SB-0775, As Passed Senate, May 8, 2014
SUBSTITUTE FOR
SENATE BILL NO. 775
(As amended May 8, 2014)
<<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, 21b, 21f, 22a, 22b, 22d, 22i, 24,
24a, 24c, 25e, 25f, 26a, 26b, 26c, 31a, 31b, 31d, 31f, 32d, 32p, 39,
39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94, 94a, 95,
99, 99h, 101, 102, 104, 104b, 107, 147, 147c, 152a, 161, 163, and
168 (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,
388.1621b, 388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622i,
388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1625f, 388.1626a,
388.1626b,
Senate Bill No. 775 as amended May 8, 2014
388.1626c, 388.1631a, 388.1631b, 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, 388.1694, 388.1694a, 388.1695, 388.1699,
388.1699h, 388.1701, 388.1702, 388.1704, 388.1704b, 388.1707,
388.1747, 388.1747c, 388.1752a, 388.1761, 388.1763, and 388.1768),
sections 6, 20, 24c, 25e, 26a, 74, 104b, and 107 as amended by 2013
PA 130, section 8b as amended by 2007 PA 92, sections 11, 11m, 20g,
21f, 22a, 22b, 51a, 51c, 99h, 101, and 147c as amended and sections
25f, 31b, and 94 as added by 2014 PA 116, sections 11a, 11j, 11k, 12, 15,
18, 19, 20d, 22d, 22i, 24, 24a, 26b, 26c, 31a, 31d, 31f, 32d, 32p,
39, 39a, 41, 51d, 53a, 54, 56, 61a, 62, 81, 94a, 95, 99, 102, 104,
147, and 152a as amended and section 20f as added by 2013 PA 60,
sections 11g and 17a as amended by 2013 PA 97, section 21b as
amended by 2004 PA 351, section 161 as amended by 1990 PA 207,
section 163 as amended by 2007 PA 137, and section 168 as added by
1993 PA 175, and by adding sections 11s, 64b, 74a, 99b, 102a, 104c, and
164f; and to repeal acts and parts of acts.>>
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
Senate Bill No. 775 as amended May 8, 2014
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
section 5 of the revised school code, MCL 380.5.
(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, for the purposes
of
this article only, 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
Senate Bill No. 775 as amended May 8, 2014
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, 2014,
2015, there is appropriated for the public schools of this state
and certain other state purposes relating to education the sum of
$11,115,232,300.00
<<$11,921,271,600.00>> 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 $30,000,000.00
from the
general fund. In addition, all other available federal funds are
appropriated
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
Senate Bill No. 775 as amended May 8, 2014
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 for 2013-2014
$142,600,000.00 for 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
$2,500,000.00
$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. 11s. In addition to the school aid funds appropriated in
section 11, there is transferred for 2014-2015 an amount not to
exceed <<$32,433,000.00>> to the education reserve fund. The education
reserve fund is created as a separate account within the state
school aid fund. Funds shall not be appropriated from the education
reserve fund until the enactment of a statue amending this section
that provides for an appropriation from the education reserve fund
and specifies the purpose or purposes of appropriations from the
education reserve fund.
Sec. 12. It is the intent of the legislature to appropriate
and
allocate 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, for the current fiscal year and the
immediately preceding 3 fiscal years of all records 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 received by an intermediate
district under this article
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
Senate Bill No. 775 as amended May 8, 2014
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.
<<(h) Identification of all credit cards maintained by the
district as district credit cards, the identity of all individuals authorized to use each of those credit cards, the credit limit on
each credit card, and the dollar limit, if any, for each
individual's authorized use of the credit card.
(I) Costs incurred for each instance of out-of-state travel by
the school administrator of the district that is fully or partially
paid for by the district and the details of each of those instances
of out-of-state travel, including at least identification of each
individual on the trip, destination, and purpose.>>
(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, and at such other times as determined
by the department, at the expense of the district or intermediate
district,
as applicable. , The
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. A district or intermediate district shall retain these
records for the current fiscal year and from at least the 3
immediately preceding 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). However, the department shall not withhold the payment due on
October 20 due to the operation of this subsection. 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 Not
later than 2014-2015, the department shall implement 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,
both of the following
apply:
(a) Except as otherwise provided in this subdivision, the
basic
foundation allowance is $8,049.00.$8,199.00.
(b) The minimum foundation allowance is $7,376.00.
(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 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) 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]. 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. minimum
foundation allowance for the
immediately preceding state fiscal year]. However, the foundation
allowance for a district that had less than the basic foundation
allowance for the immediately preceding state fiscal year shall not
exceed the basic foundation allowance for the current state fiscal
year. For the purposes of this subdivision, for 2014-2015, the
minimum foundation allowance for the immediately preceding state
fiscal year shall be considered to be $7,076.00.
(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.
(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
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.
(d) (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.
(e) (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
2006-2007 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.
(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), 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) In addition to all other calculations under this section,
a district's total foundation allowance shall be considered to be
the sum of the foundation allowance amount as otherwise calculated
under this section plus the district's MPSERS rate cap per pupil.
As used in this subsection, "MPSERS rate cap per pupil" means an
amount equal to the quotient of the district's payment under
section 147c divided by the district's membership. The department
shall publish an estimated total foundation allowance for each
district that reflects this calculation upon enactment of the
amendatory act that provides for state aid under this article for
the 2014-2015 fiscal year. The portion of the district's total
foundation allowance that is attributable to the MPSERS rate cap
per pupil shall be remitted to the Michigan public school
employees' retirement system as required under section 147c, and
this portion of the total foundation allowance shall be funded
under section 147c. The portion of the district's total foundation
allowance that is attributable to the MPSERS rate cap per pupil
shall not be considered to be part of a district's base foundation
allowance that is used in calculating any increase in the
district's foundation allowance in subsequent years as otherwise
calculated under this section.
(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.
(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.
(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 [minus?] 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 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) 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]. For the purposes of this subdivision,
for 2014-2015, the minimum foundation allowance for the immediately
preceding state fiscal year shall be considered to be $7,076.00.
(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) (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.
(m) (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.
(n) (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.
(o) (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.
(p) (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.
(q) (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.
(r) (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 and local revenue
per membership pupil in the 1994-95 state fiscal year of $6,500.00
or more and served as a fiscal agent for a state board designated
area vocational education center in the 1993-94 school year, total
state school aid received by or paid on behalf of the district
pursuant to this act in 1993-94 shall exclude payments made under
former section 146 and under section 147 on behalf of the
district's employees who provided direct services to the area
vocational education center. Not later than June 30, 1996, the
department shall make an adjustment under this subdivision to the
district's combined state and local revenue per membership pupil in
the 1994-95 state fiscal year and the department of treasury shall
make a final certification of the number of mills that may be
levied by the district under section 1211 of the revised school
code, MCL 380.1211, as a result of the adjustment under this
subdivision.
(b) If a district had an adjustment made to its 1993-94 total
state school aid that excluded payments made under former section
146 and under section 147 on behalf of the district's employees who
provided direct services for intermediate district center programs
operated by the district under article 5, if nonresident pupils
attending the center programs were included in the district's
membership for purposes of calculating the combined state and local
revenue per membership pupil for 1993-94, and if there is a signed
agreement by all constituent districts of the intermediate district
that an adjustment under this subdivision shall be made, the
foundation allowances for 1995-96 and 1996-97 of all districts that
had pupils attending the intermediate district center program
operated by the district that had the adjustment shall be
calculated as if their combined state and local revenue per
membership pupil for 1993-94 included resident pupils attending the
center program and excluded nonresident pupils attending the center
program.
Sec. 20f. (1) From the funds appropriated in section 11, there
is
allocated an amount not to exceed $6,000,000.00 $31,000,000.00
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:$75.00:
(a) The increase in the district's foundation allowance or per
pupil
payment as calculated under section 20 from 2012-2013 2013-
2014
to 2013-2014. 2014-2015. For the purposes of this
subdivision,
a district's foundation allowance or per pupil payment for 2013-
2014 shall be considered to be the sum of the district's foundation
allowance or per pupil payment calculated under section 20 for
2013-2014 plus the district's equity payment per membership pupil
under former section 22e as that section was in effect for 2013-
2014.
(b)
The district's equity pupil
performance payment per
membership
pupil under former section 22c.22j for 2013-2014.
(c) The quotient of the district's allocation under section
147a
for 2012-2013 2013-2014 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.
(d) The district's best practices payment per membership pupil
under former section 22f for 2013-2014.
(e) The quotient of the district's allocation under this
section for 2013-2014 divided by the district's membership pupils
for 2013-2014.
(2) The amount allocated to each eligible district under this
section
is an amount per membership pupil equal to $5.00 $75.00
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 2013-
2014
to 2013-2014. 2014-2015. For the purposes of this
subdivision,
a district's foundation allowance or per pupil payment for 2013-
2014 shall be considered to be the sum of the district's foundation
allowance or per pupil payment calculated under section 20 for
2013-2014 plus the district's equity payment per membership pupil
under former section 22e as that section was in effect for 2013-
2014.
(b)
The district's equity pupil
performance payment per
membership
pupil under former section 22c.22j for 2013-2014.
(c) The quotient of the district's allocation under section
147a
for 2012-2013 2013-2014 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.
(d) The district's best practices payment per membership pupil
under former section 22f for 2013-2014.
(e) The quotient of the district's allocation under this
section for 2013-2014 divided by the district's membership pupils
for 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 money appropriated under section 11,
the
following amounts are allocated for 2013-2014:
(a)
From the general fund money, there
is allocated an amount
not
to exceed $2,200,000.00 for 2013-2014 2014-2015 for grants to
eligible districts that first received payments under this section
in 2013-2014 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,
allocated
as provided under subsection (3). It is the intent of the
legislature
to continue this transition funding Payments under this
section shall continue for a total of 4 fiscal years following the
dissolution of a district, after which the payments shall cease.
(b)
From the state school aid fund money, an amount not to
exceed
$5,000,000.00 for reimbursements to eligible districts for
costs
incurred by the eligible district associated with the
transfer
of property from a dissolved school district to the
eligible
district, allocated as provided under subsection (4).
(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
subsection
(1)(a) 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 school district in
the school year immediately preceding the dissolution, or who
reside in the geographic area of the dissolved school 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).
(4)
To allocate funds under subsection (1)(b), the department
shall
develop a reimbursement application process and a
reimbursement
distribution process. Reimbursable costs shall
include,
but are not limited to, the costs of maintenance,
utilities,
security, or insurance associated with, or the
demolition
of, buildings transferred from a dissolved school
district
to the eligible district. However, the reimbursement made
to
eligible districts for all of the property transferred from a
single
dissolved school district shall not exceed the total
cumulative
sum of $2,500,000.00 for all of the eligible districts
to
which property was transferred from that dissolved school
district.
(5)
The funds allocated under subsection (1)(b) are considered
work
project appropriations and any unexpended funds for 2013-2014
are
carried forward into 2014-2015. The purpose of the work project
is
as described in subsection (1)(b). The total estimated cost of
the
work project is $5,000,000.00. The tentative estimated
completion
date for the work project is September 30, 2015.
(4) (6)
As used in this section,
"dissolved school district"
means a school district that has been declared dissolved under
section 12 of the revised school code, 1976 PA 451, MCL 380.12.
Sec. 21b. (1) Subject to subsections (2) and (3), a district
shall use funds received under section 22a or 22b to support the
attendance of a district pupil who is an eligible student at an
eligible postsecondary institution under the postsecondary
enrollment options act, 1996 PA 160, MCL 388.511 to 388.524, or
under the career and technical preparation act, 2000 PA 258, MCL
388.1901 to 388.1913, by paying eligible charges on behalf of the
district pupil as required under those acts.
(2)
To the extent required under subsection (3), a district
shall
pay tuition and mandatory course fees, material fees, and
registration
fees required by an eligible postsecondary institution
for
enrollment in an eligible course. A district also shall pay any
late
fees charged by an eligible postsecondary institution due to
the
district's failure to make a required payment according to the
timetable
prescribed by the postsecondary enrollment options act,
1996
PA 160, MCL 388.511 to 388.524, or the career and technical
preparation
act, 2000 PA 258, MCL 388.1901 to 388.1913. A district
is not required to pay transportation costs, parking costs, or
activity fees on behalf of an eligible student for attendance at an
eligible postsecondary institution as described in subsection (1).
(3)
A district shall pay to the eligible postsecondary
institution
on behalf of an eligible student an amount equal to the
lesser
of the amount of the eligible charges described in
subsection
(2) or the prorated percentage of the state portion of
the
foundation allowance paid or calculated, as applicable, on
behalf
of that eligible student under section 20, with the
proration
based on the proportion of the school year that the
eligible
student attends the postsecondary institution. A district
may pay more money to an eligible postsecondary institution on
behalf
of an eligible student than required under this section and
the postsecondary enrollment options act, 1996 PA 160, MCL 388.511
to 388.524, or the career and technical preparation act, 2000 PA
258, MCL 388.1901 to 388.1913, and may use local school operating
revenue for that purpose. An eligible student is responsible for
payment of the remainder of the costs associated with his or her
postsecondary enrollment that exceed the amount the district is
required
to pay under this section and the postsecondary enrollment
options act, 1996 PA 160, MCL 388.511 to 388.524, or the career and
technical preparation act, 2000 PA 258, MCL 388.1901 to 388.1913,
and that are not paid by the district. As used in this subsection,
"local school operating revenue" means that term as defined in
section 20.
(4)
As used in this section, "eligible course", "eligible
student" , and "eligible postsecondary institution"
mean those
terms as defined in section 3 of the postsecondary enrollment
options act, 1996 PA 160, MCL 388.511 to 388.524, or in section 3
of the career and technical preparation act, 2000 PA 258, MCL
388.1903, as applicable.
Sec. 21f. (1) A pupil enrolled in a district in any of grades
5 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 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. Unless the pupil
is newly enrolled in the district, the request for online course
enrollment must be made in the academic term, semester, or
trimester immediately preceding the enrollment. A district may not
establish additional requirements that 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 legal 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 department
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) 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 enrollment and
schedule changes for regular courses.
(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 department with
the
course syllabus in a form and method prescribed by the Michigan
virtual
university department 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.department.
(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 department
with the number of enrollments in each online course the district
or intermediate district offered to pupils pursuant to this section
in the immediately preceding school year, and the number of
enrollments in which the pupil earned 60% 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, department, 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
8.33% of the district's 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 educating primary district's
school
facilities as all other pupils enrolled in the educating
pupil's primary district.
(10) If a pupil successfully completes an online course, as
determined by the pupil's 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 pupil as a full-time equated pupil for pupil
membership purposes.
Sec. 22a. (1) From the appropriation in section 11, there is
allocated
an amount not to exceed $5,526,000,000.00
$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 $3,335,000,000.00
$3,818,000,000.00
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 $2,713,800.00
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
$1,005,200.00 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 $1,708,600.00
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.
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 only 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. All funding awarded under
this section shall be used to ensure that the recipient district or
intermediate district is technologically ready to administer an
online assessment.
(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.
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
$1,550,000.00 for 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 The pupil
membership
transfer application and a pupil transfer process
administered by the center under this section shall be used for
processing
pupil transfers. 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
Senate Bill No. 775 as amended May 8, 2014 (1 of 2)
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. 25f. (1) From the state school aid fund money
appropriated in section 11, there is allocated an amount not to
exceed $2,000,000.00 for 2013-2014 2014-2015
for payments to strict
discipline academies established under sections 1311b to 1311m of
the revised school code, MCL 380.1311b to 380.1311m, as provided
under this section.
(2) In order to receive funding under this section, a strict discipline academy shall first comply with section 25e and use the
pupil transfer process under that section for changes in enrollment
as prescribed under that section.
(3) Not later than June 30, 2014, 2015, a
strict discipline
academy shall report to the center and to the department, in a
manner prescribed by the center and the department, the following
information for 2013-2014: 2014-2015:
(a) The number of pupils enrolled and in attendance at the strict discipline academy.
(b) The number of days each pupil enrolled was in attendance at the strict discipline academy, not to exceed 180.
(4) The amount of the payment to a strict discipline academy under this section shall be an amount equal to the difference between the product of 1/180 of the per-pupil payment as calculated under section 20 for the strict discipline academy multiplied by the number of days of pupil attendance reported under subsection (3)(b) minus the product of the per-pupil payment as calculated under section 20 for the strict discipline academy multiplied by the pupils in membership at the strict discipline academy as calculated under section 6 and as adjusted by section 25e.
(5) If the funds allocated under this section are insufficient to fully fund the adjustments under subsection (4), payments to eligible strict discipline academies shall be prorated on an equal per-pupil basis.>>
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 for 2013-2014 $293,100.00 for
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.
(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 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 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 and as 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, 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 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 or counseling
services, for at-risk pupils; for school health clinics; and for
the purposes of subsection (5), (6), or (7). In addition, a
district that is a school district of the first class or a district
or public school academy in which at least 50% of the pupils in
membership met the income eligibility criteria for free breakfast,
lunch, or milk in the immediately preceding state fiscal year, as
determined and reported as described in subsection (1), 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
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) 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 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, the number of at-risk pupils
eligible for free or reduced price school lunch who were served by
each of those programs, and the total number of at-risk pupils
served by each of those programs. If a district or public school
academy 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), (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.
(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.
(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).
(15) If a district is formed by consolidation after June 1,
1995, and if 1 or more of the original districts was not eligible
before the consolidation for an additional allowance under this
section, the amount of the additional allowance under this section
for the consolidated district shall be based on the number of
pupils described in subsection (1) enrolled in the consolidated
district who reside in the territory of an original district that
was eligible before the consolidation for an additional allowance
under this section. 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 was
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.
(16) As used in this section, "at-risk pupil" means a pupil
for whom the district has documentation that the pupil meets at
least 2 of the following criteria: is a victim of child abuse or
neglect; is below grade level in English language 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.
(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 2013-2014 2014-
2015 for grants to at-risk districts for implementing a year-round
instructional program for at least 1 of its schools.
(2) The department shall select districts for grants under
this section from among applicant districts that meet both of the
following:
(a) The district meets 1 or both of the following:
(i) Is eligible in 2013-2014 2014-2015 for the community
eligibility option for free and reduced price lunch under 42 USC
1759a.
(ii) At least 50% of the pupils in membership in the district
met the income eligibility criteria for free breakfast, lunch, or
milk in the immediately preceding state fiscal year, as determined
under the Richard B. Russell national school lunch act, 42 USC 1751
to 1769i.
(b) The board of the district has adopted a resolution stating
that the district will implement for the first time a year-round
instructional
calendar that will begin in 2014-2015 2015-2016 for
at least 1 school operated by the district and committing to
providing the year-round instructional calendar in each of those
schools for at least 3 school years.
(3) A district seeking a grant under this section shall apply
to the department in the form and manner prescribed by the
department
not later than May December
1, 2014. The department
shall select districts for grants and make notification not later
than
June 1, 2014.February 1,
2015.
(4) The department shall award grants under this section on a
competitive basis, but shall give priority based solely on
consideration of the following criteria:
(a) Giving priority to districts with lower general fund
balances as a percent of revenues.
(b) Giving priority to districts that operate at least 1
school that has been identified by the department as either a
priority school or a focus school.
(c) Ensuring that grant funding includes both rural and urban
districts.
(5) The amount of a grant under this section to any 1 district
shall
not exceed $750,000.00.$250,000.00.
(6) A grant payment under this section to a district shall be
used for necessary modifications to instructional facilities and
other nonrecurring costs of preparing for the operation of a year-
round instructional program as approved by the department.
(7) A district receiving a grant under this section is not
required to provide more than the minimum number of days and hours
of pupil instruction prescribed under section 101, but shall spread
at least those minimum amounts of pupil instruction over the entire
year in each of its schools in which a year-round instructional
calendar is implemented. The district shall commit to providing the
year-round instructional calendar in each of those schools for at
least 3 school years.
(8) For a district receiving a grant under this section,
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).
(9) Notwithstanding section 17b, grant 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 also shall make
recommendations to the great start collaborative regarding other
community services designed to improve all children's school
readiness.
(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
under 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 who 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 before 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 child
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 shall 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 subrecipients 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 receipient determines that all eligible children are
being served and that there are no children on the waiting list
under 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 grant receipient may then enroll children who 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 before 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% 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
Senate Bill No. 775 as amended May 8, 2014
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.
(14) A great start readiness program operating in 1
intermediate district may enroll a child residing in a contiguous
intermediate district. The intermediate district in which the child
resides shall pay to the enrolling program the funding awarded
under this section for a child enrolled under this subsection.
(15) From the amount appropriated in subsection (1), there is
allocated an amount not to exceed <<$10,000,000.00>> for reimbursement
of transportation costs for children attending great start
readiness programs funded under this section. To receive
reimbursement under this subsection, not later than November 1,
2014, a program funded under this section that provides
transportation shall submit to the intermediate district that is
the fiscal agent for the program a projected transportation budget.
The amount of the reimbursement for transportation under this
Senate Bill No. 775 as amended May 8, 2014
subsection shall be the lesser of the projected transportation
budget or <<$150.00>> multiplied by the number of slots funded for the
program under this section. If the amount allocated under this
subsection is insufficient to fully reimburse the transportation
costs for all programs that provide transportation and submit the
required information, the reimbursement shall be prorated in an
equal amount per slot funded. Payments shall be made to the
intermediate district that is the fiscal agent for each program,
and the intermediate district shall then reimburse the program
provider for transportation costs as prescribed under this
subsection.
Sec. 32p. (1) From the school aid fund appropriation 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 in subsection (2) 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 not 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 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 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 $3,675.00 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.$3,675.00.
(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 $3,675.00
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 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 $919,846,100.00 $938,946,100.00
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 $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 $247,000,000.00
$252,000,000.00
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
for 2013-2014 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 for 2013-2014 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 for 2013-2014 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 $3,500,000.00
$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 for 2013-2014 2014-2015
the amount necessary,
estimated
at $613,200,000.00, $630,500,000.00,
for payments to
reimburse districts for 28.6138% of total approved costs of special
education excluding costs reimbursed under section 53a, and
70.4165% of total approved costs of special education
transportation. Funds allocated under this section that are not
expended in the state fiscal year for which they were allocated, as
determined by the department, may be used to supplement the
allocations under sections 22a and 22b in order to fully fund those
calculated allocations for the same fiscal year.
Sec. 51d. (1) From the federal funds appropriated in section
11,
there is allocated for 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 to 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, 1996 PA 160, MCL 388.511 to 388.524, or
under the career and technical preparation act, 2000 PA 258, MCL
388.1901 to 388.1913, consistent with section 21b, or that support
the attendance of district pupils in a concurrent enrollment
program if the district meets the requirements under subsection
(3).
(2) To be eligible for payments under this section for
supporting the attendance of district pupils under the
postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to
388.524, or under the career and technical preparation act, 2000 PA
258, MCL 388.1901 to 388.1913, a district shall do all of the
following:
(a) Provide information to all high school pupils 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 district.
(b) Enter into a written agreement with a postsecondary
institution before the enrollment of district pupils.
(c) Agree to pay all eligible charges pursuant to section 21b.
(d) Award high school credit for the postsecondary course if
the pupil successfully completes the course.
(3) To be eligible for payments under this section for pupils
enrolled in a concurrent enrollment program, a district shall do
all of the following:
(a) Provide information to all high school pupils 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 district.
(b) Enter into a written agreement with a postsecondary
institution establishing the concurrent enrollment program before
the enrollment of district pupils in a postsecondary course through
the postsecondary institution.
(c) Ensure that the course is taught by either a high school
teacher or postsecondary faculty pursuant to standards established
by the postsecondary institution with which the district has
entered into a written agreement to operate the concurrent
enrollment program.
(d) Ensure that the written agreement provides that the
postsecondary institution agrees not to charge the pupil for any
cost of the program.
(e) Ensure that the course is taught in the local district or
intermediate district.
(f) Ensure that the pupil is awarded both high school and
college credit upon successful completion of the course as outlined
in the agreement with the postsecondary institution.
(4) Funds shall be awarded to eligible districts under this
section in the following manner:
(a) A payment of $10.00 per credit, for up to 3 credits, for a
credit-bearing course in which a pupil enrolls during the 2014-2015
school year as described under either subsection (2) or (3).
(b) An additional payment of $30.00 per pupil per course
identified in subdivision (a), if the pupil successfully completes,
and is awarded both high school and postsecondary credit for, the
course during the 2014-2015 school year.
(5) A district requesting payment under this section shall
submit an application to the department in the 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. 74. (1) From the amount appropriated in section 11, there
is
allocated an amount not to exceed $3,299,000.00 for 2013-2014
$3,316,500.00 for 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 for 2013-2014
$1,691,500.00 for 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. 74a. From the school aid fund money appropriated in
section 11, there is allocated an amount not to exceed
$5,000,000.00 for 2014-2015 for a pilot project providing grants to
districts to convert buses from diesel fuel to natural gas. In
order to be eligible for a grant, a district shall provide the
department with information on the cost of fuel for the converted
Senate Bill No. 775 as amended May 8, 2014
buses, expressed in dollars per mile driven. Grants to eligible
districts shall not exceed $8,000.00 per bus converted, with a
maximum grant per district not to exceed $50,000.00. Districts
seeking grants under this section shall apply to the department not
later than November 1, 2014. The department shall rank order all
districts that apply for grants based on miles driven in the
previous school year, and shall award grants to districts with the
highest number of miles driven, until all funding is awarded.
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 for 2014-2015 to the
intermediate districts the sum necessary, but not to exceed
$64,115,100.00
each fiscal year, <<$66,682,000.00>> to
provide state
aid to intermediate districts under this section.
(2) From the allocation in subsection (1), there is allocated
for
2014-2015 an amount not to exceed $62,108,000.00
<<$66,675,000.00>>
for
allocations to each intermediate district for 2012-2013 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%104.0%>> of the
amount
allocated to
the
intermediate district under this subsection for 2012-2013.
section, excluding the amount under subsection (4), for 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.
(7)
From the allocation in subsection (1), there is allocated
an
amount not to exceed $2,000,000.00 for 2013-2014 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:
(a)
The intermediate district enters into an agreement with
the
department to comply with all of the following:
(g) (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.
(h) (ii) If the
intermediate district did not develop a service
consolidation
plan in 2012-2013, 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.
(i) (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 shall begin implementing that
technology
plan in 2013-2014.
(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,
a listing of all debt service obligations, detailed by
project,
including anticipated 2013-2014 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 to the department for 2013-2014 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) From the funds allocated under this section, the
department shall award funds to cover all or part 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 shall not exceed $20.00
per test completed.
(3) The department shall only award funds under this section
if the department determines that all of the following criteria are
met:
(a) Each pupil for whom payment is made meets 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 another test provider
approved by the department.
(c) The pupil for whom payment is made pays at least $5.00
toward the cost of each test for which payment is made on behalf of
that pupil.
(4) The department shall establish procedures for awarding
funds under this section.
(5) 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 for 2013-2014
$12,022,800.00 for 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. 95. (1) From the funds appropriated in section 11, there
is
allocated an amount not to exceed $1,750,000.00 for 2012-2013
and
there is allocated an amount not to exceed $500,000.00 for
2013-2014
2014-2015 for grants to districts to support professional
development for principals and assistant principals in a
department-approved training program for implementing educator
evaluations as required under section 1249 of the revised school
code, MCL 380.1249.
(2) The funds allocated under this section are a work project
appropriation,
and any unexpended funds for 2012-2013 are carried
forward
into 2013-2014. 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, 2014.2016.
(3)
For 2012-2013, 2014-2015, all districts may apply for
funding under this section by a date determined by the department.
Beginning
in 2013-2014, in In a form and manner determined by the
department,
the department shall give priority will be given to
districts that have new building administrators who have not
previously received training in programs funded under this section.
(4) The department shall approve training programs for the
purpose of this section. The department shall approve all training
programs recommended by the council on educator effectiveness and
may approve other training programs that meet department criteria.
At a minimum, these other programs shall meet all of the following
criteria:
(a) Contain instructional content on methods of evaluating
teachers consistently across multiple grades and subjects.
(b) Include training on evaluation observation that is focused
on reliability and bias awareness and that instills skills needed
for consistent, evidence-based observations.
(c) Incorporate the use of videos of actual lessons for
applying rubrics and consistent scoring.
(d) Align with recommendations of the council on educator
effectiveness.
(e) Provide ongoing support to maintain inter-rater
reliability. As used in this subdivision, "inter-rater reliability"
means a consistency of measurement from different evaluators
independently applying the same evaluation criteria to the same
classroom observation.
(5) The department shall award grants to eligible districts in
an amount determined by the department, but not to exceed $350.00
per participant.
(6) A district receiving funds under this section shall use
the funds only for department-approved training programs under this
section.
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 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 2014-205 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 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, 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. 99b. (1) From the funds appropriated in section 11, there
is allocated an amount not to exceed $330,000.00 for 2014-2015 for
grants to districts to support professional development for
teachers in a department-approved training program for science
technology and mathematics (STEM) instruction.
(2) Any district may apply for funding under this section for
2014-2015 by a date determined by the department. Beginning in
2014-2015, in awarding grants, the department shall give priority,
in a form and manner determined by the department, to applicant
districts with teachers who have not previously received training
in programs funded under this section.
(3) For a training program to be approved by the department
for the purposes of this section, the program shall meet all of the
following criteria:
(a) Utilizes an integrative STEM approach to content
organization and delivery. The integrative STEM approach shall
include content derived from science, technology, engineering, and
mathematics.
(b) Offers evidence that the program outcomes address
mathematics, science, and technological literacy standards in an
exploratory middle school or high school offering.
(c) Offers evidence that the program positively influences
student career choices along STEM career paths and increases
student engagement through peer-reviewed research.
(d) Presents evidence of the periodic improvement of the
curriculum.
(e) Utilizes outcome measures for teacher professional
development.
(f) Provides peer-reviewed evidence that the program is
effective with disadvantaged students and those with language
barriers.
(4) The department shall award grants to districts in an
amount determined by the department, but not to exceed $3,200.00
per participant.
(5) A district receiving funds under this section shall use
the funds only for department-approved training programs under this
section.
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, shall submit a spending
plan, and shall pay at least 25% of the cost of the FIRST robotics
program.
(3) The department shall distribute the grant funding under
this section for the following purposes:
(a)
Except as otherwise provided in subparagraph (iii), an
amount
estimated at $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)
An amount estimated at $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)
An amount estimated at $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 2013-2014 2014-2015 are
carried
forward into 2014-2015. 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, 2016.2017.
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, all of
the following apply to these requirements:
(i) Except as otherwise provided in subparagraph (ii), a A
district shall not provide fewer days of pupil instruction than the
district provided for 2009-2010.
(ii) For 2013-2014 only, if a district is scheduled to
provide
more
than 174 days of instruction, the district shall provide at
least
174 days of instruction and 1,098 hours of pupil instruction.
(iii) If a collective bargaining agreement that provides
for at
least
170 days but less than 175 days, and at least 1,098 hours, of
pupil
instruction is in effect for employees of a district as of
June
13, 2013, then until the school year that begins after the
expiration
of that collective bargaining agreement the district
shall
provide at least the number of days of pupil instruction
identified
in the collective bargaining agreement, and at least
1,098
hours of pupil instruction.
(ii) 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. If a district entered into a
collective bargaining agreement after June 30, 2013 and if that
collective bargaining agreement did not provide for at least 175
days of pupil instruction beginning in 2014-2015, then the
department shall withhold from the district's total state school
aid an amount equal to 5% of the funding the district receives in
2014-2015 under sections 22a and 22b.
(iii) (iv) A
district may apply for a waiver under subsection (9)
from the requirements of this subdivision.
(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 subdivisions (f) and (g),
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) If a district adds 1 or more days of pupil instruction to
the end of its instructional calendar for a school year to comply
with subdivision (a) because the district otherwise would fail to
provide the required minimum number of days of pupil instruction
even after the operation of subsection (4) due to conditions not
within the control of school authorities, then subdivision (e) does
not apply for any day of pupil instruction that is added to the end
of the instructional calendar. Instead, for any of those days, if
the district does not have at least 60% of the district's
membership in attendance on that day, the district shall receive
state aid in that proportion of 1/180 that the actual percentage of
attendance bears to the specified percentage. For any day of pupil
instruction added to the instructional calendar as described in
this subdivision, the district shall report to the department the
percentage of the district's membership that is in attendance, in
the form and manner prescribed by the department.
(g) 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.
(h) All of the following apply to a waiver granted under
subdivision (g):
(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.
(i) 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. However, if a collective bargaining agreement that
provides for the counting of up to 38 hours of qualifying
professional development for teachers as pupil instruction is in
effect for employees of a district as of June 13, 2013, then until
the school year that begins after the expiration of that collective
bargaining agreement a district may count up to the contractually
specified number of 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 academic 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 school
aid
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 standing committees of the legislature responsible for K-12
education legislation, the appropriations subcommittees of the
legislature responsible for K-12 school aid 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 school aid 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 may 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 monthly financial
status report required under section 102a, 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 consent agreement with
the state treasurer. A consent 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.
(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 consent 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),
the department and the department of treasury may withhold some or
all of the money payable to the district under this article, 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 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
may 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 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 monthly
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 monthly 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 monthly financial status report shall be submitted in
the form and manner determined by the department of treasury. The
report shall include financial data and other information that the
department of treasury 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 monthly 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 the 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 pupils enrolled in the
district who are residents of the district and the number of pupils
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 district 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 within
the current school fiscal year or the following 2 school fiscal
years, and that the district or intermediate school district will
be able to meet its financial obligations while also satisfying the
district's or intermediate district's obligations to provide public
educational services in a manner that complies with this act, the
revised school code, and applicable rules.
(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
Senate Bill No. 775 as amended May 8, 2014
<<$26,694,400.00 >> 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 $0.00 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.
(6) From the allocation in subsection (1), there is allocated
an amount not to exceed $0.00 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. The department and the
center shall ensure that any data collected by the online reporting
tool do not provide individually identifiable student data to the
federal government.
(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
technology, 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
technology, 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 technology, 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 technology, 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 technology, 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. in each
district during the last 12 weeks of the 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
Senate Bill No. 775 as amended May 8, 2014 (1 of 3)
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. 104c. (1) In order to receive state aid under this article, a district shall administer the state assessments described in this section.
(2) For the purposes of this section, the department shall develop for use in the spring of 2014-2015 and 2015-2016 new Michigan education assessment program (MEAP) assessments in English language arts and mathematics. These assessments shall be aligned to state standards.
(3) For the purposes of this section, the department shall implement beginning in the 2016-2017 school year a summative assessment system for administration to pupils as provided under this subsection. The summative assessment system shall meet all of the following requirements:
(a) The summative assessment system shall measure student proficiency on the current state standards, shall measure student growth for consecutive grade levels in which students are assessed in the same subject area in both grade levels, and shall be capable of measuring individual student performance.
(b) The summative assessments for English language arts and mathematics shall be administered to all public school pupils in grades 3 to 10, including those pupils as required by the federal individuals with disabilities education act, Public Law 108-446, and by title I of the federal elementary and secondary education act.
(c) The summative assessments for science shall be administered to all public school pupils in grades 5 and 8 only, including those pupils as required by the federal individuals with disabilities education act, Public Law 108-446, and by title I of the federal elementary and secondary education act.
(d) The summative assessments for social studies shall be administered to all public school pupils in grades 6 and 9 only, including those pupils as required by the federal individuals with disabilities education act, Public Law 108-446, and by title I of the federal elementary and secondary education act.
(e) The content of the summative assessments shall be aligned to state standards.
(f) The content of the summative assessments shall be selected from a pool of questions indistinguishably populated with questions from previous years as well as from the current year. This pool of questions shall be subject to a transparent review process for quality, bias, and sensitive issues involving public review and comment. The department is encouraged to post sample tests featuring questions from this pool for review by the public.
(g) The summative assessment system shall ensure that students, parents, and teachers are provided with reports that convey individual student proficiency and growth on the assessment and that convey individual student performance on individual assessment items and individual student performance in meeting state standards.
(h) The summative assessment system shall ensure that students, parents, teachers, administrators, and community members are provided with reports that convey aggregate student proficiency and growth data by teacher, grade, school, and district.
(i) The summative assessment system shall ensure the capability of reporting the necessary data to support educator evaluations.
(j) The summative assessment system shall ensure that the reports provided to districts containing individual student data are available as follows:
(i) For computer-based assessments without written answers, within 1 week after completion of the assessments.
(ii) For paper and pencil assessments without written answers, computer-based assessments with written answers, and paper and pencil assessments with written answers, within 3 weeks after completion of the assessments.
(k) The assessments shall be capable of being implemented statewide in a fully operational manner no later than the 2016-2017 school year.
(l) The summative assessment system shall ensure that access to individually identifiable student data meets all of the following:
(i) Is in compliance with 20 USC 1232g, commonly referred to as the family educational rights and privacy act of 1974.
(ii) Except as may be provided for in an agreement with a vendor to provide assessment services, or as necessary to support educator evaluations pursuant to subdivision (i), is available only to the student; to the student's parent or legal guardian; and to a school administrator or teacher, to the extent that he or she has a legitimate educational interest.
(m) The summative assessment system shall ensure that the assessments are pilot tested and validated before statewide implementation.
(n) The summative assessment system shall ensure that the maximum total combined length of time that schools are required to set aside for a pupil to answer all test questions on all assessments that are part of the system for the pupil's grade level does not exceed that maximum combined total combined length of time for the previous statewide assessment system.
(o) The total cost of executing the summative assessment system statewide each year shall not exceed an amount equal to 2 times the cost of executing the previous statewide assessment after adjustment for inflation.
(4) To begin the process required under subsection (3), not later than September 1, 2014, the department shall issue a request for proposals for the summative assessment system described in that subsection.
(5) This section does not prohibit districts from adopting interim assessments.
(6) As used in this section, "English language arts" means that term as defined in section 104b.>>
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
2013-2014 under this section, the amount allocated to
each
for 2013-2014 2014-2015 shall be based on the number of
participants
served by the district or consortium for 2013-2014,
2014-2015, 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 2013-2014 under this section
before
any reallocations made for 2012-2013 2014-2015 under
subsection (5).
(b)
A district or consortium that received funding in 2012-
2013
2013-2014 under this section may operate independently of a
consortium
or join or form a consortium for 2013-2014. 2014-2015.
The
allocation for 2013-2014 2014-2015
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. 2013-2014. A district or consortium described
in this subdivision shall notify the department of its intention
with
regard to 2013-2014 2014-2015
by October 1, 2013.2014.
(5) A district that operated an adult education program in
2012-2013
2013-2014 and does not intend to operate a program in
2013-2014
2014-2015 shall notify the department by October 1, 2013
2014 of its intention. The money intended to be allocated under
this
section to a district that does not operate a program in 2013-
2014
2014-2015 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 2014-2015
under this section.
(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, shall 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 percent for enrollment of eligible participants.
(b) Ten 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
determined 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 into or retention 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).
(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.
(14) An individual who is an inmate in a state correctional
facility shall not be counted as a participant under this section.
(15) A district shall not commingle money received under this
section or from another source for adult education purposes with
any other funds of the district. A district receiving adult
education
funds 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.
(16) A district or intermediate district 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 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 may not charge a
participant tuition under this section if the participant's income
is at or below 200% of the federal poverty guidelines published by
the United States department of health and human services.
(17) In order to receive funds under this section, a district
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.
(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.
(20) As used in this section, "department" means the Michigan
strategic fund.
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%, 33.44%,
with 25.78% 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%, 32.36%, with
24.70% 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%, 31.85%, with
24.19% 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%, 28.62%,
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 28.79%, 29.13%, with 21.47% 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%, 28.62%, 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 32.59%, 32.93%, with
25.27% paid directly by the employer.
(3) (4)
In addition to the employer
payments described in
subsections
(2) and (3), subsection (2), 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.
(4) (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. 147c. (1) From the appropriation in section 11, there is
allocated
for 2013-2014 2014-2015 an amount not to exceed
$249,500,000.00
$656,700,000.00 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
$1,300,000.00
for 2013-2014.
(2) For 2014-2015, the amounts allocated under subsection (1)
are estimated to provide an average MPSERS rate cap per pupil
amount of $441.00 and are estimated to provide a rate cap per pupil
for districts ranging between $4.00 and $1,400.00. As used in this
subsection, "MPSERS rate cap per pupil" means an amount equal to
the quotient of the district's payment under this section divided
by the district's pupils in membership.
(3)
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% 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% included in
section 41 of the public school employees retirement act of 1979,
1980 PA 300, MCL 38.1341.
(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).
(5) Each participating entity receiving funds under this
section shall forward an amount equal to the amount allocated under
subsection (4) to the retirement system in a form, manner, and time
frame determined by the retirement system.
(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.
(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. 164f. The intermediate board of an intermediate district,
the board of a district, or the board of directors of a public
school academy may use funds appropriated under this act to enter
into a swap, hedge, derivative, or similar agreement in connection
with the procurement of diesel fuel. However, not more than 25% of
a district's, public school academy's, or intermediate district's
annual diesel fuel budget may be procured in the manner allowed
under this section.
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
such funds under this act
or has received funds under this
Senate Bill No. 775 as amended May 8, 2014
act for any of the 3 immediately preceding fiscal years. The
district, intermediate district, grant recipient, contractor, or
other entity shall reimburse the state for all disallowances found
in
the audit.any audit conducted
under this act.
Enacting section 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
<<$11,969,271,600.00>> and state appropriations for school aid to be
paid to local units of government for fiscal year 2014-2015 are
estimated at <<$11,823,311,300.00>>.
Enacting section 2. Sections 22c, 22f, 22g, 22j, 22k, 64a, 82,
98, and 147a of the state school aid act of 1979, 1979 PA 94, MCL
388.1622c, 388.1622f, 388.1622g, 388.1622j, 388.1622k, 388.1664a,
388.1682, 388.1698, and 388.1747a, are repealed.
<<Enacting section 3. (1) Except as otherwise provided in
subsection (2), this amendatory act takes effect October 1, 2014.
(2) Section 104c of the state school aid act of 1979, 1979 PA 94, MCL 388.1704c, as added by this amendatory act, takes effect upon enactment of this amendatory act.>>