, a pupil must be scheduled

 

for at least the required minimum number of hours of instruction, excluding study

 

halls, or at least the sum of 90 hours plus the required minimum number of hours of

 

instruction, including up to 2 study halls.

 

       (b) The time a pupil is assigned to any tutorial activity in a block schedule

 

may be considered instructional time, unless that time is determined in an audit to be

 

a study hall period.

 

       (c) Except as otherwise provided in this subdivision, a pupil in grades 9 to 12

 

for whom a reduced schedule is determined to be in the individual pupil's best

 

educational interest must be scheduled for a number of hours equal to at least 80% of

 

the required minimum number of hours of pupil instruction to be considered a full-time

 

equivalent pupil. A pupil in grades 9 to 12 who is scheduled in a 4-block schedule may

 

receive a reduced schedule under this subsection if the pupil is scheduled for a

 

number of hours equal to at least 75% of the required minimum number of hours of pupil

 

instruction to be considered a full-time equivalent pupil.

 

       (d) If a pupil in grades 9 to 12 who is enrolled in a cooperative education

 

program or a special education pupil cannot receive the required minimum number of

 

hours of pupil instruction solely because of travel time between instructional sites

 


during the school day, that travel time, up to a maximum of 3 hours per school week,

 

shall be considered to be pupil instruction time for the purpose of determining

 

whether the pupil is receiving the required minimum number of hours of pupil

 

instruction. However, if a district demonstrates to the satisfaction of the department

 

that the travel time limitation under this subdivision would create undue costs or

 

hardship to the district, the department may consider more travel time to be pupil

 

instruction time for this purpose.

 

       (e) In grades 7 through 12, instructional time that is part of a junior reserve

 

officer training corps (JROTC) program shall be considered to be pupil instruction

 

time regardless of whether the instructor is a certificated teacher if all of the

 

following are met:

 

       (i) The instructor has met all of the requirements established by the United

 

States department of defense and the applicable branch of the armed services for

 

serving as an instructor in the junior reserve officer training corps program.

 

       (ii) The board of the district or intermediate district employing or assigning

 

the instructor complies with the requirements of sections 1230 and 1230a of the

 

revised school code, MCL 380.1230 and 380.1230a, with respect to the instructor to the

 

same extent as if employing the instructor as a regular classroom teacher.

 

       (8) Except as otherwise provided in subsections (11) and (12), the department

 

shall apply the guidelines under subsection (7) in calculating the full-time

 

equivalency of pupils.

 

       (9) Upon application by the district for a particular fiscal year, the

 

superintendent may waive for a district the minimum number of hours and days of pupil

 

instruction requirement of subsection (3) for a department-approved alternative

 

education program or another innovative program approved by the department, including

 

a 4-day school week. If a district applies for and receives a waiver under this

 

subsection and complies with the terms of the waiver, the district is not subject to

 


forfeiture under this section for the specific program covered by the waiver. If the

 

district does not comply with the terms of the waiver, the amount of the forfeiture

 

shall be calculated based upon a comparison of the number of hours and days of pupil

 

instruction actually provided to the minimum number of hours and days of pupil

 

instruction required under subsection (3). Pupils enrolled in a department-approved

 

alternative education program under this subsection shall be reported to the center in

 

a form and manner determined by the center. All of the following apply to a waiver

 

granted under this subsection:

 

       (a) If the waiver is for a blended model of delivery, a waiver that is granted

 

for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it

 

is revoked by the superintendent.

 

       (b) If the waiver is for a 100% online model of delivery and the educational

 

program for which the waiver is granted makes educational services available to pupils

 

for a minimum of at least 1,098 hours during a school year and ensures that each pupil

 

participates in the educational program for at least 1,098 hours during a school year,

 

a waiver that is granted for the 2011-2012 fiscal year or a subsequent fiscal year

 

remains in effect unless it is revoked by the superintendent.

 

       (c) A waiver that is not a waiver described in subdivision (a) or (b) is valid

 

for 1 fiscal year and must be renewed annually to remain in effect.

 

       (10) Until 2014-2015, a district may count up to 38 hours of qualifying

 

professional development for teachers as hours of pupil instruction. Professional

 

development provided online is allowable and encouraged, as long as the instruction

 

has been approved by the district. The department shall issue a list of approved

 

online professional development providers, which shall include the Michigan virtual

 

school. As used in this subsection, "qualifying professional development" means

 

professional development that is focused on 1 or more of the following:

 

       (a) Achieving or improving adequate yearly progress as defined under the no

 


child left behind act of 2001, Public Law 107-110.

 

       (b) Achieving accreditation or improving a school's accreditation status under

 

section 1280 of the revised school code, MCL 380.1280.

 

       (c) Achieving highly qualified teacher status as defined under the no child

 

left behind act of 2001, Public Law 107-110.

 

       (d) Integrating technology into classroom instruction.

 

       (e) Maintaining teacher certification.

 

       (11) Subsections (3) and (8) do not apply to a school of excellence that is a

 

cyber school, as defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL 380.553a.

 

       (12) Subsections (3) and (8) do not apply to eligible pupils enrolled in a

 

dropout recovery program that meets the requirements of section 23a. As used in this

 

subsection, "eligible pupil" means that term as defined in section 23a.

 

       (13) Beginning in 2013, at least every 2 years the superintendent shall review

 

the waiver standards set forth in the pupil accounting and auditing manuals to ensure

 

that the waiver standards and waiver process continue to be appropriate and responsive

 

to changing trends in online learning. The superintendent shall solicit and consider

 

input from stakeholders as part of this review.

 

       Sec. 102. (1) A district or intermediate district receiving money under this

 

article shall not adopt or operate under a deficit budget, and a district or

 

intermediate district shall not incur an operating deficit in a fund during a school

 

fiscal year. A if a district or intermediate district that has an existing deficit

 

fund balance, that incurs a deficit fund balance in the most recently completed school

 

fiscal year, or that adopts a current year budget that projects a deficit fund

 

balance, shall not be allotted or paid a further sum under this article all of the

 

following apply

 

       (A) the district or intermediate district shall notify the department

 


immediately upon the occurrence of the circumstance.

 

       (b) within 30 days after notifying the department, the district or intermediate

 

district shall submit to the department and the state treasurer a preplan financial

 

report in the form and manner prescribed by the department of treasury.

 

       (C) the department may withhold some or all of the money payable to the

 

DISTRICT or intermediate district under this article, in an amount the DEPARTMENT

 

determines necessary to INCENTIVIZE the district or INTERMEDIATE district to eliminate

 

the deficit, until the district or intermediate district submits to the department for

 

approval a budget for the current school fiscal year and a plan to eliminate the

 

district's or intermediate district's deficit not later than the end of the second

 

school fiscal year after the deficit was incurred or the budget projecting a deficit

 

was adopted. Withheld state aid payments shall be released deficit elimination plan in

 

the form and manner prescribed by the department or until the deficit elimination plan

 

is approved by the department, as determined by the department. The department may

 

require a deficit elimination plan to include an EDUCATION plan for the district or

 

intermediate district.

 

       (D) the department shall release money withheld under this subsection after the

 

department approves the deficit elimination plan. and ensures that the budget for the

 

current school fiscal year is balanced.

 

       (E) After the department approves a district's or intermediate district's

 

deficit elimination plan, the district or intermediate district shall post the deficit

 

elimination plan on the district's or intermediate district's website.

 

       (2) Not later than March 1 of each year, the department shall prepare a report

 

of deficits incurred or projected by districts and intermediate districts in the

 

immediately preceding fiscal year and the progress made in reducing those deficits and

 

submit the report to the standing committees of the legislature responsible for K-12

 

education legislation, the appropriations subcommittees of the legislature responsible

 


for K-12 education appropriations, the house and senate fiscal agencies, the state

 

treasurer, and the state budget director. The department also shall submit quarterly

 

interim reports concerning the progress made by districts and intermediate districts

 

in reducing those deficits to the appropriations subcommittees of the legislature

 

responsible for k-12 education appropriations, the house and senate fiscal agencies,

 

the state treasurer, and the state budget director. On a quarterly basis, the

 

superintendent of public instruction shall publicly present those reports to the

 

appropriations subcommittees of the legislature responsible for K-12 education

 

appropriations.

 

       (3) The amount of the permissible deficit for each school fiscal year shall not

 

exceed the amount of state aid reduced by an executive order during that school fiscal

 

year.

 

       (3) (4) A district or intermediate district that has an existing deficit fund

 

balance, that incurs a deficit fund balance in the most recently completed school

 

fiscal year, or that adopts a current year budget that projects a deficit fund balance

 

shall submit to the department and the state treasurer a monthly monitoring report on

 

revenue and expenditures in a form and manner prescribed by the department and shall

 

post these reports on its website.

 

       (4) (5) If a district or intermediate district is not able to comply with the

 

provisions of this section, the district or intermediate district shall submit to the

 

department a plan to eliminate its deficit. Upon approval of the plan submitted,

 

required to submit a deficit elimination plan under this section, and the deficit

 

elimination plan is approved by the department, the superintendent of public

 

instruction may continue allotment and payment of funds under this article., extend

 

when approving a deficit elimination plan, the superintendent shall establish the

 

period of time in within which a district or intermediate district has to must

 

eliminate its deficit, and may set special conditions that the district or

 


intermediate district must meet during the period of the extension. While the deficit

 

elimination plan is in effect. After the department approves a district's or

 

intermediate district's deficit elimination plan under this subsection, the district

 

or intermediate district shall post the deficit elimination plan on the district's or

 

intermediate district's website. The requirements of this section relating to a

 

deficit elimination plan do not apply to a district or intermediate district if the

 

district or intermediate district is required to submit an enhanced deficit

 

elimination plan under subsection (5).

 

       (5) if, based upon information included in a periodic financial status report

 

required under section 102a or notification from the superintendent of public

 

instruction, a preplan financial report required under this section, or a deficit

 

elimination plan required under this section, the state treasurer determines that a

 

district or intermediate district is subject to rapidly deteriorating financial

 

circumstances, persistently declining ENROLLMENT, or other indicators of financial

 

stress likely to result in recurring operating deficits or recurring financial stress

 

WITHIN the district or intermediate district, the state treasurer may require the

 

district or intermediate district to submit an enhanced deficit elimination plan in

 

the form and manner determined by the DEPARTMENT of treasury. an enhanced deficit

 

elimination plan shall provide for the resolution of the deteriorating financial

 

circumstances, PERSISTENTLY declining enrollment, or other INDICATORS of recurring

 

operating DEFICITS or recurring financial stress and is subject to APPROVAL by the

 

state treasurer. As a condition of approving the ENHANCED deficit elimination plan,

 

the state treasurer may require the district or INTERMEDIATE school district to enter

 

into a FINANCIAL RECOVERY AGREEMENT with the state treasurer. a FINANCIAL RECOVERY

 

AGREEMENT may provide for, but is not limited to, all of the following:

 

       (a) assistance and guidance from the department of treasury and other state

 

departments and agencies.

 


       (b) a financial and operating plan for the district.

 

       (c) the appointment of a local auditor or inspector, or both.

 

       (D) remedial measures necessary to address the financial circumstances of the

 

district or intermediate district.

 

       (E) Alternative means to more effectively and EFFICIENTLY provide public

 

educational services to residents of the district or intermediate district and perform

 

other functions and responsibilities of the district or intermediate district,

 

including, but not limited to, entering into agreements or cooperative arrangements

 

with other ENTITIES, public or private, or joining organizations as part of performing

 

the functions of the district or intermediate district under section 11a or section

 

601a of the revised school code.

 

       (F) The required retention by the district or intermediate district of a

 

CONSULTANT or 1 or more other experts for the purpose of assisting the district or

 

INTERMEDIATE district to achieve the goals and objectives of the FINANCIAL RECOVERY

 

AGREEMENT.

 

       (G) other measures considered necessary by the state treasurer to address the

 

financial conditions Within the district or INTERMEDIATE district.

 

       (6) if a district or intermediate district is required to submit an enhanced

 

deficit elimination plan under subsection (5), some or all of the money payable to the

 

district under this article may be withheld in an amount the state treasurer

 

determines necessary to incentivize the district or intermediate district to eliminate

 

the deficit, until the district or intermediate district submits to the state

 

treasurer for approval a budget for the current school fiscal year and an enhanced

 

deficit elimination plan in the form and manner prescribed by the department of

 

treasury under this section or until the enhanced deficit elimination plan is approved

 

by the department of TREASURY, as determined by the department of treasury. the

 

department shall release money withheld under this subsection after the department of

 


treasury approves the enhanced deficit elimination plan for the district or

 

intermediate district. When APPROVING an enhanced deficit elimination plan, the state

 

treasurer shall establish the period of time within which a district or intermediate

 

district must eliminate its deficit and may set special conditions that the district

 

or intermediate district must meet while the deficit elimination plan is in effect.

 

       (7) after the state treasurer approves an enhanced deficit elimination plan for

 

a district or intermediate district, the district or intermediate district shall post

 

the enhanced DEFICIT elimination plan on the district’s website.

 

       (8) if a district or intermediate district is required to submit an enhanced

 

DEFICIT elimination plan under subsection (5), the SUPERINTENDENT and the state

 

treasurer may not continue allotment and payment of funds under this act until the

 

enhanced deficit elimination plan is approved by the state treasurer.

 

       (9) If a district or intermediate school district is required to submit an

 

enhanced deficit elimination plan under subsection (5), the district or intermediate

 

district shall submit to the department of treasury and the department an enhanced

 

monthly monitoring report on revenue, expenditures, cash flow, liabilities, budget

 

amendments, pupil membership, and other data relating to the finances of the district

 

or intermediate district in a form and manner prescribed by the department of treasury

 

and shall post these reports on its website.

 

       (10) (6) For the purposes of as used in this section:, "deficit

 

       (A) "deficit elimination plan" means a plan required under this section for the

 

elimination of a deficit that sets forth actions to be taken to eliminate the deficit

 

within the time period prescribed by the department.

 

       (B) "Deficit fund balance" means that term as defined in the Michigan public

 

school accounting manual published by the department.

 

       (C) "Enhanced deficit elimination plan" means measures required by the state

 

treasurer under this section to address the financial conditions within a district or

 


intermediate district and resolve any deficit within the time period prescribed by the

 

department and the state treasurer.

 

       (D) "Preplan financial report" means a report on the financial conditions

 

within a district or intermediate DISTRICT required under this section and submitted

 

in a form and manner prescribed by the state treasurer, which may include, but is not

 

limited to, financial data and other information on liabilities, payments, enrollment,

 

borrowing, and other criteria relating to the financial conditions within a district

 

or intermediate district.

 

       sec. 102a. (1) the superintendent or the state treasurer may require a district

 

or intermediate district to submit periodic financial status reports under this

 

section if the superintendent or the state treasurer determines that potential

 

financial stress may exist within the district or intermediate district, that an

 

operating deficit may arise WITHIN the district or intermediate district during the

 

current school fiscal year or the following 2 school fiscal years, or that the

 

district or intermediate district may be unable to meet its financial obligations

 

while also satisfying the district’s or the intermediate district’s obligations to

 

provide public educational services in a manner that complies with this act, the

 

revised school code, and applicable rules, based upon 1 or more of the following:

 

       (A) financial data or other information SUBMITTED BY the district or

 

intermediate district to a state department or agency.

 

       (B) FInancial data or other information included within an audited financial

 

statement of the district or intermediate district.

 

       (C) Financial data or other information provided to a state department, agency,

 

or authority in connection with a request to issue bonds, notes, or other debt

 

obligations.

 

       (D) financial data or other information included within a recommended budget,

 

budget, or general appropriations act of the district or intermediate district.

 


       (E) The failure of the district or intermediate district to timely transmit to

 

the department of treasury tax payments withheld from payments to employees of the

 

district or intermediate district.

 

       (F) the failure of the district or intermediate district to make timely

 

payments to the michigan public school employees’ retirement system under the public

 

school employees retirement act of 1979, 1980 pa 300, mcl 38.1301 to 38.1437.

 

       (G) the failure of the district or intermediate district to make timely

 

required payments to the michigan unemployment insurance agency.

 

       (H) information submitted by a vendor of the district or intermediate district

 

indicating that the district or intermediate district has failed to make timely

 

payments to the vendor as required under a contract between the vendor and the

 

district or intermediate district.

 

       (I) financial data or other information provided to a state department, agency,

 

or authority by an officer, employee, contractor, or agent of the district or

 

intermediate district.

 

       (J) a request for a determination under this subsection submitted to the

 

superintendent or state treasurer by the superintendent or board of the district or

 

intermediate district.

 

       (K) the expenditure of tax revenue for unauthorized purposes by the district or

 

intermediate district or the unauthorized transfer or deposit of tax revenue by the

 

district or intermediate district.

 

       (2) if a district or intermediate district is required by the superintendent or

 

the state treasurer to submit a financial status report under subsection (1), the

 

district or intermediate district shall file a periodic financial status report

 

DESCRIBED in subsection (3) with the department and the department of treasury. Before

 

a district or intermediate district files a financial status report with the

 

department and the department of treasury, the financial STATUS report shall be

 


reviewed and approved by the board of the district or intermediate district.

 

       (3) a periodic financial status report shall be submitted in the form and

 

manner determined by the department of treasury after consultation with the department

 

and the center for educational performance and information. the report shall include

 

without limitation financial data and other information that the department of

 

treasury after consultation with the department and the center for educational

 

performance and information determines can assist the state in developing an early

 

warning system of financial stress or operating deficits in districts or intermediate

 

districts. Financial data or other information that may be required by the department

 

of treasury to be reported on a periodic financial status report may include, but is

 

not limited to, some or all of the following:

 

       (A) pupil membership counts for the district or intermediate district and

 

projected pupil membership counts for the district or intermediate district.

 

       (B) an asset sufficiency ratio. as used in this subdivision, "ASSEt sufficiency

 

ratio" means the quotient of the district’s or intermediate district’s general fund

 

assets divided by the district’s or intermediate district’s general fund liabilities.

 

       (C) an operating reserve ratio. as used in this subdivision, "operating reserve

 

ratio" means the quotient of the district’s or intermediate district’s general fund

 

balance divided by the district’s or intermediate DISTRICT’S total general fund

 

expenditures for a fiscal year.

 

       (D) an operating margin ratio. as used in this SUBDIVISION, "operating margin

 

ratio" means the quotient of the difference between district’s or intermediate

 

district’s total general fund revenue and total general fund expenditures for a fiscal

 

year divided by THE DISTRICT'S OR INTERMEDIATE DISTRICT'S TOTAL GENERAL FUND

 

REVENUE FOR THE FISCAL YEAR.

 

       (E) A DEFICIT FUND BALANCE RATIO. AS USED IN THIS SUBPARAGRAPH, "DEFICIT

 

FUND BALANCE RATIO" MEANS THE QUOTIENT OF THE DIFFERENCE BETWEEN DISTRICT'S OR

 


INTERMEDIATE DISTRICT'S TOTAL REVENUE FOR A FISCAL YEAR AND THE TOTAL OF ANY

 

DEFICIT FUND BALANCES FOR THE FISCAL YEAR DIVIDED BY THE TOTAL REVENUE IN THE

 

DEFICIT FUNDS .

 

       (F) A FUND BALANCE CHANGE RATIO. AS USED IN THIS SUBPARAGRAPH, "FUND BALANCE

 

CHANGE RATIO" MEANS THE QUOTIENT OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S

 

PRIOR FISCAL YEAR GENERAL FUND BALANCE AND THE CURRENT FISCAL YEAR GENERAL FUND

 

BALANCE DIVIDED BY PRIOR FISCAL YEAR GENERAL FUND BALANCE.

 

                (G) A CASH FLOW BORROWING RATIO. AS USED IN THIS SUBPARAGRAPH, "CASH FLOW

 

BORROWING RATIO" MEANS THE QUOTIENT OF THE SUM OF THE TOTAL AMOUNT OF TAX

 

ANTICIPATION NOTES ISSUED BY THE DISTRICT OR INTERMEDIATE DISTRICT IN THE FISCAL

 

YEAR AND THE TOTAL AMOUNT OF STATE SCHOOL AID ANTICIPATION NOTES ISSUED BY THE

 

DISTRICT OR INTERMEDIATE DISTRICT IN THE FISCAL YEAR DIVIDED BY THE DISTRICT'S OR

 

INTERMEDIATE DISTRICT'S TOTAL GENERAL FUND REVENUE FOR THE FISCAL YEAR.

 

       (H) A CASH FLOW PROJECTION FOR THE DISTRICT OR INTERMEDIATE DISTRICT.

 

       (I) A COMPARISON OF EXPENDITURES BUDGETED BY THE DISTRICT OR INTERMEDIATE

 

DISTRICT FOR THE PRIOR MONTH COMPARED TO ACTUAL EXPENDITURES FOR THE PRIOR MONTH.

 

       (J) OUTSTANDING ACCOUNTS PAYABLE AS OF THE PRIOR MONTH.

 

       (K) FOR A DISTRICT, THE NUMBER OF STUDENTS ENROLLED IN THE DISTRICT WHO ARE

 

RESIDENTS OF THE DISTRICT AND THE NUMBER OF STUDENTS ENROLLED IN THE DISTRICT WHO

 

ARE NOT RESIDENTS OF THE DISTRICT.

 

       (4) A DISTRICT OR INTERMEDIATE DISTRICT REQUIRED TO SUBMIT PERIODIC

 

FINANCIAL STATUS REPORTS UNDER THIS SECTION SHALL DO ALL OF THE FOLLOWING:

 

       (A) PROVIDE THE DEPARTMENT OF TREASURY OR THE DEPARTMENT WITH OTHER

 

FINANCIAL DATA OR INFORMATION RELATING TO THE FINANCIAL CONDITION OF THE SCHOOL

 

DISTRICT AS REQUESTED BY THE DEPARTMENT OF TREASURY OR THE DEPARTMENT.

 

       (B) ALLOW THE DEPARTMENT OF TREASURY OR THE DEPARTMENT TO EXAMINE ALL

 

FINANCIAL RECORDS AND BOOKS OF ACCOUNT OF THE DISTRICT OR INTERMEDIATE DISTRICT.

 


THE DEPARTMENT OF TREASURY OR THE DEPARTMENT MAY REQUIRE THE ATTENDANCE OF

 

WITNESSES AND THE PRODUCTION OF BOOKS, PAPERS, CONTRACTS, AND OTHER DOCUMENTS

 

RELEVANT TO AN ANALYSIS OF THE FINANCIAL CONDITION OF THE DISTRICT OR INTERMEDIATE

 

DISTRICT.

 

       (C) PROMPTLY AND FULLY PROVIDE THE ASSISTANCE AND INFORMATION NECESSARY AND

 

PROPERLY REQUESTED BY THE DEPARTMENT OF TREASURY OR THE DEPARTMENT IN THE

 

EFFECTUATION OF THE DEPARTMENT OF TREASURY'S DUTIES UNDER THIS SECTION.

 

       (5) IF A DISTRICT OR INTERMEDIATE DISTRICT FAILS TO SUBMIT A PERIODIC

 

FINANCIAL STATUS REPORT REQUIRED UNDER THIS SECTION, OR IF THE STATE TREASURER

 

DETERMINES OR IS NOTIFIED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION THAT

 

INFORMATION INCLUDED ON A PERIODIC FINANCIAL STATUS REPORT INDICATES THAT

 

FINANCIAL STRESS EXISTS WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, THAT AN

 

OPERATING DEFICIT HAS OCCURRED OR IS PROJECTED TO OCCUR WITHIN THE DISTRICT OR

 

INTERMEDIATE DISTRICT, OR THAT THE DISTRICT OR INTERMEDIATE DISTRICT WOULD BENEFIT

 

FROM STATE ASSISTANCE WITH FINANCIAL DIFFICULTIES WITHIN THE DISTRICT OR

 

INTERMEDIATE DISTRICT, THE STATE TREASURER MAY REQUIRE THE DISTRICT OR

 

INTERMEDIATE DISTRICT TO SUBMIT AN ENHANCED DEFICIT ELIMINATION PLAN UNDER SECTION

 

102. THE FAILURE OF AN OFFICER OF A DISTRICT OR INTERMEDIATE TO PREPARE AND SUBMIT

 

A PERIODIC FINANCIAL REPORT AS PROVIDED UNDER THIS SECTION CONSTITUTES MALFEASANCE

 

AND IS GROUNDS FOR REMOVAL OF THE OFFICER FROM OFFICE.

 

       (6) A DISTRICT OR INTERMEDIATE DISTRICT IS NOT REQUIRED TO SUBMIT PERIODIC

 

FINANCIAL STATUS REPORTS UNDER THIS SECTION IF THE DISTRICT OR INTERMEDIATE

 

DISTRICT IS REQUIRED TO SUBMIT AN ENHANCED DEFICIT ELIMINATION PLAN UNDER SECTION

 

102 OR IF A FINANCIAL EMERGENCY HAS BEEN DECLARED FOR THE DISTRICT OR INTERMEDIATE

 

DISTRICT UNDER THE LOCAL FINANCIAL STABILITY AND CHOICE ACT, 2012 PA 436, MCL

 

141.1541 TO 141.1575.

 

       (7) A DISTRICT OR INTERMEDIATE DISTRICT IS NO LONGER REQUIRED TO SUBMIT

 


PERIODIC FINANCIAL STATUS REPORTS UNDER THIS SECTION IF THE PERIODIC FINANCIAL

 

STATUS REPORTS SUBMITTED BY A DISTRICT OR INTERMEDIATE DISTRICT INDICATE TO THE

 

STATE TREASURER THAT POTENTIAL FINANCIAL STRESS DOES NOT EXIST WITHIN THE DISTRICT

 

OR INTERMEDIATE DISTRICT, THAT AN OPERATING DEFICIT IS NOT PROJECTED TO ARISE

 

WITHIN THE DISTRICT OR INTERMEDIATE SCHOOL DISTRICT WITH THE CURRENT SCHOOL FISCAL

 

YEAR OR THE FOLLOWING 2 SCHOOL FISCAL YEARS, AND THAT THE DISTRICT OR INTERMEDIATE

 

SCHOOL DISTRICT WILL ABLE TO MEET ITS FINANCIAL OBLIGATIONS WHILE ALSO SATISFYING

 

THE SCHOOL DISTRICT'S OR THE INTERMEDIATE DISTRICT'S OBLIGATIONS TO PROVIDE PUBLIC

 

EDUCATIONAL SERVICES IN A MANNER THAT COMPLIES WITH THIS ACT, THE REVISED SCHOOL

 

CODE, AND APPLICABLE RULES PROMULGATED BY THE DEPARTMENT.

 

       (8) THE STATE TREASURER SHALL NOTIFY A DISTRICT OR INTERMEDIATE DISTRICT

 

WHEN SUBSECTION (7) APPLIES TO THE DISTRICT OR INTERMEDIATE DISTRICT. THE

 

SUPERINTENDENT OF PUBLIC INSTRUCTION MAY NOTIFY THE STATE TREASURER THAT THE

 

SUPERINTENDENT OF PUBLIC INSTRUCTION HAS DETERMINED THAT CONDITIONS UNDER

 

SUBSECTION (7) APPLY TO THE DISTRICT OR INTERMEDIATE DISTRICT.

 

       Sec. 104. (1) In order to receive state aid under this article, a district

 

shall comply with sections 1249, 1278a, 1278b, 1279, 1279g, and 1280b of the revised

 

school code, MCL 380.1249, 380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b,

 

and 1970 PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from the state

 

school aid fund money appropriated in section 11, there is allocated for 2013-2014

 

2014-2015 an amount not to exceed $26,694,400.00 $33,894,400.00 for payments on behalf

 

of districts for costs associated with complying with those provisions of law. In

 

addition, from the federal funds appropriated in section 11, there is allocated for

 

2013-2014 2014-2015 an amount estimated at $8,250,000.00 $6,250,000.00, funded from

 

DED-OESE, title VI, state assessment funds, and from DED-OSERS, section 504 of part B

 

of the individuals with disabilities education act, Public Law 94-142, plus any

 

carryover federal funds from previous year appropriations, for the purposes of

 


complying with the federal no child left behind act of 2001, Public Law 107-110.

 

       (2) The results of each test administered as part of the Michigan educational

 

assessment program, including tests administered to high school students, shall

 

include an item analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible response.

 

       (3) All federal funds allocated under this section shall be distributed in

 

accordance with federal law and with flexibility provisions outlined in Public Law

 

107-116, and in the education flexibility partnership act of 1999, Public Law 106-25.

 

       (4) Notwithstanding section 17b, payments on behalf of districts, intermediate

 

districts, and other eligible entities under this section shall be paid on a schedule

 

determined by the department.

 

       (5) From the allocation in subsection (1), there is allocated an amount not to

 

exceed $4,000,000.00 for the multi-year development or selection of interim

 

assessments to support local implementation of the educator and administrator

 

evaluation systems pursuant to sections 1249 and 1249B of the revised school code. the

 

multi-year development plan to have operational interim assessments in core content

 

areas will be as follows:

 

       (A) English Language Arts in grades 3-8 and 11 IN 2014-15.

 

       (B) Mathematics in grades 3-8 and 11 IN 2014-15.

 

       (C) English Language Arts in grades Kindergarten-2 IN 2015-16.

 

       (D) Mathematics in grades Kindergarten-2 IN 2015-16.

 

       (E) Required Michigan Merit Curriculum Science Credits IN 2015-16.

 

       (F) Required Michigan Merit Curriculum Social Studies Credits IN 2015-16.

 

       (G) Required Michigan Merit Curriculum English Language Arts Credits IN 2016-

 

17.

 

       (H) Required Michigan Merit Curriculum Mathematics Credits IN 2016-17.

 

       (I) Science in grades 3-8 IN 2017-18.

 


       (J) Social Studies in grades 3-8 IN 2017-18.

 

       (6) From the allocation in subsection (1), there is allocated an amount not to

 

exceed $3,200,000.00 for the development or selection of an online reporting tool to

 

provide student-level assessment data in a secure environment to educators, parents

 

and pupils immediately after assessments are scored.

 

       (7) (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. 104b. (1) In order to receive state aid under this act ARTICLE, a district

 

shall comply with this section and shall administer the Michigan merit examination to

 

pupils in grade 11, and to pupils in grade 12 who did not take the complete Michigan

 

merit examination in grade 11, as provided in this section.

 

       (2) For the purposes of this section, the department of management and budget

 

shall contract with 1 or more providers to develop, supply, and score the Michigan

 

merit examination. The Michigan merit examination shall consist of all of the

 

following:

 

       (a) Assessment instruments that measure English language arts, mathematics,

 

reading, and science and are used by colleges and universities in this state for

 

entrance or placement purposes. This shall include a writing component in which the

 

pupil produces an extended writing sample. The Michigan merit examination shall not

 

require any other extended writing sample.

 

       (b) One or more tests from 1 or more test developers that assess a pupil's

 

ability to apply at least reading and mathematics skills in a manner that is intended

 

to allow employers to use the results in making employment decisions. The department

 

of management and budget and the superintendent shall ensure that any test or tests

 


selected under this subdivision have all the components necessary to allow a pupil to

 

be eligible to receive the results of a nationally recognized evaluation of workforce

 

readiness if the pupil's test performance is adequate.

 

       (c) A social studies component.

 

       (d) Any other component that is necessary to obtain the approval of the United

 

States department of education to use the Michigan merit examination for the purposes

 

of the no child left behind act of 2001, Public Law 107-110.

 

       (3) In addition to all other requirements of this section, all of the following

 

apply to the Michigan merit examination:

 

       (a) The department of management and budget and the superintendent shall ensure

 

that any contractor used for scoring the Michigan merit examination supplies an

 

individual report for each pupil that will identify for the pupil's parents and

 

teachers whether the pupil met expectations or failed to meet expectations for each

 

standard, to allow the pupil's parents and teachers to assess and remedy problems

 

before the pupil moves to the next grade.

 

       (b) The department of management and budget and the superintendent shall ensure

 

that any contractor used for scoring, developing, or processing the Michigan merit

 

examination meets quality management standards commonly used in the assessment

 

industry, including at least meeting level 2 of the capability maturity model

 

developed by the software engineering institute of Carnegie Mellon university for the

 

first year the Michigan merit examination is offered to all grade 11 pupils and at

 

least meeting level 3 of the capability maturity model for subsequent years.

 

       (c) The department of management and budget and the superintendent shall ensure

 

that any contract for scoring, administering, or developing the Michigan merit

 

examination includes specific deadlines for all steps of the assessment process,

 

including, but not limited to, deadlines for the correct testing materials to be

 

supplied to schools and for the correct results to be returned to schools, and

 


includes penalties for noncompliance with these deadlines.

 

       (d) The superintendent shall ensure that the Michigan merit examination meets

 

all of the following:

 

       (i) Is designed to test pupils on grade level content expectations or course

 

content expectations, as appropriate, in all subjects tested.

 

       (ii) Complies with requirements of the no child left behind act of 2001, Public

 

Law 107-110.

 

       (iii) Is consistent with the code of fair testing practices in education

 

prepared by the joint committee on testing practices of the American psychological

 

association.

 

       (iv) Is factually accurate. If the superintendent determines that a question is

 

not factually accurate and should be excluded from scoring, the state board and the

 

superintendent shall ensure that the question is excluded from scoring.

 

       (4) A district shall include on each pupil's high school transcript all of the

 

following:

 

       (a) For each high school graduate who has completed the Michigan merit

 

examination under this section, the pupil's scaled score on each subject area

 

component of the Michigan merit examination.

 

       (b) The number of school days the pupil was in attendance at school each school

 

year during high school and the total number of school days in session for each of

 

those school years.

 

       (5) The superintendent shall work with the provider or providers of the

 

Michigan merit examination to produce Michigan merit examination subject area scores

 

for each pupil participating in the Michigan merit examination, including scaling and

 

merging of test items for the different subject area components. The superintendent

 

shall design and distribute to districts, intermediate districts, and nonpublic

 

schools a simple and concise document that describes the scoring for each subject area

 


and indicates the scaled score ranges for each subject area.

 

       (6) The Michigan merit examination shall be administered each year after March

 

1 and before June 1 to pupils in grade 11 DURING THE LAST 12 WEEKS OF EACH DISTRICT’S

 

SCHOOL YEAR. The superintendent shall ensure that the Michigan merit examination is

 

scored and the scores are returned to pupils, their parents or legal guardians, and

 

districts not later than the beginning of the pupil's first semester of grade 12. The

 

returned scores shall indicate at least the pupil's scaled score for each subject area

 

component and the range of scaled scores for each subject area. In reporting the

 

scores to pupils, parents, and schools, the superintendent shall provide standards-

 

specific, meaningful, and timely feedback on the pupil's performance on the Michigan

 

merit examination.

 

       (7) A district shall administer the complete Michigan merit examination to a

 

pupil only once and shall not administer the complete Michigan merit examination to

 

the same pupil more than once. If a pupil does not take the complete Michigan merit

 

examination in grade 11, the district shall administer the complete Michigan merit

 

examination to the pupil in grade 12. If a pupil chooses to retake the college

 

entrance examination component of the Michigan merit examination, as described in

 

subsection (2)(a), the pupil may do so through the provider of the college entrance

 

examination component and the cost of the retake is the responsibility of the pupil

 

unless all of the following are met:

 

       (a) The pupil has taken the complete Michigan merit examination.

 

       (b) The pupil did not qualify for a Michigan promise grant under section 6 of

 

the Michigan promise grant act, 2006 PA 479, MCL 390.1626, based on the pupil's

 

performance on the complete Michigan merit examination.

 

       (c) The pupil meets the income eligibility criteria for free breakfast, lunch,

 

or milk, as determined under the Richard B. Russell national school lunch act, 42 USC

 

1751 to 1769i.

 


       (d) The pupil has applied to the provider of the college entrance examination

 

component for a scholarship or fee waiver to cover the cost of the retake and that

 

application has been denied.

 

       (e) After taking the complete Michigan merit examination, the pupil has not

 

already received a free retake of the college entrance examination component paid for

 

either by this state or through a scholarship or fee waiver by the provider.

 

       (8) The superintendent shall ensure that the length of the Michigan merit

 

examination and the combined total time necessary to administer all of the components

 

of the Michigan merit examination are the shortest possible that will still maintain

 

the degree of reliability and validity of the Michigan merit examination results

 

determined necessary by the superintendent. The superintendent shall ensure that the

 

maximum total combined length of time that schools are required to set aside for

 

pupils to answer all test questions on the Michigan merit examination does not exceed

 

8 hours if the superintendent determines that sufficient alignment to applicable

 

Michigan merit curriculum content standards can be achieved within that time limit.

 

       (9) A district shall provide accommodations to a pupil with disabilities for

 

the Michigan merit examination, as provided under section 504 of title V of the

 

rehabilitation act of 1973, 29 USC 794; subtitle A of title II of the Americans with

 

disabilities act of 1990, 42 USC 12131 to 12134; the individuals with disabilities

 

education act amendments of 1997, Public Law 105-17; and the implementing regulations

 

for those statutes. The provider or providers of the Michigan merit examination and

 

the superintendent shall mutually agree upon the accommodations to be provided under

 

this subsection.

 

       (10) To the greatest extent possible, the Michigan merit examination shall be

 

based on grade level content expectations or course content expectations, as

 

appropriate. Not later than July 1, 2008, the department shall identify specific grade

 

level content expectations to be taught before and after the middle of grade 11, so

 


that teachers will know what content will be covered within the Michigan merit

 

examination.

 

       (11) A child who is a student in a nonpublic school or home school may take the

 

Michigan merit examination under this section. To take the Michigan merit examination,

 

a child who is a student in a home school shall contact the district in which the

 

child resides, and that district shall administer the Michigan merit examination, or

 

the child may take the Michigan merit examination at a nonpublic school if allowed by

 

the nonpublic school. Upon request from a nonpublic school, the superintendent shall

 

direct the provider or providers to supply the Michigan merit examination to the

 

nonpublic school and the nonpublic school may administer the Michigan merit

 

examination. If a district administers the Michigan merit examination under this

 

subsection to a child who is not enrolled in the district, the scores for that child

 

are not considered for any purpose to be scores of a pupil of the district.

 

       (12) In contracting under subsection (2), the department of management and

 

budget shall consider a contractor that provides electronically-scored essays with the

 

ability to score constructed response feedback in multiple languages and provide

 

ongoing instruction and feedback.

 

       (13) The purpose of the Michigan merit examination is to assess pupil

 

performance in mathematics, science, social studies, and English language arts for the

 

purpose of improving academic achievement and establishing a statewide standard of

 

competency. The assessment under this section provides a common measure of data that

 

will contribute to the improvement of Michigan schools' curriculum and instruction by

 

encouraging alignment with Michigan's curriculum framework standards and promotes

 

pupil participation in higher level mathematics, science, social studies, and English

 

language arts courses. These standards are based upon the expectations of what pupils

 

should learn through high school and are aligned with national standards.

 

       (14) For a pupil enrolled in a middle college program, other than a middle

 


college operated as a shared educational entity or a specialized shared educational

 

entity, if the pupil receives at least 50% of his or her instruction at the high

 

school while in grade 11, the Michigan merit examination shall be administered to the

 

pupil at the high school at which the pupil receives high school instruction, and the

 

department shall include the pupil's scores on the Michigan merit examination in the

 

scores for that high school for all purposes for which a school's or district's

 

results are reported. The department shall allow the middle college program to use a

 

5-year graduation rate for determining adequate yearly progress. As used in this

 

subsection, "middle college" means a program consisting of a series of courses and

 

other requirements and conditions, including an early college or other program created

 

under a memorandum of understanding, that allows a pupil to graduate from high school

 

with both a high school diploma and a certificate or degree from a community college

 

or state public university.

 

       (15) As used in this section:

 

       (a) "English language arts" means reading and writing.

 

       (b) "Social studies" means United States history, world history, world

 

geography, economics, and American government.

 

       Sec. 107. (1) From the appropriation in section 11, there is allocated an

 

amount not to exceed $22,000,000.00 for 2013-2014 2014-2015 for adult education

 

programs authorized under this section. Funds allocated under this section are

 

restricted for adult education programs as authorized under this section only. A

 

recipient of funds under this section shall not use those funds for any other purpose.

 

       (2) To be eligible for funding under this section, a program shall employ

 

certificated teachers and qualified administrative staff and shall offer continuing

 

education opportunities for teachers to allow them to maintain certification.

 

       (3) To be eligible to be a participant funded under this section, a person

 

shall be enrolled in an adult basic education program, an adult English as a second

 


language program, a general educational development (G.E.D.) test preparation program,

 

a job- or employment-related program, or a high school completion program, that meets

 

the requirements of this section, AND FOR WHICH INSTRUCTION IS PROVIDED, 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 OR BY A MICHIGAN WORKFORCE AGENCY.

 

       (iii) Is enrolled in an English as a second language program.

 

       (iv) Is enrolled in a high school completion program.

 

       (b) If the individual has not obtained a high school diploma or G.E.D.

 

certificate, the individual meets 1 of the following:

 

       (i) Is at least 20 years of age on September 1 of the school year.

 

       (ii) Is at least 16 years of age on September 1 of the school year, has been

 

permanently expelled from school under section 1311(2) or 1311a of the revised school

 

code, MCL 380.1311 and 380.1311a, and has no appropriate alternative education program

 

available through his or her district of residence.

 

       (4) Except as otherwise provided in subsection (5), the money allocated under

 

this section shall be distributed as follows:

 

       (a) For districts and consortia that received payments for 2012-2013 under this

 

section, the amount allocated to each for 2013-2014 shall be based on the number of

 

participants served by the district or consortium for 2013-2014, using the amount

 

allocated per full-time equated participant under subsection (7), up to a maximum

 

total allocation under this subsection in an amount equal to the amount the district

 


or consortium received for 2012-2013 under this section before any reallocations made

 

for 2012-2013 under subsection (5).

 

       (b) A district or consortium that received funding in 2012-2013 under this

 

section may operate independently of a consortium or join or form a consortium for

 

2013-2014. The allocation for 2013-2014 to the district or the newly formed consortium

 

under this subsection shall be determined by the department and shall be based on the

 

proportion of the amounts that are attributable to the district or consortium that

 

received funding in 2012-2013. A district or consortium described in this subdivision

 

shall notify the department of its intention with regard to 2013-2014 by October 1,

 

2013.

 

       (5) A district that operated an adult education program in 2012-2013 and does

 

not intend to operate a program in 2013-2014 shall notify the department by October 1,

 

2013 of its intention. The money intended to be allocated under this section to a

 

district that does not operate a program in 2013-2014 and the unspent money originally

 

allocated under this section to a district or consortium that subsequently operates a

 

program at less than the level of funding allocated under subsection (4) and any other

 

unallocated money under this section shall instead be proportionately reallocated to

 

the other districts described in subsection (4)(a) that are operating an adult

 

education program in 2013-2014 under this section.

 

       (4) FROM THE FUNDS ALLOCATED UNDER SUBSECTION (1), AN AMOUNT SHALL BE ALLOCATED

 

TO EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT FOR ADULT EDUCATION PROGRAMS

 

IN EACH OF THE 10 PROSPERITY REGIONS IDENTIFIED BY THE DEPARTMENT. FOR 2014-2015, 67%

 

OF THE ALLOCATION PROVIDED TO EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT

 

SHALL BE BASED ON THE PROPORTION OF TOTAL FUNDING FORMERLY RECEIVED BY THE ADULT

 

EDUCATION PROVIDERS IN THAT PROSPERITY REGION IN 2013-2014 AND 33% SHALL BE ALLOCATED

 

BASED ON THE FACTORS IN SUBDIVISIONS (A), (B) AND (C). FOR 2015-2016, 33% OF THE

 

ALLOCATION PROVIDED TO EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT SHALL BE

 


BASED UPON THE PROPORTION OF TOTAL FUNDING FORMERLY RECEIVED BY THE ADULT EDUCATION

 

PROVIDERS IN THAT PROSPERITY REGION IN 2013-2014 AND 67% OF THE ALLOCATION SHALL BE

 

BASED UPON THE FACTORS IN SUBDIVISIONS (A), (B) AND (C). FOR 2016-2017, 100% OF THE

 

ALLOCATION PROVIDED TO EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT SHALL BE

 

BASED ON THE FACTORS IN SUBDIVISIONS (A), (B), AND (C). NOT MORE THAN 5% OF AN

 

ALLOCATION AWARDED TO AN INTERMEDIATE DISTRICT THAT IS A FISCAL AGENT SHALL BE USED

 

FOR ADMINISTRATION OF THE PROGRAMS AUTHORIZED UNDER THIS SECTION BY THE INTERMEDIATE

 

DISTRICT ACTING AS THE FISCAL AGENT AND THE PROGRAM PROVIDERS.

 

       (A) SIXTY PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE STATE

 

POPULATION OF PERSONS BETWEEN THE AGES OF 18 AND 24 THAT ARE NOT HIGH SCHOOL GRADUATES

 

CONTAINED IN EACH OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-year

 

estimates from the American Community Survey (ACS) from the UNITED STATES CENSUS

 

Bureau.

 

       (B) THIRTY-FIVE PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE

 

STATE POPULATION OF PERSONS AGED 25 OR OLDER THAT ARE NOT HIGH SCHOOL GRADUATES

 

CONTAINED IN EACH OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-year

 

estimates from the American Community Survey (ACS) from the UNITED STATES CENSUS

 

Bureau.

 

       (C) FIVE PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE STATE

 

POPULATION OF PERSONS AGED 18 AND OLDER THAT LACK BASIC ENGLISH PROFICIENCY CONTAINED

 

IN EACH OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-year estimates

 

from the American Community Survey (ACS) from the UNITED STATES CENSUS Bureau.

 

       (5) TO BE AN ELIGIBLE FISCAL AGENT, AN INTERMEDIATE DISTRICT MUST AGREE TO DO

 

THE FOLLOWING IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT:

 

       (A) DISTRIBUTE FUNDS TO ADULT EDUCATION PROGRAMS IN A PROSPERITY REGION AS

 

DESCRIBED IN THIS SECTION.

 

       (B) COLLABORATE WITH EDUCATION ADVISORY GROUPS OF THE WORKFORCE DEVELOPMENT

 


BOARDS LOCATED IN THE PROSPERITY REGION TO DEVELOP A REGIONAL STRATEGY THAT ALIGNS

 

ADULT EDUCATION PROGRAMS AND SERVICES INTO AN EFFICIENT AND EFFECTIVE DELIVERY SYSTEM

 

FOR ADULT EDUCATION LEARNERS.

 

       (C) COLLABORATE WITH EDUCATION ADVISORY GROUPS OF THE WORKFORCE DEVELOPMENT

 

BOARDS LOCATED IN THE PROSPERITY REGION TO create a local process and criteria that

 

will identify eligible adult education providers TO RECEIVE FUNDS ALLOCATED UNDER THIS

 

SECTION based on location, demand FOR SERVICES, and cost to provide instructional

 

services. ALL LOCAL PROCESSES, CRITERIA AND PROVIDER DETERMINATIONS MUST BE APPROVED

 

BY THE DEPARTMENT BEFORE FUNDS MAY BE DISTRIBUTED TO THE FISCAL AGENT.

 

       (D) REPORT ADULT EDUCATION PROGRAM AND PARTICIPANT DATA AND INFORMATION AS

 

PRESCRIBED BY THE DEPARTMENT.

 

       (6) The amount allocated under this section per full-time equated participant

 

is shall not exceed $2,850.00 for a 450-hour program. The amount shall be

 

proportionately reduced for a program offering less than 450 hours of instruction.

 

       (7) An adult basic education program or an adult English as a second language

 

program operated on a year-round or school year basis may be funded under this

 

section, subject to all of the following:

 

       (a) The program enrolls adults who are determined by a department-approved

 

assessment, in a form and manner prescribed by the department, to be below ninth grade

 

level in reading or mathematics, or both, or to lack basic English proficiency.

 

       (b) The program tests individuals for eligibility under subdivision (a) before

 

enrollment and upon completion of the program in compliance with the state-approved

 

assessment policy.

 

       (c) A participant in an adult basic education program is eligible for

 

reimbursement until 1 of the following occurs:

 

       (i) The participant's reading and mathematics proficiency are assessed at or

 

above the ninth grade level.

 


       (ii) The participant fails to show progress on 2 successive assessments after

 

having completed at least 450 hours of instruction.

 

       (d) A funding recipient enrolling a participant in an English as a second

 

language program is eligible for funding according to subsection (11) until the

 

participant meets 1 of the following:

 

       (i) The participant is assessed as having attained basic English proficiency as

 

determined by a department-approved assessment.

 

       (ii) The participant fails to show progress on 2 successive department-approved

 

assessments after having completed at least 450 hours of instruction. The department

 

shall provide information to a funding recipient regarding appropriate assessment

 

instruments for this program.

 

       (8) A general educational development (G.E.D.) test preparation program

 

operated on a year-round or school year basis may be funded under this section,

 

subject to all of the following:

 

       (a) The program enrolls adults who do not have a high school diploma.

 

       (b) The program shall administer a G.E.D. pre-test approved by the department

 

before enrolling an individual to determine the individual's literacy levels,

 

administer a G.E.D. practice test to determine the individual’s potential for success

 

on the G.E.D. test, and shall administer a post-test upon completion of the program in

 

compliance with the state-approved assessment policy.

 

       (c) A funding recipient shall receive funding according to subsection (11) for

 

a participant, and a participant may be enrolled in the program until 1 of the

 

following occurs:

 

       (i) The participant passes obtains the G.E.D. test.

 

       (ii) The participant fails to show progress on 2 successive department-approved

 

assessments used to determine readiness to take the G.E.D. test after having completed

 

at least 450 hours of instruction.

 


       (9) A high school completion program operated on a year-round or school year

 

basis may be funded under this section, subject to all of the following:

 

       (a) The program enrolls adults who do not have a high school diploma.

 

       (b) The program tests participants described in subdivision (a) before

 

enrollment and upon completion of the program in compliance with the state-approved

 

assessment policy.

 

       (c) A funding recipient shall receive funding according to subsection (11) for

 

a participant in a course offered under this subsection until 1 of the following

 

occurs:

 

       (i) The participant passes the course and earns a high school diploma.

 

       (ii) The participant fails to earn credit in 2 successive semesters or terms in

 

which the participant is enrolled after having completed at least 900 hours of

 

instruction.

 

       (10) A job- or employment-related adult education program operated on a year-

 

round or school year basis may be funded under this section, subject to all of the

 

following:

 

       (a) The program enrolls adults referred by their employer who are less than 20

 

years of age, have a high school diploma, are determined to be in need of remedial

 

mathematics or communication arts skills and are not attending an institution of

 

higher education.

 

       (b) The program tests participants described in subdivision (a) before

 

enrollment and upon completion of the program in compliance with the department-

 

approved assessment policy.

 

       (c) An individual may be enrolled in this program and the grant recipient shall

 

receive funding according to subsection (11) until 1 of the following occurs:

 

       (i) The individual achieves the requisite skills as determined by department-

 

approved assessment instruments.

 


       (ii) The individual fails to show progress on 2 successive assessments after

 

having completed at least 450 hours of instruction.

 

       (11) A funding recipient shall receive payments under this section in

 

accordance with the following:

 

       (a) Ninety seventy-five percent for enrollment of eligible participants.

 

       (b) Ten twenty-five percent for participant completion of the adult basic

 

education objectives by achieving an increase of at least 1 grade level of proficiency

 

in reading or mathematics educational gain as defined by the national reporting system

 

levels; 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 for

 

enrollment in a postsecondary institution; or for entry or retainment of employment,

 

as applicable.

 

       (12) As used in this section, "participant" means the sum of the number of

 

full-time equated individuals enrolled in and attending a department-approved adult

 

education program under this section, using quarterly participant count days on the

 

schedule described in section 6(7)(b).

 

       (12) (13) A person who is not eligible to be a participant funded under this

 

section may receive adult education services upon the payment of tuition. In addition,

 

a person who is not eligible to be served in a program under this section due to the

 

program limitations specified in subsection (7), (8), (9), or (10) may continue to

 

receive adult education services in that program upon the payment of tuition. The

 

tuition level shall be determined by the local or intermediate district conducting the

 

program.

 

       (13) (14) An individual who is an inmate in a state correctional facility shall

 


not be counted as a participant under this section.

 

       (14) (15) A district FUNDING RECIPIENT shall not commingle money received under

 

this section or from another source for adult education purposes with any other funds

 

of the district. A district receiving adult education funds BUT shall establish a

 

separate ledger account for those funds RECEIVED UNDER THIS SECTION. This subsection

 

does not prohibit a district from using general funds of the district to support an

 

adult education or community education program.

 

       (15) (16) A district or intermediate district FUNDING RECIPIENT receiving funds

 

under this section may establish a sliding scale of tuition rates based upon a

 

participant's family income. A district or intermediate district FUNDING RECIPIENT 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 FUNDING RECIPIENT 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.

 

       (16) (17) In order to receive funds under this section, a district FUNDING

 

RECIPIENT shall furnish to the department, in a form and manner determined by the

 

department, all information needed to administer this program and meet federal

 

reporting requirements; shall allow the department or the department's designee to

 

review all records related to the program for which it receives funds; and shall

 

reimburse the state for all disallowances found in the review, as determined by the

 

department.

 

       (17) (18) All intermediate district participant audits of adult education

 

programs shall be performed pursuant to the adult education participant auditing and

 

accounting manuals published by the department.

 


       (19) It is the intent of the legislature to study allocating funds under this

 

section on a competitive basis beginning for 2014-2015.

 

       (18) (20) As used in this section, "department" means the Michigan strategic

 

fund.:

 

       (A) "department" means the Michigan strategic fund.

 

       (B) "ELIGIBLE ADULT EDUCATION PROVIDER" IS A DISTRICT, INTERMEDIATE DISTRICT, A

 

CONSORTIUM OF DISTRICTS, A CONSORTIUM OF INTERMEDIATE DISTRICTS, OR A CONSORTIUM OF

 

DISTRICTS AND INTERMEDIATE DISTRICTS THAT ARE IDENTIFIED AS PART OF THE LOCAL PROCESS

 

DESCRIBED IN SECTION (5)(A)(III)and approved by the department.

 

       (C) "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).

 

       Sec. 147. (1) The allocation each fiscal year for 2013-2014 and for 2014-2015

 

for the public school employees' retirement system pursuant to the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, shall be made

 

using the individual projected benefit entry age normal cost method of valuation and

 

risk assumptions adopted by the public school employees retirement board and the

 

department of technology, management, and budget.

 

       (2) The annual level percentage of payroll contribution rates for the 2013-2014

 

fiscal year, as determined by the retirement system, are estimated as follows:

 

       (a) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010 and who are enrolled in the health premium subsidy, the

 

annual level percentage of payroll contribution rate is estimated at 29.35%, with

 

24.79% paid directly by the employer.

 

       (b) For public school employees who first worked for a public school reporting

 

unit on or after July 1, 2010 and who are enrolled in the health premium subsidy, the

 


annual level percentage of payroll contribution rate is estimated at 29.12%, with

 

24.56% paid directly by the employer.

 

       (c) For public school employees who first worked for a public school reporting

 

unit on or after July 1, 2010 and who participate in the pension plus plan and in the

 

personal healthcare fund, the annual level percentage of payroll contribution rate is

 

estimated at 28.19%, with 23.63% paid directly by the employer.

 

       (d) For public school employees who first worked for a public school reporting

 

unit on or after September 4, 2012, who elect defined contribution, and who

 

participate in the personal healthcare fund, the annual level percentage of payroll

 

contribution rate is estimated at 25.52%, with 20.96% paid directly by the employer.

 

       (e) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010, who elect defined contribution, and who are enrolled in the

 

health premium subsidy, the annual level percentage of payroll contribution rate is

 

estimated at 26.45%, with 21.89% paid directly by the employer.

 

       (f) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010, who elect defined contribution, and who participate in the

 

personal healthcare fund, the annual level percentage of payroll contribution rate is

 

estimated at 25.52%, with 20.96% paid directly by the employer.

 

       (g) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010 and who participate in the personal healthcare fund, the

 

annual level percentage of payroll contribution rate is estimated at 28.42%, with

 

23.86% paid directly by the employer.

 

       (2) (3) The annual level percentage of payroll contribution rates for the 2014-

 

2015 fiscal year, as determined by the retirement system, are estimated as follows:

 

       (a) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010 and who are enrolled in the health premium subsidy, the

 

annual level percentage of payroll contribution rate is estimated at 33.10% 33.99%,

 


with 25.78% 24.58% paid directly by the employer.

 

       (b) For public school employees who first worked for a public school reporting

 

unit on or after July 1, 2010 and who are enrolled in the health premium subsidy, the

 

annual level percentage of payroll contribution rate is estimated at 32.02% 32.91%,

 

with 24.70% 23.50% paid directly by the employer.

 

       (c) For public school employees who first worked for a public school reporting

 

unit on or after July 1, 2010 and who participate in the personal healthcare fund, the

 

annual level percentage of payroll contribution rate is estimated at 31.51% 32.40%,

 

with 24.19% 22.99% paid directly by the employer.

 

       (d) For public school employees who first worked for a public school reporting

 

unit on or after September 4, 2012, who elect defined contribution, and who

 

participate in the personal healthcare fund, the annual level percentage of payroll

 

contribution rate is estimated at 28.28% 29.17%, with 20.96% 19.76% paid directly by

 

the employer.

 

       (e) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010, who elect defined contribution, and who are enrolled in the

 

health premium subsidy, the annual level percentage of payroll contribution rate is

 

estimated at 28.79% 29.68%, with 21.47% 20.27% paid directly by the employer.

 

       (f) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010, who elect defined contribution, and who participate in the

 

personal healthcare fund, the annual level percentage of payroll contribution rate is

 

estimated at 28.28% 29.17%, with 20.96% 19.76% paid directly by the employer.

 

       (g) For public school employees who first worked for a public school reporting

 

unit before July 1, 2010 and who participate in the personal healthcare fund, the

 

annual level percentage of payroll contribution rate is estimated at 32.59% 33.48%,

 

with 25.27% 24.07% paid directly by the employer.

 

       (4) In addition to the employer payments described in subsections (2) and (3),

 


the employer shall pay the applicable contributions to the Tier 2 plan, as determined

 

by the public school employees retirement act of 1979, 1980 PA 300 MCL 38.1301 to

 

38.1408.

 

       (5) The contribution rates in subsection (2) reflect an amortization period of

 

25 24 years for 2013-2014 2014-2015. 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. 147b. (1) The MPSERS retirement obligation reform reserve fund is created

 

as a separate account within the state school aid fund.

 

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

 

deposit into the MPSERS retirement obligation reform reserve fund. The state treasurer

 

shall direct the investment of the MPSERS retirement obligation reform reserve fund.

 

The state treasurer shall credit to the MPSERS retirement obligation reform reserve

 

fund interest and earnings from the MPSERS retirement obligation reform reserve fund.

 

       (3) Money available in the MPSERS retirement obligation reform reserve fund

 

shall not be expended without a specific appropriation.

 

       (4) Money in the MPSERS retirement obligation reform reserve fund at the close

 

of the fiscal year shall remain in the MPSERS retirement obligation reform reserve

 

fund and shall not lapse to the state school aid fund or to the general fund. The

 

department of treasury shall be the administrator of the MPSERS retirement obligation

 

reform reserve fund for auditing purposes.

 

       (5) If the contributions described in section 43e of the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1343e, as that section was added

 

by 2010 PA 75, are determined by a final order of a court of competent jurisdiction

 

for which all rights of appeal have been exhausted to be constitutional and if the

 

order for preliminary injunction in case no. 10-45-MM issued on July 13, 2010 is

 

lifted, the money placed in a separate interest bearing account as a result of

 


implementing the preliminary injunction shall be deposited into the MPSERS retirement

 

obligation reform reserve fund created in this section to be used solely for health

 

care unfunded accrued liabilities.

 

       (6) IN ADDITION TO THE APPROPRIATION IN SECTION 11, THERE IS TRANSFERRED FROM

 

THE STATE SCHOOL AID FUND TO THE MPSERS RETIREMENT OBLIGATION REFORM RESERVE FUND AN

 

AMOUNT EQUAL TO $50,000,000.00.

 

       Sec. 147c. (1) From the state school aid fund money appropriated in section 11,

 

there is allocated for 2012-2013 an amount not to exceed $160,000,000.00 for payments

 

to districts and intermediate districts that are participating entities of the

 

retirement system. From the appropriation in section 11, there is allocated for 2013-

 

2014 2014-2015 an amount not to exceed $247,300,000.00 $765,944,000.00 from the state

 

school aid fund, and there is appropriated for 2013-2014 2014-2015 an amount not to

 

exceed $156,000,000.00 $18,000,000.00 from the MPSERS retirement obligation reform

 

reserve fund, for payments to districts and intermediate districts that are

 

participating entities of the Michigan public school employees' retirement system.

 

       (2) In addition to the allocation under subsection (1), from the general fund

 

money appropriated under section 11, there is allocated for payments to district

 

libraries that are participating entities of the retirement system an amount not to

 

exceed $500,000.00 for 2012-2013 and an amount not to exceed $1,300,000.00 for 2013-

 

2014.

 

       (2) (3) Payments made under this section for 2012-2013 shall be equal to the

 

difference between the unfunded actuarial accrued liability contribution rate as

 

calculated pursuant to section 41 of the public school employees retirement act of

 

1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of 20.96% included in

 

section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341. Payments made under this section for 2013-2014 2014-2015 shall be equal to

 

the difference between the unfunded actuarial accrued liability contribution rate as

 


calculated pursuant to section 41 of the public school employees retirement act of

 

1979, 1980 PA 300, MCL 38.1341, as calculated without taking into account the maximum

 

employer rate of 20.96% 19.76% included in section 41 of the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum employer rate of

 

20.96% 19.76% included in section 41 of the public school employees retirement act of

 

1979, 1980 PA 300, MCL 38.1341.

 

       (3) (4) The amount allocated to each participating entity under this section

 

shall be based on each participating entity's proportion of the total covered payroll

 

for the immediately preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this section shall use the funds

 

solely for the purpose of retirement contributions as specified in subsection (5) (4).

 

       (4) (5) Each participating entity receiving funds under this section shall

 

forward an amount equal to the amount allocated under subsection (4) (3) to the

 

retirement system in a form, manner, and time frame determined by the retirement

 

system.

 

       (5) (6) Funds allocated under this section should be considered when comparing

 

a district's growth in total state aid funding from 1 fiscal year to the next.

 

       (6) (7) As used in this section:

 

       (a) "Participating entity" means a district, intermediate district, or district

 

library that is a reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437, and that reports employees to the Michigan public school

 

employees' retirement system for the applicable fiscal year.

 

       (b) "Retirement board" means the board that administers the retirement system

 

under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

 

38.1437.

 

       (c) "Retirement system" means the Michigan public school employees' retirement

 


system under the public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437.

 

       Sec. 152a. (1) As required by the court in the consolidated cases known as

 

Adair v State of Michigan, Michigan supreme court docket nos. 137424 and 137453, from

 

the state school aid fund money appropriated in section 11 there is allocated for

 

2013-2014 2014-2015 an amount not to exceed $38,000,500.00 to be used solely for the

 

purpose of paying necessary costs related to the state-mandated collection,

 

maintenance, and reporting of data to this state.

 

       (2) From the allocation in subsection (1), the department shall make payments

 

to districts and intermediate districts in an equal amount per pupil based on the

 

total number of pupils in membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after the final installment

 

payment under section 17b is made.

 

       Sec. 161. A school official or member of a board or other person who neglects

 

or refuses to do or perform an act required by this act or who violates or knowingly

 

permits or consents to the violation of this act is guilty of a misdemeanor,

 

punishable by imprisonment for not more than 90 days, or a fine of not more than

 

$1,500.00, or both. THIS PENALTY IS IN ADDITION TO ALL OTHER FINANCIAL PENALTIES

 

OTHERWISE SPECIFIED IN THIS ARTICLE.

 

       Sec. 163. (1) Except as provided in the revised school code, the board of a

 

district or intermediate district shall not permit any of the following:

 

       (a) A noncertificated teacher to teach in an elementary or secondary school or

 

in an adult basic education or high school completion program.

 

       (b) A noncertificated counselor to provide counseling services to pupils in an

 

elementary or secondary school or in an adult basic education or high school

 

completion program.

 

       (2) Except as provided in the revised school code, a district or intermediate

 


district employing teachers or counselors not legally certificated shall have deducted

 

the sum equal to the amount paid the teachers or counselors for the period of

 

noncertificated or illegal employment. Each intermediate superintendent shall notify

 

the department of the name of the noncertificated teacher or counselor, and the

 

district employing that individual and the amount of salary the noncertificated

 

teacher or counselor was paid within a constituent district.

 

       (3) If a school official is notified by the department that he or she is

 

employing a nonapproved noncertificated teacher or counselor in violation of this

 

section and knowingly continues to employ that teacher or counselor, the school

 

official is guilty of a misdemeanor, punishable by a fine of $1,500.00 for each

 

incidence. THIS PENALTY IS IN ADDITION TO ALL OTHER FINANCIAL PENALTIES OTHERWISE

 

SPECIFIED IN THIS ARTICLE.

 

       Sec. 168. In order to receive funds under this act, a district, intermediate

 

district, grant recipient, contractor, or other entity that directly or indirectly

 

receives funds under this act shall allow access for the department or the

 

department's designee to audit all records related to a program for which it receives,

 

OR HAS RECEIVED DURING THE PREVIOUS THREE FISCAL YEARS, such funds. The district,

 

intermediate district, grant recipient, contractor, or otherentity shall reimburse the

 

state for all disallowances found in the ANY audit CONDUCTED PURSUANT TO THIS ACT.

 

ARTICLE II

 

STATE AID TO COMMUNITY COLLEGES

 

       Sec. 201. (1) Subject to the conditions set forth in this article, the amounts

 

listed in subsections (2), (4), AND (5), (6), and (7) are appropriated for community

 

colleges for the fiscal year ending September 30, 2014, 2015 from the funds indicated

 

in this section. The following is a summary of the appropriations in subsections (2),

 

(4), AND (5), (6), and (7):

 

       (a) The gross appropriation is $335,977,600.00. $371,524,900.00. After

 


deducting total interdepartmental grants and intradepartmental transfers in the amount

 

of $0.00, the adjusted gross appropriation is $335,977,600.00. $371,524,900.00.

 

       (b) The sources of the adjusted gross appropriation described in subdivision

 

(a) are as follows:

 

       (i) Total federal revenues, $0.00.

 

       (ii) Total local revenues, $0.00.

 

       (iii) Total private revenues, $0.00.

 

       (iv) Total other state restricted revenues, $197,614,100.00.

 

       (v) State general fund/general purpose money, $138,363,500.00. $173,910,800.00.

 

       (2) Subject to subsection (3), the amount appropriated for community college

 

operations is $298,244,000.00, $307,191,300.00, allocated as follows:

 

       (a) THE APPROPRIATION FOR Alpena Community College, $5,221,100.00. IS

 

$5,367,100.00, $5,236,500.00 FOR OPERATIONS AND $130,600.00 FOR PERFORMANCE FUNDING.

 

       (b) THE APPROPRIATION FOR Bay de Noc Community College, $5,263,800.00. IS

 

$5,395,700.00, $5,279,300.00 FOR OPERATIONS AND $116,400.00 FOR PERFORMANCE FUNDING.

 

       (c) THE APPROPRIATION FOR Delta College, $14,022,200.00. IS $14,435,600.00,

 

$14,063,500.00 FOR OPERATIONS AND $372,100.00 FOR PERFORMANCE FUNDING.

 

       (d) THE APPROPRIATION FOR Glen Oaks Community College, $2,434,300.00. IS

 

$2,505,100.00, $2,441,500.00 FOR OPERATIONS AND $63,600.00 FOR PERFORMANCE FUNDING.

 

       (e) THE APPROPRIATION FOR Gogebic Community College, $4,317,500.00. IS

 

$4,431,900.00, $4,330,300.00 FOR OPERATIONS AND $101,600.00 FOR PERFORMANCE FUNDING.

 

       (f) THE APPROPRIATION FOR Grand Rapids Community College, $17,403,500.00. IS

 

$17,869,000.00, $17,454,900.00 FOR OPERATIONS AND $414,100.00 FOR PERFORMANCE FUNDING.

 

       (g) THE APPROPRIATION FOR Henry Ford Community College, $20,997,900.00. IS

 

$21,529,000.00, $21,060,000.00 FOR OPERATIONS AND $469,000.00 FOR PERFORMANCE FUNDING.

 

       (h) THE APPROPRIATION FOR Jackson Community College, $11,723,600.00. IS

 

$12,034,400.00, $11,758,200.00 FOR OPERATIONS AND $276,200.00 FOR PERFORMANCE FUNDING.

 


       (i) THE APPROPRIATION FOR Kalamazoo Valley Community College, $12,086,900.00 IS

 

$12,448,500.00, $12,122,500.00 FOR OPERATIONS AND $326,000.00 FOR PERFORMANCE FUNDING.

 

       (j) THE APPROPRIATION FOR Kellogg Community College, $9,494,000.00. IS

 

$9,770,700.00, $9,522,000.00 FOR OPERATIONS AND $248,700.00 FOR PERFORMANCE FUNDING.

 

       (k) THE APPROPRIATION FOR Kirtland Community College, $3,046,800.00. IS

 

$3,153,900.00, $3,055,700.00 FOR OPERATIONS AND $98,200.00 FOR PERFORMANCE FUNDING.

 

       (l) THE APPROPRIATION FOR Lake Michigan College, $5,162,900.00. IS

 

$5,319,600.00, $5,178,100.00 FOR OPERATIONS AND $141,500.00 FOR PERFORMANCE FUNDING.

 

       (m) THE APPROPRIATION FOR Lansing Community College, $29,935,300.00. IS

 

$30,742,500.00, $30,023,700.00 FOR OPERATIONS AND $718,800.00 FOR PERFORMANCE FUNDING.

 

       (n) THE APPROPRIATION FOR Macomb Community College, $31,837,200.00. IS

 

$32,672,900.00, $31,931,200.00 FOR OPERATIONS AND $741,700.00 FOR PERFORMANCE FUNDING.

 

       (o) THE APPROPRIATION FOR Mid Michigan Community College, $4,504,700.00. IS

 

$4,661,700.00, $4,517,900.00 FOR OPERATIONS AND $143,800.00 FOR PERFORMANCE FUNDING.

 

       (p) THE APPROPRIATION FOR Monroe County Community College, $4,329,900.00. IS

 

$4,473,400.00, $4,342,600.00 FOR OPERATIONS AND $130,800.00 FOR PERFORMANCE FUNDING.

 

       (q) THE APPROPRIATION FOR Montcalm Community College, $3,112,000.00. IS

 

$3,212,700.00, $3,121,200.00 FOR OPERATIONS AND $91,500.00 FOR PERFORMANCE FUNDING.

 

       (r) THE APPROPRIATION FOR C.S. Mott Community College, $15,202,200.00. IS

 

$15,617,500.00, $15,247,100.00 FOR OPERATIONS AND $370,400.00 FOR PERFORMANCE FUNDING.

 

       (s) THE APPROPRIATION FOR Muskegon Community College, $8,628,000.00. IS

 

$8,862,100.00, $8,653,500.00 FOR OPERATIONS AND $208,600.00 FOR PERFORMANCE FUNDING.

 

       (t) THE APPROPRIATION FOR North Central Michigan College, $3,055,400.00. IS

 

$3,158,600.00, $3,064,400.00 FOR OPERATIONS AND $94,200.00 FOR PERFORMANCE FUNDING.

 

       (u) THE APPROPRIATION FOR Northwestern Michigan College, $8,799,300.00. IS

 

$9,039,100.00, $8,825,300.00 FOR OPERATIONS AND $213,800.00 FOR PERFORMANCE FUNDING.

 

       (v) THE APPROPRIATION FOR Oakland Community College, $20,422,900.00. IS

 


$21,031,100.00, $20,483,100.00 FOR OPERATIONS AND $548,000.00 FOR PERFORMANCE FUNDING.

 

       (w) THE APPROPRIATION FOR St. Clair County Community College, $6,839,900.00. IS

 

$7,030,700.00, $6,860,100.00 FOR OPERATIONS AND $170,600.00 FOR PERFORMANCE FUNDING.

 

       (x) THE APPROPRIATION FOR Schoolcraft College, $12,076,700.00. IS

 

$12,459,200.00, $12,112,200.00 FOR OPERATIONS AND $347,000.00 FOR PERFORMANCE FUNDING.

 

       (y) THE APPROPRIATION FOR Southwestern Michigan College, $6,385,400.00. IS

 

$6,547,600.00, $6,404,300.00 FOR OPERATIONS AND $143,300.00 FOR PERFORMANCE FUNDING.

 

       (z) THE APPROPRIATION FOR Washtenaw Community College, $12,573,900.00. IS

 

$13,020,600.00, $12,610,800.00 FOR OPERATIONS AND $409,800.00 FOR PERFORMANCE FUNDING.

 

       (aa) THE APPROPRIATION FOR Wayne County Community College, $16,146,700.00. IS

 

$16,654,700.00, $16,194,300.00 FOR OPERATIONS AND $460,400.00 FOR PERFORMANCE FUNDING.

 

       (bb) THE APPROPRIATION FOR West Shore Community College, $2,342,900.00. IS

 

$2,404,300.00, $2,349,800.00 FOR OPERATIONS AND $54,500.00 FOR PERFORMANCE FUNDING.

 

       (cc) Local strategic value, $877,100.00. $1,342,100.00.

 

       (3) The amount appropriated in subsection (2) for community college operations

 

is appropriated from the following:

 

       (a) State school aid fund, $195,880,500.00.

 

       (b) State general fund/general purpose money, $102,363,500.00. $111,310,800.00.

 

       (4) From the appropriations described in subsection (1), there is appropriated

 

for fiscal year 2013-2014 an amount not to exceed $1,733,600.00 for payments to

 

community colleges from the state school aid fund. A community college that receives

 

money under this subsection shall use that money solely for the purpose of offsetting

 

a portion of the retirement contributions owed by the college for the fiscal year

 

ending September 30, 2014. The amount allocated to each participating community

 

college under this section shall be based on each participating college's total

 

payroll covered by the retirement system-covered payroll for all participating

 

colleges for the immediately preceding state fiscal year.

 


       (4) (5) From the appropriations described in subsection (1), there is

 

appropriated an amount not to exceed $31,400,000.00 from the state general fund THE

 

AMOUNT APPROPRIATED for payments to community colleges that are participating entities

 

of the retirement system IS $60,833,600.00, $1,733,600.00 APPROPRIATED FROM THE STATE

 

SCHOOL AID FUND AND $59,100,000.00 APPROPRIATED FROM GENERAL FUND/GENERAL PURPOSE

 

MONEY. All of the following apply to the appropriations described in this subsection:

 

       (a) The amount of a payment under this subsection shall be the difference

 

between the unfunded actuarial accrued liability contribution rate as calculated under

 

section 41 of the public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341, and the maximum employer rate of 20.96% under section 41 of the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1341.

 

       (b) The amount allocated to each community college under this subsection shall

 

be based on each community college's percentage of the total covered payroll for all

 

community colleges that are participating colleges in the immediately preceding fiscal

 

year. A community college that receives funds under this subsection shall use the

 

funds solely for the purpose of retirement contributions under subdivision (c).

 

       (c) Each participating college receiving funds under this subsection shall

 

forward an amount equal to the amount allocated under subdivision (b) to the

 

retirement system in a form and manner determined by the retirement system.

 

       (5) (6) All of the following apply to community colleges described in section

 

12(3) of the Michigan renaissance zone act, MCL 125.2692: THE AMOUNT APPROPRIATED FOR

 

RENAISSANCE ZONE TAX REIMBURSEMENTS IS $3,500,000.00, APPROPRIATED FROM GENERAL

 

FUND/GENERAL PURPOSE MONEY.

 

       (a) From the appropriations described in subsection (1), the following amount

 

is appropriated for reimbursement to community colleges under section 12(3) of the

 

Michigan renaissance zone act, MCL 125.2692:

 

       (i) If the amount of tax revenue lost by community colleges as a result of the

 


exemption of property under the Michigan renaissance zone act in fiscal year 2012-2013

 

is $3,500,000.00 or more, $3,500,000.00 from the state general fund.

 

       (ii) If the amount of tax revenue lost by community colleges as a result of the

 

exemption of property under the Michigan renaissance zone act in fiscal year 2012-2013

 

is less than $3,500,000.00, the actual amount of tax revenue lost by the community

 

colleges.

 

       (b) The amount allocated to each community college under this subsection shall

 

be based on that community college's proportion of total revenue lost by community

 

colleges in fiscal year 2012-2013 as a result of the exemption of property under the

 

Michigan renaissance zone act.

 

       (c) The appropriations described in this subsection shall be made to each

 

eligible community college within 60 days after the department of treasury certifies

 

to the state budget director that it has received all necessary information to

 

properly determine the amounts of tax revenue lost by each eligible community college

 

in fiscal year 2012-2013 under section 12 of the Michigan renaissance zone act, MCL

 

125.2692.

 

       (7) From the appropriations described in subsection (1), there is appropriated

 

$1,100,000.00 from the state general fund, for fiscal year 2013-2014 only, to the

 

Michigan community college association, for the purpose of expanding the Michigan

 

community college virtual learning collaborative. The Michigan community college

 

association shall provide information on request to the house and senate subcommittees

 

on community colleges, the house and senate fiscal agencies, and the state budget

 

director on the use of these funds until the project is completed.

 

       (8) As used in this section:

 

       (a) "Michigan renaissance zone act" means the Michigan renaissance zone act,

 

1996 PA 376, MCL 125.2681 to 125.2696.

 

       (b) "Participating college" means a community college that is a reporting unit

 


of the retirement system and that reports employees to the retirement system for the

 

state fiscal year.

 

       (c) "Retirement board" means the board that administers the retirement system

 

under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

 

38.1437.

 

       (d) "Retirement system" means the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437.

 

       Sec. 201a. It is the intent of the legislature to provide appropriations

 

APPROPRIATIONS SHALL BE MADE for the fiscal year ending on September 30, 2015 2016 for

 

the items listed in section 201. The fiscal year 2014-2015 2015-2016 appropriations

 

are anticipated to be the same as those for fiscal year 2013-2014, 2014-2015, except

 

that the amounts will be adjusted for changes in RETIREMENT COSTS, caseload and

 

related costs, federal fund match rates, economic factors, and available revenue.

 

These adjustments will be determined after the January 2014 2015 consensus revenue

 

estimating conference.

 

       Sec. 202a. As used in this article,:

 

       (1) "MICHIGAN RENAISSANCE ZONE ACT" MEANS THE MICHIGAN RENAISSANCE ZONE ACT,

 

1996 PA 376, MCL 125.2681 TO 125.2696.

 

       (2) "PARTICIPATING COLLEGE" MEANS A COMMUNITY COLLEGE THAT IS A REPORTING UNIT

 

OF THE RETIREMENT SYSTEM AND THAT REPORTS EMPLOYEES TO THE RETIREMENT SYSTEM FOR THE

 

STATE FISCAL YEAR.

 

       (3) "RETIREMENT BOARD" MEANS THE BOARD THAT ADMINISTERS THE RETIREMENT SYSTEM

 

UNDER THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1301 TO

 

38.1437.

 

       (4) "RETIREMENT SYSTEM" MEANS THE MICHIGAN PUBLIC SCHOOL EMPLOYEES' RETIREMENT

 

SYSTEM UNDER THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL

 


38.1301 TO 38.1437.

 

       (5) "workforce WORKFORCE development agency" means the workforce development

 

agency of the Michigan strategic fund.

 

       Sec. 206. The funds appropriated in section 201 are appropriated for community

 

colleges with fiscal years ending June 30, 2014 2015 and shall be paid out of the

 

state treasury and distributed by the state treasurer to the respective community

 

colleges in 11 monthly installments on the sixteenth of each month, or the next

 

succeeding business day, beginning with October 16, 2013 2014. Each community college

 

shall accrue its July and August 2014 2015 payments to its institutional fiscal year

 

ending June 30, 2014 2015. However, if the state budget director determines that a

 

community college failed to submit all verified Michigan community colleges activities

 

classification structure data for school year 2012-2013 2013-2014 to the workforce

 

development agency by November 1, 2013 2014, or failed to submit its longitudinal data

 

system data set for school year 2012-2013 2013-2014 to the center for educational

 

performance and information under section 219, the state treasurer shall withhold the

 

monthly installments from that community college until those data are submitted. The

 

state budget director shall notify the chairs of the house and senate appropriations

 

subcommittees on community colleges at least 10 days before withholding funds from any

 

community college.

 

       SEC. 207A. (1) APPROPRIATIONS IN SECTION 201(4) FOR PAYMENTS TO COMMUNITY

 

COLLEGES THAT ARE PARTICIPATING ENTITIES OF THE RETIREMENT SYSTEM SHALL BE ALLOCATED

 

IN ACCORDANCE WITH THIS SECTION.

 

       (2) THE AMOUNT OF A PAYMENT UNDER SECTION 201(4) SHALL BE THE DIFFERENCE

 

BETWEEN THE UNFUNDED ACTUARIAL ACCRUED LIABILITY CONTRIBUTION RATE AS CALCULATED UNDER

 

SECTION 41 OF THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL

 

38.1341, AND THE MAXIMUM EMPLOYER RATE OF 19.76% UNDER SECTION 41 OF THE PUBLIC SCHOOL

 

EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1341.

 


       (3) THE AMOUNT ALLOCATED TO EACH COMMUNITY COLLEGE UNDER SECTION 201(4) SHALL

 

BE BASED ON EACH COMMUNITY COLLEGE'S PERCENTAGE OF THE TOTAL COVERED PAYROLL FOR ALL

 

COMMUNITY COLLEGES THAT ARE PARTICIPATING COLLEGES IN THE IMMEDIATELY PRECEDING FISCAL

 

YEAR. A COMMUNITY COLLEGE THAT RECEIVES FUNDS UNDER THIS SUBSECTION SHALL USE THE

 

FUNDS SOLELY FOR THE PURPOSE OF RETIREMENT CONTRIBUTIONS UNDER SUBSECTION (4).

 

       (4) EACH PARTICIPATING COLLEGE RECEIVING FUNDS UNDER SECTION 201(4) FOR

 

PURPOSES DESCRIBED IN THIS SECTION SHALL FORWARD AN AMOUNT EQUAL TO THE AMOUNT

 

ALLOCATED UNDER SUBSECTION (3) TO THE RETIREMENT SYSTEM IN A FORM AND MANNER

 

DETERMINED BY THE RETIREMENT SYSTEM.

 

       SEC. 207B. (1) THIS SECTION SHALL APPLY TO COMMUNITY COLLEGES DESCRIBED IN

 

SECTION 12(3) OF THE MICHIGAN RENAISSANCE ZONE ACT, MCL 125.2692.

 

       (2) THE AMOUNT ALLOCATED TO EACH COMMUNITY COLLEGE UNDER SECTION 201(5) SHALL

 

BE BASED ON THAT COMMUNITY COLLEGE'S PROPORTION OF TOTAL REVENUE LOST BY COMMUNITY

 

COLLEGES IN FISCAL YEAR 2013-2014 AS A RESULT OF THE EXEMPTION OF PROPERTY UNDER THE

 

MICHIGAN RENAISSANCE ZONE ACT.

 

       (3) THE APPROPRIATIONS DESCRIBED IN SECTION 201(5) AND MADE IN ACCORDANCE WITH

 

THIS SECTION SHALL BE MADE TO EACH ELIGIBLE COMMUNITY COLLEGE WITHIN 60 DAYS AFTER THE

 

DEPARTMENT OF TREASURY CERTIFIES TO THE STATE BUDGET DIRECTOR THAT IT HAS RECEIVED ALL

 

NECESSARY INFORMATION TO PROPERLY DETERMINE THE AMOUNTS OF TAX REVENUE LOST BY EACH

 

ELIGIBLE COMMUNITY COLLEGE IN FISCAL YEAR 2013-2014 UNDER SECTION 12 OF THE MICHIGAN

 

RENAISSANCE ZONE ACT, MCL 125.2692.

 

       Sec. 209. (1) Within 30 days after the board of a community college adopts its

 

annual operating budget for the following school fiscal year, or after the board

 

adopts a subsequent revision to that budget, the community college shall make all of

 

the following available through a link on its website homepage:

 

       (a) The annual operating budget and subsequent budget revisions.

 

       (b) A link to the most recent "Activities Classification Structure Manual for

 


Michigan Community Colleges DATA BOOK AND COMPANION".

 

       (c) General fund revenue and expenditure projections for fiscal year 2013-2014

 

and fiscal year 2014-2015 THE CURRENT FISCAL YEAR AND NEXT FISCAL YEAR.

 

       (d) A listing of all debt service obligations, detailed by project, anticipated

 

fiscal year 2013-2014 payment of each project, and total outstanding debt FOR THE

 

CURRENT FISCAL YEAR.

 

       (e) The estimated cost to the community college resulting from the patient

 

protection and affordable care act, Public Law 111-148, as amended by the health care

 

and education reconciliation act of 2010, Public Law 111-152.

 

       (E) (f) Links to all of the following for the community college:

 

       (i) The current collective bargaining agreement for each bargaining unit.

 

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

 

dental, vision, disability, long-term care, or any other type of benefits that would

 

constitute health care services, offered to any bargaining unit or employee of the

 

community college.

 

       (iii) Audits and financial reports for the most recent fiscal year for which

 

they are available.

 

       (iv) A copy of the board of trustees resolution regarding compliance with best

 

practices for the local strategic value component described in section 230(3).

 

       (2) For statewide consistency and public visibility, community colleges must

 

use the icon badge provided by the department of technology, management, and budget

 

consistent with the icon badge developed by the department of education for K-12

 

school districts. It must appear on the front of each community college's homepage.

 

The size of the icon may be reduced to 150 x 150 pixels.

 

       (3) The state budget director shall determine whether a community college has

 

complied with this section. The state budget director may withhold a community

 

college's monthly installments described in section 206 until the community college

 


complies with this section. The state budget director shall notify the chairs of the

 

house and senate appropriations subcommittee on community colleges at least 10 days

 

before withholding funds from any community college.

 

       (3) (4) Each community college shall report the following information to the

 

senate and house appropriations subcommittees on community colleges, the senate and

 

house fiscal agencies, and the state budget office by November 15, 2013, OF EACH

 

FISCAL YEAR and post that information on the internet website required under

 

subsection (1):

 

       (a) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from tuition

 

and fees.

 

       (b) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from state

 

appropriations.

 

       (c) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from property

 

taxes.

 

       (d) Budgeted CURRENT fiscal year 2013-2014 total general fund revenue.

 

       (e) Budgeted CURRENT fiscal year 2013-2014 total general fund expenditures.

 

       Sec. 210. (1) Recognizing the critical importance of education in strengthening

 

Michigan's workforce, the legislature encourages each community college IS ENCOURAGED

 

to explore ways of increasing collaboration and cooperation with 4-year universities,

 

particularly in the areas related to training, instruction, and program articulation.

 

       (2) Recognizing the central role of community colleges in responding to local

 

employment needs and challenges, community colleges shall develop and continue efforts

 

to collaborate with local employers and students to identify local employment needs

 

and strategies to meet them.

 

       (3) Community colleges are encouraged to collaborate with each other on

 

innovations to identify and meet local employment needs.

 

       (4) Community colleges are encouraged to work with universities to develop

 


equivalency standards of core college courses and identify equivalent courses offered

 

by postsecondary institutions.

 

       Sec. 213. It is the intent of the legislature that community (1) COMMUNITY

 

colleges ARE ENCOURAGED TO work with public universities in the state to implement

 

statewide reverse transfer agreements to increase the number of students that are

 

awarded credentials of value upon completion of the necessary credits. These statewide

 

agreements shall enable students who have earned a significant number of credits at a

 

community college and transferred to a baccalaureate-granting institution before

 

completing a degree to transfer the credits earned at the baccalaureate institution

 

back to the community college in order to be awarded a credential of value.

 

       (2) IT IS EXPECTED THAT THE MICHIGAN ASSOCIATION OF COLLEGIATE REGISTRARS AND

 

ADMISSIONS OFFICERS SHALL IMPLEMENT ANY AGREEMENT OR AGREEMENTS AMONG THE COMMUNITY

 

COLLEGES AND UNIVERSITIES CONCERNING THE TRANSFERABILITY OF COLLEGE COURSES RESULTING

 

FROM THE RECOMMENDATIONS OF THE COMMITTEE CREATED UNDER FORMER SECTION 210A.

 

       Sec. 222. Each community college shall have an annual audit of all income and

 

expenditures performed by an independent auditor and shall furnish the independent

 

auditor's management letter and an annual audited accounting of all general and

 

current funds income and expenditures including audits of college foundations to the

 

members of the senate and house appropriations subcommittees on community colleges,

 

the senate and house fiscal agencies, the auditor general, the workforce development

 

agency, and the state budget director before November 15 of each year. If a community

 

college fails to furnish the audit materials, the monthly state aid installments shall

 

be withheld from that college until the information is submitted. All reporting shall

 

conform to the requirements set forth in the "2001 Manual for Uniform Financial

 

Reporting, Michigan Public Community Colleges". It is the intent of the legislature

 

that a A community college shall make the information the community college is

 

required to provide under this section available to the public on its internet

 


website.

 

       Sec. 224. A community college shall use the P-20 longitudinal data system to

 

inform interested Michigan high schools AND THE PUBLIC of the aggregate academic

 

status of its students for the previous academic year, in a manner prescribed by the

 

Michigan community college association and in cooperation with the Michigan

 

association of secondary school principals. Community colleges shall cooperate with

 

the center for educational performance and information to design and implement

 

MAINTAIN a systematic approach for accomplishing this work.

 

       Sec. 225. Each community college shall report to the house and senate fiscal

 

agencies, the state budget director, and the workforce development agency by August

 

31, 2013 2014, the tuition and mandatory fees paid by a full-time in-district student

 

and a full-time out-of-district student as established by the college governing board

 

for the 2013-2014 2014-2015 academic year. This report should also include the annual

 

cost of attendance based on a full-time course load of 30 credits. Each community

 

college shall also report any revisions to the reported 2012-2013 or 2013-2014 2014-

 

2015 academic year tuition and mandatory fees adopted by the college governing board

 

to the house and senate fiscal agencies, the state budget director, and the workforce

 

development agency within 15 days of being adopted.

 

       Sec. 229. (1) It is the intent of the legislature EXPECTED that each community

 

college that receives an appropriation in section 201 include in its admission

 

application process a specific question as to whether an applicant for admission is a

 

veteran, an active member of the military, a member of the national guard or military

 

reserves, or the spouse or dependent of a veteran, active member of the military, or

 

member of the national guard or military reserves, in order to more quickly identify

 

potential educational assistance available to that applicant.

 

       (2) It is the intent of the legislature EXPECTED that each public community

 

college that receives an appropriation in section 201 shall work with the house and

 


senate community college subcommittees, the Michigan community college association,

 

and veterans groups to review the issue of in-district tuition for veterans of this

 

state when determining tuition rates and fees.

 

       (3) As used in this section, "veteran" means an honorably discharged veteran

 

entitled to educational assistance under the provisions of section 5003 of the post-

 

911 veterans educational assistance act of 2008, 38 USC 3301 to 3324.

 

       Sec. 229a. Included in the fiscal year 2013-2014 2014-2015 appropriations for

 

the department of technology, management, and budget are appropriations to provide

 

funding for the state share of costs for previously constructed capital projects for

 

community colleges. Those appropriations for state building authority rent represent

 

additional state general fund support for community colleges, and the following is an

 

estimate of the amount of that support to each community college:

 

       (a) Alpena Community College, $434,500.00. $485,400.00.

 

       (b) Bay de Noc Community College, $644,500.00. $636,600.00.

 

       (c) Delta College, $2,877,700.00. $2,842,800.00.

 

       (d) Glen Oaks Community College, $124,900.00. $123,300.00.

 

       (e) Gogebic Community College, $78,100.00. $16,900.00.

 

       (f) Grand Rapids Community College, $1,700,400.00. $1,792,400.00.

 

       (g) Henry Ford Community College, $1,126,800.00. $1,030,800.00.

 

       (h) Jackson Community College, $1,809,500.00. $1,787,300.00.

 

       (i) Kalamazoo Valley Community College, $1,489,300.00. $1,471,000.00.

 

       (j) Kellogg Community College, $527,900.00. $521,400.00.

 

       (k) Kirtland Community College, $368,800.00. $364,000.00.

 

       (l) Lake Michigan College, $345,200.00. $340,900.00.

 

       (m) Lansing Community College, $617,600.00. $610,100.00.

 

       (n) Macomb Community College, $1,332,900.00. $1,316,600.00.

 

       (o) Mid Michigan Community College, $928,900.00. $1,117,300.00.

 


       (p) Monroe County Community College, $1,375,600.00. $1,266,500.00.

 

       (q) Montcalm Community College, $1,015,700.00. $973,700.00.

 

       (r) C.S. Mott Community College, $1,830,400.00. $1,808,000.00.

 

       (s) Muskegon Community College, $201,000.00. $198,500.00.

 

       (t) North Central Michigan College, $476,300.00. $117,600.00.

 

       (u) Northwestern Michigan College, $1,324,800.00. $1,308,600.00.

 

       (v) Oakland Community College, $472,100.00. $466,300.00.

 

       (w) St. Clair County Community College, $361,400.00. $357,000.00.

 

       (x) Schoolcraft College, $1,569,500.00. $1,550,300.00.

 

       (y) Southwestern Michigan College, $538,600.00. $231,100.00.

 

       (z) Washtenaw Community College, $2,023,100.00. $1,680,600.00.

 

       (aa) Wayne County Community College, $1,918,700.00. $1,466,000.00.

 

       (bb) West Shore Community College, $585,800.00. $578,600.00.

 

       Sec. 230. (1) It is the intent of the legislature that the recommendations and

 

performance measures developed by the performance indicators task force formed under

 

section 242 of 2005 PA 154 be reviewed and more fully implemented for distribution of

 

state funding to community colleges in future years.

 

       (1) (2) Any additional PERFORMANCE funding provided to community college

 

operations under section 201(2) in fiscal year 2013-2014 2014-2015 that exceeds the

 

amounts appropriated for operations in fiscal year 2012-2013 is distributed based on

 

the following formula:

 

       (a) Allocated proportionate to fiscal year 2012-2013 2013-2014 base

 

appropriations, 50%.

 

       (b) Based on contact hour equated students, 10%.

 

       (c) Based on administrative costs, 7.5%.

 

       (d) Based on a weighted degree formula as provided for in the 2006

 

recommendations of the performance indicators task force, 17.5%.

 


       (e) Based on the local strategic value component, as developed in cooperation

 

with the Michigan community college association and described in subsection (3) (2),

 

15%.

 

       (2) (3) The appropriation in section 201(2)(cc) for local strategic value shall

 

be allocated to each community college that certifies to the state budget director,

 

through a board of trustees resolution on or before November 1, 2013 OCTOBER 15, 2014,

 

that the college has met 4 out of 5 best practices listed in each category described

 

in subsection (4) (3). The resolution shall provide specifics as to how the community

 

college meets each best practice measure within each category. One-third of funding

 

available under the strategic value component shall be allocated to each category

 

described in subsection (4) (3). Amounts distributed under local strategic value shall

 

be on a proportionate basis to each college's fiscal year 2012-2013 2013-2014

 

operations funding. Payments to community colleges that qualify for local strategic

 

value funding shall be distributed with the November installment payment described in

 

section 206.

 

       (3) (4) For purposes of subsection (3) (2), the following categories of best

 

practices reflect functional activities of community colleges that have strategic

 

value to the local communities and regional economies:

 

       (a) For Category A, economic development and business or industry partnerships,

 

the following:

 

       (i) The community college has active partnerships with local employers

 

including hospitals and health care providers.

 

       (ii) The community college provides customized on-site training for area

 

companies, employees, or both.

 

       (iii) The community college supports entrepreneurship through a small business

 

assistance center or other training or consulting activities targeted toward small

 

businesses.

 


       (iv) The community college supports technological advancement through industry

 

partnerships, incubation activities, or operation of a Michigan technical education

 

center or other advanced technology center.

 

       (v) The community college has active partnerships with local or regional

 

workforce and economic development agencies.

 

       (b) For Category B, educational partnerships, the following:

 

       (i) The community college has active partnerships with regional high schools,

 

intermediate school districts, and career-tech centers to provide instruction through

 

dual enrollment, direct credit, middle college, or academy programs.

 

       (ii) The community college hosts, sponsors, or participates in enrichment

 

programs for area K-12 students, such as college days, summer or after-school

 

programming, or science Olympiad.

 

       (iii) The community college provides, supports, or participates in programming

 

to promote successful transitions to college for traditional age students, including

 

grant programs such as talent search, upward bound, or other activities to promote

 

college readiness in area high schools and community centers.

 

       (iv) The community college provides, supports, or participates in programming

 

to promote successful transitions to college for new or reentering adult students,

 

such as adult basic education, GED preparation, GED testing, or recruiting, advising,

 

or orientation activities specific to adults.

 

       (v) The community college has active partnerships with regional 4-year colleges

 

and universities to promote successful transfer, such as articulation, 2+2, or reverse

 

transfer agreements or operation of a university center.

 

       (c) For Category C, community services, the following:

 

       (i) The community college provides continuing education programming for

 

leisure, wellness, personal enrichment, or professional development.

 

       (ii) The community college operates or sponsors opportunities for community

 


members to engage in activities that promote leisure, wellness, cultural or personal

 

enrichment such as community sports teams, theater or musical ensembles, or artist

 

guilds.

 

       (iii) The community college operates public facilities to promote cultural,

 

educational, or personal enrichment for community members, such as libraries, computer

 

labs, performing arts centers, museums, art galleries, or television or radio

 

stations.

 

       (iv) The community college operates public facilities to promote leisure or

 

wellness activities for community members, including gymnasiums, athletic fields,

 

tennis courts, fitness centers, hiking or biking trails, or natural areas.

 

       (v) The community college promotes, sponsors, or hosts community service

 

activities for students, staff, or community members.

 

       SEC. 230A. (1) PAYMENTS UNDER SECTION 201 FOR PERFORMANCE FUNDING AND LOCAL

 

STRATEGIC VALUE SHALL ONLY BE MADE TO A COMMUNITY COLLEGE THAT CERTIFIES TO THE STATE

 

BUDGET DIRECTOR BY AUGUST 31, 2014 THAT ITS BOARD DID NOT ADOPT AN INCREASE IN TUITION

 

AND FEE RATES FOR RESIDENT STUDENTS AFTER FEBRUARY 5, 2014 FOR THE 2013-2014 ACADEMIC

 

YEAR AND THAT ITS BOARD WILL NOT ADOPT AN INCREASE IN TUITION AND FEE RATES FOR

 

RESIDENT STUDENTS FOR THE 2014-2015 ACADEMIC YEAR THAT IS GREATER THAN 3.2%. AS USED

 

IN THIS SECTION:

 

       (A) "FEE" MEANS ANY BOARD-AUTHORIZED FEE THAT WILL BE PAID BY MORE THAN 1/2 OF

 

ALL RESIDENT STUDENTS AT LEAST ONCE DURING THEIR ENROLLMENT AT A COMMUNITY COLLEGE. A

 

COMMUNITY COLLEGE INCREASING A FEE THAT APPLIES TO A SPECIFIC SUBSET OF STUDENTS OR

 

COURSES SHALL PROVIDE SUFFICIENT INFORMATION TO PROVE THAT THE INCREASE APPLIED TO

 

THAT SUBSET WILL NOT CAUSE THE INCREASE IN THE AVERAGE AMOUNT OF BOARD-AUTHORIZED

 

TOTAL TUITION AND FEES PAID BY RESIDENT STUDENTS IN THE 2014-2015 ACADEMIC YEAR TO

 

EXCEED THE LIMIT ESTABLISHED IN THIS SUBSECTION.

 

       (B) "RESIDENT STUDENT" MEANS A STUDENT THAT IS CONSIDERED BY THE COMMUNITY

 


COLLEGE TO BE A RESIDENT OF THE STATE OF MICHIGAN, AND SHALL INCLUDE BOTH STUDENTS

 

PAYING IN-DISTRICT TUITION AND FEES AND STUDENTS PAYING OUT-OF-DISTRICT TUITION AND

 

FEES.

 

       (C) "TUITION AND FEE RATE" MEANS THE TOTAL OF ANY CHARGED FEES QUALIFYING UNDER

 

THE DEFINITION IN SUBDIVISION (A) AND THE CREDIT HOUR OR CONTACT HOUR TUITION RATE,

 

DEPENDING UPON THE COMMUNITY COLLEGE’S PRIMARY METHOD OF CHARGING TUITION. THE TUITION

 

RATE FOR THE 2 SEMESTERS WITH THE HIGHEST LEVELS OF FULL-TIME EQUATED RESIDENT STUDENT

 

ENROLLMENT DURING THE ACADEMIC YEAR SHALL BE USED.

 

       (2) THE STATE BUDGET DIRECTOR SHALL IMPLEMENT UNIFORM REPORTING REQUIREMENTS TO

 

ENSURE THAT A COMMUNITY COLLEGE RECEIVING A PAYMENT UNDER SECTION 201 FOR PERFORMANCE

 

FUNDING OR LOCAL STRATEGIC VALUE HAS SATISFIED THE TUITION RESTRAINT REQUIREMENTS OF

 

THIS SECTION. THE STATE BUDGET DIRECTOR SHALL HAVE THE SOLE AUTHORITY TO DETERMINE IF

 

A COMMUNITY COLLEGE HAS MET THE REQUIREMENTS OF THIS SECTION. INFORMATION REPORTED BY

 

A COMMUNITY COLLEGE TO THE STATE BUDGET DIRECTOR UNDER THIS SUBSECTION SHALL ALSO BE

 

REPORTED TO THE HOUSE AND SENATE APPROPRIATIONS SUBCOMMITTEES ON COMMUNITY COLLEGES

 

AND THE HOUSE AND SENATE FISCAL AGENCIES.

 

       (3) ANY PERFORMANCE FUNDING AMOUNTS UNDER SECTION 201 THAT ARE NOT PAID TO A

 

COMMUNITY COLLEGE BECAUSE IT DID NOT COMPLY WITH ANY REQUIREMENT UNDER SUBSECTION (1)

 

ARE UNAPPROPRIATED AND REAPPROPRIATED FOR PERFORMANCE FUNDING TO THOSE COMMUNITY

 

COLLEGES THAT MEET THE REQUIREMENTS UNDER SUBSECTION (1), DISTRIBUTED IN PROPORTION TO

 

THEIR PERFORMANCE FUNDING APPROPRIATION AMOUNTS UNDER SECTION 201.

 

       (4) THE STATE BUDGET DIRECTOR SHALL REPORT TO THE HOUSE AND SENATE

 

APPROPRIATIONS SUBCOMMITTEES ON COMMUNITY COLLEGES AND THE HOUSE AND SENATE FISCAL

 

AGENCIES BY SEPTEMBER 17, 2014, REGARDING ANY PERFORMANCE FUNDING OR LOCAL STRATEGIC

 

VALUE AMOUNTS THAT ARE NOT PAID TO A COMMUNITY COLLEGE BECAUSE IT DID NOT COMPLY WITH

 

1 OR MORE REQUIREMENTS UNDER SUBSECTION (1) AND ANY REAPPROPRIATION OF FUNDS UNDER

 

SUBSECTION (3).

 


ARTICLE III

 

STATE AID FOR UNIVERSITIES AND STUDENT FINANCIAL AID

 

       Sec. 236. (1) Subject to the conditions set forth in this article, the amounts

 

listed in subsections (2) to (6) are appropriated for higher education for the fiscal

 

year ending September 30, 2014 2015, from the funds indicated in this section. The

 

following is a summary of the appropriations in subsections (2) to (6):

 

       (a) The gross appropriation is $1,430,573,500.00. $1,512,494,100.00. After

 

deducting total interdepartmental grants and intradepartmental transfers in the amount

 

of $0.00, the adjusted gross appropriation is $1,430,573,500.00. $1,512,494,100.00.

 

       (b) The sources of the adjusted gross appropriation described in subdivision

 

(a) are as follows:

 

       (i) Total federal revenues, $97,026,400.00.

 

       (ii) Total local revenues, $0.00.

 

       (iii) Total private revenues, $0.00.

 

       (iv) Total other state restricted revenues, $200,565,700.00.

 

       (v) State general fund/general purpose money, $1,132,981,400.00.

 

$1,214,902,000.00.

 

       (2) Amounts appropriated for public universities are as follows:

 

       (a) The appropriation for Central Michigan University is $73,486,600.00,

 

$79,283,400.00, $71,352,300.00 $73,540,100.00 for operations and $2,134,300.00

 

$5,743,300.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $11,284,600.00. $11,815,000.00.

 

       (ii) State general fund/general purpose money, $62,202,000.00. $67,468,400.00.

 

       (b) The appropriation for Eastern Michigan University is $67,255,600.00,

 

$71,906,800.00, $66,466,700.00 $67,275,400.00 for operations and $788,900.00

 

$4,631,400.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $10,706,400.00. $10,715,700.00.

 


       (ii) State general fund/general purpose money, $56,549,200.00. $61,191,100.00.

 

       (c) The appropriation for Ferris State University is $45,602,600.00,

 

$49,191,200.00,  $44,250,700.00 $45,636,500.00 for operations and $1,351,900.00

 

$3,554,700.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $6,846,800.00. $7,330,600.00.

 

       (ii) State general fund/general purpose money, $38,755,800.00. $41,860,600.00.

 

       (d) The appropriation for Grand Valley State University is $57,765,100.00,

 

$63,296,500.00, $55,436,000.00 $57,823,500.00 for operations and $2,329,100.00

 

$5,473,000.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $8,727,800.00. $9,432,600.00.

 

       (ii) State general fund/general purpose money, $49,037,300.00. $53,863,900.00.

 

       (e) The appropriation for Lake Superior State University is $12,226,500.00,

 

$12,799,100.00, $12,046,100.00 $12,231,000.00 for operations and $180,400.00

 

$568,100.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $1,787,600.00. $1,907,400.00.

 

       (ii) State general fund/general purpose money, $10,438,900.00. $10,891,700.00.

 

       (f) The appropriation for Michigan State University is $305,775,000.00,

 

$324,599,500.00, $245,037,000.00 $249,597,800.00 for operations, $4,449,300.00

 

$15,279,400.00 for performance funding, $30,243,900.00 $32,088,800.00 for MSU

 

AgBioResearch, and $26,044,800.00 $27,633,500.00 for MSU extension, appropriated from

 

the following:

 

       (i) State school aid fund, $39,949,900.00. $39,472,600.00.

 

       (ii) State general fund/general purpose money, $265,825,100.00.

 

$285,126,900.00.

 

       (g) The appropriation for Michigan Technological University is $43,451,900.00,

 

$45,997,100.00, $42,579,100.00 $43,473,800.00 for operations and $872,800.00

 

$2,523,300.00 for performance funding, appropriated from the following:

 


       (i) State school aid fund, $6,748,900.00. $6,854,600.00.

 

       (ii) State general fund/general purpose money, $36,703,000.00. $39,142,500.00.

 

       (h) The appropriation for Northern Michigan University is $41,719,800.00,

 

$44,353,800.00, $40,856,600.00 $41,741,400.00 for operations and $863,200.00

 

$2,612,400.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $6,356,900.00. $6,609,700.00.

 

       (ii) State general fund/general purpose money, $35,362,900.00. $37,744,100.00.

 

       (i) The appropriation for Oakland University is $45,634,800.00, $48,446,100.00,  

 

$44,964,100.00 $45,651,600.00 for operations and $670,700.00 $2,794,500.00 for

 

performance funding, appropriated from the following:

 

       (i) State school aid fund, $7,148,400.00. $7,219,500.00.

 

       (ii) State general fund/general purpose money, $38,486,400.00. $41,226,600.00.

 

       (j) The appropriation for Saginaw Valley State University is $25,982,800.00,

 

$27,659,100.00, $25,656,700.00 $25,991,000.00 for operations and $326,100.00

 

$1,668,100.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $3,903,800.00. $4,121,800.00.

 

       (ii) State general fund/general purpose money, $22,079,000.00. $23,537,300.00.

 

       (k) The appropriation for University of Michigan - Ann Arbor is

 

$279,108,700.00, $295,655,600.00, $274,156,700.00 $279,232,700.00 for operations and

 

$4,952,000.00 $16,422,900.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $44,536,300.00. $44,059,300.00.

 

       (ii) State general fund/general purpose money, $234,572,400.00.

 

$251,596,300.00.

 

       (l) The appropriation for University of Michigan - Dearborn is $22,503,700.00,

 

$23,724,900.00, $22,237,300.00 $22,510,400.00 for operations and $266,400.00

 

$1,214,500.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $3,482,100.00. $3,535,500.00.

 


       (ii) State general fund/general purpose money, $19,021,600.00. $20,189,400.00.

 

       (m) The appropriation for University of Michigan - Flint is $19,928,100.00,

 

$21,380,000.00, $19,526,600.00 $19,938,200.00 for operations and $401,500.00

 

$1,441,800.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $2,942,900.00. $3,186,100.00.

 

       (ii) State general fund/general purpose money, $16,985,200.00. $18,193,900.00.

 

       (n) The appropriation for Wayne State University is $183,933,000.00,

 

$190,734,900.00, $183,398,300.00 for operations and $534,700.00 $7,336,600.00 for

 

performance funding, appropriated from the following:

 

       (i) State school aid fund, $30,160,600.00. $28,423,700.00.

 

       (ii) State general fund/general purpose money, $153,772,400.00.

 

$162,311,200.00.

 

       (o) The appropriation for Western Michigan University is $97,235,200.00,

 

$102,907,000.00, $95,487,500.00 $97,279,000.00 for operations and $1,747,700.00

 

$5,628,000.00 for performance funding, appropriated from the following:

 

       (i) State school aid fund, $15,436,500.00. $15,335,400.00.

 

       (ii) State general fund/general purpose money, $81,798,700.00. $87,571,600.00.

 

       (3) The amount appropriated for Michigan public school employees’ retirement

 

system reimbursement is $2,446,200.00, $446,200.00 appropriated from the state school

 

aid fund and $2,000,000.00 appropriated from general fund/general purpose money.

 

       (4) The amount appropriated for state and regional programs is $2,200,000.00

 

$2,295,000.00 appropriated from general fund/general purpose money and allocated as

 

follows:

 

       (a) College access program, $2,000,000.00.

 

       (b) Higher education database modernization and conversion, $105,000.00.

 

$200,000.00.

 

       (c) Midwestern higher education compact, $95,000.00.

 


       (5) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez -

 

Rosa Parks program is $2,691,500.00, appropriated from general fund/general purpose

 

money and allocated as follows:

 

       (a) Select student support services, $1,956,100.00.

 

       (b) Michigan college/university partnership program, $586,800.00.

 

       (c) Morris Hood, Jr. educator development program, $148,600.00.

 

       (6) Subject to subsection (7), the amount appropriated for grants and financial

 

aid is $101,626,400.00, $103,126,400.00, allocated as follows:

 

       (a) State competitive scholarships, $18,361,700.00.

 

       (b) Tuition grants, $31,664,700.00.

 

       (c) Tuition incentive program, $47,000,000.00. $48,500,000.00.

 

       (d) Children of veterans and officer’s survivor tuition grant programs,

 

$1,400,000.00.

 

       (e) Project GEAR-UP, $3,200,000.00.

 

       (7) The money appropriated in subsection (6) for grants and financial aid is

 

appropriated from the following:

 

       (a) Federal revenues under the United States department of education, office of

 

elementary and secondary education, GEAR-UP program, $3,200,000.00.

 

       (b) Federal revenues under the social security act, temporary assistance for

 

needy families, $93,826,400.00.

 

       (c) Contributions to children of veterans tuition grant program, $100,000.00.

 

       (d) State general fund/general purpose money, $4,500,000.00. $6,000,000.00.

 

       Sec. 236a. It is the intent of the legislature to provide appropriations

 

APPROPRIATIONS SHALL BE MADE for the fiscal year ending on September 30, 2015 2016 for

 

the items listed in section 236. The fiscal year 2014-2015 2015-2016 appropriations

 

are anticipated to be the same as those for fiscal year 2013-2014 2014-2015, except

 

that the amounts will be adjusted for changes in, caseload and related costs, federal

 


fund match rates, economic factors, and available revenue. These adjustments will be

 

determined after the January 2014 2015 consensus revenue estimating conference.

 

       Sec. 236b. In addition to the funds appropriated in section 236, there is

 

appropriated for grants and financial aid in fiscal year 2013-2014 2014-2015 an amount

 

not to exceed $6,000,000.00 for federal contingency funds. These funds are not

 

available for expenditure until they have been transferred under section 393(2) of the

 

management and budget act, 1984 PA 431, MCL 18.1393, for another purpose under this

 

article.

 

       Sec. 236c. In addition to the funds appropriated for fiscal year 2013-2014

 

2014-2015 in section 236, appropriations to the department of technology, management,

 

and budget in the act providing general appropriations for fiscal year 2013-2014 2014-

 

2015 for state building authority rent, totaling an estimated $125,370,600.00,

 

$124,825,300.00, provide funding for the state share of costs for previously

 

constructed capital projects for state universities. These appropriations for state

 

building authority rent represent additional state general fund support provided to

 

public universities, and the following is an estimate of the amount of that support to

 

each university:

 

       (a) Central Michigan University, $9,155,600.00. $9,103,200.00.

 

       (b) Eastern Michigan University, $5,234,800.00. $4,861,700.00.

 

       (c) Ferris State University, $6,360,600.00. $6,252,200.00.

 

       (d) Grand Valley State University, $4,277,000.00. $4,252,500.00.

 

       (e) Lake Superior State University, $915,600.00. $1,112,900.00.

 

       (f) Michigan State University, $16,194,400.00. $16,101,200.00.

 

       (g) Michigan Technological University, $7,692,200.00. $7,444,600.00.

 

       (h) Northern Michigan University, $8,062,600.00. $8,016,400.00.

 

       (i) Oakland University, $10,791,500.00. $10,969,800.00.

 

       (j) Saginaw Valley State University, $9,833,700.00. $9,777,400.00.

 


       (k) University of Michigan - Ann Arbor, $9,212,000.00. $9,159,200.00.

 

       (l) University of Michigan - Dearborn, $6,332,400.00. $6,296,200.00.

 

       (m) University of Michigan - Flint, $2,871,400.00. $2,855,000.00.

 

       (n) Wayne State University, $13,079,500.00. $13,679,800.00.

 

       (o) Western Michigan University, $15,357,300.00. $14,943,200.00.

 

       Sec. 241. (1) Subject to section 265a, the funds appropriated in section 236 to

 

public universities shall be paid out of the state treasury and distributed by the

 

state treasurer to the respective institutions in 11 equal monthly installments on the

 

sixteenth of each month, or the next succeeding business day, beginning with October

 

16, 2013 2014. Except for Wayne State University, each institution shall accrue its

 

July and August 2014 2015 payments to its institutional fiscal year ending June 30,

 

2014 2015.

 

       (2) All public universities shall submit higher education institutional data

 

inventory (HEIDI) data and associated financial and program information requested by

 

and in a manner prescribed by the state budget director. For public universities with

 

fiscal years ending June 30, 2013 2014, these data shall be submitted to the state

 

budget director by October 15, 2013 2014. Public universities with a fiscal year

 

ending September 30, 2013 2014 shall submit preliminary HEIDI data by November 15,

 

2013 2014 and final data by December 15, 2013 2014. If a public university fails to

 

submit HEIDI data and associated financial aid program information in accordance with

 

this reporting schedule, the state treasurer may withhold the monthly installments

 

under subsection (1) to the public university until those data are submitted.

 

       Sec. 242. Funds received by the state from the federal government or private

 

sources for the use of a college or university are appropriated for the purposes for

 

which they are provided. The acceptance and use of federal or private funds do not

 

place an obligation on the legislature to continue the purposes for which the funds

 

are made available.

 


       Sec. 245. (1) Within 30 days after the board of a public university adopts its

 

annual operating budget for the following school fiscal year, or after the board

 

adopts a subsequent revision to that budget, the A public university shall make all of

 

the following MAINTAIN A PUBLIC TRANSPARENCY WEBSITE, available through a link on its

 

website homepage:. THIS WEBSITE SHALL BE UPDATED WITHIN 30 DAYS AFTER THE UNIVERSITY’S

 

GOVERNING BOARD ADOPTS ITS ANNUAL OPERATING BUDGET FOR THE FOLLOWING ACADEMIC FISCAL

 

YEAR, OR AFTER THE BOARD ADOPTS A SUBSEQUENT REVISION TO THAT BUDGET.

 

       (2) THE WEBSITE REQUIRED UNDER SUBSECTION (1) SHALL INCLUDE ALL OF THE

 

FOLLOWING:                                               

 

       (a) The annual operating budget and subsequent budget revisions.

 

       (b) A summary of current expenditures for the most recent fiscal year for which

 

they are available, expressed as pie charts in the following 2 categories:

 

       (i) A chart of personnel expenditures, broken into the following subcategories:

 

       (A) Earnings and wages.

 

       (B) Employee benefit costs, including, but not limited to, medical, dental,

 

vision, life, disability, and long-term care benefits.

 

       (C) Retirement benefit costs.

 

       (D) All other personnel costs.

 

       (ii) A chart of all current expenditures the public university reported as part

 

of its higher education institutional data inventory data under section 241(2), broken

 

into the same subcategories in which it reported those data.

 

       (c) Links to all of the following for the public university:

 

       (i) The current collective bargaining agreement for each bargaining unit.

 

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

 

dental, vision, disability, long-term care, or any other type of benefits that would

 

constitute health care services, offered to any bargaining unit or employee of the

 

public university.

 


       (iii) Audits and financial reports for the most recent fiscal year for which

 

they are available.

 

       (iv) Campus security policies and crime statistics pursuant to the student

 

right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381. Information

 

shall include all material prepared pursuant to the public information reporting

 

requirements under the crime awareness and campus security act of 1990, title II of

 

the student right-to-know and campus security act, Public Law 101-542, 104 Stat. 2381.

 

       (d) A list of all positions funded partially or wholly through institutional

 

general fund revenue that includes the position title and annual salary or wage amount

 

for each position.

 

       (e) General fund revenue and expenditure projections for THE CURRENT fiscal

 

year 2013-2014 and THE NEXT fiscal year 2014-2015.

 

       (f) A listing of all debt service obligations, detailed by project, anticipated

 

fiscal year 2013-2014 payment for each project, and total outstanding debt FOR THE

 

CURRENT FISCAL YEAR.

 

       (g) The institution's policy regarding the transferability of core college

 

courses between community colleges and the university.

 

       (h) A listing of all community colleges that have entered into reverse transfer

 

agreements with the university.

 

       (3) (2) A ON THE WEBSITE REQUIRED UNDER SUBSECTION (1), A public university

 

shall provide a dashboard or report card demonstrating the university's performance in

 

several "best practice" measures. The dashboard or report card shall include at least

 

all of the following for the 3 most recent school ACADEMIC years for which the data

 

are available:

 

       (a) Enrollment.

 

       (b) Student retention rate.

 

       (c) Six-year graduation rates.

 


       (d) Number of Pell grant recipients and graduating Pell grant recipients.

 

       (e) Geographic origination of students, categorized as in-state, out-of-state,

 

and international.

 

       (f) Faculty to student ratios and total university employee to student ratios.

 

       (g) Teaching load by faculty classification.

 

       (h) Graduation outcome rates, including employment and continuing education.

 

       (3) For statewide consistency and public visibility, public universities must

 

use the icon badge provided by the department of technology, management, and budget

 

consistent with the icon badge developed by the department of education for K-12

 

school districts. It must appear on the front of each public university's homepage.

 

The size of the icon may be reduced to 150 x 150 pixels. The font size and style for

 

this reporting must be consistent with other documents on each university's website.

 

       (4) The state budget director shall determine whether a public university has

 

complied with this section. The state budget director may withhold a public

 

university's monthly installments described in section 241 until the public university

 

complies with this section.

 

       Sec. 252. (1) The amounts appropriated in section 236 for the state tuition

 

grant program shall be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a.

 

       (2) Tuition grant awards shall be made to all eligible Michigan residents

 

enrolled in undergraduate degree programs who are qualified and who apply before July

 

1, 2012 MARCH 1 OF EACH YEAR for the 2012-2013 school NEXT ACADEMIC year or July 1,

 

2013 for the 2013-2014 school year, as applicable.

 

       (3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and subject to

 

subsection (7), the department of treasury shall determine an actual maximum tuition

 

grant award per student, which shall be no less than $1,512.00, that ensures that the

 

aggregate payments for the tuition grant program do not exceed the appropriation

 

contained in section 236 for the state tuition grant program. If the department

 


determines that insufficient funds are available to establish a maximum award amount

 

equal to at least $1,512.00, the department shall immediately report to the house and

 

senate appropriations subcommittees on higher education, the house and senate fiscal

 

agencies, and the state budget director regarding the estimated amount of additional

 

funds necessary to establish a $1,512.00 maximum award amount. If the department

 

determines that sufficient funds are available to establish a maximum award amount

 

equal to at least $1,512.00, the department shall immediately report to the house and

 

senate appropriations subcommittees on higher education, the house and senate fiscal

 

agencies, and the state budget director regarding the maximum award amount established

 

and the projected amount of any projected year-end appropriation balance based on that

 

maximum award amount. By December 15, and again by February 18 of each fiscal year,

 

the department shall analyze the status of award commitments, shall make any necessary

 

adjustments, and shall confirm that those award commitments will not exceed the

 

appropriation contained in section 236 for the tuition grant program. The

 

determination and actions shall be reported to the state budget director and the house

 

and senate fiscal agencies no later than the final day of February of each year. If

 

award adjustments are necessary, the students shall be notified of the adjustment by

 

March 4 of each year.

 

       (4) Any unexpended and unencumbered funds remaining on September 30, 2013 from

 

the amounts appropriated in section 236 for the tuition grant program for fiscal year

 

2012-2013 shall not lapse on September 30, 2013, but shall continue to be available

 

for expenditure for tuition grants provided in the 2013-2014 fiscal year under a work

 

project account. The use of these unexpended fiscal year 2012-2013 funds shall

 

terminate at the end of the 2013-2014 fiscal year. Any unexpended and unencumbered

 

funds remaining on September 30, 2014 from the amounts appropriated in section 236 for

 

the tuition grant program for fiscal year 2013-2014 shall not lapse on September 30,

 

2014, but shall continue to be available for expenditure for tuition grants provided

 


in the 2014-2015 fiscal year under a work project account. The use of these unexpended

 

fiscal year 2013-2014 funds shall terminate at the end of the 2014-2015 fiscal year.

 

       (4) (5) The department of treasury shall continue a proportional tuition grant

 

maximum award level for recipients enrolled less than full-time in a given semester or

 

term.

 

       (5) (6) If the department of treasury increases the maximum award per eligible

 

student from that provided in the previous fiscal year, it shall not have the effect

 

of reducing the number of eligible students receiving awards in relation to the total

 

number of eligible applicants. Any increase in the maximum grant shall be proportional

 

for all eligible students receiving awards for that fiscal year.

 

       (6) (7) In any fiscal year, the department of treasury shall not award more

 

than $3,000,000.00 in tuition grants to eligible students enrolled in the same

 

independent nonprofit college or university in this state. Any decrease in the maximum

 

grant shall be proportional for all eligible students enrolled in that college or

 

university, as determined by the department.

 

       (7) THE DEPARTMENT OF TREASURY SHALL NOT AWARD TUITION GRANTS TO ELIGIBLE

 

STUDENTS ENROLLED IN AN INDEPENDENT COLLEGE OR UNIVERSITY THAT DOES NOT MEET THE

 

FOLLOWING REQUIREMENTS IN A MANNER SATISFACTORY TO THE DEPARTMENT OF TREASURY:

 

       (A) THE INDEPENDENT COLLEGE OR UNIVERSITY MUST SUBMIT AS DIRECTED BY THE

 

DEPARTMENT OF TREASURY BY JUNE 30 OF EACH YEAR THE ANNUAL P-20 LONGITUDINAL DATA

 

SYSTEM DATA SETS TO THE CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION, AS

 

VERIFIED BY THE CENTER.

 

       (B) THE INDEPENDENT COLLEGE OR UNIVERSITY MUST REPORT IN A FORM AND MANNER AS

 

DIRECTED BY THE DEPARTMENT OF TREASURY BY AUGUST 31 OF EACH YEAR THE FOLLOWING:

 

       (I) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT

 

RECEIVED STATE TUITION GRANTS AND SUCCESSFULLY COMPLETED A PROGRAM OR GRADUATED.

 

       (II) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT

 


RECEIVED STATE TUITION GRANTS AND TOOK REMEDIAL EDUCATION CLASSES.

 

       (III) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT

 

RECEIVED PELL GRANTS AND SUCCESSFULLY COMPLETED A PROGRAM OR GRADUATED.

 

       Sec. 256. (1) The funds appropriated in section 236 for the tuition incentive

 

program shall be distributed as provided in this section and pursuant to the

 

administrative procedures for the tuition incentive program of the department of

 

treasury.

 

       (2) As used in this section:

 

       (a) "Phase I" means the first part of the tuition incentive assistance program

 

defined as the academic period of 80 semester or 120 term credits, or less, leading to

 

an associate degree or certificate.

 

       (b) "Phase II" means the second part of the tuition incentive assistance

 

program which provides assistance in the third and fourth year of 4-year degree

 

programs.

 

       (c) "Department" means the department of treasury.

 

       (3) An individual shall meet the following basic criteria and financial

 

thresholds to be eligible for tuition incentive benefits:

 

       (a) To be eligible for phase I, an individual shall meet all of the following

 

criteria:

 

       (i) Apply for certification to the department ANY TIME AFTER COMMENCING THE

 

SIXTH GRADE BUT before AUGUST 31 OF THE SCHOOL YEAR IN WHICH HE OR SHE GRADUATES

 

graduating from high school or BEFORE completing the general education development

 

(GED) certificate.

 

       (ii) Be less than 20 years of age at the time he or she graduates from high

 

school with a diploma or certificate of completion or completes his or her GED.

 

       (iii) Be a United States citizen and a resident of Michigan according to

 

institutional criteria.

 


       (iv) Be at least a half-time student, earning less than 80 semester or 120 term

 

credits at a participating educational institution within 4 years of high school

 

graduation or GED certificate completion.

 

       (v) Request information on filing a FAFSA.

 

       (VI) MUST MEET INSTITUTION’S SATISFACTORY ACADEMIC PROGRESS POLICY.

 

       (b) To be eligible for phase II, an individual shall meet either of the

 

following criteria in addition to the criteria in subdivision (a):

 

       (i) Complete at least 56 transferable semester or 84 transferable term credits.

 

       (ii) Obtain an associate degree or certificate at a participating institution.

 

       (c) To be eligible for phase I or phase II, an individual must not be

 

incarcerated and must be financially eligible as determined by the department. An

 

individual is financially eligible for the tuition incentive program if he or she was

 

eligible for Medicaid from the state of Michigan for 24 months within the 36 months

 

before application. The department shall accept certification of Medicaid eligibility

 

only from the department of human services for the purposes of verifying if a person

 

is Medicaid eligible for 24 months within the 36 months before application.

 

Certification of eligibility may begin in the sixth grade. As used in this

 

subdivision, "incarcerated" does not include detention of a juvenile in a state-

 

operated or privately operated juvenile detention facility.

 

       (4) For phase I, the department shall provide payment on behalf of a person

 

eligible under subsection (3). The department shall reject billings that are excessive

 

or outside the guidelines for the type of educational institution.

 

       (5) For phase I, all of the following apply:

 

       (a) Payments for associate degree or certificate programs shall not be made for

 

more than 80 semester or 120 term credits for any individual student at any

 

participating institution.

 

       (b) For persons enrolled at a Michigan community college, the department shall

 


pay the current in-district tuition and mandatory fees. For persons residing in an

 

area that is not included in any community college district, the out-of-district

 

tuition rate may be authorized.

 

       (c) For persons enrolled at a Michigan public university, the department shall

 

pay lower division resident tuition and mandatory fees for the current year.

 

       (d) For persons enrolled at a Michigan independent, nonprofit degree-granting

 

college or university, or a Michigan federal tribally controlled community college, or

 

Focus: HOPE, the department shall pay mandatory fees for the current year and a per-

 

credit payment that does not exceed the average community college in-district per-

 

credit tuition rate as reported on August 1, for the immediately preceding academic

 

year.

 

       (6) A person participating in phase II may be eligible for additional funds not

 

to exceed $500.00 per semester or $400.00 per term up to a maximum of $2,000.00

 

subject to the following conditions:

 

       (a) Credits are earned in a 4-year program at a Michigan degree-granting 4-year

 

college or university.

 

       (b) The tuition reimbursement is for coursework completed within 30 months of

 

completion of the phase I requirements.

 

       (7) The department shall work closely with participating institutions to

 

develop an application and eligibility determination process that will provide the

 

highest level of participation and ensure that all requirements of the program are

 

met.

 

       (8) Applications for the tuition incentive program may be approved at any time

 

after the student begins the sixth grade. If a determination of financial eligibility

 

is made, that determination is valid as long as the student meets all other program

 

requirements and conditions.

 

       (9) Each institution shall ensure that all known available restricted grants

 


for tuition and fees are used prior to billing the tuition incentive program for any

 

portion of a student's tuition and fees.

 

       (10) The department shall ensure that the tuition incentive program is well

 

publicized and that eligible Medicaid clients are provided information on the program.

 

The department shall provide the necessary funding and staff to fully operate the

 

program.

 

       Sec. 263. (1) Included in the appropriation in section 236 FOR FISCAL YEAR

 

2014-2015 for MSU AgBioResearch is $2,982,900.00 and included in the appropriation in

 

section 236 for MSU extension is $2,645,200.00 for project GREEEN. Project GREEEN is

 

intended to address critical regulatory, food safety, economic, and environmental

 

problems faced by this state's plant-based agriculture, forestry, and processing

 

industries. "GREEEN" is an acronym for generating research and extension to meet

 

environmental and economic needs.

 

       (2) The department of agriculture and rural development and Michigan State

 

University, in consultation with agricultural commodity groups and other interested

 

parties, shall develop project GREEEN and its program priorities.

 

       Sec. 263a. (1) Not later than September 30 of each year, Michigan State

 

University shall submit a report on MSU AgBioResearch and MSU extension to the house

 

and senate appropriations subcommittees on agriculture and on higher education, the

 

house and senate standing committees on agriculture, the house and senate fiscal

 

agencies, and the state budget director for the preceding school ACADEMIC fiscal year.

 

       (2) The report required under subsection (1) shall include all of the

 

following:

 

       (a) Total funds expended by MSU AgBioResearch and by MSU extension service

 

identified by state, local, private, federal, and university fund sources.

 

       (b) The metric goals that were used to evaluate the impacts of programs

 

operated by MSU extension and MSU AgBioResearch. It is the intent of the legislature

 


that the AT LEAST THE following metric goals will SHOULD be used to evaluate the

 

impacts of those programs:

 

       (i) Increasing the number of agriculture and food-related firms collaborating

 

with and using services of research and extension faculty and staff by 3% per year.

 

       (ii) Increasing the number of individuals utilizing MSU extension's educational

 

services by 5% per year.

 

       (iii) Increasing external funds generated in support of research and extension,

 

beyond state appropriations, by 10% over the amounts generated in the past 3 state

 

fiscal years.

 

       (iv) Increasing the sector's total economic impact from today's

 

$71,000,000,000.00 to $100,000,000,000.00.

 

       (v) Doubling Michigan's agricultural exports from $1,750,000,000.00 to

 

$3,500,000,000.00.

 

       (vi) Increasing jobs in the food and agriculture sector by 10%.

 

       (vii) Improving access by Michigan consumers to healthy foods by 20%.

 

       (c) A review of major programs within both MSU AgBioResearch and MSU extension

 

with specific reference to accomplishments, impacts, and the metrics described in

 

subdivision (b), including a specific accounting of Project GREEEN expenditures and

 

the impact of those expenditures.

 

       Sec. 264. Included in the appropriation in section 236 for fiscal year 2013-

 

2014 2014-2015 for Michigan State University is $80,000.00 for the Michigan future

 

farmers of America association. This $80,000.00 allocation shall not supplant any

 

existing support that Michigan State University provides to the Michigan future

 

farmers of America association.

 

       Sec. 265. (1) Payments under section 265a for performance funding shall only be

 

made to a public university that certifies to the state budget director by August 31,

 

2013 2014 that its board did not adopt an increase in tuition and fee rates for

 


resident undergraduate students after September 1, 2012 2013 for the 2012-2013 2013-

 

2014 academic year and that its board will not adopt an increase in tuition and fee

 

rates for resident undergraduate students for the 2013-2014 2014-2015 academic year

 

that is greater than 3.75% 3.2%. As used in this subsection:

 

       (a) Subject to subdivision (c), "fee" "FEE" means any board-authorized fee that

 

will be paid by more than 1/2 of all resident undergraduate students at least once

 

during their enrollment at a public university. A university increasing a fee that

 

applies to a specific subset of students or courses shall provide sufficient

 

information to prove that the increase applied to that subset will not cause the

 

increase in the average amount of board-authorized total tuition and fees paid by

 

resident undergraduate students in the 2013-2014 2014-2015 academic year to exceed the

 

limit established in this subsection.

 

       (b) "Tuition and fee rate" means the average of full-time rates for all

 

undergraduate classes, based on an average of the rates authorized by the university

 

board and actually charged to students, deducting any uniformly-rebated or refunded

 

amounts, for the 2 semesters with the highest levels of full-time equated resident

 

undergraduate enrollment during the academic year.

 

       (c) For purposes of subdivision (a), for a public university that compels

 

resident undergraduate students to be covered by health insurance as a condition to

 

enroll at the university, "fee" includes the annual amount a student is charged for

 

coverage by the university-affiliated group health insurance policy if he or she does

 

not provide proof that he or she is otherwise covered by health insurance. This

 

subdivision does not apply to limited subsets of resident undergraduate students to be

 

covered by health insurance for specific reasons other than general enrollment at the

 

university.

 

       (2) The state budget director shall implement uniform reporting requirements to

 

ensure that a public university receiving a payment under section 265a for performance

 


funding has satisfied the tuition restraint requirements of this section. The state

 

budget director shall have the sole authority to determine if a public university has

 

met the requirements of this section. Information reported by a public university to

 

the state budget director under this subsection shall also be reported to the house

 

and senate appropriations subcommittees on higher education and the house and senate

 

fiscal agencies.

 

       Sec. 265a. (1) Appropriations to public universities in section 236 FOR FISCAL

 

YEAR 2014-2015 for performance funding shall be paid only to a public university that

 

complies with section 265 and certifies to the state budget director, the house and

 

senate appropriations subcommittees on higher education, and the house and senate

 

fiscal agencies by August 31, 2013 2014 that it complies with all of the following

 

requirements:

 

       (a) The university participates in reverse transfer agreements described in

 

section 286 with at least 3 Michigan community colleges or has made a good-faith

 

effort to enter into reverse transfer agreements.

 

       (b) The university does not and will not consider whether dual enrollment

 

credits earned by an incoming student were utilized towards his or her high school

 

graduation requirements when making a determination as to whether those credits may be

 

used by the student toward completion of a university degree or certificate program.

 

       (c) The university participates in the Michigan transfer network created as

 

part of the Michigan association of collegiate registrars and admissions officers

 

transfer agreement.

 

       (2) Any performance funding amounts under section 236 that are not paid to a

 

public university because it did not comply with 1 or more requirements under

 

subsection (1) are unappropriated and reappropriated for performance funding to those

 

public universities that meet the requirements under subsection (1), distributed in

 

proportion to their performance funding appropriation amounts under section 236.

 


       (3) The state budget director shall report to the house and senate

 

appropriations subcommittees on higher education and the house and senate fiscal

 

agencies by September 17, 2013 2014, regarding any performance funding amounts that

 

are not paid to a public university because it did not comply with 1 or more

 

requirements under subsection (1) and any reappropriation of funds under subsection

 

(2).

 

       (4) Performance funding amounts described in section 236 are distributed based

 

on the following formula:

 

       (A) PROPORTIONAL TO EACH UNIVERSITY’S SHARE OF TOTAL OPERATIONS FUNDING

 

APPROPRIATED IN FISCAL YEAR 2010-2011, 50.0%.

 

       (B) (a) Based on weighted undergraduate completions in critical skills areas,

 

22.2% 11.1%.

 

       (C) (b) Based on research and development expenditures, for universities

 

classified in Carnegie classifications as doctoral/research universities, research

 

universities (high research activity), or research universities (very high research

 

activity) only, 11.1% 5.6%.

 

       (D) (c) Based on 6-year graduation rate, total degree completions, and

 

institutional support as a percentage of core expenditures, AND STUDENTS RECEIVING

 

PELL GRANTS, scored against national Carnegie classification peers and weighted by

 

total undergraduate fiscal year equated students, 66.7% 33.3%.

 

       (5) For purposes of determining the score of a university under subsection

 

(4)(c)(D), each university is assigned 1 of the following scores:

 

       (a) A university classified as in the top 20%, a score of 3.

 

       (b) A university classified as above national median, a score of 2.

 

       (c) A university classified as improving, a score of 2. It is the intent of the

 

legislature that, beginning in the 2014-2015 state fiscal year, a university

 

classified as improving is assigned a score of 1.

 


       (d) A university that is not included in subdivision (a), (b), or (c), a score

 

of 0.

 

       (6) For purposes of this section, "Carnegie classification" shall mean the

 

basic classification of the university according to the most recent version of the

 

Carnegie classification of institutions of higher education, published by the Carnegie

 

foundation for the advancement of teaching.

 

       Sec. 267. All public universities shall submit the amount of tuition and fees

 

actually charged to a full-time resident undergraduate student for academic year 2013-

 

2014 2014-2015 as part of their higher education institutional data inventory (HEIDI)

 

data by August 31 of each year. A public university shall report any revisions for any

 

semester of the reported academic year 2013-2014 2014-2015 tuition and fee charges to

 

HEIDI within 15 days of being adopted.

 

       Sec. 268. (1) For the fiscal year ending September 30, 2014, it is the intent

 

of the legislature that funds be allocated for unfunded North American Indian tuition

 

waiver costs incurred by public universities under 1976 PA 174, MCL 390.1251 to

 

390.1253, from the general fund.

 

       (2) By February 15 of each year, the department of civil rights shall annually

 

submit to the state budget director, the house and senate appropriations subcommittees

 

on higher education, and the house and senate fiscal agencies for the preceding fiscal

 

year a report on North American Indian tuition waivers FOR THE PRECEDING FISCAL YEAR

 

that includes, but is not limited to, all of the following information for each

 

postsecondary institution:

 

       (a) The total number of waiver applications.

 

       (b) The total number of waivers granted and the monetary value of each waiver.

 

       (c) The number of students who withdraw from classes.

 

       (d) The number of students who successfully complete a degree or certificate

 

program and the 6-year graduation rate.

 


       Sec. 269. For fiscal year 2013-2014 2014-2015, from the amount appropriated in

 

section 236 to Central Michigan University for operations, $29,700.00 shall be paid to

 

Saginaw Chippewa Tribal College for the costs of waiving tuition for North American

 

Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

       Sec. 270. For fiscal year 2013-2014 2014-2015 from the amount appropriated in

 

section 236 to Lake Superior State University for operations, $100,000.00 shall be

 

paid to Bay Mills Community College for the costs of waiving tuition for North

 

American Indians under 1976 PA 174, MCL 390.1251 to 390.1253.

 

       Sec. 272a. By February 15, 2014, OF EACH YEAR, each public university receiving

 

funds under section 236 shall submit a report to the house and senate appropriations

 

subcommittees on higher education, the house and senate fiscal agencies, and the state

 

budget director regarding the rejection of transfer credits by the university in the

 

prior year. The report shall include information on the number of credits earned by

 

incoming RESIDENT students at other postsecondary institutions IN MICHIGAN, with the

 

equivalent of a letter grade of C or higher, that were rejected by the university for

 

transfer, reported by both academic program area and prior institution, along with

 

explanatory information regarding the rationale for the rejection of the credits. Data

 

may be reported on either an academic or calendar year basis.

 

       Sec. 275. (1) It is the intent of the legislature that each EACH public

 

university that receives an appropriation in section 236 IS ENCOURAGED TO do all of

 

the following:

 

       (a) Meet the provisions of section 5003 of the post-911 veterans educational

 

assistance act of 2008, 38 USC 3301 to 3324, including voluntary participation in the

 

yellow ribbon GI education enhancement program established in that act in 38 USC 3317.

 

By October 1 of each year, each public university shall report to the house and senate

 

appropriations subcommittees on higher education, the house and senate fiscal

 

agencies, and the presidents council, state universities of Michigan on whether or not

 


it has chosen to participate in the yellow ribbon GI education enhancement program. If

 

at any time during the fiscal year a university participating in the yellow ribbon

 

program chooses to leave the yellow ribbon program, it shall notify the house and

 

senate appropriations subcommittees on higher education, the house and senate fiscal

 

agencies, and the presidents council, state universities of Michigan.

 

       (b) Establish an on-campus veterans' liaison to provide information and

 

assistance to all student veterans.

 

       (c) Provide flexible enrollment application deadlines for all veterans.

 

       (d) Include in its admission application process a specific question as to

 

whether an applicant for admission is a veteran, an active member of the military, a

 

member of the national guard or military reserves, or the spouse or dependent of a

 

veteran, active member of the military, or member of the national guard or military

 

reserves, in order to more quickly identify potential educational assistance available

 

to that applicant.

 

       (e) Consider all veterans residents of this state for determining their tuition

 

rates and fees.

 

       (f) Waive enrollment fees for all veterans.

 

       (2) As used in this section, "veteran" means an honorably discharged veteran

 

entitled to educational assistance under the provisions of section 5003 of the post-

 

911 veterans educational assistance act of 2008, 38 USC 3301 to 3324.

 

       Sec. 276. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015

 

for each public university in section 236 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks future faculty program that is intended to increase the pool

 

of academically or economically disadvantaged candidates pursuing faculty teaching

 

careers in postsecondary education. Preference may not be given to applicants on the

 

basis of race, color, ethnicity, gender, or national origin. Institutions should

 

encourage applications from applicants who would otherwise not adequately be

 


represented in the graduate student and faculty populations. Each public university

 

shall apply the percentage change applicable to every public university in the

 

calculation of appropriations in section 236 to the amount of funds allocated to the

 

future faculty program.

 

       (2) The program shall be administered by each public university in a manner

 

prescribed by the workforce development agency. The workforce development agency shall

 

use a good faith effort standard to evaluate whether a fellowship is in default.

 

       Sec. 277. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015

 

for each public university in section 236 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks college day program that is intended to introduce

 

academically or economically disadvantaged schoolchildren to the potential of a

 

college education. Preference may not be given to participants on the basis of race,

 

color, ethnicity, gender, or national origin. Public universities should encourage

 

participation from those who would otherwise not adequately be represented in the

 

student population.

 

       (2) Individual program plans of each public university shall include a budget

 

of equal contributions from this program, the participating public university, the

 

participating school district, and the participating independent degree-granting

 

college. College day funds shall not be expended to cover indirect costs. Not more

 

than 20% of the university match shall be attributable to indirect costs. Each public

 

university shall apply the percentage change applicable to every public university in

 

the calculation of appropriations in section 236 to the amount of funds allocated to

 

the college day program.

 

       (3) The program described in this section shall be administered by each public

 

university in a manner prescribed by the workforce development agency.

 

       Sec. 278. (1) Included in section 236 for fiscal year 2013-2014 2014-2015 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student

 


support services program for developing academically or economically disadvantaged

 

student retention programs for 4-year public and independent educational institutions

 

in this state. Preference may not be given to participants on the basis of race,

 

color, ethnicity, gender, or national origin. Institutions should encourage

 

participation from those who would otherwise not adequately be represented in the

 

student population.

 

       (2) An award made under this program to any 1 institution shall not be greater

 

than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college

 

or university basis.

 

       (3) The program described in this section shall be administered by the

 

workforce development agency.

 

       Sec. 279. (1) Included in section 236 for fiscal year 2013-2014 2014-2015 is

 

funding for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university

 

partnership program between 4-year public and independent colleges and universities

 

and public community colleges, which is intended to increase the number of

 

academically or economically disadvantaged students who transfer from community

 

colleges into baccalaureate programs. Preference may not be given to participants on

 

the basis of race, color, ethnicity, gender, or national origin. Institutions should

 

encourage participation from those who would otherwise not adequately be represented

 

in the transfer student population.

 

       (2) The grants shall be made under the program described in this section to

 

Michigan public and independent colleges and universities. An award to any 1

 

institution shall not be greater than $150,000.00, and the amount awarded shall be

 

matched on a 70% state, 30% college or university basis.

 

       (3) The program described in this section shall be administered by the

 

workforce development agency.

 

       Sec. 280. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015

 


for each public university in section 236 is funding for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks visiting professors program which is intended to increase

 

the number of instructors in the classroom to provide role models for academically or

 

economically disadvantaged students. Preference may not be given to participants on

 

the basis of race, color, ethnicity, gender, or national origin. Public universities

 

should encourage participation from those who would otherwise not adequately be

 

represented in the student population.

 

       (2) The program described in this section shall be administered by the

 

workforce development agency.

 

       Sec. 281. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015

 

in section 236 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa

 

Parks initiative for the Morris Hood, Jr. educator development program which is

 

intended to increase the number of academically or economically disadvantaged students

 

who enroll in and complete K-12 teacher education programs at the baccalaureate level.

 

Preference may not be given to participants on the basis of race, color, ethnicity,

 

gender, or national origin. Institutions should encourage participation from those who

 

would otherwise not adequately be represented in the teacher education student

 

population.

 

       (2) The program described in this section shall be administered by each state-

 

approved teacher education institution in a manner prescribed by the workforce

 

development agency.

 

       (3) Approved teacher education institutions may and are encouraged to use

 

student support services funding in coordination with the Morris Hood, Jr. funding to

 

achieve the goals of the program described in this section.

 

       Sec. 282. (1) Each institution receiving funds under section 278, 279, or 281

 

shall notify the workforce development agency by April 15, 2014 OF EACH YEAR as to

 

whether it will expend by the end of its fiscal year the funds received under section

 


278, 279, or 281. Notwithstanding the award limitations in sections 278 and 279, the

 

amount of funding reported as not being expended will be reallocated to the

 

institutions that intend to expend all funding received under section 278, 279, or

 

281.

 

       (2) UP TO $100,000.00 OF FISCAL YEAR 2014-2015 FUNDS THAT ARE IDENTIFIED AS

 

UNEXPENDED BY MAY 15, 2015 MAY BE UTILIZED BY THE WORKFORCE DEVELOPMENT AGENCY TO

 

ADMINISTER THE PROGRAM IF NO INSTITUTION INTENDS TO EXPEND ALL FUNDING RECEIVED UNDER

 

SECTION 278, 279, OR 281.

 

       Sec. 283. (1) From the amount appropriated in section 236, the public

 

universities shall systematically inform Michigan high schools regarding the academic

 

status of students from each high school in a manner prescribed by the presidents

 

council, state universities of Michigan in cooperation with the Michigan association

 

of secondary school principals. Public universities shall also work with the center

 

for educational performance and information to design and implement MAINTAIN a

 

systematic approach for accomplishing this task.

 

       (2) Michigan high schools shall systematically inform the public universities

 

about the use of information received under this section in a manner prescribed by the

 

Michigan association of secondary school principals in cooperation with the presidents

 

council, state universities of Michigan.

 

       Sec. 284. From the amount appropriated in section 236, the public universities

 

shall inform Michigan community colleges regarding the academic status of community

 

college transfer students in a manner prescribed by the presidents council, state

 

universities of Michigan in cooperation with the Michigan community college

 

association. Public universities shall also work with the center for educational

 

performance and information to design and implement MAINTAIN a systematic approach for

 

accomplishing this task.

 

       Sec. 286. It is the intent of the legislature that public PUBLIC universities

 


SHALL work with community colleges in the state to implement statewide reverse

 

transfer agreements to increase the number of students that are awarded credentials of

 

value upon completion of the necessary credits. It is the intent of the legislature

 

that these THESE statewide agreements shall enable students who have earned a

 

significant number of credits at a community college and transfer to a baccalaureate

 

granting institution before completing a degree to transfer the credits earned at the

 

baccalaureate institution back to the community college in order to be awarded a

 

credential of value.

 

ARTICLE IV

 

GENERAL PROVISIONS

 

       Sec. 296. (1) If the maximum amount appropriated under this act 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.

 

       (2) If the total maximum amount appropriated under all articles of this act

 

from the state school aid fund and the school aid stabilization fund 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),

 

51A(11), 51c, 53a, 56, and 152a shall be made in full. In addition, for districts

 

beginning operations after 1994-95 that qualify for payments under section 22b,

 

payments under section 22b shall be made so that the qualifying districts receive the

 

lesser of an amount equal to the 1994-95 foundation allowance of the district in which

 

the district beginning operations after 1994-95 is located or $5,500.00. The amount of

 

the payment to be made under section 22b for these qualifying districts shall be as

 

calculated under section 22a, with the balance of the payment under section 22b being

 


subject to the proration otherwise provided under this subsection and subsection (3).

 

If proration is necessary, state payments under each of the other sections of article

 

I from all state funding sources, and state appropriations to community colleges and

 

public universities under articles II and III from the state school aid fund, shall be

 

prorated in the manner prescribed in subsection (3) 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.

 

       (3) If proration is necessary under subsection (2), the department shall

 

calculate the proration in district and intermediate district payments under article I

 

that is required under subsection (2), and the department of treasury shall calculate

 

the proration in community college and public university payments under articles II

 

and III that is required under subsection (2), as follows:

 

       (a) The department and the department of treasury shall calculate the

 


percentage of total state school aid fund money that is appropriated and allocated

 

under this act for the affected fiscal year for each of the following:

 

       (i) Districts.

 

       (ii) Intermediate districts.

 

       (iii) Entities receiving funding from the state school aid fund under article I

 

other than districts or intermediate districts.

 

       (iv) Community colleges and public universities that receive funding from the

 

state school aid fund.

 

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

 

under subsection (2) 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), 51A(11), 51c, 53a, and 152a, by that amount.

 

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

 

under subsection (2) 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), 51A(11), 53a,

 

56, and 152a, on an equal percentage basis.

 

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

 

under subsection (2) that is equal to the percentage calculated under subdivision

 

(a)(iii) for entities receiving funding from the state school aid fund under article I

 

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.

 

       (e) The department of treasury shall recover a percentage of the proration

 

amount required under subsection (2) that is equal to the percentage calculated under

 

subdivision (a)(iv) for community colleges and public universities that receive

 

funding from the state school aid fund by reducing that portion of the payments under

 

articles II and III to these community colleges and public universities that is from

 

the state school aid fund on an equal percentage basis.

 

       SEC. 298. (1) SUBJECT TO THE CONDITIONS SET FORTH IN THIS ACT, THE AMOUNTS

 

LISTED IN THIS SECTION FOR THE PUBLIC SCHOOLS, INTERMEDIATE SCHOOL DISTRICTS,

 

COMMUNITY COLLEGES AND PUBLIC UNIVERSITIES OF THIS STATE, AND CERTAIN OTHER STATE

 

PURPOSES RELATING TO EDUCATION ARE A SUMMARY OF APPROPRIATIONS CONTAINED IN THIS ACT

 

FOR FISCAL YEAR ENDING SEPTEMBER 30, 2015, AND ANTICIPATED APPROPRIATIONS FOR THE

 

FISCAL YEAR ENDING SEPTEMBER 30, 2016, FROM THE FUNDS INDICATED IN THIS ACT:

 

       (2) SUMMARY OF EDUCATION OMNIBUS APPROPRIATIONS

 

GROSS APPROPRIATION......................................   $ 15,731,158,600  $ 15,693,442,500

 

  TOTAL INTERDEPARTMENTAL GRANTS AND

 

   INTRADEPARTMENTAL TRANSFERS...........................                  0                 0

 

  ADJUSTED GROSS APPROPRIATION............................   $ 15,731,158,600  $ 15,693,442,500

 

  TOTAL FEDERAL REVENUES..................................      1,905,189,100     1,905,189,100

 

  TOTAL LOCAL REVENUES....................................                  0                 0

 

  TOTAL PRIVATE REVENUES..................................                  0                 0

 

  TOTAL OTHER STATE RESTRICTED REVENUES...................    12,257,156,700     12,200,740,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $  1,568,812,800  $  1,587,512,800

 

SEC. 298A. (1) SUMMARY OF APPROPRIATIONS FOR SCHOOL AID (ARTICLE I)

 

APPROPRIATION SUMMARY

 

GROSS APPROPRIATION......................................   $ 13,847,139,600  $ 13,790,723,500

 

  TOTAL INTERDEPARTMENTAL GRANTS AND

 


   INTRADEPARTMENTAL TRANSFERS...........................                  0                 0

 

  ADJUSTED GROSS APPROPRIATION............................   $ 13,847,139,600  $ 13,790,723,500

 

  TOTAL FEDERAL REVENUES..................................      1,808,162,700     1,808,162,700

 

  TOTAL LOCAL REVENUES....................................                  0                 0

 

  TOTAL PRIVATE REVENUES..................................                  0                 0

 

  TOTAL OTHER STATE RESTRICTED REVENUES...................     11,858,976,900    11,802,560,800

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    180,000,000  $    180,000,000

 

       (2) BASIC OPERATIONS

 

  PROPOSAL A OBLIGATION PAYMENT...........................   $  5,403,000,000  $  5,277,000,000

 

  DISCRETIONARY PAYMENT...................................      3,578,000,000     3,655,000,000

 

  ISD GENERAL OPERATIONS..................................         64,115,000        64,108,000

 

  HOLD HARMLESS PROVISION.................................          6,000,000         6,000,000

 

  DISTRICT DISSOLUTION TRANSITION COSTS...................          2,200,000                 0

 

  MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM    ..                                    

 

   REFORM COSTS..........................................        783,944,000     1,017,444,000

 

  MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM    ..                  

 

   RESERVE FUND DEPOSIT..................................         50,000,000                 0

 

  ISOLATED DISTRICT FUNDING...............................          2,584,600         2,584,600

 

  GROSS APPROPRIATION.....................................   $  9,889,843,600  $ 10,022,136,600

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................      9,737,758,900     9,866,821,900

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    152,084,700  $    155,314,700

 

       (3) SPECIAL EDUCATION

 

  SPECIAL EDUCATION HEADLEE OBLIGATION....................   $    630,500,000  $    648,600,000

 

  SPECIAL EDUCATION FOUNDATIONS...........................        252,000,000       256,000,000

 

  SPECIAL EDUCATION HOLD HARMLESS PAYMENT.................          1,000,000         1,000,000

 

  SPECIAL EDUCATION NON-SEC. 52 PAYMENT...................          3,300,000         3,900,000

 


  SPECIAL EDUCATION RULE CHANGE...........................          2,200,000         2,200,000

 

  SPECIAL EDUCATION COURT PLACED FTES.....................         10,500,000        10,500,000

 

  MICHIGAN SCHOOLS FOR THE DEAF AND BLIND.................          1,688,000         1,688,000

 

  SPECIAL EDUCATION MILLAGE EQUALIZATION..................         37,758,100        37,758,100

 

  SPECIAL EDUCATION FEDERAL PROGRAMS......................        444,000,000       444,000,000

 

  GROSS APPROPRIATION.....................................   $  1,382,946,100  $  1,405,646,100

 

     APPROPRIATED FROM:

 

  FEDERAL REVENUES........................................        444,000,000       444,000,000

 

  STATE RESTRICTED REVENUES...............................        938,946,100       961,646,100

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (4) SUPPORT SERVICES

 

  COURT-PLACED CHILDREN...................................   $      8,000,000  $      8,000,000

 

  JUVENILE DETENTION FACILITIES...........................          2,195,500         2,195,500

 

  YOUTH CHALLENGE PROGRAM.................................          1,500,000         1,500,000

 

  AT-RISK PROGRAM.........................................        308,988,200       308,988,200

 

  CHILD AND ADOLESCENT HEALTH CENTERS.....................          3,557,300         3,557,300

 

  HEARING AND VISION SCREENING............................          5,150,000         5,150,000

 

  MATH AND SCIENCE CENTERS................................          8,474,300         8,474,300

 

  YEAR-ROUND SCHOOLS PILOT PROGRAM........................          2,000,000                 0

 

  BILINGUAL EDUCATION.....................................          1,200,000         1,200,000

 

  DISTRICT FISCAL EMERGENCY CONTINGENCY FUND..............         10,000,000                 0

 

  FEDERAL PROGRAMS........................................        839,269,900       839,269,900

 

  GROSS APPROPRIATION.....................................   $  1,190,335,200  $  1,178,335,200

 

     APPROPRIATED FROM:

 

  FEDERAL REVENUES........................................        844,519,200       844,519,200

 

  STATE RESTRICTED REVENUES...............................        345,341,000       333,341,000

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $        475,000  $        475,000

 


       (5) SCHOOL MEAL PROGRAMS

 

  SCHOOL LUNCH............................................   $    535,695,100  $    535,695,100

 

  SCHOOL BREAKFAST........................................          5,625,000         5,625,000

 

  GROSS APPROPRIATION.....................................   $    541,320,100  $    541,320,100

 

     APPROPRIATED FROM:

 

  FEDERAL REVENUES........................................        513,200,000       513,200,000

 

  STATE RESTRICTED REVENUES...............................         28,120,100        28,120,100

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (6) EARLY CHILDHOOD EDUCATION

 

  GREAT START READINESS PROGRAM...........................   $    239,575,000  $    239,575,000

 

  GREAT START EARLY CHILDHOOD BLOCK GRANTS................         10,900,000        10,900,000

 

  GROSS APPROPRIATION.....................................   $    250,475,000  $    250,475,000

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................        250,175,000       250,175,000

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $        300,000  $        300,000

 

       (7) PERFORMANCE INITIATIVES

 

  BEST PRACTICES GRANTS...................................   $     80,000,000  $              0

 

  DISTRICT PERFORMANCE FUNDING............................         46,400,000                 0

 

  CONSOLIDATION INNOVATION GRANTS.........................          5,000,000                 0

 

  GROSS APPROPRIATION.....................................   $    131,400,000  $              0

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................        131,400,000                 0

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (8) STUDENT ASSESSMENT AND ACCOUNTABILITY

 

  MICHIGAN COUNCIL FOR EDUCATOR EFFECTIVENESS           ..                                    

 

   RECOMMENDATIONS.......................................   $     27,800,000  $     21,845,100

 

  CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION......         12,216,300        14,716,300

 


  STUDENT ASSESSMENTS.....................................         40,144,400        51,276,500

 

  DATA COLLECTION AND REPORTING COSTS.....................         38,000,500        38,000,500

 

  GROSS APPROPRIATION.....................................   $    118,161,200  $    125,838,400

 

     APPROPRIATED FROM:

 

  FEDERAL REVENUES........................................          6,443,500         6,443,500

 

  STATE RESTRICTED REVENUES...............................         93,964,900       104,872,100

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     17,752,800  $     14,522,800

 

       (9) TECHNOLOGY INITIATIVES

 

  MICHIGAN VIRTUAL HIGH SCHOOL............................   $      9,387,500  $      9,387,500

 

  FIRST ROBOTICS..........................................          2,000,000                 0

 

  TECHNOLOGY INFRASTRUCTURE IMPROVEMENT GRANTS............         50,000,000                 0

 

  GROSS APPROPRIATION.....................................   $     61,387,500  $      9,387,500

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................         52,000,000                 0

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      9,387,500  $      9,387,500

 

       (10) COLLEGE AND CAREER READINESS

 

  VOCATIONAL EDUCATION....................................   $     27,611,300  $     26,611,300

 

  VOCATIONAL EDUCATION MILLAGE REIMBURSEMENT..............          9,190,000         9,190,000

 

  DUAL ENROLLMENT INITIATIVE..............................          1,750,000                 0

 

  ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE    ..                  

 

   TESTING...............................................            250,000                 0

 

  STATEWIDE CAREER READINESS STUDY........................            250,000                 0

 

  GROSS APPROPRIATION.....................................   $     39,051,300  $     35,801,300

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................         39,051,300        35,801,300

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (11) ADULT EDUCATION

 


  ADULT EDUCATION.........................................   $      22,000,000  $      22,000,000

 

  GROSS APPROPRIATION.....................................   $     22,000,000  $     22,000,000

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................         22,000,000        22,000,000

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (12) TRANSPORTATION SAFETY

 

  BUS DRIVER SAFETY.......................................   $      1,625,000  $      1,625,000

 

  SCHOOL BUS INSPECTIONS..................................          1,691,500         1,691,500

 

  GROSS APPROPRIATION.....................................   $      3,316,500  $      3,316,500

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................          3,316,500         3,316,500

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       (13) DEBT SERVICE AND OTHER REQUIRED PAYMENTS

 

  DEBT SERVICE ON NON-DURANT DISTRICT BONDS...............   $     39,500,000  $              0

 

  SCHOOL BOND LOAN REDEMPTION FUND........................        142,600,000       160,500,000

 

  SCHOOL AID FUND BORROWING COSTS.........................          4,000,000         5,000,000

 

  RENAISSANCE ZONE REIMBURSEMENT..........................         26,300,000        26,300,000

 

  PAYMENT IN LIEU OF TAXES REIMBURSEMENT..................          4,210,000         4,210,000

 

  PROMISE ZONE PAYMENTS...................................            293,100           456,800

 

  GROSS APPROPRIATION.....................................   $    216,903,100  $    196,466,800

 

     APPROPRIATED FROM:

 

  STATE RESTRICTED REVENUES...............................        216,903,100       196,466,800

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $              0  $              0

 

       SEC. 298B. (1) SUMMARY OF APPROPRIATIONS FOR COMMUNITY COLLEGES (ARTICLE II)

 

APPROPRIATION SUMMARY

 

GROSS APPROPRIATION......................................   $    371,524,900  $    390,224,900

 

  TOTAL INTERDEPARTMENTAL GRANTS AND

 


   INTRADEPARTMENTAL TRANSFERS...........................                  0                 0

 

  ADJUSTED GROSS APPROPRIATION............................   $    371,524,900  $    390,224,900

 

  TOTAL FEDERAL REVENUES..................................                  0                 0

 

  TOTAL LOCAL REVENUES....................................                  0                 0

 

  TOTAL PRIVATE REVENUES..................................                  0                 0

 

  TOTAL OTHER STATE RESTRICTED REVENUES...................        197,614,100       197,614,100

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    173,910,800  $    192,610,800

 

       (2) OPERATIONS

 

       (A) ALPENA COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      5,236,500  $      5,367,100

 

  PERFORMANCE FUNDING.....................................            130,600                 0

 

  GROSS APPROPRIATION.....................................   $      5,367,100  $      5,367,100

 

       (B) BAY DE NOC COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      5,279,300  $      5,395,700

 

  PERFORMANCE FUNDING.....................................            116,400                 0

 

  GROSS APPROPRIATION.....................................   $      5,395,700  $      5,395,700

 

       (C) DELTA COLLEGE

 

  OPERATIONS..............................................   $     14,063,500  $     14,435,600

 

  PERFORMANCE FUNDING.....................................            372,100                 0

 

  GROSS APPROPRIATION.....................................   $     14,435,600  $     14,435,600

 

       (D) GLEN OAKS COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      2,441,500  $      2,505,100

 

  PERFORMANCE FUNDING.....................................             63,600                 0

 

  GROSS APPROPRIATION.....................................   $      2,505,100  $      2,505,100

 

       (E) GOGEBIC COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      4,330,300  $      4,431,900

 

  PERFORMANCE FUNDING.....................................            101,600                 0

 


  GROSS APPROPRIATION.....................................   $      4,431,900  $      4,431,900

 

       (F) GRAND RAPIDS COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     17,454,900  $     17,869,000

 

  PERFORMANCE FUNDING.....................................            414,100                 0

 

  GROSS APPROPRIATION.....................................   $     17,869,000  $     17,869,000

 

       (G) HENRY FORD COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     21,060,000  $     21,529,000

 

  PERFORMANCE FUNDING.....................................            469,000                 0

 

  GROSS APPROPRIATION.....................................   $     21,529,000  $     21,529,000

 

       (H) JACKSON COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     11,758,200  $     12,034,400

 

  PERFORMANCE FUNDING.....................................            276,200                 0

 

  GROSS APPROPRIATION.....................................   $     12,034,400  $     12,034,400

 

       (I) KALAMAZOO VALLEY COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     12,122,500  $     12,448,500

 

  PERFORMANCE FUNDING.....................................            326,000                 0

 

  GROSS APPROPRIATION.....................................   $      12,448,500  $     12,448,500

 

       (J) KELLOGG COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      9,522,000  $      9,770,700

 

  PERFORMANCE FUNDING.....................................            248,700                 0

 

  GROSS APPROPRIATION.....................................   $      9,770,700  $      9,770,700

 

       (K) KIRTLAND COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      3,055,700  $      3,153,900

 

  PERFORMANCE FUNDING.....................................             98,200                 0

 

  GROSS APPROPRIATION.....................................   $      3,153,900  $      3,153,900

 

       (L) LAKE MICHIGAN COLLEGE

 

  OPERATIONS..............................................   $      5,178,100  $      5,319,600

 


  PERFORMANCE FUNDING.....................................            141,500                 0

 

  GROSS APPROPRIATION.....................................   $      5,319,600  $      5,319,600

 

       (M) LANSING COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     30,023,700  $     30,742,500

 

  PERFORMANCE FUNDING.....................................            718,800                 0

 

  GROSS APPROPRIATION.....................................   $     30,742,500  $     30,742,500

 

       (N) MACOMB COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     31,931,200  $     32,672,900

 

  PERFORMANCE FUNDING.....................................            741,700                 0

 

  GROSS APPROPRIATION.....................................   $     32,672,900  $     32,672,900

 

       (O) MID MICHIGAN COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      4,517,900  $      4,661,700

 

  PERFORMANCE FUNDING.....................................            143,800                 0

 

  GROSS APPROPRIATION.....................................   $      4,661,700  $      4,661,700

 

       (P) MONROE COUNTY COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      4,342,600  $      4,473,400

 

  PERFORMANCE FUNDING.....................................            130,800                 0

 

  GROSS APPROPRIATION.....................................   $      4,473,400  $      4,473,400

 

       (Q) MONTCALM COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      3,121,200  $      3,212,700

 

  PERFORMANCE FUNDING.....................................             91,500                 0

 

  GROSS APPROPRIATION.....................................   $      3,212,700  $      3,212,700

 

       (R) C.S. MOTT COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     15,247,100  $     15,617,500

 

  PERFORMANCE FUNDING.....................................            370,400                 0

 

  GROSS APPROPRIATION.....................................   $     15,617,500  $     15,617,500

 

       (S) MUSKEGON COMMUNITY COLLEGE

 


  OPERATIONS..............................................   $      8,653,500  $      8,862,100

 

  PERFORMANCE FUNDING.....................................            208,600                 0

 

  GROSS APPROPRIATION.....................................   $      8,862,100  $      8,862,100

 

       (T) NORTH CENTRAL MICHIGAN COLLEGE

 

  OPERATIONS..............................................   $      3,064,400  $      3,158,600

 

  PERFORMANCE FUNDING.....................................             94,200                 0

 

  GROSS APPROPRIATION.....................................   $      3,158,600  $      3,158,600

 

       (U) NORTHWESTERN MICHIGAN COLLEGE

 

  OPERATIONS..............................................   $      8,825,300  $      9,039,100

 

  PERFORMANCE FUNDING.....................................            213,800                 0

 

  GROSS APPROPRIATION.....................................   $      9,039,100  $      9,039,100

 

       (V) OAKLAND COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     20,483,100  $     21,031,100

 

  PERFORMANCE FUNDING.....................................            548,000                 0

 

  GROSS APPROPRIATION.....................................   $     21,031,100  $     21,031,100

 

       (W) ST. CLAIR COUNTY COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      6,860,100  $      7,030,700

 

  PERFORMANCE FUNDING.....................................            170,600                 0

 

  GROSS APPROPRIATION.....................................   $      7,030,700  $      7,030,700

 

       (X) SCHOOLCRAFT COLLEGE

 

  OPERATIONS..............................................   $     12,112,200  $     12,459,200

 

  PERFORMANCE FUNDING.....................................            347,000                 0

 

  GROSS APPROPRIATION.....................................   $     12,459,200  $     12,459,200

 

       (Y) SOUTHWESTERN MICHIGAN COLLEGE

 

  OPERATIONS..............................................   $      6,404,300  $      6,547,600

 

  PERFORMANCE FUNDING.....................................            143,300                 0

 

  GROSS APPROPRIATION.....................................   $      6,547,600  $      6,547,600

 


       (Z) WASHTENAW COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     12,610,800  $     13,020,600

 

  PERFORMANCE FUNDING.....................................            409,800                 0

 

  GROSS APPROPRIATION.....................................   $     13,020,600  $     13,020,600

 

       (AA) WAYNE COUNTY COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $     16,194,300  $     16,654,700

 

  PERFORMANCE FUNDING.....................................            460,400                 0

 

  GROSS APPROPRIATION.....................................   $     16,654,700  $     16,654,700

 

       (BB) WEST SHORE COMMUNITY COLLEGE

 

  OPERATIONS..............................................   $      2,349,800  $      2,404,300

 

  PERFORMANCE FUNDING.....................................             54,500                 0

 

  GROSS APPROPRIATION.....................................   $      2,404,300  $      2,404,300

 

       (CC) LOCAL STRATEGIC VALUE........................   $       1,342,100  $       1,342,100

 

  GROSS APPROPRIATION.....................................   $    307,191,300  $    307,191,300

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................        195,880,500       195,880,500

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    111,310,800  $    111,310,800

 

       (3) MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT

 

     SYSTEM (MPSERS)

 

  MPSERS REIMBURSEMENT COSTS..............................   $      60,833,600  $      79,533,600

 

  GROSS APPROPRIATION.....................................   $     60,833,600  $     79,533,600

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          1,733,600         1,733,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     59,100,000  $     77,800,000

 

       (4) RENAISSANCE ZONE REIMBURSEMENTS

 

  RENAISSANCE ZONE REIMBURSEMENTS.........................   $       3,500,000  $       3,500,000

 

  GROSS APPROPRIATION.....................................   $      3,500,000  $      3,500,000

 


     APPROPRIATED FROM:

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      3,500,000  $      3,500,000

 

       SEC. 298C. (1) SUMMARY OF APPROPRIATIONS FOR UNIVERSITIES AND STUDENT FINANCIAL

 

AID (ARTICLE III)

 

APPROPRIATION SUMMARY

 

GROSS APPROPRIATION......................................   $  1,512,494,100  $  1,512,494,100

 

  TOTAL INTERDEPARTMENTAL GRANTS AND

 

   INTRADEPARTMENTAL TRANSFERS...........................                  0                 0

 

  ADJUSTED GROSS APPROPRIATION............................   $  1,512,494,100  $  1,512,494,100

 

  TOTAL FEDERAL REVENUES..................................         97,026,400        97,026,400

 

  TOTAL LOCAL REVENUES....................................                  0                 0

 

  TOTAL PRIVATE REVENUES..................................                  0                 0

 

  TOTAL OTHER STATE RESTRICTED REVENUES...................        200,565,700       200,565,700

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $  1,214,902,000  $  1,214,902,000

 

       (2) UNIVERSITY OPERATIONS

 

       (A) CENTRAL MICHIGAN UNIVERSITY

 

  OPERATIONS..............................................   $     73,540,100  $     79,283,400

 

  PERFORMANCE FUNDING.....................................          5,743,300                 0

 

  GROSS APPROPRIATION.....................................   $     79,283,400  $     79,283,400

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................         11,815,000        11,815,000

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     67,468,400  $     67,468,400

 

       (B) EASTERN MICHIGAN UNIVERSITY

 

  OPERATIONS..............................................   $     67,275,400  $     71,906,800

 

  PERFORMANCE FUNDING.....................................          4,631,400                 0

 

  GROSS APPROPRIATION.....................................   $     71,906,800  $     71,906,800

 

     APPROPRIATED FROM:

 


  STATE SCHOOL AID FUND...................................         10,715,700        10,715,700

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     61,191,100  $     61,191,100

 

       (C) FERRIS STATE UNIVERSITY

 

  OPERATIONS..............................................   $     45,636,500  $     49,191,200

 

  PERFORMANCE FUNDING.....................................          3,554,700                 0

 

  GROSS APPROPRIATION.....................................   $     49,191,200  $     49,191,200

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          7,330,600         7,330,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     41,860,600  $     41,860,600

 

       (D) GRAND VALLEY STATE UNIVERSITY

 

  OPERATIONS..............................................   $     57,823,500  $     63,296,500

 

  PERFORMANCE FUNDING.....................................          5,473,000                 0

 

  GROSS APPROPRIATION.....................................   $     63,296,500  $     63,296,500

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          9,432,600         9,432,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     53,863,900  $     53,863,900

 

       (E) LAKE SUPERIOR STATE UNIVERSITY

 

  OPERATIONS..............................................   $     12,231,000  $     12,799,100

 

  PERFORMANCE FUNDING.....................................            568,100                 0

 

  GROSS APPROPRIATION.....................................   $     12,799,100  $     12,799,100

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          1,907,400         1,907,400

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     10,891,700  $     10,891,700

 

       (F) MICHIGAN STATE UNIVERSITY

 

  OPERATIONS..............................................   $    249,597,800  $    264,877,200

 

  PERFORMANCE FUNDING.....................................         15,279,400                 0

 

  MSU AGBIORESEARCH.......................................         32,088,800        32,088,800

 


  MSU EXTENSION...........................................         27,633,500        27,633,500

 

  GROSS APPROPRIATION.....................................   $    324,599,500  $    324,599,500

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................         39,472,600        39,472,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    285,126,900  $    285,126,900

 

       (G) MICHIGAN TECHNOLOGICAL UNIVERSITY

 

  OPERATIONS..............................................   $     43,473,800  $     45,997,100

 

  PERFORMANCE FUNDING.....................................          2,523,300                 0

 

  GROSS APPROPRIATION.....................................   $     45,997,100  $     45,997,100

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          6,854,600         6,854,600

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     39,142,500  $     39,142,500

 

       (H) NORTHERN MICHIGAN UNIVERSITY

 

  OPERATIONS..............................................   $     41,741,400  $     44,353,800

 

  PERFORMANCE FUNDING.....................................          2,612,400                 0

 

  GROSS APPROPRIATION.....................................   $     44,353,800  $     44,353,800

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          6,609,700         6,609,700

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     37,744,100  $     37,744,100

 

      (I) OAKLAND UNIVERSITY

 

  OPERATIONS..............................................   $     45,651,600  $     48,446,100

 

  PERFORMANCE FUNDING.....................................          2,794,500                 0

 

  GROSS APPROPRIATION.....................................   $     48,446,100  $     48,446,100

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          7,219,500         7,219,500

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     41,226,600  $     41,226,600

 

      (J) SAGINAW VALLEY STATE UNIVERSITY

 


  OPERATIONS..............................................   $     25,991,000  $     27,659,100

 

  PERFORMANCE FUNDING.....................................          1,668,100                 0

 

  GROSS APPROPRIATION.....................................   $     27,659,100  $     27,659,100

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          4,121,800         4,121,800

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     23,537,300  $     23,537,300

 

      (K) UNIVERSITY OF MICHIGAN - ANN ARBOR

 

  OPERATIONS..............................................   $    279,232,700  $    295,655,600

 

  PERFORMANCE FUNDING.....................................         16,422,900                 0

 

  GROSS APPROPRIATION.....................................   $    295,655,600  $    295,655,600

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................         44,059,300        44,059,300

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    251,596,300  $    251,596,300

 

      (L) UNIVERSITY OF MICHIGAN – DEARBORN

 

  OPERATIONS..............................................   $     22,510,400  $     23,724,900

 

  PERFORMANCE FUNDING.....................................          1,214,500                 0

 

  GROSS APPROPRIATION.....................................   $     23,724,900  $     23,724,900

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          3,535,500         3,535,500

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     20,189,400  $     20,189,400

 

       (M) UNIVERSITY OF MICHIGAN – FLINT

 

  OPERATIONS..............................................   $     19,938,200  $     21,380,000

 

  PERFORMANCE FUNDING.....................................          1,441,800                 0

 

  GROSS APPROPRIATION.....................................   $     21,380,000  $     21,380,000

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................          3,186,100         3,186,100

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     18,193,900  $     18,193,900

 


       (N) WAYNE STATE UNIVERSITY

 

  OPERATIONS..............................................   $    183,398,300  $    190,734,900

 

  PERFORMANCE FUNDING.....................................          7,336,600                 0

 

  GROSS APPROPRIATION.....................................   $    190,734,900  $    190,734,900

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................         28,423,700        28,423,700

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $    162,311,200  $    162,311,200

 

       (O) WESTERN MICHIGAN UNIVERSITY

 

  OPERATIONS..............................................   $     97,279,000  $    102,907,000

 

  PERFORMANCE FUNDING.....................................          5,628,000                 0

 

  GROSS APPROPRIATION.....................................   $    102,907,000  $    102,907,000

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................         15,335,400        15,335,400

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $     87,571,600  $     87,571,600

 

       (3) MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT

 

     SYSTEM (MPSERS)

 

  MPSERS REIMBURSEMENT....................................   $       2,446,200  $       2,446,200

 

  GROSS APPROPRIATION.....................................   $      2,446,200  $      2,446,200

 

     APPROPRIATED FROM:

 

  STATE SCHOOL AID FUND...................................            446,200           446,200

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      2,000,000  $      2,000,000

 

       (4) STATE AND REGIONAL PROGRAMS

 

  COLLEGE ACCESS PROGRAM..................................   $      2,000,000  $      2,000,000

 

  HIGHER EDUCATION DATABASE MODERNIZATION AND

 

     CONVERSION..........................................            200,000           200,000

 

  MIDWESTERN HIGHER EDUCATION COMPACT.....................             95,000            95,000

 

  GROSS APPROPRIATION.....................................   $      2,295,000  $      2,295,000

 


     APPROPRIATED FROM:

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      2,295,000  $      2,295,000

 

       (5) MARTIN LUTHER KING, JR. – CESAR CHAVEZ – ROSA

 

     PARKS PROGRAM                   

 

  SELECT STUDENT SUPPORT SERVICES.........................   $      1,956,100  $      1,956,100

 

  MICHIGAN COLLEGE/UNIVERSITY PARTNERSHIP PROGRAM.........            586,800           586,800

 

  MORRIS HOOD, JR. EDUCATOR DEVELOPMENT PROGRAM...........            148,600           148,600

 

  GROSS APPROPRIATION.....................................   $      2,691,500  $      2,691,500

 

     APPROPRIATED FROM:

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      2,691,500  $      2,691,500

 

       (6) GRANTS AND FINANCIAL AID

 

  STATE COMPETITIVE SCHOLARSHIPS..........................   $     18,361,700  $     18,361,700

 

  TUITION GRANTS..........................................         31,664,700        31,664,700

 

  TUITION INCENTIVE PROGRAM...............................         48,500,000        48,500,000

 

  CHILDREN OF VETERANS AND OFFICER’S SURVIVOR

 

    TUITION PROGRAM.......................................          1,400,000         1,400,000

 

  PROJECT GEAR-UP.........................................          3,200,000         3,200,000

 

  GROSS APPROPRIATION.....................................   $    103,126,400  $    103,126,400

 

     APPROPRIATED FROM:

 

  UNITED STATES DEPARTMENT OF EDUCATION, OFFICE OF       .                  

 

   ELEMENTARY AND SECONDARY EDUCATION, GEAR-UP PROGRAM...          3,200,000         3,200,000

 

  SOCIAL SECURITY ACT, TEMPORARY ASSISTANCE FOR NEEDY

 

   FAMILIES..............................................         93,826,400        93,826,400

 

  CONTRIBUTIONS TO CHILDREN OF VETERANS TUITION GRANT

 

   PROGRAM...............................................            100,000           100,000

 

  STATE GENERAL FUND/GENERAL PURPOSE......................   $      6,000,000  $      6,000,000

 

       Enacting section 1. (1) In accordance with section 30 of article I of the state

 


constitution of 1963, total state spending on school aid under article I as amended by

 

this amendatory act from state sources for fiscal year 2014-2015 is estimated at

 

11,988,976,900.00 and state appropriations for school aid to be paid to local units of

 

government for fiscal year 2014-2015 are estimated at $11,833,379,100.00; and total

 

state spending on school aid under article I as amended by this amendatory act from

 

state sources for fiscal year 2015-2016 is estimated at $11,982,560,800.00 and state

 

appropriations for school aid to be paid to local units of government for fiscal year

 

2015-2016 are estimated at $11,801,763,000.00.

 

       (2) In accordance with section 30 of article IX of the state constitution of

 

1963, total state spending from state sources for community colleges for fiscal year

 

2014-2015 under article II as amended by this amendatory act is estimated at

 

$371,524,900.00 and the amount of that state spending from state sources to be paid to

 

local units of government for fiscal year 2014-2015 is estimated at $371,524,900.00;

 

and total state spending from state sources for community colleges for fiscal year

 

2015-2016 under article II as amended by this amendatory act is estimated at

 

$390,224,900.00 and the amount of that state spending from state sources to be paid to

 

local units of government for fiscal year 2015-2016 is estimated at $390,224,900.00.

 

       (3) In accordance with section 30 of article IX of the state constitution of

 

1963, total state spending from state sources for higher education for fiscal year

 

2014-2015 under article III as amended by this amendatory act is estimated at

 

$1,415,467,700.00 and the amount of that state spending from state sources to be paid

 

to local units of government for fiscal year 2014-2015 is estimated at $0; and total

 

state spending from state sources for higher education for fiscal year 2015-2016 under

 

article III as amended by this amendatory act is estimated at $1,415,467,700.00 and

 

the amount of that state spending from state sources to be paid to local units of

 

government for fiscal year 2015-2016 is estimated at $0.

 

       Enacting Section 2. Sections 22c, 22k, 64a, 82, 93, 95, 101a, 147a, 166, 208,

 


210b, 212, 217, 227, 228, 229b, 239a, 261, 262a, 273, 274, 274a, 275a, and 293 of the

 

state school aid act of 1979, 1979 PA 94, MCL 388.1622c, 388.1622k, 388.1664a,

 

388.1682, 388.1693, 388.1695, 388.1701a, 388.1747a, 388.1766, 388.1808, 388.1810b,

 

388.1812, 388.1817, 388.1827, 388.1828, 388.1829b, 388.1839a, 388.1861, 388.1862a,

 

388.1873, 388.1874, 388.1874a, 388.1875a, and 388.1893 are repealed effective October

 

1, 2014.

 

       Enacting section 3. (1) Except as otherwise provided in subsection (2), this

 

amendatory act takes effect October 1, 2014.

 

       (2) Sections 225, 265, 265a, and 267 of the state school aid act of 1979, 1979

 

PA 94, MCL 388.1825, 388.1865, 388.1865a, and 388.1867, sections 225, 265, 265a, and

 

267 as amended, and section 230a as added by this amendatory act, take effect upon

 

enactment of this amendatory act.

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