HOUSE BILL No. 4393


     March 1, 2001, Introduced by Reps. Gilbert, Hager, Shackleton, Ehardt and Bovin and referred to the Committee on Appropriations.


        A bill to amend 1979 PA 94, entitled

   "The state school aid act of 1979,"

   by amending section 22c (MCL 388.1622c), as added by 2000

   PA 297.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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      is allocated an amount not to exceed $129,000,000.00 for

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      2001-2002 to make equity payments to districts that have a foun-

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      dation allowance or per pupil payment calculated under section 20

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      for 2001-2002 of less than $6,500.00.  The equity payment for a

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      district FOR 2001-2002 shall be an amount calculated by subtract-

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      ing the district's 2001-2002 foundation allowance or per pupil

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      payment from $6,500.00 and multiplying the result by the

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      district's membership.




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           (2) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED

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      FOR 2002-2003 THE AMOUNT NECESSARY TO MAKE EQUITY PAYMENTS UNDER

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      THIS SUBSECTION TO DISTRICTS THAT HAVE A FOUNDATION ALLOWANCE OR

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      PER PUPIL PAYMENT CALCULATED UNDER SECTION 20 FOR 2002-2003 THAT

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      IS LESS THAN THE AMOUNT OF HIGHEST FOUNDATION ALLOWANCE AMONG ALL

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      DISTRICTS AS CALCULATED UNDER SECTION 20.  THE EQUITY PAYMENT FOR

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      A DISTRICT FOR 2002-2003 SHALL BE A PER PUPIL AMOUNT EQUAL TO THE

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      LESSER OF $100.00 OR THE DIFFERENCE BETWEEN THE DISTRICT'S FOUN-

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      DATION ALLOWANCE UNDER SECTION 20 AND THE HIGHEST FOUNDATION

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      ALLOWANCE AMONG ALL DISTRICTS AS CALCULATED UNDER SECTION 20.  IT

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      IS THE INTENT OF THE LEGISLATURE TO CONTINUE TO ALLOCATE SUFFI-

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      CIENT FUNDS TO MAKE EQUITY PAYMENTS UNDER THIS SUBSECTION EACH

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      FISCAL YEAR, AND TO INCLUDE THESE PAYMENTS IN A DISTRICT'S FOUN-

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      DATION ALLOWANCE, UNTIL ALL DISTRICTS RECEIVE THE MAXIMUM FOUNDA-

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      TION ALLOWANCE.



























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