May 30, 2007, Introduced by Reps. Moolenaar, Walker, Ball, Meekhof, Booher, Gaffney, Nofs, Hoogendyk, Emmons, Shaffer, Steil, Acciavatti, Caul, Stakoe, Moore, Horn, Hildenbrand, Stahl, Rick Jones, Proos, Ward, Pavlov, Knollenberg, Palmer, Rocca, Palsrok, Caswell, Moss, Green, LaJoy, Hansen, Huizenga and Opsommer 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 11 (MCL 388.1611), as amended by 2007 PA 6.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) For the fiscal year ending September 30, 2007,
there is appropriated for the public schools of this state and
certain other state purposes relating to education the sum of
$11,299,963,200.00 from the state school aid fund established by
section 11 of article IX of the state constitution of 1963 and the
sum of $35,000,000.00 from the general fund. In addition, available
federal funds are appropriated for the fiscal year.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If at the January revenue estimating conference there is a
consensus estimate that the maximum amount appropriated under this
section from the state school aid fund and the school aid
stabilization fund for a fiscal year exceeds the amount available
for expenditure from the state school aid fund for that fiscal
year,
payments then all of the
following apply:
(a) Payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d,
31f,
51a(2), 51a(12), 51c, 53a, and 56 shall be made in full. In
addition,
for
(b) For districts beginning operations after 1994-95 that
qualify for payments under section 22b, payments under section 22b
shall be made so that the qualifying districts receive the lesser
of an amount equal to the 1994-95 foundation allowance of the
district in which the district beginning operations after 1994-95
is located or $5,500.00. The amount of the payment to be made under
section 22b for these qualifying districts shall be as calculated
under section 22a, with the balance of the payment under section
22b being subject to the proration otherwise provided under this
subsection
and subsection (4). If proration is necessary
(c) Except as otherwise provided in this subsection, state
payments
under each of the other sections of this act, other than
those listed in subdivision (a), from all state funding sources
shall be prorated in the manner prescribed in subsection (4) as
necessary to reflect the amount available for expenditure from the
state school aid fund for the affected fiscal year. However, if the
department of treasury determines that proration will be required
under
this subsection, or if the department of treasury determines
that
further proration is required under this subsection after an
initial
proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. These notifications shall be made as prescribed
in subdivision (d). 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.
(d) The department of treasury shall make a determination that
proration will be necessary under this subsection and shall notify
the state budget director of that determination within 2 days after
the January revenue estimating conference. The state budget
director shall then notify the legislature as required under
subdivision (c) within 5 days after receiving the notice from the
department of treasury.
(e) If payments have not been prorated by March 1 of the
fiscal year, then an amount equal to the amount by which the
maximum amount appropriated from the state school aid fund and the
school aid stabilization fund for the fiscal year exceeds the
amount available for expenditure from those sources for that fiscal
year, according to the consensus estimate, is appropriated from the
general fund to the state school aid fund to make up that
deficiency, and all payments due under this act shall be made in
full.
(4) If proration is necessary, the department shall calculate
the proration in district and intermediate district payments that
is required under subsection (3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) If it is determined at the May revenue estimating
conference or at any other time after March 1 of the fiscal year
that the maximum amount appropriated from the state school aid fund
and the school aid stabilization fund for the fiscal year exceeds
the amount available for expenditure from those sources for that
fiscal year, then an amount equal to that deficiency is
appropriated from the general fund to the state school aid fund to
make up that deficiency, and all payments due under this act shall
be made in full.
(6) (5)
Except for the allocation under
section 26a, any
general fund allocations under this act that are not expended by
the end of the state fiscal year are transferred to the school aid
stabilization fund created under section 11a.
(7) (6)
In addition to the appropriations
in subsection (1),
for the fiscal year ending September 30, 2007, there is
appropriated from the reserve for undistributed investment income
in the Michigan public school employees' retirement system an
amount not to exceed $262,000,000.00 solely for the purpose of
issuing credits pursuant to section 147.
(8) As used in this section, "revenue estimating conference"
means a revenue estimating conference conducted under section 367b
of the management and budget act, 1984 PA 431, MCL 18.1367b.