2 8 9 10 11 12 13 14 15 executive budget recommendation ...msbo.org/sites/default/files/executive...

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FISCAL YEARS 2015 AND 2016 14

EXECUTIVE BUDGET RECOMMENDATION 15

EDUCATION BUDGET 16

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THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 20

ARTICLE I 21

A bill to amend 1979 PA 94, entitled 22

"The state school aid act of 1979," 23

by amending sections 6, 8b, 11, 11a, 11g, 11j, 11k, 11m, 12, 15, 17a, 18, 19, 20, 20d, 20f, 24

20g, 21f, 22a, 22b, 22d, 22f, 22g, 22i, 22j, 24, 24a, 24c, 25e 26a, 26b, 26c, 31a, 31d, 31f, 25

32d, 32p, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 56, 61a, 62, 74, 81, 94a, 98, 99, 99h, 101, 26

102, 104, 104b, 107, 147, 147b, 147c, 152a, 161, 163 168, 201, 201a, 202a, 206, 209, 210, 27

213, 222, 224, 225, 229, 229a, 230, 236, 236a, 236b, 236c, 241, 242, 245, 252, 263, 263a, 28

264, 265, 265a, 267, 268, 269, 270, 272a, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 29

286, and 296 (MCL 388.1606, 388.1608b, 388.1611, 388.1611a, 388.1611g, 388.1611j, 388.1611k, 30

388.1611m, 388.1612, 388.1615, 388.1617a, 388.1618, 388.1619, 388.1620, 388.1620d, 388.1620f, 31

388.1620g, 388.1621f, 388.1622a, 388.1622b, 388.1622d, 388.1622f, 388.1622g, 388.1622i, 32

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388.1622j, 388.1624, 388.1624a, 388.1624c, 388.1625e, 388.1626a, 388.1626b, 388.1626c, 1

388.1631a, 388.1631d, 388.1631f, 388.1632d, 388.1632p, 388.1639, 388.1639a, 388.1641, 2

388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1656, 388.1661a, 388.1662, 3

388.1674, 388.1681, 388.1694a, 388.1698, 388.1699, 388.1699h, 388.1701, 388.1702, 388.1704, 4

388.1704b, 388.1707, 388.1747, 388.1747b, 388.1747c, 388.1752a, 388.1761, 388.1763, and 5

388.1768, 388.1801, 388, 1801a, 388.1802a, 388.1806, 388.1809, 388.1810, 388.1813, 388.1822, 6

388.1824, 388.1825, 388.1829, 388.1829a, 388.1830, 388.1836, 388.1836a, 388.1836b, 388.1836c, 7

388.1841, 388.1842, 388.1845, 388.1852, 388.1856, 388.1863, 388.1863a, 388.1864, 388.1865, 8

388.1865a, 388.1867, 388.1868, 388.388.1869, 388.1870, 388.1872a, 388.1875, 388.1876, 9

388.1877, 388.1879, 388.1880, 388.1881, 388.1882, 388.1883, 388.1884, 388.1886, and 10

388.1896), sections 6, 20, 21f, 24c, 25e, 26a, 74, 104b, and 107 as amended by 2013 PA 130, 11

section 8b as amended by 2007 PA 92, sections 11, 11g, 17a, 221 as amended and section 20g as 12

added by 2013 PA 97, sections 11a, 11j, 11k, 11m, 12, 15, 18, 19, 20d, 22b, 22d, 22f, 22g, 13

22i, 22j, 24, 24a, 26b, 26c, 31a, 31d, 31f, 32d, 32p, 39, 39a, 51a, 51c, 51d, 53a, 54, 56, 14

61a, 62, 81, 94a, 98, 99, 101, 102, 104, 147, 147b, 147c, 152a, 201, 201a, 206, 209, 210, 15

224, 225, 229, 229a, 230, 236, 236a, 236b, 241, 245, 252, 263, 263a, 264, 265, 265a, 267, 16

268, 269, 270, 275, 276, 277, 278, 279, 280, 281, and 282 as amended and sections 20f, 41, 17

99h, 236c, and 272a as added by 2013 PA 60, section 161 as amended by 1990 PA 207, section 18

163 as amended by 2007 PA 137, section 168 as added by 1993 PA 175, sections 213, 222, 242, 19

256, 283, 284, and 286 as amended and section 202a as added by 2012 PA 201, and section 296 20

as added by 2011 PA 62 and by adding sections 11r, 31b, 64b, 64c, 94, 95a, 102a, 207a, 207b, 21

and 230a; and to repeal acts and parts of acts. 22

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THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 24

ARTICLE I 25

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Sec. 6. (1) "Center program" means a program operated by a district or by an 27

intermediate district for special education pupils from several districts in programs for 28

pupils with autism spectrum disorder, pupils with severe cognitive impairment, pupils with 29

moderate cognitive impairment, pupils with severe multiple impairments, pupils with hearing 30

impairment, pupils with visual impairment, and pupils with physical impairment or other 31

health impairment. Programs for pupils with emotional impairment housed in buildings that do 32

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not serve regular education pupils also qualify. Unless otherwise approved by the department, 1

a center program either shall serve all constituent districts within an intermediate district 2

or shall serve several districts with less than 50% of the pupils residing in the operating 3

district. In addition, special education center program pupils placed part-time in noncenter 4

programs to comply with the least restrictive environment provisions of section 612 of part B 5

of the individuals with disabilities education act, 20 USC 1412, may be considered center 6

program pupils for pupil accounting purposes for the time scheduled in either a center 7

program or a noncenter program. 8

(2) "District and high school graduation rate" means the annual completion and pupil 9

dropout rate that is calculated by the center pursuant to nationally recognized standards. 10

(3) "District and high school graduation report" means a report of the number of 11

pupils, excluding adult participants, in the district for the immediately preceding school 12

year, adjusted for those pupils who have transferred into or out of the district or high 13

school, who leave high school with a diploma or other credential of equal status. 14

(4) "Membership", except as otherwise provided in this article, means for a district, 15

a public school academy, the education achievement system, or an intermediate district the 16

sum of the product of .90 times the number of full-time equated pupils in grades K to 12 17

actually enrolled and in regular daily attendance on the pupil membership count day for the 18

current school year, plus the product of .10 times the final audited count from the 19

supplemental count day for the current school year. A district's, public school academy's, or 20

intermediate district's membership shall be adjusted as provided under section 25 25E for 21

pupils who enroll in the district, public school academy, or intermediate district after the 22

pupil membership count day. All pupil counts used in this subsection are as determined by the 23

department and calculated by adding the number of pupils registered for attendance plus 24

pupils received by transfer and minus pupils lost as defined by rules promulgated by the 25

superintendent, and as corrected by a subsequent department audit. For the purposes of this 26

section and section 6a, for a school of excellence that is a cyber school, as defined in 27

section 551 of the revised school code, MCL 380.551, and is in compliance with section 553a 28

of the revised school code, MCL 380.553a, a pupil's participation in the cyber school's 29

educational program is considered regular daily attendance; for the education achievement 30

system, a pupil's participation in an online educational program of the education achievement 31

system or of an achievement school is considered regular daily attendance; and for a district 32

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a pupil's participation in an online course as defined in section 21f is considered regular 1

daily attendance. The amount of the foundation allowance for a pupil in membership is 2

determined under section 20. In making the calculation of membership, all of the following, 3

as applicable, apply to determining the membership of a district, a public school academy, 4

the education achievement system, or an intermediate district: 5

(a) Except as otherwise provided in this subsection, and pursuant to subsection (6), a 6

pupil shall be counted in membership in the pupil's educating district or districts. An 7

individual pupil shall not be counted for more than a total of 1.0 full-time equated 8

membership. 9

(b) If a pupil is educated in a district other than the pupil's district of residence, 10

if the pupil is not being educated as part of a cooperative education program, if the pupil's 11

district of residence does not give the educating district its approval to count the pupil in 12

membership in the educating district, and if the pupil is not covered by an exception 13

specified in subsection (6) to the requirement that the educating district must have the 14

approval of the pupil's district of residence to count the pupil in membership, the pupil 15

shall not be counted in membership in any district. 16

(c) A special education pupil educated by the intermediate district shall be counted 17

in membership in the intermediate district. 18

(d) A pupil placed by a court or state agency in an on-grounds program of a juvenile 19

detention facility, a child caring institution, or a mental health institution, or a pupil 20

funded under section 53a, shall be counted in membership in the district or intermediate 21

district approved by the department to operate the program. 22

(e) A pupil enrolled in the Michigan schools for the deaf and blind shall be counted 23

in membership in the pupil's intermediate district of residence. 24

(f) A pupil enrolled in a career and technical education program supported by a 25

millage levied over an area larger than a single district or in an area vocational-technical 26

education program established pursuant to section 690 of the revised school code, MCL 27

380.690, shall be counted only in the pupil's district of residence. 28

(g) A pupil enrolled in a public school academy shall be counted in membership in the 29

public school academy. 30

(h) A pupil enrolled in an achievement school shall be counted in membership in the 31

education achievement system. 32

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(i) For a new district or public school academy beginning its operation after December 1

31, 1994, or for the education achievement system or an achievement school, membership for 2

the first 2 full or partial fiscal years of operation shall be determined as follows: 3

(i) If operations begin before the pupil membership count day for the fiscal year, 4

membership is the average number of full-time equated pupils in grades K to 12 actually 5

enrolled and in regular daily attendance on the pupil membership count day for the current 6

school year and on the supplemental count day for the current school year, as determined by 7

the department and calculated by adding the number of pupils registered for attendance on the 8

pupil membership count day plus pupils received by transfer and minus pupils lost as defined 9

by rules promulgated by the superintendent, and as corrected by a subsequent department 10

audit, plus the final audited count from the supplemental count day for the current school 11

year, and dividing that sum by 2. 12

(ii) If operations begin after the pupil membership count day for the fiscal year and 13

not later than the supplemental count day for the fiscal year, membership is the final 14

audited count of the number of full-time equated pupils in grades K to 12 actually enrolled 15

and in regular daily attendance on the supplemental count day for the current school year. 16

(j) If a district is the authorizing body for a public school academy, then, in the 17

first school year in which pupils are counted in membership on the pupil membership count day 18

in the public school academy, the determination of the district's membership shall exclude 19

from the district's pupil count for the immediately preceding supplemental count day any 20

pupils who are counted in the public school academy on that first pupil membership count day 21

who were also counted in the district on the immediately preceding supplemental count day. 22

(k) In a district, a public school academy, the education achievement system, or an 23

intermediate district operating an extended school year program approved by the 24

superintendent, a pupil enrolled, but not scheduled to be in regular daily attendance on a 25

pupil membership count day, shall be counted. 26

(l) To be counted in membership, a pupil shall meet the minimum age requirement to be 27

eligible to attend school under section 1147 of the revised school code, MCL 380.1147, or 28

shall be enrolled under subsection (3) of that section, and shall be less than 20 years of 29

age on September 1 of the school year except as follows: 30

(i) A special education pupil who is enrolled and receiving instruction in a special 31

education program or service approved by the department, who does not have a high school 32

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

shall be counted in membership. 2

(ii) A pupil who is determined by the department to meet all of the following may be 3

counted in membership: 4

(A) Is enrolled in a public school academy or an alternative education high school 5

diploma program, that is primarily focused on educating homeless pupils and that is located 6

in a city with a population of more than 175,000. 7

(B) Had dropped out of school for more than 1 year and has re-entered school. 8

(C) Is less than 22 years of age as of September 1 of the current school year. 9

(iii) If a child does not meet the minimum age requirement to be eligible to attend 10

school for that school year under section 1147 of the revised school code, MCL 380.1147, but 11

will be 5 years of age not later than December 1 of that school year, the district may count 12

the child in membership for that school year if the parent or legal guardian has notified the 13

district in writing that he or she intends to enroll the child in kindergarten for that 14

school year. 15

(m) An individual who has obtained a high school diploma shall not be counted in 16

membership. An individual who has obtained a general educational development (G.E.D.) 17

certificate shall not be counted in membership unless the individual is a pupil with a 18

disability as defined in R 340.1702 of the Michigan administrative code. An individual 19

participating in a job training program funded under former section 107a or a jobs program 20

funded under former section 107b, administered by the Michigan strategic fund, or 21

participating in any successor of either of those 2 programs, shall not be counted in 22

membership. 23

(n) If a pupil counted in membership in a public school academy or the education 24

achievement system is also educated by a district or intermediate district as part of a 25

cooperative education program, the pupil shall be counted in membership only in the public 26

school academy or the education achievement system unless a written agreement signed by all 27

parties designates the party or parties in which the pupil shall be counted in membership, 28

and the instructional time scheduled for the pupil in the district or intermediate district 29

shall be included in the full-time equated membership determination under subdivision (q). 30

However, for pupils receiving instruction in both a public school academy or the education 31

achievement system and in a district or intermediate district but not as a part of a 32

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cooperative education program, the following apply: 1

(i) If the public school academy or the education achievement system provides 2

instruction for at least 1/2 of the class hours specified in subdivision (q), the public 3

school academy or the education achievement system shall receive as its prorated share of the 4

full-time equated membership for each of those pupils an amount equal to 1 times the product 5

of the hours of instruction the public school academy or the education achievement system 6

provides divided by the number of hours specified in subdivision (q) for full-time 7

equivalency, and the remainder of the full-time membership for each of those pupils shall be 8

allocated to the district or intermediate district providing the remainder of the hours of 9

instruction. 10

(ii) If the public school academy or the education achievement system provides 11

instruction for less than 1/2 of the class hours specified in subdivision (q), the district 12

or intermediate district providing the remainder of the hours of instruction shall receive as 13

its prorated share of the full-time equated membership for each of those pupils an amount 14

equal to 1 times the product of the hours of instruction the district or intermediate 15

district provides divided by the number of hours specified in subdivision (q) for full-time 16

equivalency, and the remainder of the full-time membership for each of those pupils shall be 17

allocated to the public school academy or the education achievement system. 18

(o) An individual less than 16 years of age as of September 1 of the current school 19

year who is being educated in an alternative education program shall not be counted in 20

membership if there are also adult education participants being educated in the same program 21

or classroom. 22

(p) The department shall give a uniform interpretation of full-time and part-time 23

memberships. 24

(q) The number of class hours used to calculate full-time equated memberships shall be 25

consistent with section 101(3). In determining full-time equated memberships for pupils who 26

are enrolled in a postsecondary institution, a pupil shall not be considered to be less than 27

a full-time equated pupil solely because of the effect of his or her postsecondary 28

enrollment, including necessary travel time, on the number of class hours provided by the 29

district to the pupil. 30

(r) Beginning in 2012-2013, full-time equated memberships for pupils in kindergarten 31

shall be determined by dividing the number of instructional hours scheduled and provided per 32

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year per kindergarten pupil by the same number used for determining full-time equated 1

memberships for pupils in grades 1 to 12. However, to the extent allowable under federal law, 2

for a district or public school academy that provides evidence satisfactory to the department 3

that it used federal title I money in the 2 immediately preceding school fiscal years to fund 4

full-time kindergarten, full-time equated memberships for pupils in kindergarten shall be 5

determined by dividing the number of class hours scheduled and provided per year per 6

kindergarten pupil by a number equal to 1/2 the number used for determining full-time equated 7

memberships for pupils in grades 1 to 12. The change in the counting of full-time equated 8

memberships for pupils in kindergarten that took effect for 2012-2013 is not a mandate. 9

(s) For a district, a public school academy, or the education achievement system that 10

has pupils enrolled in a grade level that was not offered by the district, the public school 11

academy, or the education achievement system in the immediately preceding school year, the 12

number of pupils enrolled in that grade level to be counted in membership is the average of 13

the number of those pupils enrolled and in regular daily attendance on the pupil membership 14

count day and the supplemental count day of the current school year, as determined by the 15

department. Membership shall be calculated by adding the number of pupils registered for 16

attendance in that grade level on the pupil membership count day plus pupils received by 17

transfer and minus pupils lost as defined by rules promulgated by the superintendent, and as 18

corrected by subsequent department audit, plus the final audited count from the supplemental 19

count day for the current school year, and dividing that sum by 2. 20

(t) A pupil enrolled in a cooperative education program may be counted in membership 21

in the pupil's district of residence with the written approval of all parties to the 22

cooperative agreement. 23

(u) If, as a result of a disciplinary action, a district determines through the 24

district's alternative or disciplinary education program that the best instructional 25

placement for a pupil is in the pupil's home or otherwise apart from the general school 26

population, if that placement is authorized in writing by the district superintendent and 27

district alternative or disciplinary education supervisor, and if the district provides 28

appropriate instruction as described in this subdivision to the pupil at the pupil's home or 29

otherwise apart from the general school population, the district may count the pupil in 30

membership on a pro rata basis, with the proration based on the number of hours of 31

instruction the district actually provides to the pupil divided by the number of hours 32

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specified in subdivision (q) for full-time equivalency. For the purposes of this subdivision, 1

a district shall be considered to be providing appropriate instruction if all of the 2

following are met: 3

(i) The district provides at least 2 nonconsecutive hours of instruction per week to 4

the pupil at the pupil's home or otherwise apart from the general school population under the 5

supervision of a certificated teacher. 6

(ii) The district provides instructional materials, resources, and supplies that are 7

comparable to those otherwise provided in the district's alternative education program. 8

(iii) Course content is comparable to that in the district's alternative education 9

program. 10

(iv) Credit earned is awarded to the pupil and placed on the pupil's transcript. 11

(v) A pupil enrolled in an alternative or disciplinary education program described in 12

section 25 shall be counted in membership in the district, the public school academy, or the 13

education achievement system that is educating the pupil. 14

(V) (w) If a pupil was enrolled in a public school academy on the pupil membership 15

count day, if the public school academy's contract with its authorizing body is revoked or 16

the public school academy otherwise ceases to operate, and if the pupil enrolls in a district 17

or the education achievement system within 45 days after the pupil membership count day, the 18

department shall adjust the district's or the education achievement system's pupil count for 19

the pupil membership count day to include the pupil in the count. 20

(W) (x) For a public school academy that has been in operation for at least 2 years 21

and that suspended operations for at least 1 semester and is resuming operations, membership 22

is the sum of the product of .90 times the number of full-time equated pupils in grades K to 23

12 actually enrolled and in regular daily attendance on the first pupil membership count day 24

or supplemental count day, whichever is first, occurring after operations resume, plus the 25

product of .10 times the final audited count from the most recent pupil membership count day 26

or supplemental count day that occurred before suspending operations, as determined by the 27

superintendent. 28

(X) (y) If a district's membership for a particular fiscal year, as otherwise 29

calculated under this subsection, would be less than 1,550 pupils and the district has 4.5 or 30

fewer pupils per square mile, as determined by the department, and if the district does not 31

receive funding under section 22d(2), the district's membership shall be considered to be the 32

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membership figure calculated under this subdivision. If a district educates and counts in its 1

membership pupils in grades 9 to 12 who reside in a contiguous district that does not operate 2

grades 9 to 12 and if 1 or both of the affected districts request the department to use the 3

determination allowed under this sentence, the department shall include the square mileage of 4

both districts in determining the number of pupils per square mile for each of the districts 5

for the purposes of this subdivision. The membership figure calculated under this subdivision 6

is the greater of the following: 7

(i) The average of the district's membership for the 3-fiscal-year period ending with 8

that fiscal year, calculated by adding the district's actual membership for each of those 3 9

fiscal years, as otherwise calculated under this subsection, and dividing the sum of those 3 10

membership figures by 3. 11

(ii) The district's actual membership for that fiscal year as otherwise calculated 12

under this subsection. 13

(z) If a public school academy that is not in its first or second year of operation 14

closes at the end of a school year and does not reopen for the next school year, the 15

department shall adjust the membership count of the district or the education achievement 16

system in which a former pupil of the public school academy enrolls and is in regular daily 17

attendance for the next school year to ensure that the district or the education achievement 18

system receives the same amount of membership aid for the pupil as if the pupil were counted 19

in the district or the education achievement system on the supplemental count day of the 20

preceding school year. 21

(Y) (aa) Full-time equated memberships for special education pupils who are not 22

enrolled in kindergarten but are enrolled in a classroom program under R 340.1754 of the 23

Michigan administrative code shall be determined by dividing the number of class hours 24

scheduled and provided per year by 450. Full-time equated memberships for special education 25

pupils who are not enrolled in kindergarten but are receiving early childhood special 26

education services under R 340.1755 or 340.1862 of the Michigan administrative code shall be 27

determined by dividing the number of hours of service scheduled and provided per year per 28

pupil by 180. 29

(Z) (bb) A pupil of a district that begins its school year after Labor day who is 30

enrolled in an intermediate district program that begins before Labor day shall not be 31

considered to be less than a full-time pupil solely due to instructional time scheduled but 32

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not attended by the pupil before Labor day. 1

(AA) (cc) For the first year in which a pupil is counted in membership on the pupil 2

membership count day in a middle college program, the membership is the average of the full-3

time equated membership on the pupil membership count day and on the supplemental count day 4

for the current school year, as determined by the department. If a pupil was counted by the 5

operating district on the immediately preceding supplemental count day, the pupil shall be 6

excluded from the district's immediately preceding supplemental count for purposes of 7

determining the district's membership. 8

(BB) (dd) A district, a public school academy, or the education achievement system 9

that educates a pupil who attends a United States Olympic education center may count the 10

pupil in membership regardless of whether or not the pupil is a resident of this state. 11

(CC) (ee) A pupil enrolled in a district other than the pupil's district of residence 12

pursuant to section 1148(2) of the revised school code, MCL 380.1148, shall be counted in the 13

educating district or the education achievement system. 14

(DD) (ff) For a pupil enrolled in a dropout recovery program that meets the 15

requirements of section 23a, the pupil shall be counted as 1/12 of a full-time equated 16

membership for each month that the district operating the program reports that the pupil was 17

enrolled in the program and was in full attendance. However, a pupil counted under this 18

subdivision shall not be counted as more than 1.0 FTE in a fiscal year. The district 19

operating the program shall report to the center the number of pupils who were enrolled in 20

the program and were in full attendance for a month not later than the tenth day of the next 21

month. A district shall not report a pupil as being in full attendance for a month unless 22

both of the following are met: 23

(i) A personalized learning plan is in place on or before the first school day of the 24

month for the first month the pupil participates in the program. 25

(ii) The pupil meets the district's definition under section 23a of satisfactory 26

monthly progress for that month or, if the pupil does not meet that definition of 27

satisfactory monthly progress for that month, the pupil did meet that definition of 28

satisfactory monthly progress in the immediately preceding month and appropriate 29

interventions are implemented within 10 school days after it is determined that the pupil 30

does not meet that definition of satisfactory monthly progress. 31

(5) "Public school academy" means that term as defined in the revised school code. 32

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(6) "Pupil" means a person in membership in a public school. A district must have the 1

approval of the pupil's district of residence to count the pupil in membership, except 2

approval by the pupil's district of residence is not required for any of the following: 3

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in accordance with section 4

166b. 5

(b) A pupil receiving 1/2 or less of his or her instruction in a district other than 6

the pupil's district of residence. 7

(c) A pupil enrolled in a public school academy or the education achievement system. 8

(d) A pupil enrolled in a district other than the pupil's district of residence under 9

an intermediate district schools of choice pilot program as described in section 91a or 10

former section 91 if the intermediate district and its constituent districts have been 11

exempted from section 105. 12

(e) A pupil enrolled in a district other than the pupil's district of residence if the 13

pupil is enrolled in accordance with section 105 or 105c. 14

(f) A pupil who has made an official written complaint or whose parent or legal 15

guardian has made an official written complaint to law enforcement officials and to school 16

officials of the pupil's district of residence that the pupil has been the victim of a 17

criminal sexual assault or other serious assault, if the official complaint either indicates 18

that the assault occurred at school or that the assault was committed by 1 or more other 19

pupils enrolled in the school the pupil would otherwise attend in the district of residence 20

or by an employee of the district of residence. A person who intentionally makes a false 21

report of a crime to law enforcement officials for the purposes of this subdivision is 22

subject to section 411a of the Michigan penal code, 1931 PA 328, MCL 750.411a, which provides 23

criminal penalties for that conduct. As used in this subdivision: 24

(i) "At school" means in a classroom, elsewhere on school premises, on a school bus or 25

other school-related vehicle, or at a school-sponsored activity or event whether or not it is 26

held on school premises. 27

(ii) "Serious assault" means an act that constitutes a felony violation of chapter XI 28

of the Michigan penal code, 1931 PA 328, MCL 750.81 to 750.90h, or that constitutes an 29

assault and infliction of serious or aggravated injury under section 81a of the Michigan 30

penal code, 1931 PA 328, MCL 750.81a. 31

(g) A pupil whose district of residence changed after the pupil membership count day 32

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and before the supplemental count day and who continues to be enrolled on the supplemental 1

count day as a nonresident in the district in which he or she was enrolled as a resident on 2

the pupil membership count day of the same school year. 3

(h) A pupil enrolled in an alternative education program operated by a district other 4

than his or her district of residence who meets 1 or more of the following: 5

(i) The pupil has been suspended or expelled from his or her district of residence for 6

any reason, including, but not limited to, a suspension or expulsion under section 1310, 7

1311, or 1311a of the revised school code, MCL 380.1310, 380.1311, and 380.1311a. 8

(ii) The pupil had previously dropped out of school. 9

(iii) The pupil is pregnant or is a parent. 10

(iv) The pupil has been referred to the program by a court. 11

(v) The pupil is enrolled in an alternative or disciplinary education program 12

described in section 25. 13

(i) A pupil enrolled in the Michigan virtual school, for the pupil's enrollment in the 14

Michigan virtual school. 15

(j) A pupil who is the child of a person who works at the district or who is the child 16

of a person who worked at the district as of the time the pupil first enrolled in the 17

district but who no longer works at the district due to a workforce reduction. As used in 18

this subdivision, "child" includes an adopted child, stepchild, or legal ward. 19

(k) An expelled pupil who has been denied reinstatement by the expelling district and 20

is reinstated by another school board under section 1311 or 1311a of the revised school code, 21

MCL 380.1311 and 380.1311a. 22

(l) A pupil enrolled in a district other than the pupil's district of residence in a 23

middle college program if the pupil's district of residence and the enrolling district are 24

both constituent districts of the same intermediate district. 25

(m) A pupil enrolled in a district other than the pupil's district of residence who 26

attends a United States Olympic education center. 27

(n) A pupil enrolled in a district other than the pupil's district of residence 28

pursuant to section 1148(2) of the revised school code, MCL 380.1148. 29

(o) A pupil who enrolls in a district other than the pupil's district of residence as 30

a result of the pupil's school not making adequate yearly progress under the no child left 31

behind act of 2001, Public Law 107-110. 32

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(p) An online learning pupil enrolled in a district other than the pupil's district of 1

residence as an eligible pupil under section 21f. 2

However, if a district educates pupils who reside in another district and if the 3

primary instructional site for those pupils is established by the educating district after 4

2009-2010 and is located within the boundaries of that other district, the educating district 5

must have the approval of that other district to count those pupils in membership. 6

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

(a) Except as provided in subdivision (b), the first Wednesday in October each school 8

year or, for a district or building in which school is not in session on that Wednesday due 9

to conditions not within the control of school authorities, with the approval of the 10

superintendent, the immediately following day on which school is in session in the district 11

or building. 12

(b) For a district or intermediate district maintaining school during the entire 13

school year, the following days: 14

(i) Fourth Wednesday in July. 15

(ii) First Wednesday in October. 16

(iii) Second Wednesday in February. 17

(iv) Fourth Wednesday in April. 18

(8) "Pupils in grades K to 12 actually enrolled and in regular daily attendance" means 19

pupils in grades K to 12 in attendance and receiving instruction in all classes for which 20

they are enrolled on the pupil membership count day or the supplemental count day, as 21

applicable. Except as otherwise provided in this subsection, a pupil who is absent from any 22

of the classes in which the pupil is enrolled on the pupil membership count day or 23

supplemental count day and who does not attend each of those classes during the 10 24

consecutive school days immediately following the pupil membership count day or supplemental 25

count day, except for a pupil who has been excused by the district, shall not be counted as 26

1.0 full-time equated membership. A pupil who is excused from attendance on the pupil 27

membership count day or supplemental count day and who fails to attend each of the classes in 28

which the pupil is enrolled within 30 calendar days after the pupil membership count day or 29

supplemental count day shall not be counted as 1.0 full-time equated membership. In addition, 30

a pupil who was enrolled and in attendance in a district, an intermediate district, a public 31

school academy, or the education achievement system before the pupil membership count day or 32

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supplemental count day of a particular year but was expelled or suspended on the pupil 1

membership count day or supplemental count day shall only be counted as 1.0 full-time equated 2

membership if the pupil resumed attendance in the district, intermediate district, public 3

school academy, or education achievement system within 45 days after the pupil membership 4

count day or supplemental count day of that particular year. Pupils not counted as 1.0 full-5

time equated membership due to an absence from a class shall be counted as a prorated 6

membership for the classes the pupil attended. For purposes of this subsection, "class" means 7

a period of time in 1 day when pupils and a certificated teacher or legally qualified 8

substitute teacher are together and instruction is taking place. 9

(9) "Rule" means a rule promulgated pursuant to the administrative procedures act of 10

1969, 1969 PA 306, MCL 24.201 to 24.328. 11

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to 380.1852. 12

(11) "School district of the first class", "first class school district", and 13

"district of the first class" mean a district that had at least 60,000 45,000 pupils in 14

membership for the immediately preceding fiscal year. 15

(12) "School fiscal year" means a fiscal year that commences July 1 and continues 16

through June 30. 17

(13) "State board" means the state board of education. 18

(14) "Superintendent", unless the context clearly refers to a district or intermediate 19

district superintendent, means the superintendent of public instruction described in section 20

3 of article VIII of the state constitution of 1963. 21

(15) "Supplemental count day" means the day on which the supplemental pupil count is 22

conducted under section 6a. 23

(16) "Tuition pupil" means a pupil of school age attending school in a district other 24

than the pupil's district of residence for whom tuition may be charged to the district of 25

residence. Tuition pupil does not include a pupil who is a special education pupil, a pupil 26

described in subsection (6)(c) to (p), or a pupil whose parent or guardian voluntarily 27

enrolls the pupil in a district that is not the pupil's district of residence. A pupil's 28

district of residence shall not require a high school tuition pupil, as provided under 29

section 111, to attend another school district after the pupil has been assigned to a school 30

district. 31

(17) "State school aid fund" means the state school aid fund established in section 11 32

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of article IX of the state constitution of 1963. 1

(18) "Taxable value" means the taxable value of property as determined under section 2

27a of the general property tax act, 1893 PA 206, MCL 211.27a. 3

(19) "Textbook" means a book, electronic book, or other instructional print or 4

electronic resource that is selected and approved by the governing board of a district or, 5

for an achievement school, by the chancellor of the achievement authority and that contains a 6

presentation of principles of a subject, or that is a literary work relevant to the study of 7

a subject required for the use of classroom pupils, or another type of course material that 8

forms the basis of classroom instruction. 9

(20) "Total state aid" or "total state school aid" means the total combined amount of 10

all funds due to a district, intermediate district, or other entity under all of the 11

provisions of this article. 12

Sec. 8b. (1) The department shall assign a district code to each public school academy 13

that is authorized under the revised school code and is eligible to receive funding under 14

this act ARTICLE within 30 days after a contract is submitted to the department by the 15

authorizing body of a public school academy. 16

(2) If the department does not assign a district code to a public school academy 17

within the 30-day period described in subsection (1), the district code the department shall 18

use to make payments under this act ARTICLE to the newly authorized public school academy 19

shall be a number that is equivalent to the sum of the last district code assigned to a 20

public school academy located in the same county as the newly authorized public school 21

academy plus 1. However, if there is not an existing public school academy located in the 22

same county as the newly authorized public school academy, then the district code the 23

department shall use to make payments under this act ARTICLE to the newly authorized public 24

school academy shall be a 5-digit number that has the county code in which the public school 25

academy is located as its first 2 digits, 9 as its third digit, 0 as its fourth digit, and 1 26

as its fifth digit. If the number of public school academies in a county grows to exceed 100, 27

the third digit in this 5-digit number shall then be 8 7 for the public school academies in 28

excess of 100. 29

Sec. 11. (1) For the fiscal year ending September 30, 2013, there is appropriated for 30

the public schools of this state and certain other state purposes relating to education the 31

sum of $10,928,614,200.00 from the state school aid fund and the sum of $282,400,000.00 from 32

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the general fund. For the fiscal year ending September 30, 2014 2015, there is appropriated 1

for the public schools of this state and certain other state purposes relating to education 2

the sum of $11,211,382,300.00 $11,790,976,900.00 from the state school aid fund, the sum of 3

$156,000,000.00 $18,000,000.00 from the MPSERS retirement obligation reform reserve fund 4

created under section 147b, and the sum of $234,900,000.00 $180,000,000.00 from the general 5

fund. In addition, all other available federal funds, except those otherwise appropriated 6

under section 11p, are appropriated for the fiscal year ending September 30, 2013 and for the 7

fiscal year ending September 30, 2014 2015. 8

(2) The appropriations under this section shall be allocated as provided in this 9

article. Money appropriated under this section from the general fund shall be expended to 10

fund the purposes of this article before the expenditure of money appropriated under this 11

section from the state school aid fund. 12

(3) Any general fund allocations under this article that are not expended by the end 13

of the state fiscal year are transferred to the school aid stabilization fund created under 14

section 11a. 15

Sec. 11a. (1) The school aid stabilization fund is created as a separate account 16

within the state school aid fund established by section 11 of article IX of the state 17

constitution of 1963. 18

(2) The state treasurer may receive money or other assets from any source for deposit 19

into the school aid stabilization fund. The state treasurer shall deposit into the school aid 20

stabilization fund all of the following: 21

(a) Unexpended and unencumbered state school aid fund revenue for a fiscal year that 22

remains in the state school aid fund as of the bookclosing for that fiscal year. 23

(b) Money statutorily dedicated to the school aid stabilization fund. 24

(c) Money appropriated to the school aid stabilization fund. 25

(3) Money available in the school aid stabilization fund may not be expended without a 26

specific appropriation from the school aid stabilization fund. Money in the school aid 27

stabilization fund shall be expended only for purposes for which state school aid fund money 28

may be expended. 29

(4) The state treasurer shall direct the investment of the school aid stabilization 30

fund. The state treasurer shall credit to the school aid stabilization fund interest and 31

earnings from fund investments. 32

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(5) Money in the school aid stabilization fund at the close of a fiscal year shall 1

remain in the school aid stabilization fund and shall not lapse to the unreserved school aid 2

fund balance or the general fund. 3

(6) If the maximum amount appropriated under section 11 from the state school aid fund 4

for a fiscal year exceeds the amount available for expenditure from the state school aid fund 5

for that fiscal year, there is appropriated from the school aid stabilization fund to the 6

state school aid fund an amount equal to the projected shortfall as determined by the 7

department of treasury, but not to exceed available money in the school aid stabilization 8

fund. If the money in the school aid stabilization fund is insufficient to fully fund an 9

amount equal to the projected shortfall, the state budget director shall notify the 10

legislature as required under section 296(2) and state payments in an amount equal to the 11

remainder of the projected shortfall shall be prorated in the manner provided under section 12

296(3). 13

(7) For 2013-2014 2014-2015, in addition to the appropriations in section 11, there is 14

appropriated from the school aid stabilization fund to the state school aid fund the amount 15

necessary to fully fund the allocations under this article. 16

Sec. 11g. (1) From the appropriation in section 11, there is allocated for this 17

section an amount not to exceed $39,500,000.00 for the fiscal year ending September 30, 2014 18

and for the fiscal year ending September 30, 2015, after which these payments will cease. 19

These allocations are for paying the amounts described in subsection (3) to districts and 20

intermediate districts, other than those receiving a lump-sum payment under section 11f(2), 21

that were not plaintiffs in the consolidated cases known as Durant v State of Michigan, 22

Michigan supreme court docket no. 104458-104492 and that, on or before March 2, 1998, 23

submitted to the state treasurer a waiver resolution described in section 11f. The amounts 24

paid under this section represent offers of settlement and compromise of any claim or claims 25

that were or could have been asserted by these districts and intermediate districts, as 26

described in this section. 27

(2) This section does not create any obligation or liability of this state to any 28

district or intermediate district that does not submit a waiver resolution described in 29

section 11f. This section and any other provision of this article are not intended to admit 30

liability or waive any defense that is or would be available to this state or its agencies, 31

employees, or agents in any litigation or future litigation with a district or intermediate 32

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district regarding these claims or potential claims. 1

(3) The amount paid each fiscal year to each district or intermediate district under 2

this section shall be 1 of the following: 3

(a) If the district or intermediate district does not borrow money and issue bonds 4

under section 11i, 1/30 of the total amount listed in section 11h for the district or 5

intermediate district through the fiscal year ending September 30, 2015. 6

(b) If the district or intermediate district borrows money and issues bonds under 7

section 11i, an amount in each fiscal year calculated by the department of treasury that is 8

equal to the debt service amount in that fiscal year on the bonds issued by that district or 9

intermediate district under section 11i and that will result in the total payments made to 10

all districts and intermediate districts in each fiscal year under this section being no more 11

than the amount appropriated under this section in each fiscal year. 12

(4) The entire amount of each payment under this section each fiscal year shall be 13

paid on May 15 of the applicable fiscal year or on the next business day following that date. 14

If a district or intermediate district borrows money and issues bonds under section 11i, the 15

district or intermediate district shall use funds received under this section to pay debt 16

service on bonds issued under section 11i. If a district or intermediate district does not 17

borrow money and issue bonds under section 11i, the district or intermediate district shall 18

use funds received under this section only for the following purposes, in the following order 19

of priority: 20

(a) First, to pay debt service on voter-approved bonds issued by the district or 21

intermediate district before the effective date of this section. 22

(b) Second, to pay debt service on other limited tax obligations. 23

(c) Third, for deposit into a sinking fund established by the district or intermediate 24

district under the revised school code. 25

(5) To the extent payments under this section are used by a district or intermediate 26

district to pay debt service on debt payable from millage revenues, and to the extent 27

permitted by law, the district or intermediate district may make a corresponding reduction in 28

the number of mills levied for debt service. 29

(6) A district or intermediate district may pledge or assign payments under this 30

section as security for bonds issued under section 11i, but shall not otherwise pledge or 31

assign payments under this section. 32

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(7) If a district eligible for payments under this section is dissolved under section 1

12 of the revised school code, MCL 380.12, the payment otherwise due to the dissolved 2

district under this section shall be paid instead to the intermediate district of the 3

dissolved district. The intermediate district of the dissolved district shall perform any 4

functions and responsibilities of the board and other officers of the dissolved district 5

necessary under this section on behalf of the dissolved district. As used in this subsection, 6

"dissolved district" and "receiving district" mean those terms as defined in section 20. 7

Sec. 11j. From the appropriation in section 11, there is allocated an amount not to 8

exceed $131,660,000.00 $142,600,000.00 for 2013-2014 2014-2015 for payments to the school 9

loan bond redemption fund in the department of treasury on behalf of districts and 10

intermediate districts. Notwithstanding section 296 or any other provision of this act, funds 11

allocated under this section are not subject to proration and shall be paid in full. 12

Sec. 11k. For 2013-2014 2014-2015, there is appropriated from the general fund to the 13

school loan revolving fund an amount equal to the amount of school bond loans assigned to the 14

Michigan finance authority, not to exceed the total amount of school bond loans held in 15

reserve as long-term assets. As used in this section, "school loan revolving fund" means that 16

fund created in section 16c of the shared credit rating act, 1985 PA 227, MCL 141.1066c. 17

Sec. 11m. From the appropriations in section 11, there is allocated for 2013-2014 18

2014-2015 an amount not to exceed $4,000,000.00 for fiscal year cash-flow borrowing costs 19

solely related to the state school aid fund established by section 11 of article IX of the 20

state constitution of 1963. 21

SEC. 11R. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT 22

TO EXCEED $10,000,000.00 TO BE DEPOSITED INTO THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND 23

CREATED UNDER THIS SECTION FOR THE PURPOSE OF FUNDING GRANTS UNDER THIS SECTION. 24

(2) THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND IS CREATED AS A SEPARATE ACCOUNT 25

WITHIN THE STATE SCHOOL AID FUND. THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS FROM 26

ANY SOURCE FOR DEPOSIT INTO THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND. THE STATE 27

TREASURER SHALL DIRECT THE INVESTMENT OF THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND AND 28

SHALL CREDIT TO THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND INTEREST AND EARNINGS FROM THE 29

FUND. 30

(3) A DISTRICT IS ELIGIBLE TO RECEIVE A GRANT FROM THE FUND IF EITHER OF THE FOLLOWING 31

APPLY: 32

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(A) THE DISTRICT HAS ADOPTED A RESOLUTION AUTHORIZING THE VOLUNTARY DISSOLUTION OF THE 1

DISTRICT APPROVED BY THE STATE TREASURER UNDER SECTION 12(1)(C) OF THE REVISED SCHOOL CODE, 2

MCL 380.12, BUT THE DISSOLUTION HAS NOT YET TAKEN EFFECT UNDER SECTION 12(2) OF THE REVISED 3

SCHOOL CODE, MCL 380.12. 4

(B) THE DISTRICT IS A RECEIVING DISTRICT UNDER SECTION 12 OF THE REVISED SCHOOL CODE, 5

MCL 380.12, AND THE DISTRICT ENROLLS PUPILS WHO WERE PREVIOUSLY ENROLLED IN A DISTRICT THAT 6

WAS DISSOLVED UNDER SECTION 12 OF THE REVISED SCHOOL CODE, MCL 380.12, IN THE PREVIOUS SCHOOL 7

YEAR. 8

(4) A DISTRICT RECEIVING FUNDS UNDER SECTION 20G IS NOT ELIGIBLE TO RECEIVE FUNDS 9

UNDER THIS SECTION. 10

(5) THE AMOUNT OF A GRANT UNDER THIS SECTION SHALL BE DETERMINED BY THE STATE 11

TREASURER AFTER CONSULTATION WITH THE SUPERINTENDENT OF PUBLIC INSTRUCTION, BUT SHALL NOT 12

EXCEED THE ESTIMATED AMOUNT OF REMAINING DISTRICT COSTS IN EXCESS OF AVAILABLE REVENUES, 13

INCLUDING, BUT NOT LIMITED TO, PAYROLL, BENEFITS, RETIREMENT SYSTEM CONTRIBUTIONS, PUPIL 14

TRANSPORTATION, FOOD SERVICES, SPECIAL EDUCATION, BUILDING SECURITY, AND OTHER COSTS 15

NECESSARY TO ALLOW THE DISTRICT TO OPERATE SCHOOLS DIRECTLY AND PROVIDE PUBLIC EDUCATION 16

SERVICES UNTIL THE END OF THE CURRENT SCHOOL FISCAL YEAR. FOR A DISTRICT THAT MEETS THE 17

ELIGIBILITY CRITERIA UNDER SUBSECTION (3)(B), THE AMOUNT OF THE GRANT SHALL BE DETERMINED IN 18

THE SAME MANNER AS TRANSITION COSTS UNDER SECTION 20G. 19

(6) MONEY IN THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND AT THE CLOSE OF THE FISCAL 20

YEAR SHALL REMAIN IN THE DISTRESSED DISTRICTS EMERGENCY GRANT FUND AND SHALL NOT LAPSE TO THE 21

STATE SCHOOL AID FUND OR TO THE GENERAL FUND. 22

Sec. 12. It is the intent of the legislature to appropriate and allocate for FOR the 23

fiscal year ending September 30, 2015 2016, the same amounts of money from the same sources 24

for the same purposes as are appropriated and allocated under this article for the fiscal 25

year ending September 30, 2014 2015, as adjusted for changes in pupil membership, taxable 26

values, special education costs, interest costs, RETIREMENT COSTS and available revenue. 27

These adjustments will be determined after the January 2014 2015 consensus revenue estimating 28

conference. 29

Sec. 15. (1) If a district or intermediate district fails to receive its proper 30

apportionment, the department, upon satisfactory proof that the district or intermediate 31

district was entitled justly, shall apportion the deficiency in the next apportionment. 32

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Subject to subsections (2) and (3), if a district or intermediate district has received more 1

than its proper apportionment, the department, upon satisfactory proof, shall deduct the 2

excess in the next apportionment. Notwithstanding any other provision in this article, state 3

aid overpayments to a district, other than overpayments in payments for special education or 4

special education transportation, may be recovered from any payment made under this article 5

other than a special education or special education transportation payment, from the proceeds 6

of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 7

141.942, or from the proceeds of millage levied or pledged under section 1211 of the revised 8

school code, MCL 380.1211. State aid overpayments made in special education or special 9

education transportation payments may be recovered from subsequent special education or 10

special education transportation payments, from the proceeds of a loan to the district under 11

the emergency municipal loan act, 1980 PA 243, MCL 141.931 to 141.942, or from the proceeds 12

of millage levied or pledged under section 1211 of the revised school code, MCL 380.1211. 13

(2) If the result of an audit conducted by or for the department affects the current 14

fiscal year membership, affected payments shall be adjusted in the current fiscal year. A 15

deduction due to an adjustment made as a result of an audit conducted by or for the 16

department, or as a result of information obtained by the department from the district, an 17

intermediate district, the department of treasury, or the office of auditor general, shall be 18

deducted from the district's apportionments when the adjustment is finalized. At the request 19

of the district and upon the district presenting evidence satisfactory to the department of 20

the hardship, the department may grant up to an additional 4 years for the adjustment and may 21

advance payments to the district otherwise authorized under this article if the district 22

would otherwise experience a significant hardship in satisfying its financial obligations. 23

(3) If, BASED ON AN AUDIT BY THE DEPARTMENT OR THE DEPARTMENT’S DESIGNEE OR because of 24

the receipt of new or updated data INFORMATION RECEIVED BY THE DEPARTMENT, the department 25

determines during a fiscal year that the amount paid to a district or intermediate district 26

under this article for THE CURRENT FISCAL YEAR OR a prior fiscal year was incorrect under the 27

law in effect for that year, the department may SHALL make the appropriate deduction or 28

payment in the district's or intermediate district's allocation for the fiscal year in which 29

the determination is made IN THE NEXT APPORTIONMENT AFTER THE ADJUSTMENT IS FINALIZED. The 30

deduction or payment shall be calculated according to the law in effect in the fiscal year in 31

which the improper INCORRECT amount was paid. If the district does not receive an allocation 32

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for the fiscal year or if the allocation is not sufficient to pay the amount of any 1

deduction, the amount of any deduction otherwise applicable shall be satisfied from the 2

proceeds of a loan to the district under the emergency municipal loan act, 1980 PA 243, MCL 3

141.931 to 141.942, or from the proceeds of millage levied or pledged under section 1211 of 4

the revised school code, MCL 380.1211, as determined by the department. 5

(4) THE DEPARTMENT MAY CONDUCT AUDITS, OR MAY DIRECT AUDITS BY DESIGNEE OF THE 6

DEPARTMENT, OF ALL RECORDS FOR THE CURRENT FISCAL YEAR AND THE PRECEDING THREE FISCAL YEARS 7

RELATED TO A PROGRAM FOR WHICH A DISTRICT OR INTERMEDIATE DISTRICT HAS RECEIVED FUNDS UNDER 8

THIS ARTICLE. 9

(5) (4) Expenditures made by the department under this article that are caused by the 10

write-off of prior year accruals may be funded by revenue from the write-off of prior year 11

accruals. 12

(6) (5) In addition to funds appropriated in section 11 for all programs and services, 13

there is appropriated for 2013-2014 2014-2015 for obligations in excess of applicable 14

appropriations an amount equal to the collection of overpayments, but not to exceed amounts 15

available from overpayments. 16

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

or intermediate district is entitled to receive under this act ARTICLE to the extent the 18

withholdings are a component part of a plan, developed and implemented pursuant to the 19

revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, THE EMERGENCY MUNICIPAL 20

LOAN ACT, 1980 PA 243, MCL 141.931 TO 141.942, THE LOCAL FINANCIAL STABILITY AND CHOICE ACT, 21

2012 PA 436, MCL 141.1541 TO 141.1575, or other statutory authority, for financing an 22

outstanding obligation upon which the district or intermediate district defaulted OR FOR 23

OTHER FINANCIAL OBLIGATIONS OF THE DISTRICT OR INTERMEDIATE DISTRICT. Amounts withheld shall 24

be used to pay, on behalf of the district or intermediate district, unpaid amounts or 25

subsequently due amounts, or both, of principal and interest on the outstanding obligation 26

upon which the district or intermediate district defaulted. 27

(2) The state treasurer may withhold all or part of any payment that a district or 28

intermediate district is entitled to receive under this act ARTICLE to the extent authorized 29

or required under section 15 of the school bond qualification, approval, and loan act, 2005 30

PA 92, MCL 388.1935, THE EMERGENCY MUNICIPAL LOAN ACT, 1980 PA 243, MCL 141.931 TO 141.942, 31

THE LOCAL FINANCIAL STABILITY AND CHOICE ACT, 2012 PA 436, MCL 141.1541 TO 141.1575, OR OTHER 32

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STATUTORY AUTHORITY. 1

(3) Under an agreement entered into by a district or intermediate district assigning 2

all or a portion of the payment that it is eligible to receive under this act ARTICLE to the 3

Michigan finance authority or to the trustee of a pooled arrangement or pledging the amount 4

for payment of an obligation it incurred with the Michigan finance authority or with the 5

trustee of a pooled arrangement, the state treasurer shall transmit to the Michigan finance 6

authority or a trustee designated by the Michigan finance authority or to the trustee of a 7

pooled arrangement OR OTHER DESIGNATED DEPOSITORY the amount of the payment that is assigned 8

or pledged under the agreement. 9

(4) If a district or intermediate district for which an emergency manager has been 10

appointed pursuant to IS IN PLACE UNDER the local financial stability and choice act, 2012 PA 11

436, MCL 141.1541 to 141.1575, or that has an approved deficit elimination plan OR AN 12

APPROVED ENHANCED DEFICIT ELIMINATION PLAN under section 102, enters into or has entered into 13

an agreement described in subsection (3) pursuant to section 1225(2) of the revised school 14

code, MCL 380.1225, whether the obligation was issued before or after the effective date of 15

this subsection, the portion of state school aid paid or to be paid on behalf of the district 16

or intermediate district directly to the Michigan finance authority, or to a trustee 17

designated by the Michigan finance authority, for the sole purpose of paying the principal of 18

and interest on the obligation is subject to a lien and trust that is a statutory lien and 19

trust, paramount and superior to all other liens and interests of any kind, for the sole 20

purpose of paying the principal of and interest on the obligation. The statutory lien and 21

trust applies to the state school aid received or to be received by the Michigan finance 22

authority, or trustee designated by the Michigan finance authority, on behalf of the district 23

or intermediate district, immediately upon the later of the effective date of this subsection 24

or the time when the state school aid is allocated to the district or intermediate district, 25

but is subject to any subsequent reduction of the state school aid allocation by operation of 26

law or executive order. The lien and trust imposed by this section with respect to state 27

school aid has a priority as established in the agreement, except that the agreement shall 28

not impair any existing lien and trust previously created pursuant to this section, including 29

any lien and trust applicable to a multi-year repayment agreement under section 1225 of the 30

revised school code, MCL 380.1225. Except as otherwise provided in this subsection, the lien 31

and trust created under this subsection for the benefit of holders of the obligation issued 32

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pursuant to this section is valid and binding against a party having a claim of any kind in 1

tort, contract, or otherwise against the district or intermediate district that has issued 2

the obligation secured by a pledge of state school aid pursuant to this section, regardless 3

of whether that party has notice of the pledge. A pledge made pursuant to this section for 4

the benefit of the holders of obligations or others is perfected without delivery, recording, 5

or notice. The state school aid paid or to be paid on behalf of a district or intermediate 6

district to the Michigan finance authority, or trustee designated by the Michigan finance 7

authority, shall be held in trust for the sole benefit of the holders of the obligation 8

issued pursuant to this section or section 1225 of the revised school code, MCL 380.1225, and 9

is exempt from being levied upon, taken, sequestered, or applied toward paying the debts or 10

liabilities of the district or intermediate district other than for payment of the obligation 11

to which the lien applies. However, nothing in this subsection alters the ability of the 12

state treasurer to withhold state school aid from a district or intermediate district as 13

provided by law. 14

(5) Notwithstanding the payment dates prescribed by this act ARTICLE for distributions 15

under this act ARTICLE, the state treasurer may advance all or part of a payment that is 16

dedicated for distribution or for which the appropriation authorizing the payment has been 17

made if and to the extent, under the terms of an agreement entered into by a district or 18

intermediate district and the Michigan finance authority, the payment that the district or 19

intermediate district is eligible to receive has been assigned to or pledged for payment of 20

an obligation it incurred with the Michigan finance authority. 21

(6) This section does not require the state to make an appropriation to any school 22

district or intermediate school district and shall not be construed as creating an 23

indebtedness of the state, and any agreement made pursuant to this section shall contain a 24

statement to that effect. 25

(7) As used in this section, "trustee of a pooled arrangement" means the trustee of a 26

trust approved by the state treasurer and, subject to the conditions and requirements of that 27

approval, established for the purpose of offering for sale, as part of a pooled arrangement, 28

certificates representing undivided interests in notes issued by districts or intermediate 29

districts under section 1225 of the revised school code, MCL 380.1225. (8) If a trustee 30

applies to the state treasurer for approval of a trust for the purposes of this section, the 31

state treasurer shall approve or disapprove the trust within 10 days after receipt of the 32

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application. 1

Sec. 18. (1) Except as provided in another section of this article, each district or 2

other entity shall apply the money received by the district or entity under this article to 3

salaries and other compensation of teachers and other employees, tuition, transportation, 4

lighting, heating, ventilation, water service, the purchase of textbooks, other supplies, and 5

any other school operating expenditures defined in section 7. However, not more than 20% of 6

the total amount received by a district UNDER SECTIONS 22A AND 22B or intermediate district 7

under this article UNDER SECTION 81 may be transferred by the board to either the capital 8

projects fund or to the debt retirement fund for debt service. The money shall not be applied 9

or taken for a purpose other than as provided in this section. The department shall determine 10

the reasonableness of expenditures and may withhold from a recipient of funds under this 11

article the apportionment otherwise due upon a violation by the recipient. 12

(2) Within 30 15 days after a board adopts its annual operating budget for the 13

following school fiscal year, or after a board adopts a subsequent revision to that budget, 14

the district shall make all of the following available through a link on its website home 15

page, or may make the information available through a link on its intermediate district's 16

website home page, in a form and manner prescribed by the department: 17

(a) The annual operating budget and subsequent budget revisions. 18

(b) Using data that have already been collected and submitted to the department, a 19

summary of district expenditures for the most recent fiscal year for which they are 20

available, expressed in the following 2 pie charts: 21

(i) A chart of personnel expenditures, broken into the following subcategories: 22

(A) Salaries and wages. 23

(B) Employee benefit costs, including, but not limited to, medical, dental, vision, 24

life, disability, and long-term care benefits. 25

(C) Retirement benefit costs. 26

(D) All other personnel costs. 27

(ii) A chart of all district expenditures, broken into the following subcategories: 28

(A) Instruction. 29

(B) Support services. 30

(C) Business and administration. 31

(D) Operations and maintenance. 32

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(c) Links to all of the following: 1

(i) The current collective bargaining agreement for each bargaining unit. 2

(ii) Each health care benefits plan, including, but not limited to, medical, dental, 3

vision, disability, long-term care, or any other type of benefits that would constitute 4

health care services, offered to any bargaining unit or employee in the district. 5

(iii) The audit report of the audit conducted under subsection (4) for the most recent 6

fiscal year for which it is available. 7

(iv) The bids required under section 5 of the public employee health benefits act, 8

2007 PA 106, MCL 124.75. 9

(d) The total salary and a description and cost of each fringe benefit included in the 10

compensation package for the superintendent of the district and for each employee of the 11

district whose salary exceeds $100,000.00. 12

(e) The annual amount spent on dues paid to associations. 13

(f) The annual amount spent on lobbying or lobbying services. As used in this 14

subdivision, "lobbying" means that term as defined in section 5 of 1978 PA 472, MCL 4.415. 15

(G) ANY DEFICIT ELIMINATION PLAN OR ENHANCED DEFICIT ELIMINATION PLAN THE DISTRICT WAS 16

REQUIRED TO SUBMIT UNDER THIS ARTICLE. 17

(3) For the information required under subsection (2)(a), (2)(b)(i), and (2)(c), an 18

intermediate district shall provide the same information in the same manner as required for a 19

district under subsection (2). 20

(4) For the purpose PURPOSES of determining the reasonableness of expenditures, 21

WHETHER A DISTRICT OR INTERMEDIATE DISTRICT HAS RECEIVED THE PROPER AMOUNT OF FUNDS UNDER 22

THIS ARTICLE, and whether a violation of this article has occurred, all of the following 23

apply: 24

(a) The department shall require that each district and intermediate district have an 25

audit of the district's or intermediate district's financial and pupil accounting records 26

conducted at least annually at the expense of the district or intermediate district, as 27

applicable, AND AT SUCH OTHER TIMES AS DETERMINED BY THE DEPARTMENT. AUDITS MUST BE PERFORMED 28

by a certified public accountant or by the intermediate district superintendent, as may be 29

required by the department, or in the case of a district of the first class by a certified 30

public accountant, the intermediate superintendent, or the auditor general of the city. 31

RECORDS SHALL BE RETAINED BY THE DISTRICT OR INTERMEDIATE DISTRICT FOR THE CURRENT FISCAL 32

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YEAR AND FOR THE THREE PREVIOUS FISCAL YEARS. 1

(b) If a district operates in a single building with fewer than 700 full-time equated 2

pupils, if the district has stable membership, and if the error rate of the immediately 3

preceding 2 pupil accounting field audits of the district is less than 2%, the district may 4

have a pupil accounting field audit conducted biennially but must continue to have desk 5

audits for each pupil count. The auditor must document compliance with the audit cycle in the 6

pupil auditing manual. As used in this subdivision, "stable membership" means that the 7

district's membership for the current fiscal year varies from the district's membership for 8

the immediately preceding fiscal year by less than 5%. 9

(c) A district's or intermediate district's annual financial audit shall include an 10

analysis of the financial and pupil accounting data used as the basis for distribution of 11

state school aid. 12

(d) The pupil and financial accounting records and reports, audits, and management 13

letters are subject to requirements established in the auditing and accounting manuals 14

approved and published by the department. 15

(e) All of the following shall be done not later than November OCTOBER 15 each year: 16

(i) A district shall file the annual financial audit reports with the intermediate 17

district and the department. 18

(ii) The intermediate district shall file the annual financial audit reports for the 19

intermediate district with the department. 20

(iii) The intermediate district shall enter the pupil membership audit reports for its 21

constituent districts and for the intermediate district, for the pupil membership count day 22

and supplemental count day, in the Michigan student data system. 23

(f) The annual financial audit reports and pupil accounting procedures reports shall 24

be available to the public in compliance with the freedom of information act, 1976 PA 442, 25

MCL 15.231 to 15.246. 26

(g) Not later than January 31 of each year, the department shall notify the state 27

budget director and the legislative appropriations subcommittees responsible for review of 28

the school aid budget of districts and intermediate districts that have not filed an annual 29

financial audit and pupil accounting procedures report required under this section for the 30

school year ending in the immediately preceding fiscal year. 31

(5) By November OCTOBER 15 of each year, each district and intermediate district shall 32

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submit to the center, in a manner prescribed by the center, annual comprehensive financial 1

data consistent with accounting manuals and charts of accounts approved and published by the 2

department. For an intermediate district, the report shall also contain the website address 3

where the department can access the report required under section 620 of the revised school 4

code, MCL 380.620. The department shall ensure that the prescribed Michigan public school 5

accounting manual chart of accounts includes standard conventions to distinguish expenditures 6

by allowable fund function and object. The functions shall include at minimum categories for 7

instruction, pupil support, instructional staff support, general administration, school 8

administration, business administration, transportation, facilities operation and 9

maintenance, facilities acquisition, and debt service; and shall include object 10

classifications of salary, benefits, including categories for active employee health 11

expenditures, purchased services, supplies, capital outlay, and other. Districts shall report 12

the required level of detail consistent with the manual as part of the comprehensive annual 13

financial report. 14

(6) By September 30 of each year, each district and intermediate district shall file 15

with the department the special education actual cost report, known as "SE-4096", on a form 16

and in the manner prescribed by the department. 17

(7) By October 7 of each year, each district and intermediate district shall file with 18

the center the transportation expenditure report, known as "SE-4094", on a form and in the 19

manner prescribed by the center. 20

(8) The department shall review its pupil accounting and pupil auditing manuals at 21

least annually and shall periodically update those manuals to reflect changes in this 22

article. 23

(9) If a district that is a public school academy purchases property using money 24

received under this article, the public school academy shall retain ownership of the property 25

unless the public school academy sells the property at fair market value. 26

(10) If a district or intermediate district does not comply with subsections (4), (5), 27

(6), and (7), the department shall withhold all state school aid due to the district or 28

intermediate district under this article, beginning with the next payment due to the district 29

or intermediate district, until the district or intermediate district complies with 30

subsections (4), (5), (6), and (7). If the district or intermediate district does not comply 31

with subsections (4), (5), (6), and (7) by the end of the fiscal year, the district or 32

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intermediate district forfeits the amount withheld. 1

(11) Not later than September 1, 2014, if a district or intermediate district offers 2

online learning, the district or intermediate district shall submit to the department a 3

report that details the per-pupil costs of operating the online learning. The report shall 4

include at least all of the following information concerning the operation of online learning 5

for the school fiscal year ending June 30, 2014: 6

(a) The name of the district operating the online learning and of each district that 7

enrolled students in the online learning. 8

(b) The total number of students enrolled in the online learning and the total number 9

of membership pupils enrolled in the online learning. 10

(c) For each pupil who is enrolled in a district other than the district offering 11

online learning, the name of that district. 12

(d) The district in which the pupil was enrolled before enrolling in the district 13

offering online learning. 14

(e) The number of participating students who had previously dropped out of school. 15

(f) The number of participating students who had previously been expelled from school. 16

(g) The total cost to enroll a student in the program. This cost shall be reported on 17

a per-pupil, per-course, per-semester or trimester basis. The total shall include costs 18

broken down by cost for training, personnel, hardware and software, payment to each online 19

learning provider, and other costs associated with operating online learning. 20

(h) The name of each online education provider contracted by the district and the 21

state in which each online education provider is headquartered. 22

Sec. 19. (1) A district or intermediate district shall comply with all applicable 23

reporting requirements specified in state and federal law. Data provided to the center, in a 24

form and manner prescribed by the center, shall be aggregated and disaggregated as required 25

by state and federal law. In addition, a district or intermediate district shall cooperate 26

with all measures taken by the center to establish and maintain a statewide P-20 longitudinal 27

data system. 28

(2) Each district shall furnish to the center not later than 5 weeks after the pupil 29

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

manner prescribed by the center, the information necessary for the preparation of the 31

district and high school graduation report. This information shall meet requirements 32

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established in the pupil auditing manual approved and published by the department. The center 1

shall calculate an annual graduation and pupil dropout rate for each high school, each 2

district, and this state, in compliance with nationally recognized standards for these 3

calculations. The center shall report all graduation and dropout rates to the senate and 4

house education committees and appropriations committees, the state budget director, and the 5

department not later than 30 days after the publication of the list described in subsection 6

(6). 7

(3) By the first business day in December and by June 30 of each year, a district 8

shall furnish to the center, in a manner prescribed by the center, information related to 9

educational personnel as necessary for reporting required by state and federal law. 10

(4) By June 30 of each year, a district shall furnish to the center, in a manner 11

prescribed by the center, information related to safety practices and criminal incidents as 12

necessary for reporting required by state and federal law. 13

(5) If a district or intermediate district fails to meet the requirements of this 14

section, the department shall withhold 5% of the total funds for which the district or 15

intermediate district qualifies under this article until the district or intermediate 16

district complies with all of those subsections. If the district or intermediate district 17

does not comply with all of those subsections by the end of the fiscal year, the department 18

shall place the amount withheld in an escrow account until the district or intermediate 19

district complies with all of those subsections. 20

(6) Before publishing a list of school or district accountability designations as 21

required by the no child left behind act of 2001, Public Law 107-110, the department shall 22

allow a school or district to appeal that determination. The department shall consider and 23

act upon the appeal within 30 days after it is submitted and shall not publish the list until 24

after all appeals have been considered and decided. 25

(7) It is the intent of the legislature to implement not later than 2014-2015 26

statewide standard reporting requirements for education data approved by the department in 27

conjunction with the center. The department shall work with the center, intermediate 28

districts, districts, and other interested stakeholders to develop recommendations on the 29

implementation of this policy change. A district or intermediate district shall implement the 30

statewide standard reporting requirements not later than 2014-2015 or when a district or 31

intermediate district updates its education data reporting system, whichever is later. 32

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Sec. 20. (1) For 2013-2014, 2014-2015: 1

(A) the EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, THE basic foundation 2

allowance is $8,049.00 $8,132.00. HOWEVER, FOR PURPOSES OF THE CALCULATION IN SUBSECTION (3), 3

THE BASIC FOUNDATION ALLOWANCE IS $8,077.00. 4

(B) THE MINIMUM FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR IS $7,187.00. 5

(2) The amount of each district's foundation allowance shall be calculated as provided 6

in this section, using a basic foundation allowance in the amount specified in subsection 7

(1). 8

(3) Except as otherwise provided in this section, the amount of a district's 9

foundation allowance shall be calculated as follows, using in all calculations the total 10

amount of the district's foundation allowance as calculated before any proration: 11

(a) For a district that had a foundation allowance for the immediately preceding state 12

fiscal year that was at least equal to the sum of $7,108.00 plus the total dollar amount of 13

all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the 14

lowest foundation allowance among all districts, MINIMUM FOUNDATION ALLOWANCE FOR THE 15

IMMEDIATELY PRECEDING STATE FISCAL YEAR but less than the basic foundation allowance for the 16

immediately preceding state fiscal year, the district shall receive a foundation allowance in 17

an amount equal to the sum of the greater of $6,966.00 or the district's foundation allowance 18

for the immediately preceding state fiscal year plus the difference between twice the dollar 19

amount of the adjustment from the immediately preceding state fiscal year to the current 20

state fiscal year made in the basic foundation allowance and [(the dollar amount of the 21

adjustment from the DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE 22

FISCAL YEAR AND BASIC FOUNDATION ALLOWANCE FOR THE immediately preceding state fiscal year to 23

the current state fiscal year made in the basic foundation allowance minus $10.00 $8.00) 24

times (the difference between the district's foundation allowance for the immediately 25

preceding state fiscal year and the sum of $7,108.00 plus the total dollar amount of all 26

adjustments made from 2006-2007 to the immediately preceding state fiscal year in the lowest 27

foundation allowance among all districts MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY 28

PRECEDING STATE FISCAL YEAR) divided by the difference between the basic foundation allowance 29

for the current state fiscal year and the sum of $7,108.00 plus the total dollar amount of 30

all adjustments made from 2006-2007 to the immediately preceding state fiscal year in the 31

lowest foundation allowance among all districts MINIMUM FOUNDATION ALLOWANCE FOR THE 32

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IMMEDIATELY PRECEDING STATE FISCAL YEAR]. For 2011-2012, for a district that had a foundation 1

allowance for the immediately preceding state fiscal year that was at least equal to the sum 2

of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the 3

immediately preceding state fiscal year in the lowest foundation allowance among all 4

districts, but less than the basic foundation allowance for the immediately preceding state 5

fiscal year, the district shall receive a foundation allowance in an amount equal to the 6

district's foundation allowance for 2010-2011, minus $470.00. However, the foundation 7

allowance for a district that had less than the basic foundation allowance for the 8

immediately preceding state fiscal year shall not exceed the basic foundation allowance for 9

the current state fiscal year. 10

(b) Except as otherwise provided in this subsection, for a district that in the 11

immediately preceding state fiscal year had a foundation allowance in an amount at least 12

equal to the amount of the basic foundation allowance for the immediately preceding state 13

fiscal year, the district shall receive a foundation allowance for 2011-2012 in an amount 14

equal to the district's foundation allowance for 2010-2011, minus $470.00. 15

(B) (c) Except as otherwise provided in subdivision (d), for FOR a district that in 16

the 1994-95 state fiscal year had a foundation allowance FOR THE IMMEDIATELY PRECEDING STATE 17

FISCAL YEAR THAT WAS AT LEAST EQUAL TO OR greater than $6,500.00 THE BASIC FOUNDATION 18

ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, the district's foundation 19

allowance is an amount equal to the sum of the district's foundation allowance for the 20

immediately preceding state fiscal year plus the lesser of the increase in the basic 21

foundation allowance for the current state fiscal year, as compared to the immediately 22

preceding state fiscal year, or the product of the district's foundation allowance for the 23

immediately preceding state fiscal year times the percentage increase in the United States 24

consumer price index in the calendar year ending in the immediately preceding fiscal year as 25

reported by the May revenue estimating conference conducted under section 367b of the 26

management and budget act, 1984 PA 431, MCL 18.1367b. Except as otherwise provided in 27

subdivision (d), for 2011-2012, for a district that in the 1994-1995 state fiscal year had a 28

foundation allowance greater than $6,500.00, the district's foundation allowance is an amount 29

equal to the district's foundation allowance for the 2010-2011 fiscal year minus $470.00. 30

(d) For a district that in the 1994-95 state fiscal year had a foundation allowance 31

greater than $6,500.00 and that had a foundation allowance for the 2009-2010 state fiscal 32

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year, as otherwise calculated under this section, that was less than the basic foundation 1

allowance, the district's foundation allowance for 2011-2012 and each succeeding fiscal year 2

shall be considered to be an amount equal to the basic foundation allowance. 3

(C) (e) For a district that has a foundation allowance that is not a whole dollar 4

amount, the district's foundation allowance shall be rounded up to the nearest whole dollar. 5

(f) For a district that received a payment under section 22c as that section was in 6

effect for 2001-2002, the district's 2001-2002 foundation allowance shall be considered to 7

have been an amount equal to the sum of the district's actual 2001-2002 foundation allowance 8

as otherwise calculated under this section plus the per pupil amount of the district's equity 9

payment for 2001-2002 under section 22c as that section was in effect for 2001-2002. 10

(D) (g) For a district that received a payment under section 22c as that section was 11

in effect for 2006-2007 2013-2014, the district's 2013-2014 foundation allowance shall be 12

considered to have been an amount equal to the sum of the district's actual 2006-2007 2013-13

2014 foundation allowance as otherwise calculated under this section plus the per pupil 14

amount of the district's equity payment for 2006-2007 2013-2014 under section 22c as that 15

section was in effect for 2006-2007 2013-2014. 16

(h) For 2012-2013, for a district that had a foundation allowance for the 2011-2012 17

state fiscal year of less than $6,966.00, the district's foundation allowance is an amount 18

equal to $6,966.00. 19

(E) FOR 2014-2015, EACH DISTRICT’S FOUNDATION ALLOWANCE SHALL BE THE SUM OF THE 20

FOUNDATION ALLOWANCE OTHERWISE CALCULATED UNDER THIS SUBSECTION AND $55.00. 21

(4) Except as otherwise provided in this subsection, the state portion of a district's 22

foundation allowance is an amount equal to the district's foundation allowance or the basic 23

foundation allowance for the current state fiscal year, whichever is less, minus the 24

difference between the sum of the product of the taxable value per membership pupil of all 25

property in the district that is nonexempt property times the district's certified mills and, 26

for a district with certified mills exceeding 12, the product of the taxable value per 27

membership pupil of property in the district that is commercial personal property times the 28

certified mills minus 12 mills and the quotient of the ad valorem property tax revenue of the 29

district captured under tax increment financing acts LOCAL PORTION OF THE DISTRICT’S 30

FOUNDATION ALLOWANCE divided by the district's membership excluding special education pupils. 31

For a district described in subsection (3)(c) THAT IN THE 1994-95 STATE FISCAL YEAR HAD A 32

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FOUNDATION ALLOWANCE GREAT THAN $6,500.00, the state portion of the district's foundation 1

allowance is an amount equal to $6,962.00 plus the difference between the district's 2

foundation allowance for the current state fiscal year and the district's foundation 3

allowance for 1998-99, minus the difference between the sum of the product of the taxable 4

value per membership pupil of all property in the district that is nonexempt property times 5

the district's certified mills and, for a district with certified mills exceeding 12, the 6

product of the taxable value per membership pupil of property in the district that is 7

commercial personal property times the certified mills minus 12 mills and the quotient of the 8

ad valorem property tax revenue of the district captured under tax increment financing acts 9

LOCAL PORTION OF THE DISTRICT’S FOUNDATION ALLOWANCE divided by the district's membership 10

excluding special education pupils. For a district that has a millage reduction required 11

under section 31 of article IX of the state constitution of 1963, the state portion of the 12

district's foundation allowance shall be calculated as if that reduction did not occur. For a 13

receiving district, if school operating taxes continue to be levied on behalf of a dissolved 14

district that has been attached in whole or in part to the receiving district to satisfy debt 15

obligations of the dissolved district under section 12 of the revised school code, MCL 16

380.12, the taxable value per membership pupil of property in the receiving district used for 17

the purposes of this subsection , does not include the taxable value of property within the 18

geographic area of the dissolved district. 19

(5) The allocation calculated under this section for a pupil shall be based on the 20

foundation allowance of the pupil's district of residence. For a pupil enrolled pursuant to 21

section 105 or 105c in a district other than the pupil's district of residence, the 22

allocation calculated under this section shall be based on the lesser of the foundation 23

allowance of the pupil's district of residence or the foundation allowance of the educating 24

district. For a pupil in membership in a K-5, K-6, or K-8 district who is enrolled in another 25

district in a grade not offered by the pupil's district of residence, the allocation 26

calculated under this section shall be based on the foundation allowance of the educating 27

district if the educating district's foundation allowance is greater than the foundation 28

allowance of the pupil's district of residence. 29

(6) Except as otherwise provided in this subsection, for pupils in membership, other 30

than special education pupils, in a public school academy, the allocation calculated under 31

this section is an amount per membership pupil other than special education pupils in the 32

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public school academy equal to the foundation allowance of the district in which the public 1

school academy is located or the state maximum public school academy allocation, whichever is 2

less. However, a public school academy that had an allocation under this subsection before 3

2009-2010 that was equal to the sum of the local school operating revenue per membership 4

pupil other than special education pupils for the district in which the public school academy 5

is located and the state portion of that district's foundation allowance shall not have that 6

allocation reduced as a result of the 2010 amendment to this subsection. Notwithstanding 7

section 101, for a public school academy that begins operations after the pupil membership 8

count day, the amount per membership pupil calculated under this subsection shall be adjusted 9

by multiplying that amount per membership pupil by the number of hours of pupil instruction 10

provided by the public school academy after it begins operations, as determined by the 11

department, divided by the minimum number of hours of pupil instruction required under 12

section 101(3). The result of this calculation shall not exceed the amount per membership 13

pupil otherwise calculated under this subsection. 14

(7) Except as otherwise provided in this subsection, for pupils attending an 15

achievement school and in membership in the education achievement system, other than special 16

education pupils, the allocation calculated under this section is an amount per membership 17

pupil other than special education pupils equal to the foundation allowance of the district 18

in which the achievement school is located, not to exceed the basic foundation allowance. 19

Notwithstanding section 101, for an achievement school that begins operation after the pupil 20

membership count day, the amount per membership pupil calculated under this subsection shall 21

be adjusted by multiplying that amount per membership pupil by the number of hours of pupil 22

instruction provided by the achievement school after it begins operations, as determined by 23

the department, divided by the minimum number of hours of pupil instruction required under 24

section 101(3). The result of this calculation shall not exceed the amount per membership 25

pupil otherwise calculated under this subsection. For the purposes of this subsection, if a 26

public school is transferred from a district to the state school reform/redesign district or 27

the achievement authority under section 1280c of the revised school code, MCL 380.1280c, that 28

public school is considered to be an achievement school within the education achievement 29

system and not a school that is part of a district, and a pupil attending that public school 30

is considered to be in membership in the education achievement system and not in membership 31

in the district that operated the school before the transfer. 32

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(8) Subject to subsection (4), for a district that is formed or reconfigured after 1

June 1, 2002 by consolidation of 2 or more districts or by annexation, the resulting 2

district's foundation allowance under this section beginning after the effective date of the 3

consolidation or annexation shall be the lesser of the sum of the average of the foundation 4

allowances of each of the original or affected districts, calculated as provided in this 5

section, weighted as to the percentage of pupils in total membership in the resulting 6

district who reside in the geographic area of each of the original or affected districts plus 7

$100.00 or the highest foundation allowance among the original or affected districts. This 8

subsection does not apply to a receiving district unless there is a subsequent consolidation 9

or annexation that affects the district. 10

(9) Each fraction used in making calculations under this section shall be rounded to 11

the fourth decimal place and the dollar amount of an increase in the basic foundation 12

allowance shall be rounded to the nearest whole dollar. 13

(10) State payments related to payment of the foundation allowance for a special 14

education pupil are not calculated under this section but are instead calculated under 15

section 51a. 16

(11) To assist the legislature in determining the basic foundation allowance for the 17

subsequent state fiscal year, each revenue estimating conference conducted under section 367b 18

of the management and budget act, 1984 PA 431, MCL 18.1367b, shall calculate a pupil 19

membership factor, a revenue adjustment factor, and an index as follows: 20

(a) The pupil membership factor shall be computed by dividing the estimated membership 21

in the school year ending in the current state fiscal year, excluding intermediate district 22

membership, by the estimated membership for the school year ending in the subsequent state 23

fiscal year, excluding intermediate district membership. If a consensus membership factor is 24

not determined at the revenue estimating conference, the principals of the revenue estimating 25

conference shall report their estimates to the house and senate subcommittees responsible for 26

school aid appropriations not later than 7 days after the conclusion of the revenue 27

conference. 28

(b) The revenue adjustment factor shall be computed by dividing the sum of the 29

estimated total state school aid fund revenue for the subsequent state fiscal year plus the 30

estimated total state school aid fund revenue for the current state fiscal year, adjusted for 31

any change in the rate or base of a tax the proceeds of which are deposited in that fund and 32

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excluding money transferred into that fund from the countercyclical budget and economic 1

stabilization fund under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, 2

by the sum of the estimated total school aid fund revenue for the current state fiscal year 3

plus the estimated total state school aid fund revenue for the immediately preceding state 4

fiscal year, adjusted for any change in the rate or base of a tax the proceeds of which are 5

deposited in that fund. If a consensus revenue factor is not determined at the revenue 6

estimating conference, the principals of the revenue estimating conference shall report their 7

estimates to the house and senate subcommittees responsible for school aid appropriations not 8

later than 7 days after the conclusion of the revenue conference. 9

(c) The index shall be calculated by multiplying the pupil membership factor by the 10

revenue adjustment factor. If a consensus index is not determined at the revenue estimating 11

conference, the principals of the revenue estimating conference shall report their estimates 12

to the house and senate subcommittees responsible for school aid appropriations not later 13

than 7 days after the conclusion of the revenue conference. 14

(12) For a district that received a grant under former section 32e for 2001-2002, the 15

district's foundation allowance for 2002-2003 and each succeeding fiscal year shall be 16

adjusted to be an amount equal to the sum of the district's foundation allowance, as 17

otherwise calculated under this section, plus the quotient of 100% of the amount of the grant 18

award to the district for 2001-2002 under former section 32e divided by the number of pupils 19

in the district's membership for 2001-2002 who were residents of and enrolled in the 20

district. All of the following apply to districts receiving a foundation allowance adjustment 21

under this subsection: 22

(a) Except as otherwise provided in this subdivision, a district qualifying for a 23

foundation allowance adjustment under this subsection shall use the funds resulting from this 24

adjustment for at least 1 of grades K to 3 for purposes allowable under former section 32e as 25

in effect for 2001-2002. For an individual school or schools operated by a district 26

qualifying for a foundation allowance adjustment under this subsection that have been 27

determined by the department to meet the adequate yearly progress standards of the federal no 28

child left behind act of 2001, Public Law 107-110, in both mathematics and English language 29

arts at all applicable grade levels for all applicable subgroups, the district may submit to 30

the department an application for flexibility in using the funds resulting from this 31

adjustment that are attributable to the pupils in the school or schools. The application 32

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shall identify the affected school or schools and the affected funds and shall contain a plan 1

for using the funds for specific purposes identified by the district that are designed to 2

reduce class size, but that may be different from the purposes otherwise allowable under this 3

subdivision. The department shall approve the application if the department determines that 4

the purposes identified in the plan are reasonably designed to reduce class size. If the 5

department does not act to approve or disapprove an application within 30 days after it is 6

submitted to the department, the application is considered to be approved. If an application 7

for flexibility in using the funds is approved, the district may use the funds identified in 8

the application for any purpose identified in the plan. 9

(b) A district receiving an adjustment under this subsection shall not receive as a 10

result of this adjustment an amount that exceeds 68.5% of the amount the district received as 11

a result of this adjustment for 2010-2011. 12

(c) Notwithstanding subsection (8), for a district that is formed or reconfigured by 13

consolidation of 2 or more districts, 1 of which received an adjustment under this subsection 14

for 2012-2013, the resulting district's foundation allowance for 2013-2014 and each 15

succeeding fiscal year shall be adjusted to be an amount equal to the sum of the resulting 16

district's foundation allowance as calculated under subsection (8) excluding any adjustment 17

calculated under this subsection plus [(the original district's adjustment under this 18

subsection in 2012-2013 times the number of pupils in the original district's membership for 19

2012-2013) divided by the number of pupils in the resulting district's membership for 2013-20

2014]. 21

(d) Beginning in 2013-2014, for a district that received an adjustment for the 22

immediately preceding fiscal year and that had a foundation allowance as adjusted by this 23

subsection for the immediately preceding fiscal year equal to $6,966.00, the district shall 24

not receive an adjustment under this section for the current fiscal year. 25

(12) (13) Payments to districts, public school academies, or the education achievement 26

system shall not be made under this section. Rather, the calculations under this section 27

shall be used to determine the amount of state payments under section 22b. 28

(13) (14) If an amendment to section 2 of article VIII of the state constitution of 29

1963 allowing state aid to some or all nonpublic schools is approved by the voters of this 30

state, each foundation allowance or per pupil payment calculation under this section may be 31

reduced. 32

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(14) (15) As used in this section: 1

(a) "Certified mills" means the lesser of 18 mills or the number of mills of school 2

operating taxes levied by the district in 1993-94. 3

(b) "Combined state and local revenue" means the aggregate of the district's state 4

school aid received by or paid on behalf of the district under this section and the 5

district's local school operating revenue. 6

(c) "Combined state and local revenue per membership pupil" means the district's 7

combined state and local revenue divided by the district's membership excluding special 8

education pupils. 9

(d) "Current state fiscal year" means the state fiscal year for which a particular 10

calculation is made. 11

(e) "Dissolved district" means a district that loses its organization, has its 12

territory attached to 1 or more other districts, and is dissolved as provided under section 13

12 of the revised school code, MCL 380.12. 14

(f) "Immediately preceding state fiscal year" means the state fiscal year immediately 15

preceding the current state fiscal year. 16

(G) “LOCAL PORTION OF THE DISTRICT’S FOUNDATION ALLOWANCE” MEANS AN AMOUNT THAT IS 17

EQUAL TO THE DIFFERENCE BETWEEN THE SUM OF THE PRODUCT OF THE TAXABLE VALUE PER MEMBERSHIP 18

PUPIL OF ALL PROPERTY IN THE DISTRICT THAT IS NONEXEMPT PROPERTY TIMES THE DISTRICT’S 19

CERTIFIED MILLS AND, FOR A DISTRICT WITH CERTIFIED MILLS EXCEEDING 12, THE PRODUCT OF THE 20

TAXABLE VALUE PER MEMBERSHIP PUPIL OF PROPERTY IN THE DISTRICT THAT IS COMMERCIAL PERSONAL 21

PROPERTY TIMES THE CERTIFIED MILLS MINUS 12 MILLS AND THE QUOTIENT OF THE PRODUCT OF THE 22

CAPTURED ASSESSED VALUATION UNDER TAX INCREMENT FINANCING ACTS TIMES THE DISTRICT’S CERTIFIED 23

MILLS DIVIDED BY THE DISTRICT’S MEMBERSHIP EXCLUDING SPECIAL EDUCATION PUPILS. 24

(H) (g) "Local school operating revenue" means school operating taxes levied under 25

section 1211 of the revised school code, MCL 380.1211. For a receiving district, if school 26

operating taxes are to be levied on behalf of a dissolved district that has been attached in 27

whole or in part to the receiving district to satisfy debt obligations of the dissolved 28

district under section 12 of the revised school code, MCL 380.12, local school operating 29

revenue does not include school operating taxes levied within the geographic area of the 30

dissolved district. 31

(I) (h) "Local school operating revenue per membership pupil" means a district's local 32

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school operating revenue divided by the district's membership excluding special education 1

pupils. 2

(J) (i) "Maximum public school academy allocation", except as otherwise provided in 3

this subdivision, means the maximum per-pupil allocation as calculated by adding the highest 4

per-pupil allocation among all public school academies for the immediately preceding state 5

fiscal year plus the difference between twice the dollar amount of the adjustment from AMOUNT 6

OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT STATE FISCAL YEAR 7

AND THE BASIC FOUNDATION FOR the immediately preceding state fiscal year to the current state 8

fiscal year made in the basic foundation allowance and [(the dollar amount of the adjustment 9

from the AMOUNT OF THE DIFFERENCE BETWEEN THE BASIC FOUNDATION ALLOWANCE FOR THE CURRENT 10

STATE FISCAL YEAR AND THE BASIC FOUNDATION FOR THE immediately preceding state fiscal year to 11

the current state fiscal year made in the basic foundation allowance minus $10.00 $8.00) 12

times (the difference between the highest per-pupil allocation among all public school 13

academies for the immediately preceding state fiscal year and the sum of $7,108.00 plus the 14

total dollar amount of all adjustments made from 2006-2007 to the immediately preceding state 15

fiscal year in the lowest per-pupil allocation among all public school academies MINIMUM 16

FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR) divided by the 17

difference between the basic foundation allowance for the current state fiscal year and the 18

sum of $7,108.00 plus the total dollar amount of all adjustments made from 2006-2007 to the 19

immediately preceding state fiscal year in the lowest per-pupil allocation among all public 20

school academies MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL 21

YEAR]. 22

(K) (j) "Membership" means the definition of that term under section 6 as in effect 23

for the particular fiscal year for which a particular calculation is made. 24

(L) “MINIMUM FOUNDATION ALLOWANCE FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR,” 25

MEANS $7,076.00. 26

(M) (k) "Nonexempt property" means property that is not a principal residence, 27

qualified agricultural property, qualified forest property, supportive housing property, 28

industrial personal property, or commercial personal property. 29

(N) (l) "Principal residence", "qualified agricultural property", "qualified forest 30

property", "supportive housing property", "industrial personal property", and "commercial 31

personal property" mean those terms as defined in section 1211 of the revised school code, 32

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MCL 380.1211. 1

(O) (m) "Receiving district" means a district to which all or part of the territory of 2

a dissolved district is attached under section 12 of the revised school code, MCL 380.12. 3

(P) (n) "School operating purposes" means the purposes included in the operation costs 4

of the district as prescribed in sections 7 and 18 and purposes authorized under section 1211 5

of the revised school code, MCL 380.1211. 6

(Q) (o) "School operating taxes" means local ad valorem property taxes levied under 7

section 1211 of the revised school code, MCL 380.1211, and retained for school operating 8

purposes. 9

(R) (p) "Tax increment financing acts" means 1975 PA 197, MCL 125.1651 to 125.1681, 10

the tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local 11

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield 12

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor 13

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899. 14

(S) (q) "Taxable value per membership pupil" means taxable value, as certified by the 15

department of treasury COUNTY TREASURER AND REPORTED TO THE DEPARTMENT, for the calendar year 16

ending in the current state fiscal year divided by the district's membership excluding 17

special education pupils for the school year ending in the current state fiscal year. 18

Sec. 20d. In making the final determination required under former section 20a of a 19

district's combined state and local revenue per membership pupil in 1993-94 and in making 20

calculations under section 20 for 2013-2014 2014-2015, the department and the department of 21

treasury shall comply with all of the following: 22

(a) For a district that had combined state local revenue per membership pupil in the 23

1994-95 state fiscal year of $6,500.00 or more and served as a fiscal agent for a state board 24

designated area vocational education center in the 1993-94 school year, total state school 25

aid received by or paid on behalf of the district pursuant to this act in 1993-94 shall 26

exclude payments made under former section 146 and under section 147 on behalf of the 27

district's employees who provided direct services to the area vocational education center. 28

Not later than June 30, 1996, the department shall make an adjustment under this subdivision 29

to the district's combined state and local revenue per membership pupil in the 1994-95 state 30

fiscal year and the department of treasury shall make a final certification of the number of 31

mills that may be levied by the district under section 1211 of the revised school code, MCL 32

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380.1211, as a result of the adjustment under this subdivision. 1

(b) If a district had an adjustment made to its 1993-94 total state school aid that 2

excluded payments made under former section 146 and under section 147 on behalf of the 3

district's employees who provided direct services for intermediate district center programs 4

operated by the district under article 5, if nonresident pupils attending the center programs 5

were included in the district's membership for purposes of calculating the combined state and 6

local revenue per membership pupil for 1993-94, and if there is a signed agreement by all 7

constituent districts of the intermediate district that an adjustment under this subdivision 8

shall be made, the foundation allowances for 1995-96 and 1996-97 of all districts that had 9

pupils attending the intermediate district center program operated by the district that had 10

the adjustment shall be calculated as if their combined state and local revenue per 11

membership pupil for 1993-94 included resident pupils attending the center program and 12

excluded nonresident pupils attending the center program. 13

Sec. 20f. (1) From the funds appropriated in section 11, there is allocated an amount 14

not to exceed $6,000,000.00 for 2013-2014 2014-2015 for payments to eligible districts under 15

this section. A district is eligible for funding under this section if the sum of the 16

following is less than $5.00: 17

(a) The increase in the district's foundation allowance or per pupil payment as 18

calculated under section 20 from 2012-2013 to 2013-2014. 19

(b) The district's equity payment per membership pupil under section 22c. 20

(c) The quotient of the district's allocation under section 147a for 2012-2013 divided 21

by the district's membership pupils for 2012-2013 minus the quotient of the district's 22

allocation under section 147a for 2013-2014 divided by the district's membership pupils for 23

2013-2014 DISTRICT RECEIVED A PAYMENT UNDER THIS SECTION AS IT WAS IN EFFECT FOR 2013-2014. 24

(2) The amount allocated to each eligible district under this section is an amount per 25

membership pupil equal to $5.00 minus the sum of the following: 26

(a) The increase in the district's foundation allowance or per pupil payment as 27

calculated under section 20 from 2012-2013 to 2013-2014. 28

(b) The district's equity payment per membership pupil under section 22c. 29

(c) The quotient of the district's allocation under section 147a for 2012-2013 divided 30

by the district's membership pupils for 2012-2013 minus the quotient of the district's 31

allocation under section 147a for 2013-2014 divided by the district's membership pupils for 32

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2013-2014 THE AMOUNT PER MEMBERSHIP PUPIL THE DISTRICT RECEIVED IN 2013-2014. 1

(3) IF THE ALLOCATION UNDER SUBSECTION (1) IS INSUFFICIENT TO FULLY FUND PAYMENTS AS 2

OTHERWISE CALCULATED UNDER THIS SECTION, THE DEPARTMENT SHALL PRORATE PAYMENTS UNDER THIS 3

SECTION ON AN EQUAL PER-PUPIL BASIS. 4

Sec. 20g. (1) From the general fund money FUNDS appropriated under section 11, there 5

is allocated an amount not to exceed $2,200,000.00 for 2013-2014 2014-2015 for grants to 6

eligible districts for transition costs related to the enrollment of pupils who were 7

previously enrolled in a district that was dissolved under section 12 of the revised school 8

code, MCL 380.12 AND FIRST RECEIVED PAYMENTS UNDER THIS SECTION IN 2013-2014. It is the 9

intent of the legislature to continue this transition funding FUNDING UNDER THIS SECTION WILL 10

CONTINUE for a total of 4 fiscal years following the dissolution of a district, AT WHICH TIME 11

PAYMENTS WILL CEASE. 12

(2) A receiving school district, as that term is defined in section 12 of the revised 13

school code, MCL 380.12, is an eligible district under this section. 14

(3) The amount allocated to each eligible district under this section is an amount 15

equal to the product of the number of membership pupils enrolled in the eligible district who 16

were previously enrolled in the dissolved district in the school year immediately preceding 17

the dissolution, or who reside in the geographic area of the dissolved district and are 18

entering kindergarten, times 10.0% of the lesser of the foundation allowance of the eligible 19

district as calculated under section 20 or the basic foundation allowance under section 20

20(1). 21

Sec. 21f. (1) A pupil enrolled in a district in any of grades 5 7 to 12 is eligible 22

to enroll in an online course as provided for in this section. However, this section does not 23

apply to a pupil enrolled in a school of excellence that is a cyber school, as defined in 24

section 551 of the revised school code, MCL 380.551. 25

(2) With the consent of the pupil's parent or legal guardian, a district shall enroll 26

an eligible pupil in up to 2 online courses as DEFINED IN THIS SECTION AND requested by the 27

pupil during an academic term, semester, or trimester. It is the intent of the legislature to 28

consider increasing the limit on the number of online courses that a pupil may enroll in 29

beginning in 2014-2015 for pupils who have demonstrated previous success with online courses. 30

A DISTRICT MAY NOT ESTABLISH ADDITIONAL REQUIREMENTS WHICH WOULD PROHIBIT A PUPIL FROM TAKING 31

AN ONLINE COURSE. IF A PUPIL HAS DEMONSTRATED PREVIOUS SUCCESS WITH ONLINE COURSES AND THE 32

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SCHOOL LEADERSHIP AND THE PUPIL'S PARENT OR GUARDIAN DETERMINE THAT IT IS IN THE BEST 1

INTEREST OF THE PUPIL, A PUPIL MAY BE ENROLLED IN MORE THAN 2 ONLINE COURSES IN A SPECIFIC 2

ACADEMIC TERM, SEMESTER, OR TRIMESTER. Consent of the pupil's parent or legal guardian is not 3

required if the pupil is at least age 18 or is an emancipated minor. 4

(3) An eligible pupil may enroll in an online course published in the pupil's 5

educating district's catalog of online courses described in subsection (7)(a) or the 6

statewide catalog of online courses maintained by the Michigan virtual university pursuant to 7

section 98. 8

(4) A district shall determine whether or not it has capacity to accept applications 9

for enrollment from nonresident applicants in online courses and may use that limit as the 10

reason for refusal to enroll an applicant. If the number of nonresident applicants eligible 11

for acceptance in an online course does not exceed the capacity of the district to provide 12

the online course, the district shall accept for enrollment all of the nonresident applicants 13

eligible for acceptance. If the number of nonresident applicants exceeds the district's 14

capacity to provide the online course, the district shall use a random draw system, subject 15

to the need to abide by state and federal antidiscrimination laws and court orders. 16

(5) A district may deny a pupil enrollment in an online course if any of the following 17

apply, as determined by the district: 18

(a) The pupil has previously gained the credits provided from the completion of the 19

online course. 20

(b) The online course is not capable of generating academic credit. 21

(c) The online course is inconsistent with the remaining graduation requirements or 22

career interests of the pupil. 23

(d) The pupil does not possess the prerequisite knowledge and skills to be successful 24

in the online course or has demonstrated failure in previous online coursework in the same 25

subject. 26

(e) The online course is of insufficient quality or rigor. A district that denies a 27

pupil enrollment for this reason shall make a reasonable effort to assist the pupil to find 28

an alternative course in the same or a similar subject that is of acceptable rigor and 29

quality. 30

(F) IF THE COST OF THE ONLINE COURSE EXCEEDS THE AMOUNT IDENTIFIED IN SUBSECTION (8). 31

(G) THE ONLINE COURSE ENROLLMENT REQUEST DOES NOT OCCUR WITHIN THE SAME TIMELINES 32

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ESTABLISHED BY THE DISTRICT FOR FACE-TO-FACE ENROLLMENT AND SCHEDULE CHANGES. 1

(6) If a pupil is denied enrollment in an online course by a district, the pupil may 2

appeal the denial by submitting a letter to the superintendent of the intermediate district 3

in which the pupil's educating district is located. The letter of appeal shall include the 4

reason provided by the district for not enrolling the pupil and the reason why the pupil is 5

claiming that the enrollment should be approved. The intermediate district superintendent or 6

designee shall respond to the appeal within 5 days after it is received. If the intermediate 7

district superintendent or designee determines that the denial of enrollment does not meet 1 8

or more of the reasons specified in subsection (5), the district shall allow the pupil to 9

enroll in the online course. 10

(7) To offer or provide an online course UNDER THIS SECTION, a district OR 11

INTERMEDIATE DISTRICT shall do all of the following: 12

(a) Provide the Michigan virtual university with the course syllabus in a form and 13

method prescribed by the Michigan virtual university for inclusion in a statewide online 14

course catalog. The district OR INTERMEDIATE DISTRICT shall also provide on its publicly 15

accessible website a link to the course syllabi for all of the online courses offered by the 16

district OR INTERMEDIATE DISTRICT and a link to the statewide catalog of online courses 17

maintained by the Michigan virtual university. 18

(b) Offer the online course on an open entry and exit method, or aligned to a 19

semester, trimester, or accelerated academic term format. 20

(C) NOT LATER THAN OCTOBER 1, 2014, PROVIDE THE MICHIGAN VIRTUAL UNIVERSITY WITH THE 21

NUMBER OF ENROLLMENTS IN EACH ONLINE COURSE THE DISTRICT OR INTERMEDIATE DISTRICT OFFERED TO 22

PUPILS PURSUANT TO THIS SECTION IN THE PRIOR SCHOOL YEAR, AND THE NUMBER OF ENROLLMENTS THAT 23

EARNED 60 PERCENT OR MORE OF THE TOTAL COURSE POINTS FOR EACH ONLINE COURSE. 24

(8) For a pupil enrolled in 1 or more online courses published in the pupil's 25

educating district's catalog of online courses under subsection (7) or in the statewide 26

catalog of online courses maintained by the Michigan virtual university, the district shall 27

use foundation allowance or per pupil funds calculated under section 20 to pay for the 28

expenses associated with the online course or courses. The district shall pay 80% of the cost 29

of the online course upon enrollment and 20% upon completion as determined by the district. A 30

district is not required to pay toward the cost of an online course an amount that exceeds 31

1/12 6.25% of the district's MINIMUM foundation allowance or per pupil payment FOR THE 32

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CURRENT FISCAL YEAR as calculated under section 20 per semester or an amount that exceeds 1

1/18 of the district's foundation allowance or per pupil payment as calculated under section 2

20 per trimester. 3

(9) An online learning pupil shall have the same rights and access to technology in 4

his or her PRIMARY educating district's school facilities as all other pupils enrolled in the 5

PRIMARY educating district. 6

(10) If a pupil successfully completes an online course, as determined by the PRIMARY 7

district, the pupil's PRIMARY district shall grant appropriate academic credit for completion 8

of the course and shall count that credit toward completion of graduation and subject area 9

requirements. A pupil's school record and transcript shall identify the online course title 10

as it appears in the online course syllabus. 11

(11) The enrollment of a pupil in 1 or more online courses shall not result in a pupil 12

being counted as more than 1.0 full-time equivalent pupils under this act ARTICLE. 13

(12) As used in this section: 14

(a) "Online course" means a course of study that is capable of generating a credit or 15

a grade, that is provided in an interactive internet-connected learning environment, in which 16

pupils are separated from their teachers by time or location, or both, and in which a teacher 17

who holds a valid Michigan teaching certificate is responsible for determining appropriate 18

instructional methods for each pupil, diagnosing learning needs, assessing pupil learning, 19

prescribing intervention strategies, reporting outcomes, and evaluating the effects of 20

instruction and support strategies. 21

(b) "Online course syllabus" means a document that includes all of the following: 22

(i) The state academic standards addressed in an online course. 23

(ii) The online course content outline. 24

(iii) The online course required assessments. 25

(iv) The online course prerequisites. 26

(v) Expectations for actual instructor contact time with the online learning pupil and 27

other pupil-to-instructor communications. 28

(vi) Academic support available to the online learning pupil. 29

(vii) The online course learning outcomes and objectives. 30

(viii) The name of the institution or organization providing the online content. 31

(ix) The name of the institution or organization providing the online instructor. 32

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(x) The course titles assigned by the district OR INTERMEDIATE DISTRICT and the course 1

titles and course codes from the national center for education statistics (NCES) school codes 2

for the exchange of data (SCED). 3

(xi) The number of eligible nonresident pupils that will be accepted by the district 4

OR INTERMEDIATE DISTRICT in the online course. 5

(xii) The results of the online course quality review using the guidelines and model 6

review process published by the Michigan virtual university. 7

(c) "Online learning pupil" means a pupil enrolled in 1 or more online courses. 8

(D) “PRIMARY DISTRICT” MEANS THE DISTRICT THAT ENROLLS THE PUPIL AND REPORTS THE FTE 9

FOR PUPIL MEMBERSHIP PURPOSES. 10

Sec. 22a. (1) From the appropriation in section 11, there is allocated an amount not 11

to exceed $5,630,000,000.00 for 2012-2013 and there is allocated an amount not to exceed 12

$5,536,700,000.00 $5,403,000,000.00 for 2013-2014 2014-2015 for payments to districts and 13

qualifying public school academies to guarantee each district and qualifying public school 14

academy an amount equal to its 1994-95 total state and local per pupil revenue for school 15

operating purposes under section 11 of article IX of the state constitution of 1963. Pursuant 16

to section 11 of article IX of the state constitution of 1963, this guarantee does not apply 17

to a district in a year in which the district levies a millage rate for school district 18

operating purposes less than it levied in 1994. However, subsection (2) applies to 19

calculating the payments under this section. Funds allocated under this section that are not 20

expended in the state fiscal year for which they were allocated, as determined by the 21

department, may be used to supplement the allocations under sections 22b and 51c in order to 22

fully fund those calculated allocations for the same fiscal year. 23

(2) To ensure that a district receives an amount equal to the district's 1994-95 total 24

state and local per pupil revenue for school operating purposes, there is allocated to each 25

district a state portion of the district's 1994-95 foundation allowance in an amount 26

calculated as follows: 27

(a) Except as otherwise provided in this subsection, the state portion of a district's 28

1994-95 foundation allowance is an amount equal to the district's 1994-95 foundation 29

allowance or $6,500.00, whichever is less, minus the difference between the sum of the 30

product of the taxable value per membership pupil of all property in the district that is 31

nonexempt property times the district's certified mills and, for a district with certified 32

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mills exceeding 12, the product of the taxable value per membership pupil of property in the 1

district that is commercial personal property times the certified mills minus 12 mills and 2

the quotient of the ad valorem property tax revenue of the district captured under tax 3

increment financing acts divided by the district's membership. For a district that has a 4

millage reduction required under section 31 of article IX of the state constitution of 1963, 5

the state portion of the district's foundation allowance shall be calculated as if that 6

reduction did not occur. For a receiving district, if school operating taxes are to be levied 7

on behalf of a dissolved district that has been attached in whole or in part to the receiving 8

district to satisfy debt obligations of the dissolved district under section 12 of the 9

revised school code, MCL 380.12, taxable value per membership pupil of all property in the 10

receiving district that is nonexempt property and taxable value per membership pupil of 11

property in the receiving district that is commercial personal property do not include 12

property within the geographic area of the dissolved district; ad valorem property tax 13

revenue of the receiving district captured under tax increment financing acts does not 14

include ad valorem property tax revenue captured within the geographic boundaries of the 15

dissolved district under tax increment financing acts; and certified mills do not include the 16

certified mills of the dissolved district. 17

(b) For a district that had a 1994-95 foundation allowance greater than $6,500.00, the 18

state payment under this subsection shall be the sum of the amount calculated under 19

subdivision (a) plus the amount calculated under this subdivision. The amount calculated 20

under this subdivision shall be equal to the difference between the district's 1994-95 21

foundation allowance minus $6,500.00 and the current year hold harmless school operating 22

taxes per pupil. If the result of the calculation under subdivision (a) is negative, the 23

negative amount shall be an offset against any state payment calculated under this 24

subdivision. If the result of a calculation under this subdivision is negative, there shall 25

not be a state payment or a deduction under this subdivision. The taxable values per 26

membership pupil used in the calculations under this subdivision are as adjusted by ad 27

valorem property tax revenue captured under tax increment financing acts divided by the 28

district's membership. For a receiving district, if school operating taxes are to be levied 29

on behalf of a dissolved district that has been attached in whole or in part to the receiving 30

district to satisfy debt obligations of the dissolved district under section 12 of the 31

revised school code, MCL 380.12, ad valorem property tax revenue captured under tax increment 32

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financing acts do not include ad valorem property tax revenue captured within the geographic 1

boundaries of the dissolved district under tax increment financing acts. 2

(3) Beginning in 2003-2004, for pupils in membership in a qualifying public school 3

academy, there is allocated under this section to the authorizing body that is the fiscal 4

agent for the qualifying public school academy for forwarding to the qualifying public school 5

academy an amount equal to the 1994-95 per pupil payment to the qualifying public school 6

academy under section 20. 7

(4) A district or qualifying public school academy may use funds allocated under this 8

section in conjunction with any federal funds for which the district or qualifying public 9

school academy otherwise would be eligible. 10

(5) Except as otherwise provided in this subsection, for a district that is formed or 11

reconfigured after June 1, 2000 by consolidation of 2 or more districts or by annexation, the 12

resulting district's 1994-95 foundation allowance under this section beginning after the 13

effective date of the consolidation or annexation shall be the average of the 1994-95 14

foundation allowances of each of the original or affected districts, calculated as provided 15

in this section, weighted as to the percentage of pupils in total membership in the resulting 16

district in the state fiscal year in which the consolidation takes place who reside in the 17

geographic area of each of the original districts. If an affected district's 1994-95 18

foundation allowance is less than the 1994-95 basic foundation allowance, the amount of that 19

district's 1994-95 foundation allowance shall be considered for the purpose of calculations 20

under this subsection to be equal to the amount of the 1994-95 basic foundation allowance. 21

This subsection does not apply to a receiving district unless there is a subsequent 22

consolidation or annexation that affects the district. 23


(a) "1994-95 foundation allowance" means a district's 1994-95 foundation allowance 25

calculated and certified by the department of treasury or the superintendent under former 26

section 20a as enacted in 1993 PA 336 and as amended by 1994 PA 283. 27

(b) "Certified mills" means the lesser of 18 mills or the number of mills of school 28

operating taxes levied by the district in 1993-94. 29

(c) "Current state fiscal year" means the state fiscal year for which a particular 30

calculation is made. 31

(d) "Current year hold harmless school operating taxes per pupil" means the per pupil 32

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revenue generated by multiplying a district's 1994-95 hold harmless millage by the district's 1

current year taxable value per membership pupil. For a receiving district, if school 2



district under section 12 of the revised school code, MCL 380.12, taxable value per 5

membership pupil does not include the taxable value of property within the geographic area of 6

the dissolved district. 7

(e) "Dissolved district" means a district that loses its organization, has its 8

territory attached to 1 or more other districts, and is dissolved as provided under section 9


(f) "Hold harmless millage" means, for a district with a 1994-95 foundation allowance 11

greater than $6,500.00, the number of mills by which the exemption from the levy of school 12

operating taxes on a homestead, qualified agricultural property, qualified forest property, 13

supportive housing property, industrial personal property, and commercial personal property 14

could be reduced as provided in section 1211 of the revised school code, MCL 380.1211, and 15

the number of mills of school operating taxes that could be levied on all property as 16

provided in section 1211(2) of the revised school code, MCL 380.1211, as certified by the 17

department of treasury for the 1994 tax year. For a receiving district, if school operating 18

taxes are to be levied on behalf of a dissolved district that has been attached in whole or 19

in part to the receiving district to satisfy debt obligations of the dissolved district under 20

section 12 of the revised school code, MCL 380.12, school operating taxes do not include 21

school operating taxes levied within the geographic area of the dissolved district. 22

(g) "Homestead", "qualified agricultural property", "qualified forest property", 23

"supportive housing property", "industrial personal property", and "commercial personal 24

property" mean those terms as defined in section 1211 of the revised school code, MCL 25

380.1211. 26

(h) "Membership" means the definition of that term under section 6 as in effect for 27

the particular fiscal year for which a particular calculation is made. 28

(i) "Nonexempt property" means property that is not a principal residence, qualified 29

agricultural property, qualified forest property, supportive housing property, industrial 30

personal property, or commercial personal property. 31

(j) "Qualifying public school academy" means a public school academy that was in 32

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operation in the 1994-95 school year and is in operation in the current state fiscal year. 1

(k) "Receiving district" means a district to which all or part of the territory of a 2

dissolved district is attached under section 12 of the revised school code, MCL 380.12. 3

(l) "School operating taxes" means local ad valorem property taxes levied under 4

section 1211 of the revised school code, MCL 380.1211, and retained for school operating 5

purposes as defined in section 20. 6

(m) "Tax increment financing acts" means 1975 PA 197, MCL 125.1651 to 125.1681, the 7

tax increment finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830, the local 8

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield 9

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, or the corridor 10

improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899. 11

(n) "Taxable value per membership pupil" means each of the following divided by the 12

district's membership: 13

(i) For the number of mills by which the exemption from the levy of school operating 14

taxes on a homestead, qualified agricultural property, qualified forest property, supportive 15

housing property, industrial personal property, and commercial personal property may be 16

reduced as provided in section 1211 of the revised school code, MCL 380.1211, the taxable 17

value of homestead, qualified agricultural property, qualified forest property, supportive 18

housing property, industrial personal property, and commercial personal property for the 19

calendar year ending in the current state fiscal year. For a receiving district, if school 20



district under section 12 of the revised school code, MCL 380.12, mills do not include mills 23

within the geographic area of the dissolved district. 24

(ii) For the number of mills of school operating taxes that may be levied on all 25

property as provided in section 1211(2) of the revised school code, MCL 380.1211, the taxable 26

value of all property for the calendar year ending in the current state fiscal year. For a 27

receiving district, if school operating taxes are to be levied on behalf of a dissolved 28

district that has been attached in whole or in part to the receiving district to satisfy debt 29

obligations of the dissolved district under section 12 of the revised school code, MCL 30

380.12, school operating taxes do not include school operating taxes levied within the 31

geographic area of the dissolved district. 32

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Sec. 22b. (1) From the appropriation in section 11, there is allocated an amount not 1

to exceed $3,215,000,000.00 for 2012-2013 and there is allocated an amount not to exceed 2

$3,373,700,000.00 $3,578,000,000.00 for 2013-2014 2014-2015 for discretionary nonmandated 3

payments to districts under this section. Funds allocated under this section that are not 4

expended in the state fiscal year for which they were allocated, as determined by the 5

department, may be used to supplement the allocations under sections 22a and 51c in order to 6

fully fund those calculated allocations for the same fiscal year. 7

(2) Subject to subsection (3) and section 296, the allocation to a district under this 8

section shall be an amount equal to the sum of the amounts calculated under sections 20, 9

51a(2), 51a(3), and 51a(11), minus the sum of the allocations to the district under sections 10

22a and 51c. 11

(3) In order to receive an allocation under subsection (1), each district shall do all 12

of the following: 13

(a) Comply with section 1280b of the revised school code, MCL 380.1280b. 14

(b) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 15

380.1278b. 16

(c) Furnish data and other information required by state and federal law to the center 17

and the department in the form and manner specified by the center or the department, as 18

applicable. 19

(d) Comply with section 1230g of the revised school code, MCL 380.1230g. 20

(e) Comply with section 21f. 21

(4) Districts are encouraged to use funds allocated under this section for the 22

purchase and support of payroll, human resources, and other business function software that 23

is compatible with that of the intermediate district in which the district is located and 24

with other districts located within that intermediate district. 25

(5) From the allocation in subsection (1), the department shall pay up to 26

$1,000,000.00 in litigation costs incurred by this state related to commercial or industrial 27

property tax appeals, including, but not limited to, appeals of classification, that impact 28

revenues dedicated to the state school aid fund. 29

(6) From the allocation in subsection (1), the department shall pay up to 30

$1,000,000.00 in litigation costs incurred by this state associated with lawsuits filed by 1 31

or more districts or intermediate districts against this state. If the allocation under this 32

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section is insufficient to fully fund all payments required under this section, the payments 1

under this subsection shall be made in full before any proration of remaining payments under 2

this section. 3

(7) It is the intent of the legislature that all constitutional obligations of this 4

state have been fully funded under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made 5

by an entity receiving funds under this article that challenges the legislative determination 6

of the adequacy of this funding or alleges that there exists an unfunded constitutional 7

requirement, the state budget director may escrow or allocate from the discretionary funds 8

for nonmandated payments under this section the amount as may be necessary to satisfy the 9

claim before making any payments to districts under subsection (2). If funds are escrowed, 10

the escrowed funds are a work project appropriation and the funds are carried forward into 11

the following fiscal year. The purpose of the work project is to provide for any payments 12

that may be awarded to districts as a result of litigation. The work project shall be 13

completed upon resolution of the litigation. 14

(8) If the local claims review board or a court of competent jurisdiction makes a 15

final determination that this state is in violation of section 29 of article IX of the state 16

constitution of 1963 regarding state payments to districts, the state budget director shall 17

use work project funds under subsection (7) or allocate from the discretionary funds for 18

nonmandated payments under this section the amount as may be necessary to satisfy the amount 19

owed to districts before making any payments to districts under subsection (2). 20

(9) If a claim is made in court that challenges the legislative determination of the 21

adequacy of funding for this state's constitutional obligations or alleges that there exists 22

an unfunded constitutional requirement, any interested party may seek an expedited review of 23

the claim by the local claims review board. If the claim exceeds $10,000,000.00, this state 24

may remove the action to the court of appeals, and the court of appeals shall have and shall 25

exercise jurisdiction over the claim. 26

(10) If payments resulting from a final determination by the local claims review board 27

or a court of competent jurisdiction that there has been a violation of section 29 of article 28

IX of the state constitution of 1963 exceed the amount allocated for discretionary 29

nonmandated payments under this section, the legislature shall provide for adequate funding 30

for this state's constitutional obligations at its next legislative session. 31

(11) If a lawsuit challenging payments made to districts related to costs reimbursed 32

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by federal title XIX medicaid funds is filed against this state, then, for the purpose of 1

addressing potential liability under such a lawsuit, the state budget director may place 2

funds allocated under this section in escrow or allocate money from the funds otherwise 3

allocated under this section, up to a maximum of 50% of the amount allocated in subsection 4

(1). If funds are placed in escrow under this subsection, those funds are a work project 5

appropriation and the funds are carried forward into the following fiscal year. The purpose 6

of the work project is to provide for any payments that may be awarded to districts as a 7

result of the litigation. The work project shall be completed upon resolution of the 8

litigation. In addition, this state reserves the right to terminate future federal title XIX 9

medicaid reimbursement payments to districts if the amount or allocation of reimbursed funds 10

is challenged in the lawsuit. As used in this subsection, "title XIX" means title XIX of the 11

social security act, 42 USC 1396 to 1396v. 12

Sec. 22d. (1) From the appropriation in section 11, an amount not to exceed 13

$2,584,600.00 is allocated for 2013-2014 2014-2015 for supplemental payments to rural 14

districts under this section. 15

(2) From the allocation under subsection (1), there is allocated for 2013-2014 2014-16

2015 an amount not to exceed $957,300.00 for payments under this subsection to districts that 17

meet all of the following: 18

(a) Operates grades K to 12. 19

(b) Has fewer than 250 pupils in membership. 20

(c) Each school building operated by the district meets at least 1 of the following: 21

(i) Is located in the Upper Peninsula at least 30 miles from any other public school 22

building. 23

(ii) Is located on an island that is not accessible by bridge. 24

(3) The amount of the additional funding to each eligible district under subsection 25

(2) shall be determined under a spending plan developed as provided in this subsection and 26

approved by the superintendent of public instruction. The spending plan shall be developed 27

cooperatively by the intermediate superintendents of each intermediate district in which an 28

eligible district is located. The intermediate superintendents shall review the financial 29

situation of each eligible district, determine the minimum essential financial needs of each 30

eligible district, and develop and agree on a spending plan that distributes the available 31

funding under subsection (2) to the eligible districts based on those financial needs. The 32

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intermediate superintendents shall submit the spending plan to the superintendent of public 1

instruction for approval. Upon approval by the superintendent of public instruction, the 2

amounts specified for each eligible district under the spending plan are allocated under 3

subsection (2) and shall be paid to the eligible districts in the same manner as payments 4

under section 22b. 5

(4) Subject to subsection (6), from the allocation in subsection (1), there is 6

allocated for 2013-2014 2014-2015 an amount not to exceed $1,627,300.00 for payments under 7

this subsection to districts that meet all of the following: 8

(a) The district has 5.0 or fewer pupils per square mile as determined by the 9

department. 10

(b) The district has a total square mileage greater than 200.0 or is 1 of 2 districts 11

that have consolidated transportation services and have a combined total square mileage 12

greater than 200.0. 13

(5) The funds allocated under subsection (4) shall be allocated on an equal per pupil 14

basis. 15

(6) A district receiving funds allocated under subsection (2) is not eligible for 16

funding allocated under subsection (4). 17

Sec. 22f. (1) From the appropriation in section 11, there is allocated for 2013-2014 18

2014-2015 an amount not to exceed $80,000,000.00 to provide incentive payments to districts 19

that meet best practices under this section. Payments received under this section may be used 20

for any purpose for which payments under sections 22a and 22b may be used. 21

(2) The amount of the incentive payment under this section is an amount equal to 22

$52.00 per pupil. A district shall receive an incentive payment under this section if the 23

district satisfies at least 7 of the following requirements not later than June 1, 2014 2015: 24

(a) If a district provides medical, pharmacy, dental, vision, disability, long-term 25

care, or any other type of benefit that would constitute a health care services benefit, to 26

employees and their dependents, the district is the policyholder for each of its insurance 27

policies that covers 1 or more of these benefits. A district that does not directly employ 28

its staff or a district with a voluntary employee beneficiary association that pays no more 29

than the maximum per employee contribution amount and that contributes no more than the 30

maximum employer contribution percentage of total annual costs for the medical benefit plans 31

as described in sections 3 and 4 of the publicly funded health insurance contribution act, 32

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2011 PA 152, MCL 15.563 and 15.564, is considered to have satisfied this requirement. 1

(b) The district has obtained competitive bids on the provision of pupil 2

transportation, food service, custodial, or 1 or more other noninstructional services for 3

2013-2014 2014-2015. In comparing competitive bids to the current costs of providing 1 or 4

more of these services, a district shall exclude the unfunded accrued liability costs for 5

retirement and other benefits from the district's current costs. 6

(c) The district accepts applications for enrollment by nonresident applicants under 7

section 105 or 105c. A public school academy is considered to have met this requirement. 8

(d) The district monitors individual pupil academic growth in each subject area at 9

least twice during the school year using competency-based online assessments and reports 10

those results to the pupil and his or her parent or guardian, or provides the department with 11

a plan and is able to show progress toward developing the technology infrastructure necessary 12

for the implementation of pupil academic growth assessments by 2014-2015. 13

(e) The district supports opportunities for pupils to receive postsecondary credit 14

while attending secondary school, by doing at least 1 of the following, and makes all 15

eligible pupils and their parents or guardians aware of these opportunities: 16

(i) Supports attendance of district pupils under the postsecondary enrollment options 17

act, MCL 388.511 to 388.524, or under the career and technical preparation act, MCL 388.1901 18

to 388.1913, consistent with provisions under section 21b. 19

(ii) Offers college-level equivalent courses, as defined in section 1471 of the 20

revised school code, MCL 380.1471. 21

(iii) Participates in a middle college. For the purposes of this subparagraph, "middle 22

college" means a series of courses and other requirements and conditions that allow a pupil 23

to graduate with a high school diploma and a certificate or degree from a community college 24

or state public university. 25

(iv) Provides other opportunities to pupils that allow those pupils to graduate with a 26

high school diploma and also complete coursework that a postsecondary institution normally 27

applies toward satisfaction of degree requirements. 28

(v) If a district does not offer any high school grades, the district informs all 29

pupils and parents of the opportunities that are available for postsecondary options during 30

high school. 31

(f) The district offers online courses or blended learning opportunities to all 32

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eligible pupils. In order to satisfy this requirement, a district must make all eligible 1

pupils and their parents or guardians aware of these opportunities and must publish an online 2

course syllabus as described in section 21f for each online course that the district offers. 3

For the purposes of this subdivision: 4

(i) "Blended learning" means a hybrid instructional delivery model where pupils are 5

provided content, instruction, and assessment in part at a supervised educational facility 6

away from home where the pupil and a teacher with a valid Michigan teaching certificate are 7

in the same physical location and in part through internet-connected learning environments 8

with some degree of pupil control over time, location, and pace of instruction. 9

(ii) "Online course" means a course of study that is capable of generating a credit or 10



with a valid Michigan teaching certificate is responsible for determining appropriate 13




(g) The district provides to parents and community members a dashboard or report card 17

demonstrating the district's efforts to manage its finances responsibly. The dashboard or 18

report card shall include revenue and expenditure projections for the district for fiscal 19

year 2013-2014 and fiscal year 2014-2015 AND FISCAL YEAR 2015-2016, a listing of all debt 20

service obligations, detailed by project, including anticipated fiscal year 2013-2014 2014-21

2015 payment for each project, a listing of total outstanding debt, and at least all of the 22

following for the 3 most recent school years for which the data are available: 23

(i) Graduation and dropout rates. 24

(ii) Average class size in grades kindergarten to 3. 25

(iii) College readiness as measured by Michigan merit examination test scores. 26

(iv) Elementary and middle school MEAP scores. 27

(v) Teacher, principal, and superintendent salary information including at least 28

minimum, average, and maximum pay levels. 29

(vi) General fund balance. 30

(vii) The total number of days of instruction provided. 31

(h) The district provides physical education or provides health education. 32

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(3) If the department determines that a district has intentionally submitted false 1

information in order to qualify for an incentive payment under this section, the district 2

forfeits an amount equal to the amount it received under this section from its total state 3

school aid for 2014-2015 2015-2016. 4

(4) If the department determines that funds allocated under this section will remain 5

unexpended after the initial allocation of $52.00 per pupil to eligible districts under 6

subsection (2), the remaining unexpended amount is allocated on an equal per pupil basis to 7

districts that meet the requirements of subsection (2) and that have a foundation allowance, 8

as calculated under section 20, in an amount that is less than the basic foundation allowance 9

under that section. 10

Sec. 22g. (1) From the funds appropriated in section 11, there is allocated for 2013-11

2014 2014-2015 only an amount not to exceed $5,000,000.00 for competitive assistance grants 12

to districts and intermediate districts. 13

(2) Funds received under this section may be used for reimbursement of transition 14

costs associated with the consolidation of OPERATIONS OR SERVICES BETWEEN 2 OR MORE 15

DISTRICTS, INTERMEDIATE DISTRICTS, OR OTHER LOCAL UNITS OF GOVERNMENT OR THE CONSOLIDATION OF 16

districts or intermediate districts. Grant funding shall be available for consolidations that 17

occur on or after June 1, 2013 2014. The department shall develop an application process and 18

method of grant distribution. 19

Sec. 22i. (1) From the state school aid fund money FUNDS appropriated in section 11, 20

there is allocated for 2013-2014 2014-2015 an amount not to exceed $45,000,000.00 21

$50,000,000.00 for the technology infrastructure grant program for districts or intermediate 22

districts on behalf of their constituent districts. Funds received under this subsection 23

shall be used for the development or improvement of a district's technology infrastructure, 24

the shared services consolidation of technology and data, and hardware in preparation for the 25

planned implementation in 2014-2015 of online growth assessments. 26

(2) The department shall develop a competitive application process and method of grant 27

distribution to eligible districts and intermediate districts that demonstrate need for 28

grants under subsection (1). The department may consult with the department of technology, 29

management, and budget during the grant process and grant distribution. Grants to districts 30

shall not exceed $2,000,000.00 per district. A grant to an intermediate district on behalf of 31

its constituent districts shall not exceed $2,000,000.00 per constituent district. To receive 32

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a grant under subsection (1), an intermediate district shall demonstrate that a grant awarded 1

to the intermediate district on behalf of its constituent districts would provide savings 2

compared to providing grants to individual districts. 3

(3) From the general fund money appropriated in section 11, there is allocated an 4

amount not to exceed $5,000,000.00 for 2013-2014 to be awarded through a competitive bid 5

process to a single provider of whole-school technology as described in this subsection. The 6

department shall issue a single request for proposal with application rules written and 7

administered by the department, and with a focus on economic and geographic diversity. To be 8

eligible to receive the grant under this section, a provider shall meet all of the following: 9

(a) Agrees to submit evaluation criteria in a form and manner determined by the 10

department. 11

(b) Provides at least all of the following: 12

(i) One-to-one mobile devices. 13

(ii) Laptop or desktop computers for each classroom. 14

(iii) On- and off-campus filtering. 15

(iv) Wireless networks and peripherals. 16

(v) Wireless audio equipment. 17

(vi) Operating software. 18

(vii) Instructional software. 19

(viii) Repairs and replacements. 20

(ix) Professional development. 21

(x) Ongoing support. 22

(3) FROM THE AMOUNT ALLOCATED IN SUBSECTION (1), THERE IS ALLOCATED FOR 2014-2015 AN 23

AMOUNT NOT TO EXCEED $8,500,000.00 FOR THE FOLLOWING PURPOSES: 24

(A) CONVERTING EXISTING STUDENT ASSESSMENTS TO ONLINE ASSESSMENTS. 25

(B) PROVIDING PAPER AND PENCIL TEST VERSIONS TO DISTRICTS NOT PREPARED TO IMPLEMENT 26

ONLINE ASSESSMENTS. 27

(C) EXPANDING WRITING ASSESSMENTS TO ADDITIONAL GRADE LEVELS. 28

(D) PROVIDING AN INCREASED NUMBER OF CONSTRUCTED RESPONSE TEST QUESTIONS SO THAT 29

PUPILS CAN DEMONSTRATE HIGHER-ORDER SKILLS SUCH AS PROBLEM SOLVING AND COMMUNICATING 30

REASONING. 31

Sec. 22j. (1) From the appropriation in section 11, there is allocated for 2013-2014 32

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2014-2015 an amount not to exceed $46,400,000.00 to provide separate incentive payments to 1

districts that meet student academic performance funding goals under subsections (2) to (5). 2

Payments received under this section may be used for any purpose for which payments under 3

sections 22a and 22b may be used. 4

(2) The maximum amount of the incentive payment for student academic performance is an 5

amount equal to $100.00 per pupil. Payments calculated and awarded to qualifying districts 6

under subsections (3) to (5) shall be calculated and awarded separately, and a district may 7

receive a payment under any or all of subsections (3) to (5). 8

(3) An amount not to exceed 30% of the maximum per pupil amount allocated under 9

subsection (2) shall be used to make performance incentive payments to qualifying districts 10

under this subsection based on pupil performance on state assessments in mathematics in 11

grades 3 to 8. The amount of a payment under this subsection is an amount equal to $30.00 per 12

pupil for all pupils in membership in a qualifying district. The department shall determine 13

the qualifying districts under this subsection as follows: 14

(a) Using a model determined by the department that incorporates the most recent cut 15

scores adopted for the Michigan educational assessment program for each pupil in grades 3 to 16

8 in the 2011-2012 2012-2013 school year, the department shall calculate a point score using 17

a metric that assigns points to each of those pupils as follows: 18

(i) For each pupil who began the school year not performing proficiently in 19

mathematics and who declines in proficiency, as determined by the department, over the school 20

year, 0 points. 21

(ii) For each pupil who began the school year performing proficiently in mathematics 22

and declines in proficiency, as determined by the department, over the school year, 0 points. 23

(iii) For each pupil who began the school year not performing proficiently in 24

mathematics and who maintains his or her level of proficiency, as determined by the 25

department, over the school year, 1 point. 26

(iv) For each pupil who began the school year performing proficiently in mathematics 27

and who maintains his or her level of proficiency, as determined by the department, over the 28

school year, 2 points. 29

(v) For each pupil who began the school year not performing proficiently in 30

mathematics and who improves in proficiency, as determined by the department, over the school 31

year, 3 points. 32

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(vi) For each pupil who began the school year performing proficiently in mathematics 1

and who improves in proficiency, as determined by the department, over the school year, 2 2

points. 3

(b) The department shall then calculate a district average for this metric for the 4

2011-2012 2012-2013 school year by totaling the number of points for all pupils in grades 3 5

to 8 under subdivision (a) and dividing that total by the number of those pupils. 6

(c) A district is a qualifying district for the payment under this subsection if the 7

district average for the 2011-2012 2012-2013 school year under subdivision (b) is at least 8

equal to a factor of 1.5, and the district tested at least 95% of its pupils in mathematics, 9

and the district had at least 30 full academic year pupils in grades 3 to 8 with a 10

performance level change designation in mathematics. 11



under this subsection based on pupil performance on state assessments in reading in grades 3 14

to 8. The amount of a payment under this subsection is an amount equal to $30.00 per pupil 15

for all pupils in membership in the district. The department shall determine the qualifying 16

districts under this subsection as follows: 17

(a) Using a model determined by the department that incorporates the most recent cut 18

scores adopted for the Michigan educational assessment program for each pupil in grades 3 to 19

8 in the 2011-2012 2012-2013 school year, the department shall calculate a point score using 20

a metric that assigns points to each of those pupils as follows: 21

(i) For each pupil who began the school year not performing proficiently in reading 22

and who declines in proficiency, as determined by the department, over the school year, 0 23

points. 24

(ii) For each pupil who began the school year performing proficiently in reading and 25

declines in proficiency, as determined by the department, over the school year, 0 points. 26

(iii) For each pupil who began the school year not performing proficiently in reading 27

and who maintains proficiency, as determined by the department, over the school year, 1 28

point. 29

(iv) For each pupil who began the school year performing proficiently in reading and 30

who maintains proficiency, as determined by the department, over the school year, 2 points. 31

(v) For each pupil who began the school year not performing proficiently in reading 32

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and who improves in proficiency, as determined by the department, over the school year, 3 1

points. 2

(vi) For each pupil who began the school year performing proficiently in reading and 3

who improves in proficiency, as determined by the department, over the school year, 2 points. 4

(b) The department shall then calculate a district average for this metric for the 5

2011-2012 2012-2013 school year by totaling the number of points for all pupils in grades 3 6

to 8 under subdivision (a) and dividing that total by the number of those pupils. 7


district average for the 2011-2012 2012-2013 school year under subdivision (b) is at least 9

equal to a factor of 1.5, and the district tested at least 95% of its pupils in reading, and 10

the district had at least 30 full academic year pupils in grades 3 to 8 reading with a 11

performance level change designation in reading. 12



under this subsection for high school improvement using a metric based on the positive trend 15

over a 4-year period in the percentage of high school pupils in the district testing as 16

proficient in all tested subject areas on the state assessments of high school pupils. The 17

amount of a payment under this subsection is an amount equal to $40.00 per pupil for all 18

pupils in membership in the district. The department shall determine the qualifying districts 19

under this subsection as follows: 20

(a) Calculate a linear regression of the percentage of high school pupils in the 21

district testing as proficient in all tested subject areas on state assessments of high 22

school pupils on school year over the 4-year period ending with the 2011-2012 2012-2013 23

school year as adjusted for changes in cut scores most recently adopted for the Michigan 24

merit examination. 25

(b) Calculate a statewide average for all districts operating a high school of the 26

linear regression of the percentage of high school pupils testing as proficient in all tested 27

subject areas on state assessments of high school pupils on school year over the 4-year 28

period ending with the 2011-2012 2012-2013 school year, as adjusted for changes in cut scores 29

most recently adopted for the Michigan merit examination as the base year for all 30

comparisons. 31


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district's linear regression over the 4-year period ending with the 2011-2012 2012-2013 1

school year under subdivision (a) is at least equal to the statewide average linear 2

regression over the 4-year period ending with the base year under subdivision (b), and the 3

district's linear regression over the 4-year period ending with the 2011-2012 2012-2013 4

school year under subdivision (a) is positive, and the district tested 95% of high school 5

pupils in each tested subject on state assessments, and the district had at least 20 full 6

academic year pupils take all tested subjects on state assessments of high school pupils over 7

each of the most recent 4 years. 8

(6) If the allocation under subsection (1) is insufficient to fully fund payments as 9

otherwise calculated under this section, the department shall prorate payments under this 10

section on an equal percentage basis. 11

Sec. 24. (1) From the appropriation in section 11, there is allocated for 2013-2014 12

2014-2015 an amount not to exceed $8,000,000.00 for payments to the educating district or 13

intermediate district for educating pupils assigned by a court or the department of human 14

services to reside in or to attend a juvenile detention facility or child caring institution 15

licensed by the department of human services and approved by the department to provide an on-16

grounds education program. The amount of the payment under this section to a district or 17

intermediate district shall be calculated as prescribed under subsection (2). 18

(2) The total amount allocated under this section shall be allocated by paying to the 19

educating district or intermediate district an amount equal to the lesser of the district's 20

or intermediate district's added cost or the department's approved per pupil allocation for 21

the district or intermediate district. For the purposes of this subsection: 22

(a) "Added cost" means 100% of the added cost each fiscal year for educating all 23

pupils assigned by a court or the department of human services to reside in or to attend a 24

juvenile detention facility or child caring institution licensed by the department of human 25

services or the department of licensing and regulatory affairs and approved by the department 26

to provide an on-grounds education program. Added cost shall be computed by deducting all 27

other revenue received under this article for pupils described in this section from total 28

costs, as approved by the department, in whole or in part, for educating those pupils in the 29

on-grounds education program or in a program approved by the department that is located on 30

property adjacent to a juvenile detention facility or child caring institution. Costs 31

reimbursed by federal funds are not included. 32

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(b) "Department's approved per pupil allocation" for a district or intermediate 1

district shall be determined by dividing the total amount allocated under this section for a 2

fiscal year by the full-time equated membership total for all pupils approved by the 3

department to be funded under this section for that fiscal year for the district or 4

intermediate district. 5

(3) A district or intermediate district educating pupils described in this section at 6

a residential child caring institution may operate, and receive funding under this section 7

for, a department-approved on-grounds educational program for those pupils that is longer 8

than 181 days, but not longer than 233 days, if the child caring institution was licensed as 9

a child caring institution and offered in 1991-92 an on-grounds educational program that was 10

longer than 181 days but not longer than 233 days and that was operated by a district or 11

intermediate district. 12

(4) Special education pupils funded under section 53a shall not be funded under this 13

section. 14

Sec. 24a. From the appropriation in section 11, there is allocated an amount not to 15

exceed $2,167,500.00 $2,195,500.00 for 2013-2014 2014-2015 for payments to intermediate 16

districts for pupils who are placed in juvenile justice service facilities operated by the 17

department of human services. Each intermediate district shall receive an amount equal to the 18

state share of those costs that are clearly and directly attributable to the educational 19

programs for pupils placed in facilities described in this section that are located within 20

the intermediate district's boundaries. The intermediate districts receiving payments under 21

this section shall cooperate with the department of human services to ensure that all funding 22

allocated under this section is utilized by the intermediate district and department of human 23

services for educational programs for pupils described in this section. Pupils described in 24

this section are not eligible to be funded under section 24. However, a program 25

responsibility or other fiscal responsibility associated with these pupils shall not be 26

transferred from the department of human services to a district or intermediate district 27

unless the district or intermediate district consents to the transfer. 28

Sec. 24c. From the appropriation in section 11, there is allocated an amount not to 29

exceed $1,500,000.00 for 2013-2014 2014-2015 for payments to districts for pupils who are 30

enrolled in a nationally administered community-based education and youth mentoring program, 31

known as the youth challenge program, that is administered by the department of military and 32

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veterans affairs. Both of the following apply to a district receiving payments under this 1

section: 2

(a) The district shall contract with the department of military and veterans affairs 3

to ensure that all funding allocated under this section is utilized by the district and the 4

department of military and veterans affairs for the youth challenge program. 5

(b) The district may retain for its administrative expenses an amount not to exceed 3% 6

of the amount of the payment the district receives under this section. 7

Sec. 25e. (1) The center shall work with the department, districts, and intermediate 8

districts to develop a PUPIL TRANSFERS UNDER THIS SECTION SHALL BE PROCESSED USING THE pupil 9

membership transfer application and a pupil transfer process ADMINISTERED BY THE CENTER under 10

this section. The center shall complete development of this pupil membership transfer 11

application not later than November 1, 2013. 12

(2) If a pupil counted in membership for the pupil membership count day transfers from 13

a district or intermediate district to enroll in another district or intermediate district 14

after the pupil membership count day and before the supplemental count day and, due to the 15

pupil's enrollment and attendance status as of the pupil membership count day, the pupil was 16

not counted in membership in the educating district or intermediate district, the educating 17

district or intermediate district may report the enrollment and attendance information to the 18

center through the pupil transfer process within 30 days after the transfer or within 30 days 19

after the sixth Wednesday after the pupil membership count day, whichever is later. Pupil 20

transfers may be submitted no earlier than the first day after the certification deadline for 21

the pupil membership count day and before the supplemental count day. Upon receipt of the 22

transfer information under this subsection indicating that a pupil has enrolled and is in 23

attendance in an educating district or intermediate district as described in this subsection, 24

the pupil transfer process shall do the following: 25

(a) Notify the district in which the pupil was previously enrolled. 26

(b) Notify both the pupil auditing staff of the intermediate district in which the 27

educating district is located and the pupil auditing staff of the intermediate district in 28

which the district that previously enrolled the pupil is located. The pupil auditing staff 29

shall approve or deny the pupil membership transfer. 30

(c) Aggregate the districtwide changes and notify the department for use in adjusting 31

the state aid payment system. 32

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(3) The department shall do all of the following: 1

(a) Adjust the membership calculation for each district or intermediate district in 2

which the pupil was previously counted in membership or that previously received an 3

adjustment in its membership calculation under this section due to a change in the pupil's 4

enrollment and attendance so that the district's or intermediate district's membership is 5

prorated to allow the district or intermediate district to receive for each school day, as 6

determined by the financial calendar furnished by the center, in which the pupil was enrolled 7

and in attendance in the district or intermediate district an amount equal to 1/105 of a 8

full-time equated membership claimed in the fall pupil membership count. The district or 9

intermediate district shall receive a prorated foundation allowance in an amount equal to the 10

product of the adjustment under this subdivision for the district or intermediate district 11

multiplied by the foundation allowance or per pupil payment as calculated under section 20 12

for the district or intermediate district. The foundation allowance or per pupil payment 13

shall be adjusted by the pupil's full-time equated status as affected by the membership 14

definition under section 6(4). 15

(b) Adjust the membership calculation for the educating district or intermediate 16

district in which the pupil is enrolled and is in attendance so that the district's or 17

intermediate district's membership is increased to allow the district or intermediate 18

district to receive an amount equal to the difference between the full-time equated 19

membership claimed in the fall pupil membership count and the sum of the adjustments 20

calculated under subdivision (a) for each district or intermediate district in which the 21

pupil was previously enrolled and in attendance. The educating district or intermediate 22

district shall receive a prorated foundation allowance in an amount equal to the product of 23

the adjustment under this subdivision for the educating district or intermediate district 24

multiplied by the foundation allowance or per pupil payment as calculated under section 20 25

for the educating district or intermediate district. The foundation allowance or per pupil 26

payment shall be adjusted by the pupil's full-time equated status as affected by the 27

membership definition under section 6(4). 28

(4) The changes in calculation of state school aid required under subsection (3) shall 29

take effect as of the date that the pupil becomes enrolled and in attendance in the educating 30

district or intermediate district, and the department shall base all subsequent payments 31

under this article for the fiscal year to the affected districts or intermediate districts on 32

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this recalculation of state school aid. 1

(5) If a pupil enrolls in an educating district or intermediate district as described 2

in subsection (2), the district or intermediate district in which the pupil is counted in 3

membership or another educating district or intermediate district that received an adjustment 4

in its membership calculation under subsection (3), if any, and the educating district or 5

intermediate district shall provide to the center and the department all information they 6

require to comply with this section. 7

(6) As used in this section, "educating district or intermediate district" means the 8

district or intermediate district in which a pupil enrolls after the pupil membership count 9

day or after an adjustment was made in another district's or intermediate district's 10

membership calculation under this section due to the pupil's enrollment and attendance. 11

Sec. 26a. (1) From the state school aid fund appropriation FUNDS APPROPRIATED in 12

section 11, there is allocated an amount not to exceed $26,300,000.00 for 2013-2014 2014-2015 13

to reimburse districts and intermediate districts pursuant to section 12 of the Michigan 14

renaissance zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2013 2014. The 15

allocations shall be made not later than 60 days after the department of treasury certifies 16

to the department and to the state budget director that the department of treasury has 17

received all necessary information to properly determine the amounts due to each eligible 18

recipient. 19

(2) In addition to the allocation under subsection (1), from the general fund money 20

appropriated under section 11, there is allocated an amount not to exceed $3,200,000.00 for 21

2013-2014 to reimburse public libraries pursuant to section 12 of the Michigan renaissance 22

zone act, 1996 PA 376, MCL 125.2692, for taxes levied in 2013. The allocations shall be made 23

not later than 60 days after the department of treasury certifies to the department and to 24

the state budget director that the department of treasury has received all necessary 25

information to properly determine the amounts due to each eligible recipient. 26

Sec. 26b. (1) From the appropriation in section 11, there is allocated for 2013-2014 27

2014-2015 an amount not to exceed $4,009,500.00 $4,210,000.00 for payments to districts, 28

intermediate districts, and community college districts for the portion of the payment in 29

lieu of taxes obligation that is attributable to districts, intermediate districts, and 30

community college districts pursuant to section 2154 of the natural resources and 31

environmental protection act, 1994 PA 451, MCL 324.2154. 32

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(2) If the amount appropriated under this section is not sufficient to fully pay 1

obligations under this section, payments shall be prorated on an equal basis among all 2

eligible districts, intermediate districts, and community college districts. 3

Sec. 26c. (1) From the appropriation in section 11, there is allocated an amount not 4

to exceed $209,400.00 for 2012-2013 and an amount not to exceed $266,200.00 $293,100.00 for 5

2013-2014 2014-2015 to the promise zone fund created in subsection (3). 6

(2) Funds allocated to the promise zone fund under this section shall be used solely 7

for payments to eligible districts and intermediate districts that have a promise zone 8

development plan approved by the department of treasury under section 7 of the Michigan 9

promise zone authority act, 2008 PA 549, MCL 390.1667. 10

(3) The promise zone fund is created as a separate account within the state school aid 11

fund to be used solely for the purposes of the Michigan promise zone authority act, 2008 PA 12

549, MCL 390.1661 to 390.1679. All of the following apply to the promise zone fund: 13

(a) The state treasurer shall direct the investment of the promise zone fund. The 14

state treasurer shall credit to the promise zone fund interest and earnings from fund 15

investments. 16

(b) Money in the promise zone fund at the close of a fiscal year shall remain in the 17

promise zone fund and shall not lapse to the general fund. 18

(4) Subject to subsection (2), the state treasurer may make payments from the promise 19

zone fund to eligible districts and intermediate districts pursuant to the Michigan promise 20

zone authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used for the purposes of a 21

promise zone authority created under that act. 22

Sec. 31a. (1) From the state school aid fund money appropriated in section 11, there 23

is allocated for 2013-2014 2014-2015 an amount not to exceed $317,695,500.00 for payments to 24

eligible districts, eligible public school academies, and the education achievement system 25

under this section. Subject to subsection (14), the amount of the additional allowance under 26

this section, other than funding under subsection (6) or (7), shall be based on the number of 27

actual pupils in membership in the district or public school academy or the education 28

achievement system who met the income eligibility criteria for free breakfast, lunch, or milk 29

in the immediately preceding state fiscal year, as determined under the Richard B. Russell 30

national school lunch act, 42 USC 1751 to 1769i, and reported to the department not later 31

than the fifth Wednesday after the pupil membership count day of the immediately preceding 32

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fiscal year and adjusted not later than December 31 of the immediately preceding fiscal year 1

in the form and manner prescribed by the center. However, for a public school academy that 2

began operations as a public school academy, or for an achievement school that began 3

operations as an achievement school, after the pupil membership count day of the immediately 4

preceding school year, the basis for the additional allowance under this section shall be the 5

number of actual pupils in membership in the public school academy or the education 6

achievement system who met the income eligibility criteria for free breakfast, lunch, or milk 7

in the current state fiscal year, as determined under the Richard B. Russell national school 8

lunch act and reported to the department not later than the fifth Wednesday after the pupil 9

membership count day FOR THE PURPOSES OF ENSURING THAT THIRD GRADERS ARE PROFICIENT IN 10

READING BY THE END OF THE THIRD GRADE AND THAT HIGH SCHOOL GRADUATES ARE CAREER AND COLLEGE 11

READY. 12

(2) To be eligible to receive funding under this section, other than funding under 13

subsection (6) or (7), a district or public school academy that has not been previously 14

determined to be eligible or the education achievement system shall apply to the department, 15

in a form and manner prescribed by the department, and a district or public school academy or 16

the education achievement system must meet all of the following: 17

(a) The THE sum of the district's or public school academy's or the education 18

achievement system's combined state and local revenue per membership pupil in the current 19

state fiscal year, as calculated under section 20, is SHALL BE less than or equal to the 20

basic foundation allowance under section 20 for the current state fiscal year. 21

(b) The district or public school academy or the education achievement system agrees 22

to use the funding only for purposes allowed under this section and to comply with the 23

program and accountability requirements under this section. 24

(3) Except as otherwise provided in this subsection, an eligible district or eligible 25

public school academy or the education achievement system shall receive under this section 26

for each membership pupil in the district or public school academy or the education 27

achievement system who met the income eligibility criteria for free breakfast, lunch, or 28

milk, as determined under the Richard B. Russell national school lunch act, 42 USC 1751 TO 29

1769, and as reported to the department IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT, 30

not later than the fifth Wednesday after the pupil membership count day of the immediately 31

preceding fiscal year and adjusted not later than December 31 of the immediately preceding 32

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fiscal year, an amount per pupil equal to 11.5% of the sum of the district's foundation 1

allowance or the public school academy's or the education achievement system's per pupil 2

amount calculated under section 20, not to exceed the basic foundation allowance under 3

section 20 for the current state fiscal year, or of the public school academy's or the 4

education achievement system's per membership pupil amount calculated under section 20 for 5

the current state fiscal year. A HOWEVER, A public school academy that began operations as a 6

public school academy, or an achievement school that began operations as an achievement 7

school, after the pupil membership count day of the immediately preceding school year shall 8

receive under this section for each membership pupil in the public school academy or in the 9

education achievement system who met the income eligibility criteria for free breakfast, 10

lunch, or milk, as determined under the Richard B. Russell national school lunch act and as 11

reported to the department not later than the fifth Wednesday after the pupil membership 12

count day of the current fiscal year and adjusted not later than December 31 of the current 13

fiscal year, an amount per pupil equal to 11.5% of the public school academy's or the 14

education achievement system's per membership pupil amount calculated under section 20 for 15

the current state fiscal year. 16

(4) Except as otherwise provided in this section, a district or public school academy, 17

or the education achievement system, receiving funding under this section shall use that 18

money only to provide instructional programs and direct noninstructional services, including, 19

but not limited to, medical, MENTAL HEALTH, or counseling services, for at-risk pupils; for 20

school health clinics; and for the purposes of subsection (5), (6), or (7), OR (10). In 21

addition, a district that is a school district of the first class or a district or public 22

school academy in which at least 50% of the pupils in membership met the income eligibility 23

criteria for free breakfast, lunch, or milk in the immediately preceding state fiscal year, 24

as determined and reported as described in subsection (1) (3), or the education achievement 25

system if it meets this requirement, may use not more than 20% of the funds it receives under 26

this section for school security. A district, the public school academy, or the education 27

achievement system shall not use any of that money for administrative costs or to supplant 28

another program or other funds, except for funds allocated to the district or public school 29

academy or the education achievement system under this section in the immediately preceding 30

year and already being used by the district or public school academy or the education 31

achievement system for at-risk pupils. The instruction or direct noninstructional services 32

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provided under this section may be conducted before or after regular school hours or by 1

adding extra school days to the school year and may include, but are not limited to, tutorial 2

services, early childhood programs to serve children age 0 to 5, and reading programs as 3

described in former section 32f as in effect for 2001-2002. A tutorial method may be 4

conducted with paraprofessionals working under the supervision of a certificated teacher. The 5

ratio of pupils to paraprofessionals shall be between 10:1 and 15:1. Only 1 certificated 6

teacher is required to supervise instruction using a tutorial method. As used in this 7

subsection, "to supplant another program" means to take the place of a previously existing 8

instructional program or direct noninstructional services funded from a funding source other 9

than funding under this section. 10

(5) Except as otherwise provided in subsection (12), a A district or public school 11

academy that receives funds under this section and that operates a school breakfast program 12

under section 1272a of the revised school code, MCL 380.1272a, or the education achievement 13

system if it operates a school breakfast program, shall use from the funds received under 14

this section an amount, not to exceed $10.00 per pupil for whom the district or public school 15

academy or the education achievement system receives funds under this section, necessary to 16

pay for costs associated with the operation of the school breakfast program. 17

(6) From the funds allocated under subsection (1), there is allocated for 2013-2014 18

2014-2015 an amount not to exceed $3,557,300.00 to support child and adolescent health 19

centers. These grants shall be awarded for 5 consecutive years beginning with 2003-2004 in a 20

form and manner approved jointly by the department and the department of community health. 21

Each grant recipient shall remain in compliance with the terms of the grant award or shall 22

forfeit the grant award for the duration of the 5-year period after the noncompliance. To 23

continue to receive funding for a child and adolescent health center under this section a 24

grant recipient shall ensure that the child and adolescent health center has an advisory 25

committee and that at least one-third of the members of the advisory committee are parents or 26

legal guardians of school-aged children. A child and adolescent health center program shall 27

recognize the role of a child's parents or legal guardian in the physical and emotional well-28

being of the child. Funding under this subsection shall be used to support child and 29

adolescent health center services provided to children up to age 21. If any funds allocated 30

under this subsection are not used for the purposes of this subsection for the fiscal year in 31

which they are allocated, those unused funds shall be used that fiscal year to avoid or 32

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minimize any proration that would otherwise be required under subsection (14) (11) for that 1

fiscal year. 2

(7) From the funds allocated under subsection (1), there is allocated for 2013-2014 3

2014-2015 an amount not to exceed $5,150,000.00 for the state portion of the hearing and 4

vision screenings as described in section 9301 of the public health code, 1978 PA 368, MCL 5

333.9301. A local public health department shall pay at least 50% of the total cost of the 6

screenings. The frequency of the screenings shall be as required under R 325.13091 to R 7

325.13096 and R 325.3271 to R 325.3276 of the Michigan administrative code. Funds shall be 8

awarded in a form and manner approved jointly by the department and the department of 9

community health. Notwithstanding section 17b, payments to eligible entities under this 10

subsection shall be paid on a schedule determined by the department. 11

(8) Each district or public school academy receiving funds under this section and the 12

education achievement system shall submit to the department by July 15 of each fiscal year a 13

report, not to exceed 10 pages, on the usage by the district or public school academy or the 14

education achievement system of funds under this section, which report shall include at least 15

a brief description of each program conducted OR SERVICES PERFORMED by the district or public 16

school academy or the education achievement system using funds under this section, the amount 17

of funds under this section allocated to each of those programs OR SERVICES, the number of 18

at-risk pupils eligible for free or reduced price school lunch who were served by each of 19

those programs, and the total number of at-risk pupils served by each of those programs OR 20

SERVICES, AND THE DATA NECESSARY FOR THE DEPARTMENT AND THE DEPARTMENT OF HUMAN SERVICES TO 21

VERIFY MATCHING FUNDS FOR THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM. If a district 22

or public school academy or the education achievement system does not comply with this 23

subsection, the department shall withhold an amount equal to the August payment due under 24

this section until the district or public school academy or the education achievement system 25

complies with this subsection. If the district or public school academy or the education 26

achievement system does not comply with this subsection by the end of the state fiscal year, 27

the withheld funds shall be forfeited to the school aid fund. 28

(9) In order to receive funds under this section, a district or public school academy 29

or the education achievement system shall allow access for the department or the department's 30

designee to audit all records related to the program for which it receives those funds. The 31

district or public school academy or the education achievement system shall reimburse the 32

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state for all disallowances found in the audit. 1

(10) Subject to subsections (5), (6), AND (7), (12), and (13), a district may use up 2

to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers 3

in grades K-12, or any combination of those grades, in school buildings in which the 4

percentage of pupils described in subsection (1) exceeds the district's aggregate percentage 5

of those pupils. Subject to subsections (5), (6), (7), (12), and (13), a district may use up 6

to 100% of the funds it receives under this section to reduce the ratio of pupils to teachers 7

in grades K-12, or any combination of those grades, in school buildings in which the 8

percentage of pupils described in subsection (1) is at least 60% of the district's aggregate 9

percentage of those pupils and at least 30% of the total number of pupils enrolled in the 10

school building TO IMPLEMENT SCHOOL WIDE REFORM IN SCHOOLS WITH 40% OR MORE OF ITS PUPILS 11

IDENTIFIED AS AT RISK BY PROVIDING SUPPLEMENTAL INSTRUCTIONAL OR NONINSTRUCTIONAL SERVICES 12

CONSISTENT WITH THE SCHOOL’S IMPROVEMENT PLAN. 13

(11) A district or public school academy or the education achievement system may use 14

funds received under this section for adult high school completion, general educational 15

development (G.E.D.) test preparation, adult English as a second language, or adult basic 16

education programs described in section 107. 17

(12) For an individual school or schools operated by a district or public school 18

academy receiving funds under this section or the education achievement system that have been 19

determined by the department to meet the adequate yearly progress standards of the no child 20

left behind act of 2001, Public Law 107-110, in both mathematics and English language arts at 21

all applicable grade levels for all applicable subgroups, the district or public school 22

academy or the education achievement system may use not more than 20% of the funds it 23

receives under this section for specific alternative purposes identified by the district or 24

public school academy or the education achievement system that are designed to benefit at-25

risk pupils in the school, but that may be different from the purposes otherwise allowable 26

under this section. If a district or public school academy or the education achievement 27

system uses funds for alternative purposes allowed under the flexibility provisions under 28

this subsection, the district or public school academy or the education achievement system 29

shall maintain documentation of the amounts used for those alternative purposes and shall 30

make that information available to the department upon request. 31

(13) A district or public school academy that receives funds under this section or the 32

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education achievement system may use funds it receives under this section to implement and 1

operate an early intervening program for pupils in grades K to 3 that meets either or both of 2

the following: 3

(a) Monitors individual pupil learning and provides specific support or learning 4

strategies to pupils as early as possible in order to reduce the need for special education 5

placement. The program shall include literacy and numeracy supports, sensory motor skill 6

development, behavior supports, instructional consultation for teachers, and the development 7

of a parent/school learning plan. Specific support or learning strategies may include support 8

in or out of the general classroom in areas including reading, writing, math, visual memory, 9

motor skill development, behavior, or language development. These would be provided based on 10

an understanding of the individual child's learning needs. 11

(b) Provides early intervening strategies using school-wide systems of academic and 12

behavioral supports and is scientifically research-based. The strategies to be provided shall 13

include at least pupil performance indicators based upon response to intervention, 14

instructional consultation for teachers, and ongoing progress monitoring. A school-wide 15

system of academic and behavioral support should be based on a support team available to the 16

classroom teachers. The members of this team could include the principal, special education 17

staff, reading teachers, and other appropriate personnel who would be available to 18

systematically study the needs of the individual child and work with the teacher to match 19

instruction to the needs of the individual child. 20

(11) (14) If necessary, and before any proration required under section 296, the 21

department shall prorate payments under this section by reducing the amount of the per pupil 22

payment under this section by a dollar amount calculated by determining the amount by which 23

the amount necessary to fully fund the requirements of this section exceeds the maximum 24

amount allocated under this section and then dividing that amount by the total statewide 25

number of pupils who met the income eligibility criteria for free breakfast, lunch, or milk 26

in the immediately preceding fiscal year, as described in subsection (1) (3). 27

(12) (15) If a district is formed by consolidation after June 1, 1995, and if 1 or 28

more of the original districts was not eligible before the consolidation for an additional 29

allowance under this section, the amount of the additional allowance under this section for 30

the consolidated district shall be based on the number of pupils described in subsection (1) 31

(3) enrolled in the consolidated district who reside in the territory of an original district 32

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that was eligible before the consolidation for an additional allowance under this section. IN 1

ADDITION, IF A DISTRICT IS DISSOLVED PURSUANT TO SECTION 12 OF THE REVISED SCHOOL CODE, MCL 2

380.12, THE INTERMEDIATE DISTRICT TO WHICH THE DISSOLVED SCHOOL DISTRICT IS CONSTITUENT SHALL 3

DETERMINE THE ESTIMATED NUMBER OF PUPILS THAT MEET THE INCOME ELIGIBILITY CRITERIA FOR FREE 4

BREAKFAST, LUNCH, OR MILK, AS DESCRIBED UNDER SUBSECTION (3), ENROLLED IN EACH OF THE OTHER 5

DISTRICTS WITHIN THE INTERMEDIATE DISTRICT AND PROVIDE THAT ESTIMATE TO THE DEPARTMENT FOR 6

THE PURPOSES OF DISTRIBUTING FUNDS UNDER THIS SECTION WITHIN 60 DAYS AFTER THE SCHOOL 7

DISTRICT IS DECLARED DISSOLVED. 8

(13) (16) As used in this section, "at-risk pupil" means a pupil for whom the district 9

has documentation that the pupil meets at least 2 ANY of the following criteria: is a victim 10

of child abuse or neglect; is below grade level in English language arts or mathematics; is a 11

pregnant teenager or teenage parent; is eligible for a federal free or reduced-price lunch 12

subsidy; has atypical behavior or attendance patterns; or has a family history of school 13

failure, incarceration, or substance abuse. At-risk pupil also includes all pupils in a 14

priority school as defined in the elementary and secondary education act of 2001 flexibility 15

request approved by the United States department of education. For pupils for whom the 16

results of at least the applicable Michigan education assessment program (MEAP) test have 17

been received, at-risk pupil also includes a pupil who does not meet the other criteria under 18

this subsection but who did not achieve at least a score of level 2 on the most recent MEAP 19

English language arts, mathematics, science test, or social studies for which results for the 20

pupil have been received. For pupils for whom the results of the Michigan merit examination 21

have been received, at-risk pupil also includes a pupil who does not meet the other criteria 22

under this subsection but who did not achieve proficiency on the reading, writing, 23

mathematics, science, or social studies components of the most recent Michigan merit 24

examination for which results for the pupil have been received. For pupils in grades K-3, at-25

risk pupil also includes a pupil who is at risk of not meeting the district's core academic 26

curricular objectives in English language arts or mathematics. 27

(A) THE PUPIL IS ENROLLED IN A PRIORITY OR PRIORITY-SUCCESSOR SCHOOL, AS DEFINED IN 28

THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 2001 FLEXIBILITY WAIVER APPROVED BY THE UNITED 29

STATES DEPARTMENT OF EDUCATION. 30

(B) THE PUPIL IS ENROLLED IN A FOCUS SCHOOL, AS DEFINED IN THE ELEMENTARY AND 31

SECONDARY EDUCATION ACT OF 2001 FLEXIBILITY WAIVER APPROVED BY THE UNITED STATES DEPARTMENT 32

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OF EDUCATION AND IS IN THE BOTTOM 30 PERCENT OF ACHIEVEMENT AS DETERMINED BY THE DEPARTMENT. 1

(C) THE PUPIL DID NOT ACHIEVE A SCORE OF PROFICENT ON 2 OR MORE STATE ADMINISTERED 2

ASSESSMENTS FOR ENGLISH LANGUAGE ARTS, MATHEMATICS, SCIENCE OR SOCIAL STUDIES. 3

(D) THE PUPIL DID NOT RECEIVE A SATISFACTORY SCORE ON 2 OR MORE LOCALLY ADMINISTERED 4

ASSESSMENTS THAT ARE ALIGNED WITH STATE STANDARDS FOR ENGLISH LANGUAGE ARTS, MATHEMATICS, 5

SCIENCE OR SOCIAL SCIENCES IN GRADES NOT ASSESSED BY THE STATE. 6

(E) IN THE ABSENCE OF STATE OR LOCAL ASSESSMENT DATA, THE PUPIL MEETS AT LEAST 2 OF 7

THE FOLLOWING CRITERIA, AS DOCUMENTED IN A FORM AND MANNER APPROVED BY THE DEPARTMENT: 8

(I) THE PUPIL IS ELIGIBLE FOR FREE BREAKFAST, LUNCH OR MILK. 9

(II) THE PUPIL IS ABSENT MORE THAN 10 PERCENT OF ENROLLED DAYS OR 10 SCHOOL DAYS 10

DURING THE SCHOOL YEAR. 11

(III) THE PUPIL IS HOMELESS. 12

(IV) THE PUPIL IS A MIGRANT. 13

(V) THE PUPIL IS AN ENGLISH LANGUAGE LEARNER. 14

(VI) THE PUPIL IS AN IMMIGRANT. 15

(VII) THE PUPIL DID NOT COMPLETE HIGH SCHOOL IN FOUR YEARS AND IS STILL CONTINUING IN 16

SCHOOL AS IDENTIFIED IN THE MICHIGAN COHORT GRADUATION AND DROPOUT REPORT. 17

(14) BEGINNING IN 2014-2015, IF A DISTRICT, PUBLIC SCHOOL ACADEMY OR ACHIEVEMENT 18

SCHOOL CANNOT DEMONSTRATE TO THE SATISFACTION OF THE DEPARTMENT IMPROVEMENT IN THE PERCENTAGE 19

OF AT-RISK PUPILS PROFICIENT IN READING AT THE END OF THIRD GRADE AND IMPROVEMENT IN THE 20

PERCENTAGE OF AT-RISK PUPILS THAT ARE CAREER AND COLLEGE READY AS MEASURED BY THE ACT 21

COMPOSITE SCORE AFTER 3 SUBSEQUENT SCHOOL YEARS, THE DISTRICT, PUBLIC SCHOOL ACADEMY OR 22

EDUCATION ACHIEVEMENT SYSTEM SHALL REVISE ITS SCHOOL IMPROVEMENT PLAN REGARDING THE 23

EXPENDITURE OF FUNDING FROM THIS SECTION. 24

(15) (17) A district or public school academy that receives funds under this section 25

or the education achievement system may use funds received under this section to provide an 26

anti-bullying or crisis intervention program. 27

SEC. 31B. (1) FROM THE APPROPRIATIONS IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT 28

TO EXCEED $2,000,000.00 FOR 2014-2015 FOR PAYMENTS TO AT-RISK DISTRICTS SELECTED TO 29

PARTICIPATE IN A PILOT PROJECT UNDER THIS SECTION FOR A YEAR-ROUND INSTRUCTIONAL PROGRAM FOR 30

THE 2015-2016 SCHOOL YEAR. 31

(2) THE DEPARTMENT SHALL SELECT DISTRICTS TO PARTICIPATE IN THE PROJECT FROM AMONG 32

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DISTRICTS THAT ARE ELIGIBLE FOR THE COMMUNITY ELIGIBILITY OPTION FOR FREE AND REDUCED PRICE 1

LUNCH UNDER 42 USC 1759A. A DISTRICT SEEKING TO PARTICIPATE SHALL APPLY TO THE DEPARTMENT IN 2

THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT NOT LATER THAN DECEMBER 1, 2014. THE 3

DEPARTMENT SHALL SELECT DISTRICTS FOR PARTICIPATION NOT LATER THAN FEBRUARY 1, 2015. 4

(3) A DISTRICT PARTICIPATING IN THE PILOT PROJECT IS NOT REQUIRED TO PROVIDE MORE THAN 5

THE MINIMUM NUMBER OF DAYS AND HOURS OF PUPIL INSTRUCTION PRESCRIBED UNDER SECTION 101 BUT 6

SHALL SPREAD THE INSTRUCTION OVER THE ENTIRE YEAR IN AT LEAST 1 OF ITS SCHOOLS. THE DISTRICT 7

SHALL COMMIT TO PROVIDING THE YEAR-ROUND INSTRUCTIONAL CALENDAR FOR AT LEAST 3 SCHOOL YEARS. 8

(4) FOR A DISTRICT PARTICIPATING IN THE PILOT PROJECT, EXCESSIVE HEAT IS CONSIDERED TO 9

BE A CONDITION NOT WITHIN THE CONTROL OF SCHOOL AUTHORITIES FOR THE PURPOSE OF DAYS OR HOURS 10

BEING COUNTED AS DAYS OR HOURS OF PUPIL INSTRUCTION UNDER SECTION 101(4). 11

(5) THE PAYMENTS MADE UNDER THIS SECTION TO DISTRICTS SHALL BE USED FOR NECESSARY 12

MODIFICATIONS TO INSTRUCTIONAL FACILITIES, MODIFICATIONS TO CURRENT CONTRACTS, AND OTHER 13

NONRECURRING COSTS OF PREPARING FOR THE OPERATION OF A YEAR-ROUND INSTRUCTIONAL PROGRAM AS 14

APPROVED BY THE DEPARTMENT. 15

(6) NOTWITHSTANDING SECTION 17B, PAYMENTS TO DISTRICTS UNDER THIS SECTION SHALL BE 16

PAID ON A SCHEDULE DETERMINED BY THE DEPARTMENT. 17

Sec. 31d. (1) From the appropriations in section 11, there is allocated an amount not 18

to exceed $22,495,100.00 for 2013-2014 2014-2015 for the purpose of making payments to 19

districts and other eligible entities under this section. 20

(2) The amounts allocated from state sources under this section shall be used to pay 21

the amount necessary to reimburse districts for 6.0127% of the necessary costs of the state 22

mandated portion of the school lunch programs provided by those districts. The amount due to 23

each district under this section shall be computed by the department using the methods of 24

calculation adopted by the Michigan supreme court in the consolidated cases known as Durant v 25

State of Michigan, Michigan supreme court docket no. 104458-104492. 26

(3) The payments made under this section include all state payments made to districts 27

so that each district receives at least 6.0127% of the necessary costs of operating the state 28

mandated portion of the school lunch program in a fiscal year. 29

(4) The payments made under this section to districts and other eligible entities that 30

are not required under section 1272a of the revised school code, MCL 380.1272a, to provide a 31

school lunch program shall be in an amount not to exceed $10.00 per eligible pupil plus 5 32

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cents for each free lunch and 2 cents for each reduced price lunch provided, as determined by 1

the department. 2

(5) From the federal funds appropriated in section 11, there is allocated for 2013-3

2014 2014-2015 all available federal funding, estimated at $460,000,000.00 $510,000,000.00 4

for the national school lunch program and all available federal funding, estimated at 5

$3,200,000.00 for the emergency food assistance program. 6

(6) Notwithstanding section 17b, payments to eligible entities other than districts 7

under this section shall be paid on a schedule determined by the department. 8

(7) In purchasing food for a school lunch program funded under this section, 9

preference shall be given to food that is grown or produced by Michigan businesses if it is 10

competitively priced and of comparable quality. 11

Sec. 31f. (1) From the appropriations in section 11, there is allocated an amount not 12

to exceed $5,625,000.00 for 2013-2014 2014-2015 for the purpose of making payments to 13

districts to reimburse for the cost of providing breakfast. 14

(2) The funds allocated under this section for school breakfast programs shall be made 15

available to all eligible applicant districts that meet all of the following criteria: 16

(a) The district participates in the federal school breakfast program and meets all 17

standards as prescribed by 7 CFR parts 220 and 245. 18

(b) Each breakfast eligible for payment meets the federal standards described in 19

subdivision (a). 20

(3) The payment for a district under this section is at a per meal rate equal to the 21

lesser of the district's actual cost or 100% of the statewide average cost of a breakfast 22

served, as determined and approved by the department, less federal reimbursement, participant 23

payments, and other state reimbursement. The statewide average cost shall be determined by 24

the department using costs as reported in a manner approved by the department for the 25

preceding school year. 26

(4) Notwithstanding section 17b, payments under this section may be made pursuant to 27

an agreement with the department. 28

(5) In purchasing food for a school breakfast program funded under this section, 29

preference shall be given to food that is grown or produced by Michigan businesses if it is 30

competitively priced and of comparable quality. 31

Sec. 32d. (1) From the funds appropriated in section 11, there is allocated to 32

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eligible intermediate districts and consortia of intermediate districts for great start 1

readiness programs an amount not to exceed $149,275,000.00 $239,275,000.00 for 2013-2014 2

2014-2015. In addition, from the funds appropriated in section 11, there is allocated to the 3

great start readiness reserve fund created under subsection (14) an amount not to exceed 4

$25,000,000.00 for 2013-2014. Funds allocated under this section for great start readiness 5

programs shall be used to provide part-day, school-day, or GSRP/head start blended 6

comprehensive free compensatory classroom programs designed to improve the readiness and 7

subsequent achievement of educationally disadvantaged children who meet the participant 8

eligibility and prioritization guidelines as defined by the department. Beginning in 2013-9

2014, for FOR a child to be eligible to participate in a program under this section, the 10

child shall be at least 4, but less than 5, years of age as of the date specified for 11

determining a child's eligibility to attend school under section 1147 of the revised school 12

code, MCL 380.1147. 13

(2) Funds allocated under subsection (1) shall be allocated to intermediate districts 14

or consortia of intermediate districts based on the formula in section 39. An intermediate 15

district or consortium of intermediate districts receiving funding under this section shall 16

act as the fiduciary for the great start readiness programs. In order to be eligible to 17

receive funds allocated under this subsection from an intermediate district or consortium of 18

intermediate districts, a district, a consortium of districts, or a public or private for-19

profit or nonprofit legal entity or agency shall comply with this section and section 39. 20


appropriated under section 11, there is allocated an amount not to exceed $300,000.00 for 22

2013-2014 2014-2015 for a competitive grant to continue a longitudinal evaluation of children 23

who have participated in great start readiness programs. 24

(4) To be eligible for funding under this section, a program shall prepare children 25

for success in school through comprehensive part-day, school-day, or GSRP/head start blended 26

programs that contain all of the following program components, as determined by the 27

department: 28

(a) Participation in a collaborative recruitment and enrollment process to assure that 29

each child is enrolled in the program most appropriate to his or her needs and to maximize 30

the use of federal, state, and local funds. 31

(b) An age-appropriate educational curriculum that is in compliance with the early 32

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childhood standards of quality for prekindergarten children adopted by the state board. 1

(c) Nutritional services for all program participants supported by federal, state, and 2

local resources as applicable. 3

(d) Health PHYSICAL AND DENTAL HEALTH and developmental screening services for all 4

program participants. 5

(e) Referral services for families of program participants to community social service 6

agencies, INCLUDING MENTAL HEALTH SERVICES, as appropriate. 7

(f) Active and continuous involvement of the parents or guardians of the program 8

participants. 9

(g) A plan to conduct and report annual great start readiness program evaluations and 10

continuous improvement plans using criteria approved by the department. 11

(h) Participation in a multidistrict, multiagency, school readiness advisory committee 12

convened as a workgroup of the great start collaborative that provides for the involvement of 13

classroom teachers, parents or guardians of program participants, and community, volunteer, 14

and social service agencies and organizations, as appropriate. The advisory committee 15

annually shall review AND MAKE RECOMMENDATIONS REGARDING the program components listed in 16

this subsection and make recommendations for changes to the great start readiness program for 17

which it is an advisory committee. THE ADVISORY COMMITTEE SHALL ALSO MAKE RECOMMENDATIONS 18

ABOUT OTHER COMMUNITY SERVICES DESIGNED TO IMPROVE ALL CHILDREN’S SCHOOL READINESS TO THE 19

GREAT START COLLABORATIVE. 20

(i) The ongoing articulation of the kindergarten and first grade programs offered by 21

the program provider. 22

(j) Participation in this state's great start to quality process with a rating of at 23

least 3 stars. 24

(5) An application for funding under this section shall provide for the following, in 25

a form and manner determined by the department: 26

(a) Ensure compliance with all program components described in subsection (4). 27

(b) Ensure EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, ENSURE that at least 90% 28

of the children participating in an eligible great start readiness program for whom the 29

provider INTERMEDIATE DISTRICT is receiving funds under this section are children who live 30

with families with a household income that is equal to or less than 250% of the federal 31

poverty level. IF THE INTERMEDIATE DISTRICT DETERMINES THAT ALL ELIGIBLE CHILDREN ARE BEING 32

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SERVED AND THAT THERE ARE NO CHILDREN ON THE WAITING LIST THAT IS REQUIRED TO BE MAINTAINED 1

PURSUANT TO SECTION 39(1)(D) WHO LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME THAT IS EQUAL TO 2

OR LESS THAN 250% OF THE FEDERAL POVERTY LEVEL, THE INTERMEDIATE DISTRICT MAY THEN ENROLL 3

CHILDREN THAT LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME THAT IS EQUAL TO OR LESS THAN 300% 4

OF THE FEDERAL POVERTY LEVEL. THE ENROLLMENT PROCESS SHALL CONSIDER INCOME AND RISK FACTORS, 5

SUCH THAT CHILDREN DETERMINED WITH HIGHER NEED ARE ENROLLED PRIOR TO THOSE CHILDREN WITH 6

LESSER NEED. FOR PURPOSES OF THIS SUBDIVISION, ALL AGE-ELIGIBLE CHILDREN SERVED IN FOSTER 7

CARE OR WHO ARE EXPERIENCING HOMELESSNESS OR WHO HAVE INDIVIDUALIZED EDUCATION PLANS 8

RECOMMENDING PLACEMENT IN AN INCLUSIVE PRESCHOOL SETTING SHALL BE CONSIDERED TO LIVE WITH 9

FAMILIES WITH HOUSEHOLD INCOME EQUAL TO OR LESS THAN 250% OF THE FEDERAL POVERTY LEVEL 10

REGARDLESS OF ACTUAL FAMILY INCOME. 11

(c) Ensure that the applicant only uses qualified personnel for this program, as 12

follows: 13

(i) Teachers possessing proper training. For programs managed directly by a district 14

or intermediate district A LEAD TEACHER MUST HAVE a valid teaching certificate and WITH an 15

early childhood (ZA or ZS) endorsement are required. This provision does not apply to an 16

eligible child development program. In that situation, a teacher must have a valid Michigan 17

teaching certificate with an early childhood (ZA or ZS) endorsement, a valid Michigan 18

elementary teaching certificate with a child development associate credential, or a 19

bachelor's degree in child development OR EARLY CHILDHOOD DEVELOPMENT with specialization in 20

preschool teaching. However, if an applicant demonstrates to the department that it is unable 21

to fully comply with this subparagraph after making reasonable efforts to comply, teachers 22

who have significant but incomplete training in early childhood education or child 23

development may be used if the applicant provides to the department, and the department 24

approves, a plan for each teacher to come into compliance with the standards in this 25

subparagraph. A teacher's compliance plan must be completed within 2 years of the date of 26

employment. Progress toward completion of the compliance plan shall consist of at least 2 27

courses per calendar year. 28

(ii) Paraprofessionals possessing proper training in early childhood development, 29

including an associate's degree in early childhood education or child development or the 30

equivalent, or a child development associate (CDA) credential. However, if an applicant 31

demonstrates to the department that it is unable to fully comply with this subparagraph after 32

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making reasonable efforts to comply, the applicant may use paraprofessionals who have 1

completed at least 1 course that earns college credit in early childhood education or child 2

development if the applicant provides to the department, and the department approves, a plan 3

for each paraprofessional to come into compliance with the standards in this subparagraph. A 4

paraprofessional's compliance plan must be completed within 2 years of the date of 5

employment. Progress toward completion of the compliance plan shall consist of at least 2 6

courses or 60 clock hours of training per calendar year. 7

(d) Include a program budget that contains only those costs that are not reimbursed or 8

reimbursable by federal funding, that are clearly and directly attributable to the great 9

start readiness program, and that would not be incurred if the program were not being 10

offered. Eligible costs include transportation costs. The program budget shall indicate the 11

extent to which these funds will supplement other federal, state, local, or private funds. 12

Funds received under this section shall not be used to supplant any federal funds received by 13

the applicant to serve children eligible for a federally funded preschool program that has 14

the capacity to serve those children. 15

(6) For a grant recipient that enrolls pupils in a school-day program funded under 16

this section, each child enrolled in the school-day program shall be counted as 2 children 17

served by the program for purposes of determining the number of children to be served and for 18

determining the amount of the grant award. A grant award shall not be increased solely on the 19

basis of providing a school-day program. 20

(7) For a grant recipient that enrolls pupils in a GSRP/head start blended program, 21

the grant recipient shall ensure that all head start and GSRP policies and regulations are 22

applied to the blended slots, with adherence to the highest standard from either program, to 23

the extent allowable under federal law. 24

(8) An intermediate district or consortium of intermediate districts receiving a grant 25

under this section MUST DESIGNATE AN EARLY CHILDHOOD COORDINATOR, AND may provide services 26

directly or may contract with 1 or more districts or public or private for-profit or 27

nonprofit providers that meet all requirements of subsection (4) and retain for 28

administrative services PROVIDED BY THE INTERMEDIATE DISTRICT AND THE SUB-RECIPIENTS LOCATED 29

WITHIN THE INTERMEDIATE DISTRICT an amount equal to not more than 7% of the grant amount. In 30

addition, an intermediate district or consortium of intermediate districts may expend not 31

more than 2% of the total grant amount for OUTREACH, recruiting and public awareness of the 32

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program. 1

(9) Each grant recipient shall enroll children identified under subsection (5)(b) 2

according to how far the child's household income is below 250% of the federal poverty level 3

by ranking each applicant child's household income from lowest to highest and dividing the 4

applicant children into quintiles based on how far the child's household income is below 250% 5

of the federal poverty level, and then enrolling children in the quintile with the lowest 6

household income before enrolling children in the quintile with the next lowest household 7

income until slots are completely filled. IF THE GRANT RECIPIENT DETERMINES THAT ALL ELIGIBLE 8

CHILDREN WHO LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME THAT IS EQUAL TO OR LESS THAN 250% OF 9

THE FEDERAL POVERTY LEVEL ARE BEING SERVED AND THAT THERE ARE NO CHILDREN ON THE WAITING LIST 10

THAT IS REQUIRED TO BE MAINTAINED PURSUANT TO SECTION 39(1)(D), THE GRANT RECIPIENT MAY 11

ENROLL CHILDREN THAT DO NOT LIVE WITH FAMILIES WITH A HOUSEHOLD INCOME THAT IS EQUAL TO OR 12

LESS THAN 300% OF THE FEDERAL POVERTY LEVEL ONLY IF THE ENROLLMENT PROCESS CONSIDERS INCOME 13

AND RISK FACTORS, SUCH THAT CHILDREN DETERMINED WITH HIGHER NEED ARE ENROLLED PRIOR TO THOSE 14

CHILDREN WITH LESSER NEED. FOR PURPOSES OF THIS SUBDIVISION, ALL AGE-ELIGIBLE CHILDREN SERVED 15

IN FOSTER CARE OR WHO ARE EXPERIENCING HOMELESSNESS OR WHO HAVE INDIVIDUALIZED EDUCATION 16

PLANS RECOMMENDING PLACEMENT IN AN INCLUSIVE PRESCHOOL SETTING SHALL BE CONSIDERED TO LIVE 17

WITH FAMILIES WITH HOUSEHOLD INCOME EQUAL TO OR LESS THAN 250% OF THE FEDERAL POVERTY LEVEL 18

REGARDLESS OF ACTUAL FAMILY INCOME. 19

(10) An intermediate district or consortium of intermediate districts receiving a 20

grant under this section shall conduct a local process to contract with interested and 21

eligible public and private for-profit and nonprofit community-based providers that meet all 22

requirements of subsection (4) for at least 30% of its total slot allocation. If the 23

intermediate district or consortium is not able to contract for at least 30% of its total 24

slot allocation, the grant recipient shall notify the department and, if the department 25

verifies that the intermediate district or consortium attempted to contract for at least 30% 26

of its total slot allocation and was not able to do so, then the intermediate district or 27

consortium may retain and use all of its allocated slots as provided under this section. 28

(11) A recipient of funds under this section shall report to the department in a form 29

and manner prescribed by the department the number of children participating in the program 30

who meet the income eligibility criteria under subsection (5)(b) and the total number of 31

children participating in the program. For children participating in the program who meet the 32

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income eligibility criteria specified under subsection (5)(b), a recipient shall also report 1

whether or not a parent is available to provide care based on employment status. For the 2

purposes of this subsection, "employment status" shall be defined by the department of human 3

services in a manner consistent with maximizing the amount of spending that may be claimed 4

for temporary assistance for needy families maintenance of effort purposes. 5


(a) "GSRP/head start blended program" means a part-day program funded under this 7

section and a head start program, which are combined for a school-day program. 8

(b) "Part-day program" means a program that operates at least 4 days per week, 30 9

weeks per year, for at least 3 hours of teacher-child contact time per day but for fewer 10

hours of teacher-child contact time per day than a school-day program. 11

(c) "School-day program" means a program that operates for at least the same length of 12

day as a district's first grade program for a minimum of 4 days per week, 30 weeks per year. 13

A classroom that offers a school-day program must enroll all children for the school day to 14

be considered a school-day program. 15

(13) An intermediate district or consortium of intermediate districts receiving funds 16

under this section shall establish a sliding scale of tuition rates based upon household 17

income for children participating in an eligible great start readiness program who live with 18

families with a household income that is more than 250% 300% of the federal poverty level to 19

be used by all of its providers, as approved by the department. A grant recipient shall 20

charge tuition according to that sliding scale of tuition rates on a uniform basis for any 21

child who does not meet the income eligibility requirements under this section. 22

(14) The great start readiness reserve fund is created as a separate account within 23

the state school aid fund established by section 11 of article IX of the state constitution 24

of 1963. Money available in the great start readiness reserve fund may not be expended for 25

2013-2014 unless transferred by the legislature not later than January 31, 2014 to the 26

allocation under subsection (1) for great start readiness programs. Money in the great start 27

readiness reserve fund shall be expended only for purposes for which state school aid fund 28

money may be expended. The state treasurer shall direct the investment of the great start 29

readiness reserve fund. The state treasurer shall credit to the great start readiness reserve 30

fund interest and earnings from fund investments. Money in the great start readiness reserve 31

fund at the close of a fiscal year shall remain in the great start readiness reserve fund and 32

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shall not lapse to the unreserved school aid fund balance or the general fund. 1

Sec. 32p. (1) From the school aid fund appropriation FUNDS APPROPRIATED in section 11, 2

there is allocated an amount not to exceed $10,900,000.00 to intermediate districts for 2013-3

2014 2014-2015 for the purpose of providing early childhood funding to intermediate school 4

districts in block grants, supporting the activities under subsection (2), and providing 5

early childhood programs for children from birth through age 8. Beginning in 2013-2014, the 6

THE funding provided to each intermediate district under this section shall be determined by 7

the distribution formula established by the department's office of great start to provide 8

equitable funding statewide. In order to receive funding under this section, each 9

intermediate district shall provide an application to the office of great start not later 10

than September 15 of the immediately preceding fiscal year indicating the activities planned 11

to be provided. 12

(2) Each intermediate district or consortium of intermediate districts that receives 13

funding under this section shall convene a local great start collaborative and a parent 14

coalition. The goal of each great start collaborative and parent coalition shall be to ensure 15

the coordination and expansion of local early childhood infrastructure and programs that 16

allow every child in the community to achieve the following outcomes: 17

(a) Children born healthy. 18

(b) Children healthy, thriving, and developmentally on track from birth to third 19

grade. 20

(c) Children developmentally ready to succeed in school at the time of school entry. 21

(d) Children prepared to succeed in fourth grade and beyond by reading proficiently by 22

the end of third grade. 23

(3) Each local great start collaborative and parent coalition shall convene a 24

workgroup to serve as a school readiness advisory committee as required under section 32d and 25

shall WORKGROUPS TO MAKE RECOMMENDATIONS ABOUT COMMUNITY SERVICES DESIGNED TO ACHIEVE THE 26

OUTCOMES DESCRIBED ABOVE AND TO ensure that its local great start system includes the 27

following supports for children from birth through age 8: 28

(a) Physical health. 29

(b) Social-emotional health. 30

(c) Family supports and basic needs. 31

(d) Parent education and child advocacy. 32

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(e) Early education and care. 1

(4) Not later than December 1 of each year, each intermediate district shall provide a 2

report to the department detailing the activities actually provided during the immediately 3

preceding school year and the families and children actually served. The department shall 4

compile and summarize these reports and submit its summary to the house and senate 5

appropriations subcommittees on school aid and to the house and senate fiscal agencies NO 6

LATER THAN FEBRUARY 15 OF EACH YEAR. The block grants allocated under this section implement 7

legislative intent language for this purpose enacted in 2011 PA 62. 8

(5) An intermediate district or consortium of intermediate districts that receives 9

funding under this section may carry over any unexpended funds received under this section 10

into the next fiscal year and may expend those unused funds in the THROUGH JUNE 30 OF THE 11

next fiscal year. A recipient of a grant shall return any unexpended grant funds to the 12

department in the manner prescribed by the department not later than September 30 of the next 13

fiscal year after the fiscal year in which the funds are received. 14

Sec. 39. (1) An eligible applicant receiving funds under section 32d shall submit a 15

preapplication AN APPLICATION, in a form and manner prescribed by the department, by a date 16

specified by the department in the immediately preceding state fiscal year. The 17

preapplication APPLICATION shall include a comprehensive needs assessment using aggregated 18

data from the applicant's entire service area and a community collaboration plan that is 19

endorsed by the local great start collaborative and is part of the community's great start 20

strategic plan that includes, but is not limited to, great start readiness program and head 21

start providers, and shall identify all of the following: 22

(a) The estimated total number of children in the community who meet the criteria of 23

section 32d and how that calculation was made. 24

(b) The estimated number of children in the community who meet the criteria of section 25

32d and are being served by other early childhood development programs operating in the 26

community, and how that calculation was made. 27

(c) The number of children the applicant will be able to serve who meet the criteria 28

of section 32d including a verification of physical facility and staff resources capacity. 29

(d) The estimated number of children who meet the criteria of section 32d who will 30

remain unserved after the applicant and community early childhood programs have met their 31

funded enrollments. The applicant shall maintain a waiting list of identified unserved 32

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eligible children who would be served when openings are available. 1

(2) An AFTER NOTIFICATION OF FUNDING ALLOCATIONS, AN applicant receiving funds under 2

section 32d shall also submit a final application AN IMPLEMENTATION PLAN for approval, in a 3

form and manner prescribed by the department, by a date specified by the department, that 4

details how the applicant complies with the program components established by the department 5

pursuant to section 32d. 6

(3) The FOR 2014-2015, THE number of prekindergarten children construed to be in need 7

of special readiness assistance under section 32d shall be calculated for each applicant in 8

the following manner: 1/2 of the percentage of the applicant's pupils in grades 1 to 5 in all 9

districts served by the applicant who are eligible for free lunch, as determined using the 10

district's pupil membership count as of the pupil membership count day in the school year 11

prior to the fiscal year for which the calculation is made, under the Richard B. Russell 12

national school lunch act, 42 USC 1751 to 1769i, shall be multiplied by the average 13

kindergarten enrollment of the districts served by the applicant on the pupil membership 14

count day of the 2 immediately preceding fiscal years. 15

(4) The initial allocation for each fiscal year to each eligible applicant under 16

section 32d shall be determined by multiplying the number of children determined by the 17

formula under subsection (3) or the number of children the applicant indicates it will be 18

able to serve under subsection (1)(c), whichever is less, by $3,625.00 $3,725.00 and shall be 19

distributed among applicants in decreasing order of concentration of eligible children as 20

determined by the formula under subsection (3). If the number of children an applicant 21

indicates it will be able to serve under subsection (1)(c) includes children able to be 22

served in a school-day program, then the number able to be served in a school-day program 23

shall be doubled for the purposes of making this calculation of the lesser of the number of 24

children determined by the formula under subsection (3) and the number of children the 25

applicant indicates it will be able to serve under subsection (1)(c) and determining the 26

amount of the initial allocation to the applicant under section 32d. A district may contract 27

with a head start agency to serve children enrolled in head start with a school-day program 28

by blending head start funds with a part-day great start readiness program allocation. All 29

head start and great start readiness program policies and regulations apply to the blended 30

program. 31

(5) If funds allocated for eligible applicants or to the great start readiness reserve 32

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fund under section 32d remain after the initial allocation under subsection (4), the 1

allocation under this subsection shall be distributed to each eligible applicant under 2

section 32d in decreasing order of concentration of eligible children as determined by the 3

formula under subsection (3). The allocation shall be determined by multiplying the number of 4

children each district within the applicant's service area served in the immediately 5

preceding fiscal year or the number of children the applicant indicates it will be able to 6

serve under subsection (1)(c), whichever is less, minus the number of children for which the 7

applicant received funding in subsection (4) by $3,625.00 $3,725.00. 8

(6) If funds allocated for eligible applicants or to the great start readiness reserve 9

fund under section 32d remain after the allocations under subsections (4) and (5), remaining 10

funds shall be distributed to each eligible applicant under section 32d in decreasing order 11

of concentration of eligible children as determined by the formula under subsection (3). If 12

the number of children the applicant indicates it will be able to serve under subsection 13

(1)(c) exceeds the number of children for which funds have been received under subsections 14

(4) and (5), the allocation under this subsection shall be determined by multiplying the 15

number of children the applicant indicates it will be able to serve under subsection (1)(c) 16

less the number of children for which funds have been received under subsections (4) and (5) 17

by $3,625.00 $3,725.00 until the funds allocated for eligible applicants in section 32d are 18

distributed. 19

(7) An applicant that offers supplementary child care funded by funds other than those 20

received under section 32d and therefore offers full-day programs as part of its early 21

childhood development program shall receive priority in the allocation of funds under section 22

32d over other eligible applicants. As used in this subsection, "full-day program" means a 23

program that provides supplementary child care that totals at least 10 hours of programming 24

per day. 25

(8) If, taking into account the total amount to be allocated to the applicant as 26

calculated under this section, an applicant determines that it is able to include additional 27

eligible children in the great start readiness program without additional funds under section 28

32d, the applicant may include additional eligible children but shall not receive additional 29

funding under section 32d for those children. 30

Sec. 39a. (1) From the federal funds appropriated in section 11, there is allocated 31

for 2013-2014 2014-2015 to districts, intermediate districts, and other eligible entities all 32

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available federal funding, estimated at $811,828,500.00 $807,969,900.00, for the federal 1

programs under the no child left behind act of 2001, Public Law 107-110. These funds are 2

allocated as follows: 3

(a) An amount estimated at $10,808,600.00 $8,000,000.00 to provide students with drug- 4

and violence-prevention programs and to implement strategies to improve school safety, funded 5

from DED-OESE, drug-free schools and communities funds. 6

(b) An amount estimated at $111,111,900.00 for the purpose of preparing, training, and 7

recruiting high-quality teachers and class size reduction, funded from DED-OESE, improving 8

teacher quality funds. 9

(c) An amount estimated at $12,200,000.00 for programs to teach English to limited 10

English proficient (LEP) children, funded from DED-OESE, language acquisition state grant 11

funds. 12

(d) An amount estimated at $10,286,500.00 for the Michigan charter school subgrant 13

program, funded from DED-OESE, charter school funds. 14

(e) An amount estimated at $2,393,500.00 for rural and low income schools, funded from 15

DED-OESE, rural and low income school funds. 16

(f) An amount estimated at $591,500,000.00 to provide supplemental programs to enable 17

educationally disadvantaged children to meet challenging academic standards, funded from DED-18

OESE, title I, disadvantaged children funds. 19

(g) An amount estimated at $8,878,000.00 for the purpose of identifying and serving 20

migrant children, funded from DED-OESE, title I, migrant education funds. 21

(h) An amount estimated at $40,050,000.00 $39,000,000.00 for the purpose of providing 22

high-quality extended learning opportunities, after school and during the summer, for 23

children in low-performing schools, funded from DED-OESE, twenty-first century community 24

learning center funds. 25

(i) An amount estimated at $24,600,000.00 to help support local school improvement 26

efforts, funded from DED-OESE, title I, local school improvement grants. 27

(2) From the federal funds appropriated in section 11, there is allocated for 2013-28

2014 2014-2015 to districts, intermediate districts, and other eligible entities all 29

available federal funding, estimated at $31,700,000.00 $31,300,000.00 for the following 30

programs that are funded by federal grants: 31

(a) An amount estimated at $600,000.00 $200,000.00 for acquired immunodeficiency 32

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syndrome education grants, funded from HHS – center for disease control, AIDS funding. 1

(b) An amount estimated at $2,600,000.00 to provide services to homeless children and 2

youth, funded from DED-OVAE, homeless children and youth funds. 3

(c) An amount estimated at $28,500,000.00 for providing career and technical education 4

services to pupils, funded from DED-OVAE, basic grants to states. 5

(3) To the extent allowed under federal law, the funds allocated under subsection 6

(1)(f) and (i) may be used for 1 or more reading improvement programs that meet at least 1 of 7

the following: 8

(a) A research-based, validated, structured reading program that aligns learning 9

resources to state standards and includes continuous assessment of pupils and individualized 10

education plans for pupils. 11

(b) A mentoring program that is a research-based, validated program or a statewide 1-12

to-1 mentoring program and is designed to enhance the independence and life quality of pupils 13

who are mentally impaired by providing opportunities for mentoring and integrated employment. 14

(c) A cognitive development program that is a research-based, validated educational 15

service program focused on assessing and building essential cognitive and perceptual learning 16

abilities to strengthen pupil concentration and learning. 17

(d) A structured mentoring-tutorial reading program for pupils in preschool to grade 4 18

that is a research-based, validated program that develops individualized educational plans 19

based on each pupil's age, assessed needs, reading level, interests, and learning style. 20

(3) (4) All federal funds allocated under this section shall be distributed in 21

accordance with federal law and with flexibility provisions outlined in Public Law 107-116, 22

and in the education flexibility partnership act of 1999, Public Law 106-25. Notwithstanding 23

section 17b, payments of federal funds to districts, intermediate districts, and other 24

eligible entities under this section shall be paid on a schedule determined by the 25

department. 26

(4) (5) For the purposes of applying for federal grants appropriated under this 27

article, the department shall allow an intermediate district to submit a consortium 28

application on behalf of 2 or more districts with the agreement of those districts as 29

appropriate according to federal rules and guidelines. 30


(a) "DED" means the United States department of education. 32

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(b) "DED-OESE" means the DED office of elementary and secondary education. 1

(c) "DED-OVAE" means the DED office of vocational and adult education. 2

(d) "HHS" means the United States department of health and human services. 3

(e) "HHS-ACF" means the HHS administration for children and families. 4

Sec. 41. (1) From the appropriation in section 11, there is allocated an amount not to 5

exceed $1,200,000.00 for 2013-2014 2014-2015 to applicant districts and intermediate 6

districts offering programs of instruction for pupils of limited English-speaking ability 7

under section 1153 of the revised school code, MCL 380.1153. Subject to subsection (2), 8

reimbursement REIMBURSEMENT shall be on a per-pupil basis and shall be based on the number of 9

pupils of limited English-speaking ability in membership on the pupil membership count day. 10

Funds allocated under this section shall be used solely for instruction in speaking, reading, 11

writing, or comprehension of English. A pupil shall not be counted under this section or 12

instructed in a program under this section for more than 3 years. 13

(2) A district or intermediate district shall not receive funds under this section if 14

it allows pupils to participate in the program of instruction who are not residing in the 15

United States legally. 16

Sec. 51a.(1) From the appropriation in section 11, there is allocated an amount not to 17

exceed $952,569,100.00 $938,946,100.00 for 2012-2013 and there is allocated an amount not to 18

exceed $980,446,100.00 for 2013-2014 2014-2015 from state sources and all available federal 19

funding under sections 611 to 619 of part B of the individuals with disabilities education 20

act, 20 USC 1411 to 1419, estimated at $365,000,000.00 for 2012-2013, and estimated at 21

$370,000,000.00 for 2013-2014 2014-2015, plus any carryover federal funds from previous year 22

appropriations. The allocations under this subsection are for the purpose of reimbursing 23

districts and intermediate districts for special education programs, services, and special 24

education personnel as prescribed in article 3 of the revised school code, MCL 380.1701 to 25

380.1766; net tuition payments made by intermediate districts to the Michigan schools for the 26

deaf and blind; and special education programs and services for pupils who are eligible for 27

special education programs and services according to statute or rule. For meeting the costs 28

of special education programs and services not reimbursed under this article, a district or 29

intermediate district may use money in general funds or special education funds, not 30

otherwise restricted, or contributions from districts to intermediate districts, tuition 31

payments, gifts and contributions from individuals or other entities, or federal funds that 32

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may be available for this purpose, as determined by the intermediate district plan prepared 1

pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. All federal funds 2

allocated under this section in excess of those allocated under this section for 2002-2003 3

may be distributed in accordance with the flexible funding provisions of the individuals with 4

disabilities education act, Public Law 108-446, including, but not limited to, 34 CFR 300.206 5

and 300.208. Notwithstanding section 17b, payments of federal funds to districts, 6

intermediate districts, and other eligible entities under this section shall be paid on a 7

schedule determined by the department. 8

(2) From the funds allocated under subsection (1), there is allocated the amount 9

necessary, estimated at $251,000,000.00 $252,000,000.00 for 2012-2013, and estimated at 10

$257,800,000.00 for 2013-2014 2014-2015, for payments toward reimbursing districts and 11

intermediate districts for 28.6138% of total approved costs of special education, excluding 12

costs reimbursed under section 53a, and 70.4165% of total approved costs of special education 13

transportation. Allocations under this subsection shall be made as follows: 14

(a) The initial amount allocated to a district under this subsection toward fulfilling 15

the specified percentages shall be calculated by multiplying the district's special education 16

pupil membership, excluding pupils described in subsection (11), times the foundation 17

allowance under section 20 of the pupil's district of residence, not to exceed the basic 18

foundation allowance under section 20 for the current fiscal year, or, for a special 19

education pupil in membership in a district that is a public school academy, times an amount 20

equal to the amount per membership pupil calculated under section 20(6) or, for a pupil 21

described in this subsection who is counted in membership in the education achievement 22

system, times an amount equal to the amount per membership pupil under section 20(7). For an 23

intermediate district, the amount allocated under this subdivision toward fulfilling the 24

specified percentages shall be an amount per special education membership pupil, excluding 25

pupils described in subsection (11), and shall be calculated in the same manner as for a 26

district, using the foundation allowance under section 20 of the pupil's district of 27

residence, not to exceed the basic foundation allowance under section 20 for the current 28

fiscal year. 29

(b) After the allocations under subdivision (a), districts and intermediate districts 30

for which the payments calculated under subdivision (a) do not fulfill the specified 31

percentages shall be paid the amount necessary to achieve the specified percentages for the 32

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district or intermediate district. 1

(3) From the funds allocated under subsection (1), there is allocated each fiscal year 2

for 2012-2013 and for 2013-2014 FOR 2014-2015 an amount not to exceed $1,000,000.00 to make 3

payments to districts and intermediate districts under this subsection. If the amount 4

allocated to a district or intermediate district for a fiscal year under subsection (2)(b) is 5

less than the sum of the amounts allocated to the district or intermediate district for 1996-6

97 under sections 52 and 58, there is allocated to the district or intermediate district for 7

the fiscal year an amount equal to that difference, adjusted by applying the same proration 8

factor that was used in the distribution of funds under section 52 in 1996-97 as adjusted to 9

the district's or intermediate district's necessary costs of special education used in 10

calculations for the fiscal year. This adjustment is to reflect reductions in special 11

education program operations or services between 1996-97 and subsequent fiscal years. 12

Adjustments for reductions in special education program operations or services shall be made 13

in a manner determined by the department and shall include adjustments for program or service 14

shifts. 15

(4) If the department determines that the sum of the amounts allocated for a fiscal 16

year to a district or intermediate district under subsection (2)(a) and (b) is not sufficient 17

to fulfill the specified percentages in subsection (2), then the shortfall shall be paid to 18

the district or intermediate district during the fiscal year beginning on the October 1 19

following the determination and payments under subsection (3) shall be adjusted as necessary. 20

If the department determines that the sum of the amounts allocated for a fiscal year to a 21

district or intermediate district under subsection (2)(a) and (b) exceeds the sum of the 22

amount necessary to fulfill the specified percentages in subsection (2), then the department 23

shall deduct the amount of the excess from the district's or intermediate district's payments 24

under this article for the fiscal year beginning on the October 1 following the determination 25

and payments under subsection (3) shall be adjusted as necessary. However, if the amount 26

allocated under subsection (2)(a) in itself exceeds the amount necessary to fulfill the 27

specified percentages in subsection (2), there shall be no deduction under this subsection. 28

(5) State funds shall be allocated on a total approved cost basis. Federal funds shall 29

be allocated under applicable federal requirements, except that an amount not to exceed 30

$3,500,000.00 may be allocated by the department each fiscal year for 2012-2013 and for 2013-31

2014 FOR 2014-2015 to districts, intermediate districts, or other eligible entities on a 32

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competitive grant basis for programs, equipment, and services that the department determines 1

to be designed to benefit or improve special education on a statewide scale. 2

(6) From the amount allocated in subsection (1), there is allocated an amount not to 3

exceed $2,200,000.00 each fiscal year for 2012-2013 and for 2013-2014 FOR 2014-2015 to 4

reimburse 100% of the net increase in necessary costs incurred by a district or intermediate 5

district in implementing the revisions in the administrative rules for special education that 6

became effective on July 1, 1987. As used in this subsection, "net increase in necessary 7

costs" means the necessary additional costs incurred solely because of new or revised 8

requirements in the administrative rules minus cost savings permitted in implementing the 9

revised rules. Net increase in necessary costs shall be determined in a manner specified by 10

the department. 11

(7) For purposes of sections 51a to 58, all of the following apply: 12

(a) "Total approved costs of special education" shall be determined in a manner 13

specified by the department and may include indirect costs, but shall not exceed 115% of 14

approved direct costs for section 52 and section 53a programs. The total approved costs 15

include salary and other compensation for all approved special education personnel for the 16

program, including payments for social security and medicare and public school employee 17

retirement system contributions. The total approved costs do not include salaries or other 18

compensation paid to administrative personnel who are not special education personnel as 19

defined in section 6 of the revised school code, MCL 380.6. Costs reimbursed by federal 20

funds, other than those federal funds included in the allocation made under this article, are 21

not included. Special education approved personnel not utilized full time in the evaluation 22

of students or in the delivery of special education programs, ancillary, and other related 23

services shall be reimbursed under this section only for that portion of time actually spent 24

providing these programs and services, with the exception of special education programs and 25

services provided to youth placed in child caring institutions or juvenile detention programs 26

approved by the department to provide an on-grounds education program. 27

(b) Beginning with the 2004-2005 fiscal year, a district or intermediate district that 28

employed special education support services staff to provide special education support 29

services in 2003-2004 or in a subsequent fiscal year and that in a fiscal year after 2003-30

2004 receives the same type of support services from another district or intermediate 31

district shall report the cost of those support services for special education reimbursement 32

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purposes under this article. This subdivision does not prohibit the transfer of special 1

education classroom teachers and special education classroom aides if the pupils counted in 2

membership associated with those special education classroom teachers and special education 3

classroom aides are transferred and counted in membership in the other district or 4

intermediate district in conjunction with the transfer of those teachers and aides. 5

(c) If the department determines before bookclosing for a fiscal year that the amounts 6

allocated for that fiscal year under subsections (2), (3), (6), and (11) and sections 53a, 7

54, and 56 will exceed expenditures for that fiscal year under subsections (2), (3), (6), and 8

(11) and sections 53a, 54, and 56, then for a district or intermediate district whose 9

reimbursement for that fiscal year would otherwise be affected by subdivision (b), 10

subdivision (b) does not apply to the calculation of the reimbursement for that district or 11

intermediate district and reimbursement for that district or intermediate district shall be 12

calculated in the same manner as it was for 2003-2004. If the amount of the excess 13

allocations under subsections (2), (3), (6), and (11) and sections 53a, 54, and 56 is not 14

sufficient to fully fund the calculation of reimbursement to those districts and intermediate 15

districts under this subdivision, then the calculations and resulting reimbursement under 16

this subdivision shall be prorated on an equal percentage basis. This reimbursement shall not 17

be made after 2014-2015. 18

(d) Reimbursement for ancillary and other related services, as defined by R 340.1701c 19

of the Michigan administrative code, shall not be provided when those services are covered by 20

and available through private group health insurance carriers or federal reimbursed program 21

sources unless the department and district or intermediate district agree otherwise and that 22

agreement is approved by the state budget director. Expenses, other than the incidental 23

expense of filing, shall not be borne by the parent. In addition, the filing of claims shall 24

not delay the education of a pupil. A district or intermediate district shall be responsible 25

for payment of a deductible amount and for an advance payment required until the time a claim 26

is paid. 27

(e) Beginning with calculations for 2004-2005, if an intermediate district purchases a 28

special education pupil transportation service from a constituent district that was 29

previously purchased from a private entity; if the purchase from the constituent district is 30

at a lower cost, adjusted for changes in fuel costs; and if the cost shift from the 31

intermediate district to the constituent does not result in any net change in the revenue the 32

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constituent district receives from payments under sections 22b and 51c, then upon application 1

by the intermediate district, the department shall direct the intermediate district to 2

continue to report the cost associated with the specific identified special education pupil 3

transportation service and shall adjust the costs reported by the constituent district to 4

remove the cost associated with that specific service. 5

(8) A pupil who is enrolled in a full-time special education program conducted or 6

administered by an intermediate district or a pupil who is enrolled in the Michigan schools 7

for the deaf and blind shall not be included in the membership count of a district, but shall 8

be counted in membership in the intermediate district of residence. 9

(9) Special education personnel transferred from 1 district to another to implement 10

the revised school code shall be entitled to the rights, benefits, and tenure to which the 11

person would otherwise be entitled had that person been employed by the receiving district 12

originally. 13

(10) If a district or intermediate district uses money received under this section for 14

a purpose other than the purpose or purposes for which the money is allocated, the department 15

may require the district or intermediate district to refund the amount of money received. 16

Money that is refunded shall be deposited in the state treasury to the credit of the state 17

school aid fund. 18

(11) From the funds allocated in subsection (1), there is allocated the amount 19

necessary, estimated at $4,300,000.00 for 2012-2013, and estimated at $4,300,000.00 20

$3,300,000.00 for 2013-2014 2014-2015, to pay the foundation allowances for pupils described 21

in this subsection. The allocation to a district under this subsection shall be calculated by 22

multiplying the number of pupils described in this subsection who are counted in membership 23

in the district times the foundation allowance under section 20 of the pupil's district of 24


fiscal year, or, for a pupil described in this subsection who is counted in membership in a 26

district that is a public school academy, times an amount equal to the amount per membership 27

pupil under section 20(6) or, for a pupil described in this subsection who is counted in 28

membership in the education achievement system, times an amount equal to the amount per 29

membership pupil under section 20(7). The allocation to an intermediate district under this 30

subsection shall be calculated in the same manner as for a district, using the foundation 31

allowance under section 20 of the pupil's district of residence, not to exceed the basic 32

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foundation allowance under section 20 for the current fiscal year. This subsection applies to 1

all of the following pupils: 2

(a) Pupils described in section 53a. 3

(b) Pupils counted in membership in an intermediate district who are not special 4

education pupils and are served by the intermediate district in a juvenile detention or child 5

caring facility. 6

(c) Pupils with an emotional impairment counted in membership by an intermediate 7

district and provided educational services by the department of community health. 8

(12) If it is determined that funds allocated under subsection (2) or (11) or under 9

section 51c will not be expended, funds up to the amount necessary and available may be used 10

to supplement the allocations under subsection (2) or (11) or under section 51c in order to 11

fully fund those allocations. After payments under subsections (2) and (11) and section 51c, 12

the remaining expenditures from the allocation in subsection (1) shall be made in the 13

following order: 14

(a) 100% of the reimbursement required under section 53a. 15

(b) 100% of the reimbursement required under subsection (6). 16

(c) 100% of the payment required under section 54. 17

(d) 100% of the payment required under subsection (3). 18

(e) 100% of the payments under section 56. 19

(13) The allocations under subsections (2), (3), and (11) shall be allocations to 20

intermediate districts only and shall not be allocations to districts, but instead shall be 21

calculations used only to determine the state payments under section 22b. 22

(14) If a public school academy enrolls pursuant to this section a pupil who resides 23

outside of the intermediate district in which the public school academy is located and who is 24

eligible for special education programs and services according to statute or rule, or who is 25

a child with disabilities, as defined under the individuals with disabilities education act, 26

Public Law 108-446, the provision of special education programs and services and the payment 27

of the added costs of special education programs and services for the pupil are the 28

responsibility of the district and intermediate district in which the pupil resides unless 29

the enrolling district or intermediate district has a written agreement with the district or 30

intermediate district in which the pupil resides or the public school academy for the purpose 31

of providing the pupil with a free appropriate public education and the written agreement 32

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includes at least an agreement on the responsibility for the payment of the added costs of 1

special education programs and services for the pupil. 2

Sec. 51c. As required by the court in the consolidated cases known as Durant v State 3

of Michigan, Michigan supreme court docket no. 104458-104492, from the allocation under 4

section 51a(1), there is allocated each fiscal year for 2012-2013 and for 2013-2014 the 5

amount necessary, estimated at $642,000,000.00 for 2012-2013, and estimated at 6

$662,200,000.00 $630,500,000.00 for 2013-2014 2014-2015, for payments to reimburse districts 7

for 28.6138% of total approved costs of special education excluding costs reimbursed under 8

section 53a, and 70.4165% of total approved costs of special education transportation. Funds 9

allocated under this section that are not expended in the state fiscal year for which they 10

were allocated, as determined by the department, may be used to supplement the allocations 11

under sections 22a and 22b in order to fully fund those calculated allocations for the same 12

fiscal year. 13

Sec. 51d. (1) From the federal funds appropriated in section 11, there is allocated 14

for 2013-2014 2014-2015 all available federal funding, estimated at $74,000,000.00, for 15

special education programs AND SERVICES that are funded by federal grants. All federal funds 16

allocated under this section shall be distributed in accordance with federal law. 17

Notwithstanding section 17b, payments of federal funds to districts, intermediate districts, 18

and other eligible entities under this section shall be paid on a schedule determined by the 19

department. 20

(2) From the federal funds allocated under subsection (1), the following amounts are 21

allocated for 2013-2014 2014-2015: 22

(a) An amount estimated at $15,000,000.00 for handicapped infants and toddlers, funded 23

from DED-OSERS, handicapped infants and toddlers funds. 24

(b) An amount estimated at $14,000,000.00 for preschool grants (Public Law 94-142), 25

funded from DED-OSERS, handicapped preschool incentive funds. 26

(c) An amount estimated at $45,000,000.00 for special education programs funded by 27

DED-OSERS, handicapped program, individuals with disabilities act funds. 28

(3) As used in this section, "DED-OSERS" means the United States department of 29

education office of special education and rehabilitative services. 30

Sec. 53a. (1) For districts, reimbursement for pupils described in subsection (2) 31

shall be 100% of the total approved costs of operating special education programs and 32

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services approved by the department and included in the intermediate district plan adopted 1

pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766, minus the 2

district's foundation allowance calculated under section 20. For intermediate districts, 3

reimbursement for pupils described in subsection (2) shall be calculated in the same manner 4

as for a district, using the foundation allowance under section 20 of the pupil's district of 5


fiscal year. 7

(2) Reimbursement under subsection (1) is for the following special education pupils: 8

(a) Pupils assigned to a district or intermediate district through the community 9

placement program of the courts or a state agency, if the pupil was a resident of another 10

intermediate district at the time the pupil came under the jurisdiction of the court or a 11

state agency. 12

(b) Pupils who are residents of institutions operated by the department of community 13

health. 14

(c) Pupils who are former residents of department of community health institutions for 15

the developmentally disabled who are placed in community settings other than the pupil's 16

home. 17

(d) Pupils enrolled in a department-approved on-grounds educational program longer 18

than 180 days, but not longer than 233 days, at a residential child care institution, if the 19

child care institution offered in 1991-92 an on-grounds educational program longer than 180 20

days but not longer than 233 days. 21

(e) Pupils placed in a district by a parent for the purpose of seeking a suitable 22

home, if the parent does not reside in the same intermediate district as the district in 23

which the pupil is placed. 24

(3) Only those costs that are clearly and directly attributable to educational 25

programs for pupils described in subsection (2), and that would not have been incurred if the 26

pupils were not being educated in a district or intermediate district, are reimbursable under 27

this section. 28

(4) The costs of transportation shall be funded under this section and shall not be 29

reimbursed under section 58. 30

(5) Not more than $13,500,000.00 $10,500,000.00 of the allocation for 2013-2014 2014- 31

2015 in section 51a(1) shall be allocated under this section. 32

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Sec. 54. Each intermediate district shall receive an amount per pupil for each pupil 1

in attendance at the Michigan schools for the deaf and blind. The amount shall be 2

proportionate to the total instructional cost at each school. Not more than $1,688,000.00 of 3

the allocation for 2013-2014 2014-2015 in section 51a(1) shall be allocated under this 4

section. 5

Sec. 56. (1) For the purposes of this section: 6

(a) "Membership" means for a particular fiscal year the total membership for the 7

immediately preceding fiscal year of the intermediate district and the districts constituent 8

to the intermediate district. 9

(b) "Millage levied" means the millage levied for special education pursuant to part 10

30 of the revised school code, MCL 380.1711 to 380.1743, including a levy for debt service 11

obligations. 12

(c) "Taxable value" means the total taxable value of the districts constituent to an 13

intermediate district, except that if a district has elected not to come under part 30 of the 14

revised school code, MCL 380.1711 to 380.1743, membership and taxable value of the district 15

shall not be included in the membership and taxable value of the intermediate district. 16

(2) From the allocation under section 51a(1), there is allocated an amount not to 17

exceed $37,758,100.00 for 2013-2014 2014-2015 to reimburse intermediate districts levying 18

millages for special education pursuant to part 30 of the revised school code, MCL 380.1711 19

to 380.1743. The purpose, use, and expenditure of the reimbursement shall be limited as if 20

the funds were generated by these millages and governed by the intermediate district plan 21

adopted pursuant to article 3 of the revised school code, MCL 380.1701 to 380.1766. As a 22

condition of receiving funds under this section, an intermediate district distributing any 23

portion of special education millage funds to its constituent districts shall submit for 24

departmental approval and implement a distribution plan. 25

(3) Reimbursement for those millages levied in 2012-2013 2013-2014 shall be made in 26

2013-2014 2014-2015 at an amount per 2012-2013 2013-2014 membership pupil computed by 27

subtracting from $169,900.00 $172,200.00 the 2012-2013 2013-2014 taxable value behind each 28

membership pupil and multiplying the resulting difference by the 2012-2013 2013-2014 millage 29

levied. 30

(4) The amount paid to a single intermediate district under this section shall not 31

exceed 62.9% of the total amount allocated under subsection (2). 32

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(5) The amount paid to a single intermediate district under this section shall not be 1

less than 75% of the amount allocated to the intermediate district under this section for the 2

immediately preceding fiscal year. 3

Sec. 61a. (1) From the appropriation in section 11, there is allocated an amount not 4

to exceed $26,611,300.00 for 2013-2014 2014-2015 to reimburse on an added cost basis 5

districts, except for a district that served as the fiscal agent for a vocational education 6

consortium in the 1993-94 school year, and secondary area vocational-technical education 7

centers for secondary-level career and technical education programs according to rules 8

approved by the superintendent. Applications for participation in the programs shall be 9

submitted in the form prescribed by the department. The department shall determine the added 10

cost for each career and technical education program area. The allocation of added cost funds 11

shall be based on the type of career and technical education programs provided, the number of 12

pupils enrolled, and the length of the training period provided, and shall not exceed 75% of 13

the added cost of any program. With the approval of the department, the board of a district 14

maintaining a secondary career and technical education program may offer the program for the 15

period from the close of the school year until September 1. The program shall use existing 16

facilities and shall be operated as prescribed by rules promulgated by the superintendent. 17

(2) Except for a district that served as the fiscal agent for a vocational education 18

consortium in the 1993-94 school year, districts and intermediate districts shall be 19

reimbursed for local career and technical education administration, shared time career and 20

technical education administration, and career education planning district career and 21

technical education administration. The definition of what constitutes administration and 22

reimbursement shall be pursuant to guidelines adopted by the superintendent. Not more than 23

$800,000.00 of the allocation in subsection (1) shall be distributed under this subsection. 24

(3) In addition to the funds allocated in subsection (1), from the appropriation in 25

section 11, there is allocated an amount not to exceed $1,000,000.00 for 2013-2014 2014-2015 26

districts or intermediate districts for area career and technical education centers for the 27

purpose of integrating the Michigan merit curriculum content standards under sections 1278a 28

and 1278b of the revised school code, MCL 380.1278a and 380.1278b, into state-approved career 29

and technical education instructional programs for the purpose of awarding academic credit. 30

The department shall determine the allocation to each career and technical education center 31

in a manner that provides for maximum integration of Michigan merit curriculum content 32

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standards statewide. 1

Sec. 62. (1) For the purposes of this section: 2

(a) "Membership" means for a particular fiscal year the total membership for the 3

immediately preceding fiscal year of the intermediate district and the districts constituent 4

to the intermediate district or the total membership for the immediately preceding fiscal 5

year of the area vocational-technical program. 6

(b) "Millage levied" means the millage levied for area vocational-technical education 7

pursuant to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690, including 8

a levy for debt service obligations incurred as the result of borrowing for capital outlay 9

projects and in meeting capital projects fund requirements of area vocational-technical 10

education. 11

(c) "Taxable value" means the total taxable value of the districts constituent to an 12

intermediate district or area vocational-technical education program, except that if a 13

district has elected not to come under sections 681 to 690 of the revised school code, MCL 14

380.681 to 380.690, the membership and taxable value of that district shall not be included 15

in the membership and taxable value of the intermediate district. However, the membership and 16

taxable value of a district that has elected not to come under sections 681 to 690 of the 17

revised school code, MCL 380.681 to 380.690, shall be included in the membership and taxable 18

value of the intermediate district if the district meets both of the following: 19

(i) The district operates the area vocational-technical education program pursuant to 20

a contract with the intermediate district. 21

(ii) The district contributes an annual amount to the operation of the program that is 22

commensurate with the revenue that would have been raised for operation of the program if 23

millage were levied in the district for the program under sections 681 to 690 of the revised 24

school code, MCL 380.681 to 380.690. 25

(2) From the appropriation in section 11, there is allocated an amount not to exceed 26

$9,190,000.00 for 2013-2014 2014-2015 to reimburse intermediate districts and area 27

vocational-technical education programs established under section 690(3) of the revised 28

school code, MCL 380.690, levying millages for area vocational-technical education pursuant 29

to sections 681 to 690 of the revised school code, MCL 380.681 to 380.690. The purpose, use, 30

and expenditure of the reimbursement shall be limited as if the funds were generated by those 31

millages. 32

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(3) Reimbursement for the millages levied in 2012-2013 2013-2014 shall be made in 1

2013-2014 2014-2015 at an amount per 2012-2013 2013-2014 membership pupil computed by 2

subtracting from $186,500.00 $188,100.00 the 2012-2013 2013-2014 taxable value behind each 3

membership pupil and multiplying the resulting difference by the 2012-2013 2013-2014 millage 4

levied. 5

(4) The amount paid to a single intermediate district under this section shall not 6

exceed 38.4% of the total amount allocated under subsection (2). 7

(5) The amount paid to a single intermediate district under this section shall not be 8

less than 75% of the amount allocated to the intermediate district under this section for the 9

immediately preceding fiscal year. 10

SEC. 64B. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED AN AMOUNT NOT 11

TO EXCEED $1,750,000.00 FOR 2014-2015 FOR SUPPLEMENTAL PAYMENTS TO DISTRICTS THAT SUPPORT THE 12

ATTENDANCE OF DISTRICT PUPILS IN GRADES 9 TO 12 UNDER THE POSTSECONDARY ENROLLMENT OPTIONS 13

ACT, MCL 388.511 TO 388.524, OR UNDER THE CAREER AND TECHNICAL PREPARATION ACT, MCL 388.1901 14

TO 388.1913, CONSISTENT WITH PROVISIONS UNDER SECTION 21B. 15

(2) TO BE ELIGIBLE FOR PAYMENTS UNDER THIS SECTION, A DISTRICT SHALL DO ALL OF THE 16

FOLLOWING: 17

(A) PROVIDE INFORMATION TO ALL HIGH SCHOOL STUDENTS ON POSTSECONDARY ENROLLMENT 18

OPTIONS, INCLUDING ENROLLMENT ELIGIBILITY, THE INSTITUTIONS AND TYPES OF COURSES THAT ARE 19

ELIGIBLE FOR PARTICIPATION, THE DECISION MAKING PROCESS FOR GRANTING ACADEMIC CREDIT, AND AN 20

EXPLANATION OF ELIGIBLE CHARGES THAT WILL BE PAID BY THE SCHOOL DISTRICT. 21

(B) ENTERS INTO A WRITTEN AGREEMENT WITH A POSTSECONDARY INSTITUTION PRIOR TO THE 22

ENROLLMENT OF DISTRICT PUPILS. 23

(C) AGREES TO PAY ALL ELIGIBLE CHARGES PURSUANT TO SECTION 21B. 24

(D) AWARDS HIGH SCHOOL CREDIT FOR THE POSTSECONDARY COURSE IF THE PUPIL SUCCESSFULLY 25

COMPLETES THE COURSE. 26

(3) FUNDS SHALL BE AWARDED TO DISTRICTS IN THE FOLLOWING MANNER: 27

(A) A PAYMENT OF $10.00 PER CREDIT, FOR UP TO 3 CREDITS, FOR EACH PUPIL THAT ENROLLS 28

IN A CREDIT-BEARING COURSE AT AN ELIGIBLE POSTSECONDARY INSTITUTION DURING THE 2014-2015 29

FISCAL YEAR. 30

(B) AN ADDITIONAL PAYMENT OF $30.00 PER PUPIL PER COURSE IDENTIFIED IN (A), IF THE 31

PUPIL SUCCESSFULLY COMPLETES, AND IS AWARDED BOTH HIGH SCHOOL AND POSTSECONDARY CREDIT FOR 32

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THE COURSE IN 2014-2015. 1

(4) A DISTRICT REQUESTING PAYMENT UNDER THIS SECTION SHALL SUBMIT AN APPLICATION TO 2

THE DEPARTMENT IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT. NOTWITHSTANDING SECTION 3

17B, PAYMENTS UNDER THIS SECTION SHALL BE MADE ON A SCHEDULE DETERMINED BY THE DEPARTMENT. 4

SEC. 64C. (1) THE DEPARTMENT SHALL COMMISSION AN INDEPENDENT THIRD PARTY AT A COST OF 5

NO MORE THAN $250,000.00 TO CONDUCT A STUDY AND PREPARE A REPORT ANALYZING THE STATE’S 6

CURRENT CAREER READINESS EDUCATION SYSTEM. 7

(2) THE PURPOSE OF THE STUDY SHALL BE TO RESEARCH CURRENT HIGH SCHOOL AND 8

POSTSECONDARY CURRICULUM AND FACILITIES AND DEVELOP RECOMMENDATIONS FOR THE IMPLEMENTATION OF 9

A STATEWIDE SYSTEM TO SUPPORT CAREER PATHWAYS THAT LEAD TO EDUCATION AND TRAINING 10

OPPORTUNITIES TO LESSEN THE EXISTING TALENT GAP IN THE STATE. 11

(3) THE STUDY SHALL, AT A MINIMUM, INCLUDE RECOMMENDATIONS THAT ADDRESS THE FOLLOWING: 12

(A) IDENTIFICATION OF REDUNDANCY OF ROLES, PROGRAMS AND CAPITAL INFRASTRUCTURE AMONG 13

PUBLIC SCHOOLS, INTERMEDIATE DISTRICTS, COMMUNITY COLLEGES AND UNIVERSITIES IN PROVIDING 14

HIGH-SKILLED DEGREES AND CREDENTIALS AND MAKE RECOMMENDATIONS TO BETTER COORDINATE THOSE 15

ROLES, PROGRAMS AND FACILITIES. 16

(B) DEVELOPMENT OF A STATEWIDE STRATEGY AND RELATED POLICIES THAT WILL RESULT IN MORE 17

COORDINATED AND EXPEDITED PATHWAYS FOR STUDENTS TO OBTAIN HIGH-SKILLED COLLEGE DEGREES AND 18

CREDENTIALS, REGARDLESS OF POINT OF ENTRY. 19

(C) PROPOSED METRICS THAT CAN BE USED TO MEASURE THE STATE’S SUCCESS TOWARDS ACHIEVING 20

THE DESIRED OUTCOMES. 21

(D) IDENTIFICATION OF SPECIFIC BARRIERS FOR STUDENTS, AND POTENTIAL WAYS TO ADDRESS 22

THOSE BARRIERS. 23

(4) THE DEPARTMENT SHALL ENSURE THAT EDUCATORS AND THE BUSINESS COMMUNITY ARE 24

SOLICITED FOR THEIR INPUT AS PART OF THE STUDY. 25

(5) THE REPORT SUMMARIZING THE RESULTS OF THE STUDY UNDER THIS SECTION SHALL BE 26

PRESENTED TO THE DEPARTMENT NO LATER THAN SEPTEMBER 30, 2015. 27

Sec. 74. (1) From the amount appropriated in section 11, there is allocated an amount 28

not to exceed $3,299,000.00 $3,316,500.00 for 2013-2014 2014-2015 for the purposes of this 29

section. 30

(2) From the allocation in subsection (1), there is allocated for each fiscal year the 31

amount necessary for payments to state supported colleges or universities and intermediate 32

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districts providing school bus driver safety instruction pursuant to section 51 of the pupil 1

transportation act, 1990 PA 187, MCL 257.1851. The payments shall be in an amount determined 2

by the department not to exceed the actual cost of instruction and driver compensation for 3

each public or nonpublic school bus driver attending a course of instruction. For the purpose 4

of computing compensation, the hourly rate allowed each school bus driver shall not exceed 5

the hourly rate received for driving a school bus. Reimbursement compensating the driver 6

during the course of instruction shall be made by the department to the college or university 7

or intermediate district providing the course of instruction. 8

(3) From the allocation in subsection (1), there is allocated each fiscal year for 9

2014-2015 the amount necessary to pay the reasonable costs of nonspecial education auxiliary 10

services transportation provided pursuant to section 1323 of the revised school code, MCL 11

380.1323. Districts funded under this subsection shall not receive funding under any other 12

section of this article for nonspecial education auxiliary services transportation. 13

(4) From the funds allocated in subsection (1), there is allocated an amount not to 14

exceed $1,674,000.00 $1,691,500.00 for 2013-2014 2014-2015 for reimbursement to districts and 15

intermediate districts for costs associated with the inspection of school buses and pupil 16

transportation vehicles by the department of state police as required under section 715a of 17

the Michigan vehicle code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil 18

transportation act, 1990 PA 187, MCL 257.1839. The department of state police shall prepare a 19

statement of costs attributable to each district for which bus inspections are provided and 20

submit it to the department and to an intermediate district serving as fiduciary in a time 21

and manner determined jointly by the department and the department of state police. Upon 22

review and approval of the statement of cost, the department shall forward to the designated 23

intermediate district serving as fiduciary the amount of the reimbursement on behalf of each 24

district and intermediate district for costs detailed on the statement within 45 days after 25

receipt of the statement. The designated intermediate district shall make payment in the 26

amount specified on the statement to the department of state police within 45 days after 27

receipt of the statement. The total reimbursement of costs under this subsection shall not 28

exceed the amount allocated under this subsection. Notwithstanding section 17b, payments to 29

eligible entities under this subsection shall be paid on a schedule prescribed by the 30

department. 31

Sec. 81. (1) Except as otherwise provided in this section, from the appropriation in 32

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section 11, there is allocated each fiscal year for 2012-2013 and for 2013-2014 2014-2015 to 1

the intermediate districts the sum necessary, but not to exceed $64,115,100.00 each fiscal 2

year $64,115,000.00, to provide state aid to intermediate districts under this section. 3

(2) From the allocation in subsection (1), there is allocated an amount not to exceed 4

$62,108,000.00 for allocations to each intermediate district for 2012-2013 2014-2015 in an 5

amount equal to 100% of the amount allocated to the intermediate district under this 6

subsection for 2011-2012. From the allocation in subsection (1), there is allocated an amount 7

not to exceed $62,108,000.00 for allocations to each intermediate district for 2013-2014 in 8

an amount equal to 100.0% of the amount allocated to the intermediate district under this 9

subsection for 2012-2013 2013-2014. Funding provided under this section shall be used to 10

comply with requirements of this article and the revised school code that are applicable to 11

intermediate districts, and for which funding is not provided elsewhere in this article, and 12

to provide technical assistance to districts as authorized by the intermediate school board. 13

(3) Intermediate districts receiving funds under subsection (2) shall collaborate with 14

the department to develop expanded professional development opportunities for teachers to 15

update and expand their knowledge and skills needed to support the Michigan merit curriculum. 16

(4) From the allocation in subsection (1), there is allocated to an intermediate 17

district, formed by the consolidation or annexation of 2 or more intermediate districts or 18

the attachment of a total intermediate district to another intermediate school district or 19

the annexation of all of the constituent K-12 districts of a previously existing intermediate 20

school district which has disorganized, an additional allotment of $3,500.00 each fiscal year 21

for each intermediate district included in the new intermediate district for 3 years 22

following consolidation, annexation, or attachment. From the allocation in subsection (1), 23

there is allocated $7,000.00 for purposes of this subsection for 2012-2013, for 2013-2014, 24

and for 2014-2015, after which the payment under this subsection will cease. 25

(5) In order to receive funding under subsection (2), an intermediate district shall 26

do all of the following: 27

(a) Demonstrate to the satisfaction of the department that the intermediate district 28

employs at least 1 person who is trained in pupil accounting and auditing procedures, rules, 29

and regulations. 30

(b) Demonstrate to the satisfaction of the department that the intermediate district 31

employs at least 1 person who is trained in rules, regulations, and district reporting 32

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procedures for the individual-level student data that serves as the basis for the calculation 1

of the district and high school graduation and dropout rates. 2

(c) Comply with sections 1278a and 1278b of the revised school code, MCL 380.1278a and 3

380.1278b. 4

(d) Furnish data and other information required by state and federal law to the center 5

and the department in the form and manner specified by the center or the department, as 6

applicable. 7

(e) Comply with section 1230g of the revised school code, MCL 380.1230g. 8

(f) Comply with section 761 of the revised school code, MCL 380.761. 9

(6) From the allocation in subsection (1), there is allocated an amount not to exceed 10

$2,000,000.00 for 2012-2013 for an incentive payment to each intermediate district that meets 11

best practices as determined by the department under this subsection. The amount of the 12

incentive payment is an amount equal to 3.2% of the amount allocated to the intermediate 13

district under subsection (2). An intermediate district is eligible for an incentive payment 14

under this subsection if the intermediate district satisfies at least 4 of the following 15

requirements not later than June 1, 2013: 16

(a) The intermediate district enters into an agreement with the department to do all 17

of the following: 18

(i) Develop a service consolidation plan in 2012-2013 to reduce operating costs that 19

is in compliance with guidelines that were developed by the department for former section 11d 20

as that section was in effect for 2010-2011. 21

(ii) Implement the service consolidation plan in 2013-2014 and report to the 22

department not later than February 1, 2014 on the intermediate district's progress in 23

implementing the service consolidation plan. 24

(b) The intermediate district has obtained competitive bids on the provision of 1 or 25

more noninstructional services for the intermediate district or its constituent districts 26

with a value of at least $50,000.00. 27

(c) The intermediate district develops a technology plan in accordance with department 28

policy on behalf of all constituent districts within the intermediate district that 29

integrates technology into the classroom and prepares teachers to use digital technologies as 30

part of the instructional program of each of its constituent districts. 31

(d) The intermediate district provides to parents and community members a dashboard or 32

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report card demonstrating the intermediate district's efforts to manage its finances 1

responsibly. The dashboard or report card shall include at least all of the following for the 2

3 most recent school years for which the data are available: 3

(i) A list of services offered by the intermediate district that are shared by other 4

local or intermediate districts and a list of the districts or intermediate districts that 5

participate. 6

(ii) The total cost savings to local or other intermediate districts that share 7

services with the intermediate district. 8

(iii) The number and percentage of teachers in the intermediate district service area 9

that are trained to integrate technology into the classroom. 10

(iv) The total funds received from levying special education and vocational education 11

millages, and the number of special education and vocational education pupils served with 12

those dollars. 13

(v) The number and percentage of individualized education programs developed for 14

special education pupils that contain academic goals. 15

(e) The intermediate district works in a consortium with 1 or more other intermediate 16

districts to develop information management system requirements and bid specifications that 17

can be used as statewide models. At a minimum, these specifications shall include pupil 18

management systems for both general and special education, learning management tools, and 19

business services. 20

(6) (7) From the allocation in subsection (1), there is allocated an amount not to 21

exceed $2,000,000.00 for 2013-2014 2014-2015 for an incentive payment to each intermediate 22

district that meets best practices as determined by the department under this subsection. The 23

amount of the incentive payment is an amount equal to 3.2% of the amount allocated to the 24

intermediate district under subsection (2). An intermediate district is eligible for an 25

incentive payment under this subsection if the intermediate district satisfies at least 5 of 26

the following requirements not later than June 1, 2014 2015: 27

(a) The intermediate district enters into an agreement with the department to comply 28

with all of the following: 29

(i) If the intermediate district developed a service consolidation plan in 2012-2013 30

2013-2014, implement the service consolidation plan in 2013-2014 2014-2015 and report to the 31

department not later than February 1, 2014 2015 on the intermediate district's progress in 32

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implementing the service consolidation plan. 1

(ii) If the intermediate district did not develop a service consolidation plan in 2

2012-2013 OR 2013-2014, develop a service consolidation plan in 2013-2014 2014-2015 to reduce 3

operating costs that is in compliance with guidelines that were developed by the department 4

for former section 11d as that section was in effect for 2010-2011. 5

(iii) If the intermediate district developed a service consolidation plan in 2013-6

2014, implement the service consolidation plan in 2014-2015 and report to the department not 7

later than February 1, 2015 on the intermediate district's progress in implementing the 8

service consolidation plan. 9

(III) (iv) Make the intermediate district's service consolidation plan publicly 10

available on the intermediate district's website. 11

(b) The intermediate district has obtained competitive bids on the provision of 1 or 12

more noninstructional services for the intermediate district or its constituent districts 13

with a value of at least $50,000.00. The unfunded accrued liability costs for retirement and 14

other benefits shall be excluded from the intermediate district's current costs for the 15

purpose of comparing competitive bids to the current costs of providing services. 16

(c) The intermediate district develops a technology plan in accordance with department 17

policy on behalf of all constituent districts within the intermediate district that 18

integrates technology into the classroom and prepares teachers to use digital technologies as 19

part of the instructional program of each of its constituent districts. An intermediate 20

district that developed a technology plan in 2012-2013 OR 2013-2014 shall begin implementing 21

CONTINUE TO IMPLEMENT that technology plan in 2013-2014 2014-2015. 22

(d) The intermediate district provides to parents and community members a dashboard or 23

report card demonstrating the intermediate district's efforts to manage its finances 24

responsibly. The dashboard or report card shall include revenue and expenditure projections 25

for the intermediate district for 2013-2014 and 2014-2015 AND 2015-2016, a listing of all 26

debt service obligations, detailed by project, including anticipated 2013-2014 2014-2015 27

payment for each project, a listing of total outstanding debt, and at least all of the 28

following for the 3 most recent school years for which the data are available: 29

(i) A list of services offered by the intermediate district that are shared by other 30

local or intermediate districts and a list of the districts or intermediate districts that 31

participate. 32

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(ii) The total cost savings to local or other intermediate districts that share 1

services with the intermediate district. 2

(iii) The number and percentage of teachers in the intermediate district service area 3

that are trained to integrate technology into the classroom. 4

(iv) The total funds received from levying special education and vocational education 5

millages, and the number of special education and vocational education pupils served with 6

those dollars. 7

(v) The number and percentage of individualized education programs developed for 8

special education pupils that contain academic goals. 9

(e) The intermediate district works in a consortium with 1 or more other intermediate 10

districts and the center to develop local information management system requirements and bid 11

specifications that result in a recommended model information system that supports 12

interoperability to ensure linkage and connectivity in a manner that facilitates the 13

efficient exchange of data among districts, intermediate districts, and the center. At a 14

minimum, these specifications shall include pupil management systems for both general and 15

special education, learning management tools, and business services. 16

(f) If an intermediate district provides medical, pharmacy, dental, vision, 17

disability, long-term care, or any other type of benefit that would constitute a health care 18

services benefit, to employees and their dependents, the intermediate district is the 19

policyholder for each of its insurance policies that covers 1 or more of these benefits. An 20

intermediate district that does not directly employ its staff or an intermediate district 21

with a voluntary employee beneficiary association that pays no more than the maximum per 22

employee contribution amount and that contributes no more than the maximum employer 23

contribution percentage of total annual costs for the medical benefit plans as described in 24

sections 3 and 4 of the publicly funded health insurance contribution act, 2011 PA 152, MCL 25

15.563 and 15.564, is considered to have satisfied this requirement. 26

SEC. 94. (1) FROM THE GENERAL FUND APPROPRIATION IN SECTION 11, THERE IS ALLOCATED FOR 27

2014-2015 AN AMOUNT NOT TO EXCEED $250,000.00 FOR EFFORTS TO INCREASE THE NUMBER OF PUPILS 28

WHO PARTICIPATE AND SUCCEED IN ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS. 29

(2) FUNDS AWARDED UNDER THIS SECTION SHALL BE USED TO COVER PART OR ALL OF THE COSTS 30

OF ADVANCED PLACEMENT TEST FEES OR INTERNATIONAL BACCALAUREATE TEST FEES FOR LOW INCOME 31

PUPILS WHO TAKE AN ADVANCED PLACEMENT OR AN INTERNATIONAL BACCALAUREATE TEST. PAYMENTS ARE 32

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ESTIMATED AT $20.00 PER TEST COMPLETED. 1

(3) FUNDS UNDER THIS SECTION SHALL BE AWARDED IF THE FOLLOWING CRITERIA ARE MET: 2

(A) PUPILS FOR WHOM PAYMENT IS MADE MUST MEET ELIGIBILITY REQUIREMENTS OF THE FEDERAL 3

ADVANCED PLACEMENT TEST FEE PROGRAM UNDER SECTION 1701 OF THE NO CHILD LEFT BEHIND ACT OF 4

2001, PUBLIC LAW 107-110. 5

(B) THE TESTS ARE ADMINISTERED BY THE COLLEGE BOARD, THE INTERNATIONAL BACCALAUREATE 6

ORGANIZATION OR OTHER APPROVED TEST PROVIDER. 7

(4) NOTWITHSTANDING SECTION 17B, PAYMENTS UNDER THIS SECTION SHALL BE MADE ON A 8

SCHEDULE DETERMINED BY THE DEPARTMENT. 9

Sec. 94a. (1) There is created within the state budget office in the department of 10

technology, management, and budget the center for educational performance and information. 11

The center shall do all of the following: 12

(a) Coordinate the collection of all data required by state and federal law from 13

districts, intermediate districts, and postsecondary institutions. 14

(b) Create, maintain, and enhance this state's P-20 longitudinal data system and 15

ensure that it meets the requirements of subsection (4). 16

(c) Collect data in the most efficient manner possible in order to reduce the 17

administrative burden on reporting entities, including, but not limited to, electronic 18

transcript services. 19

(d) Create, maintain, and enhance this state's web-based educational portal to provide 20

information to school leaders, teachers, researchers, and the public in compliance with all 21

federal and state privacy laws. Data shall include, but are not limited to, all of the 22

following: 23

(i) Data sets that link teachers to student information, allowing districts to assess 24

individual teacher impact on student performance and consider student growth factors in 25

teacher and principal evaluation systems. 26

(ii) Data access or, if practical, data sets, provided for regional data warehouses 27

that, in combination with local data, can improve teaching and learning in the classroom. 28

(iii) Research-ready data sets for researchers to perform research that advances this 29

state's educational performance. 30

(e) Provide data in a useful manner to allow state and local policymakers to make 31

informed policy decisions. 32

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(f) Provide public reports to the citizens of this state to allow them to assess 1

allocation of resources and the return on their investment in the education system of this 2

state. 3

(g) Other functions as assigned by the state budget director. 4

(2) Each state department, officer, or agency that collects information from 5

districts, intermediate districts, or postsecondary institutions as required under state or 6

federal law shall make arrangements with the center to ensure that the state department, 7

officer, or agency is in compliance with subsection (1). This subsection does not apply to 8

information collected by the department of treasury under the uniform budgeting and 9

accounting act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal finance act, 2001 10

PA 34, MCL 141.2101 to 141.2821; the school bond qualification, approval, and loan act, 2005 11

PA 92, MCL 388.1921 to 388.1939; or section 1351a of the revised school code, MCL 380.1351a. 12

(3) The center may enter into any interlocal agreements necessary to fulfill its 13

functions. 14

(4) The center shall ensure that the P-20 longitudinal data system required under 15

subsection (1)(b) meets all of the following: 16

(a) Includes data at the individual student level from preschool through postsecondary 17

education and into the workforce. 18

(b) Supports interoperability by using standard data structures, data formats, and 19

data definitions to ensure linkage and connectivity in a manner that facilitates the exchange 20

of data among agencies and institutions within the state and between states. 21

(c) Enables the matching of individual teacher and student records so that an 22

individual student may be matched with those teachers providing instruction to that student. 23

(d) Enables the matching of individual teachers with information about their 24

certification and the institutions that prepared and recommended those teachers for state 25

certification. 26

(e) Enables data to be easily generated for continuous improvement and decision-27

making, including timely reporting to parents, teachers, and school leaders on student 28

achievement. 29

(f) Ensures the reasonable quality, validity, and reliability of data contained in the 30

system. 31

(g) Provides this state with the ability to meet federal and state reporting 32

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requirements. 1

(h) For data elements related to preschool through grade 12 and postsecondary, meets 2

all of the following: 3

(i) Contains a unique statewide student identifier that does not permit a student to 4

be individually identified by users of the system, except as allowed by federal and state 5

law. 6

(ii) Contains student-level enrollment, demographic, and program participation 7

information. 8

(iii) Contains student-level information about the points at which students exit, 9

transfer in, transfer out, drop out, or complete education programs. 10

(iv) Has the capacity to communicate with higher education data systems. 11

(i) For data elements related to preschool through grade 12 only, meets all of the 12

following: 13

(i) Contains yearly test records of individual students for assessments approved by 14

DED-OESE for accountability purposes under section 1111(b) of the elementary and secondary 15

education act of 1965, 20 USC 6311, including information on individual students not tested, 16

by grade and subject. 17

(ii) Contains student-level transcript information, including information on courses 18

completed and grades earned. 19

(iii) Contains student-level college readiness test scores. 20

(j) For data elements related to postsecondary education only: 21

(i) Contains data that provide information regarding the extent to which individual 22

students transition successfully from secondary school to postsecondary education, including, 23

but not limited to, all of the following: 24

(A) Enrollment in remedial coursework. 25

(B) Completion of 1 year's worth of college credit applicable to a degree within 2 26

years of enrollment. 27

(ii) Contains data that provide other information determined necessary to address 28

alignment and adequate preparation for success in postsecondary education. 29

(5) From the general fund appropriation in section 11, there is allocated an amount 30

not to exceed $9,535,100.00 $12,022,800.00 for 2013-2014 2014-2015 to the department of 31

technology, management, and budget to support the operations of the center. In addition, from 32

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the federal funds appropriated in section 11 there is allocated for 2013-2014 2014-2015 the 1

amount necessary, estimated at $193,500.00, to support the operations of the center and to 2

establish a P-20 longitudinal data system as provided under this section in compliance with 3

the assurance provided to the United States department of education in order to receive state 4

fiscal stabilization funds. The center shall cooperate with the department to ensure that 5

this state is in compliance with federal law and is maximizing opportunities for increased 6

federal funding to improve education in this state. 7

(6) From the funds allocated in subsection (5), there is allocated for 2013-2014 2014-8

2015 an amount not to exceed $850,000.00 for competitive grants to support collaborative 9

efforts on the P-20 longitudinal data system. All of the following apply to grants awarded 10

under this subsection: 11

(a) The center shall award competitive grants to eligible intermediate districts or a 12

consortium of intermediate districts based on criteria established by the center. 13

(b) Activities funded under the grant shall support the P-20 longitudinal data system 14

portal and may include portal hosting, hardware and software acquisition, maintenance, 15

enhancements, user support and related materials, and professional learning tools and 16

activities aimed at improving the utility of the P-20 longitudinal data system. 17

(c) An applicant that received a grant under this subsection for the immediately 18

preceding fiscal year shall receive priority for funding under this section. However, after 3 19

fiscal years of continuous funding, an applicant is required to compete openly with new 20

applicants. 21

(7) From the funds allocated in subsection (5), there is allocated for 2013-2014 an 22

amount not to exceed $100,000.00 for the center to develop the pupil transfer application as 23

required under section 25e. 24

(7) (8) Funds allocated under this section that are not expended in the fiscal year in 25

which they were allocated may be carried forward to a subsequent fiscal year and are 26

appropriated for the purposes for which the funds were originally allocated. 27

(9) It is the intent of the legislature that, beginning in 2014-2015, a district shall 28

report to the center by June 30, in a manner prescribed by the center, the number of pupils 29

in the district who have had 10 or more unexcused absences each school year. For pupils in 30

grades 9 to 12, the report shall include both the total number of unexcused absences in any 31

single course and the total number of unexcused absences in all courses. Each district shall 32

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define unexcused absence. It is the intent of the legislature that a district that reports 1

false information under this subsection shall forfeit an amount equal to 5% of its total 2

state aid allocation under this act. 3

(8) (10) The center may bill departments as necessary in order to fulfill reporting 4

requirements of state and federal law. The center may also enter into agreements to supply 5

custom data, analysis, and reporting to other principal executive departments, state 6

agencies, local units of government, and other individuals and organizations. The center may 7

receive and expend funds in addition to those authorized in subsection (5) to cover the costs 8

associated with salaries, benefits, supplies, materials, and equipment necessary to provide 9

such data, analysis, and reporting services. 10


(a) "DED-OESE" means the United States department of education office of elementary 12

and secondary education. 13

(b) "State education agency" means the department. 14

SEC. 95A. (1) FROM THE APPROPRIATION IN SECTION 11, THERE IS ALLOCATED FOR 2014-2015 15

AN AMOUNT NOT TO EXCEED $22,070,000.00 FROM THE STATE SCHOOL AID FUND AND AN AMOUNT NOT TO 16

EXCEED $5,730,000.00 FROM THE GENERAL FUND FOR THE PURPOSE OF IMPLEMENTING EVALUATION SYSTEMS 17

FOR EDUCATORS AND ADMINISTRATORS PURSUANT TO SECTION 1249, MCL 380.1249, AND SECTION 1249B, 18

MCL 380.1249B, OF THE REVISED SCHOOL CODE. 19

(2) THE DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET AND THE DEPARTMENT SHALL 20

REQUEST PROPOSALS FROM VENDORS FOR THE EDUCATOR AND ADMINISTRATOR OBSERVATION TOOLS SPECIFIED 21

IN SECTION 1249(5)(A)(I) AND SECTION 1249B. THE DEPARTMENT, WITH THE ASSISTANCE OF THE 22

DEPARTMENT OF TECHNOLOGY, MANAGEMENT AND BUDGET, SHALL REVIEW THE SUBMITTED PROPOSALS AND 23

DETERMINE THE LOWEST RESPONSIVE, RESPONSIBLE BIDDER CONSISTENT WITH THE REQUIREMENTS FOR 24

EDUCATOR AND ADMINISTRATOR OBSERVATION TOOLS CONTAINED IN SECTION 1249 AND 1249B. UP TO 25

$22,070,000.00 FROM THE STATE SCHOOL AID FUND ALLOCATION IN SUBSECTION (1) SHALL BE 26

DISTRIBUTED TO DISTRICTS AND INTERMEDIATE DISTRICTS ON A PER EDUCATOR BASIS TO IMPLEMENT ONE 27

OF THE FOUR TEACHER OBSERVATION TOOLS SPECIFIED IN SECTION 1249(5)(A)(I) AND ONE OF THE TWO 28

ADMINISTRATOR OBSERVATION TOOLS SPECIFIED IN SECTION 1249B. 29

(3) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED TO THE 30

CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION AN AMOUNT NOT TO EXCEED $2,700,000.00 FOR 31

THE PURPOSES OF DEVELOPING MECHANISMS FOR EDUCATORS AND EVALUATORS TO EDIT AND VERIFY 32

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EDUCATOR-STUDENT ROSTERS NECESSARY FOR LOCAL CALCULATIONS OF STUDENT GROWTH DATA. 1

(4) FROM THE GENERAL FUND ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED AN AMOUNT 2

NOT TO EXCEED $3,030,000.00 FOR THE FOLLOWING PURPOSES: 3

(A) PROVIDE VALUE-ADDED MODELING COMPONENTS THAT ARE UTILIZED IN THE STUDENT GROWTH 4

AND ASSESSMENT COMPONENT OF THE EVALUATION PROCESS. 5

(B) PROCURE AN ELECTRONIC REPORTING SYSTEM THAT WILL INTEGRATE OBSERVATION TOOL DATA 6

AND DATA FROM VALUE-ADDED MODELING OF STUDENT GROWTH AND ASSESSMENT COMPONENTS OF THE 7

EVALUATION SYSTEMS FOR DISTRICTS AND INTERMEDIATE DISTRICTS. 8

(C) PILOT ALTERNATIVE EVALUATIONS WITH DISTRICTS FOR ANY STUDENT POPULATIONS THAT 9

CANNOT BE EVALUATED BY THE EVALUATION SYSTEM IMPLEMENTED PURSUANT TO SECTION 1249 AND 1249B 10

OF THE REVISED SCHOOL CODE. 11

Sec. 98. (1) From the general fund money appropriated in section 11, there is 12

allocated an amount not to exceed $9,387,500.00 for 2013-2014 2014-2015 for the purposes 13

described in this section. 14

(2) The Michigan virtual university shall operate the Michigan virtual learning 15

research institute. The Michigan virtual learning research institute shall do all of the 16

following: 17

(a) Support and accelerate innovation in education through the following activities: 18

(i) Test, evaluate, and recommend as appropriate new technology-based instructional 19

tools and resources. 20

(ii) Research, design, and recommend digital education delivery models for use by 21

pupils and teachers that include age-appropriate multimedia instructional content. 22

(iii) Research, design, and recommend competency-based online assessments. 23

(III) (iv) Research, develop, and recommend annually to the department criteria by 24

which cyber schools and online course providers should be monitored and evaluated to ensure a 25

quality education for their pupils. 26

(IV) (v) Based on pupil completion and performance data reported to the department or 27

the center for educational performance and information from cyber schools and other online 28

course providers operating in this state, analyze the effectiveness of online learning 29

delivery models in preparing pupils to be college- and career-ready and publish a report that 30

highlights enrollment totals, completion rates, and the overall impact on pupils. The report 31

shall be submitted to the house and senate appropriations subcommittees on state school aid, 32

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the state budget director, the house and senate fiscal agencies, and the department not later 1

than December 1, 2014 2015. 2

(V) (vi) Before August 31, 2014 2015, provide an extensive professional development 3

program to at least 500 educational personnel, including teachers, school administrators, and 4

school board members, that focuses on the effective integration of digital learning into 5

curricula and instruction. Not later than December 1, 2014 2015, the Michigan virtual 6

learning research institute shall submit a report to the house and senate appropriations 7

subcommittees on state school aid, the state budget director, the house and senate fiscal 8

agencies, and the department on the number and percentage of teachers, school administrators, 9

and school board members who have received professional development services from the 10

Michigan virtual university. The report shall also identify barriers and other opportunities 11

to encourage the adoption of digital learning in the public education system. 12

(VI) (vii) Identify and share best practices for planning, implementing, and 13

evaluating online and blended education delivery models with intermediate districts, 14

districts, and public school academies to accelerate the adoption of innovative education 15

delivery models statewide. 16

(b) Provide leadership for this state's system of digital learning education by doing 17

the following activities: 18

(i) Develop and report policy recommendations to the governor and the legislature that 19

accelerate the expansion of effective online learning in this state's schools. 20

(ii) Provide a clearinghouse for research reports, academic studies, evaluations, and 21

other information related to online learning. 22

(iii) Promote and distribute the most current instructional design standards and 23

guidelines for online teaching. 24

(iv) In collaboration with the department and interested colleges and universities in 25

this state, recommend to the superintendent guidelines and standards for a new teacher 26

endorsement credential SUPPORT IMPLEMENTATION AND IMPROVEMENTS related to effective digital 27

learning instruction. 28

(v) Pursue public/private partnerships that include districts to study and implement 29

competency-based technology-rich online learning models. 30

(vi) Convene focus groups and conduct annual surveys of teachers, administrators, 31

pupils, parents, and others to identify barriers and opportunities related to online 32

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learning. 1

(vii) Produce an annual consumer awareness report for schools and parents about 2

effective online education providers and education delivery models, performance data, cost 3

structures, and research trends. 4

(viii) Research and establish an internet-based platform that educators can use to 5

create student-centric learning tools and resources and facilitate a user network that 6

assists educators in using the platform. As part of this initiative, the Michigan virtual 7

university shall work collaboratively with districts and intermediate districts to establish 8

a plan to make available online resources that align to Michigan's K-12 curriculum standards 9

for use by students, educators, and parents. 10

(ix) Create and maintain a public statewide catalog of online learning courses being 11

offered by all public schools in this state. The Michigan virtual learning research institute 12

shall identify and develop a list of nationally recognized best practices for online learning 13

and use this list to provide SUPPORT reviews of online course vendors, courses, and 14

instructional practices. The Michigan virtual learning research institute shall also provide 15

a mechanism for intermediate districts to use the identified best practices to review content 16

offered by constituent districts. The Michigan virtual learning research institute shall 17

review the online course offerings of the Michigan virtual university, and make the results 18

from these reviews available to the public as part of the statewide catalog. The Michigan 19

virtual learning research institute shall ensure that the statewide catalog is made available 20

to the public on the Michigan virtual university website and linked to ALLOW THE ABILITY TO 21

LINK IT TO each district's website as provided for in section 21f. Beginning in 2014-2015, 22

the statewide catalog shall also contain all of the following: 23

(A) The number of pupils enrolled ENROLLMENTS in each online course in the 2012-2013 24

PRIOR school year. 25

(B) The number of pupils who successfully completed ENROLLMENTS THAT EARNED 60 PERCENT 26

OR MORE OF THE TOTAL COURSE POINTS FOR each online course in the 2012-2013 PRIOR school year. 27

(C) The completion rate for each online course. 28

(X) COLLABORATE WITH KEY STAKEHOLDERS TO EXAMINE THE NEED AND PROCESS FOR 29

INCORPORATING REGISTRATION, PAYMENT SERVICES AND TRANSCRIPT FUNCTIONALITY TO THE STATEWIDE 30

CATALOG. 31

(XI) COLLABORATE WITH KEY STAKEHOLDERS TO EXAMINE DISTRICT LEVEL ACCOUNTABILITY AND 32

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TEACHER EFFECTIVENESS ISSUES RELATED TO ONLINE LEARNING UNDER SECTION 21F AND MAKE FINDINGS 1

AND RECOMMENDATIONS PUBLICLY AVAILABLE. 2

(3) In order for the Michigan virtual university to receive any funds allocated under 3

this section, the Michigan virtual school must maintain its accreditation status from 4

recognized national and international accrediting entities. 5

(4) If the course offerings are included in the statewide catalog of online courses 6

under subsection (2)(b)(ix), the Michigan virtual school operated by the Michigan virtual 7

university may offer online course offerings, including, but not limited to, all of the 8

following: 9

(a) Information technology courses. 10

(b) College level equivalent courses, as defined in section 1471 of the revised school 11

code, MCL 380.1471. 12

(c) Courses and dual enrollment opportunities. 13

(d) Programs and services for at-risk pupils. 14

(e) General education development test preparation courses for adjudicated youth. 15

(f) Special interest courses. 16

(g) Professional development programs for teachers, school administrators, other 17

school employees, and school board members. 18

(5) If a home-schooled or nonpublic school student is a resident of a district that 19

subscribes to services provided by the Michigan virtual school, the student may use the 20

services provided by the Michigan virtual school to the district without charge to the 21

student beyond what is charged to a district pupil using the same services. 22

(6) Not later than December 1 of each fiscal year, the Michigan virtual university 23

shall provide a report to the house and senate appropriations subcommittees on state school 24

aid, the state budget director, the house and senate fiscal agencies, and the department that 25

includes at least all of the following information related to the Michigan virtual school for 26

the preceding state fiscal year: 27

(a) A list of the districts served by the Michigan virtual school. 28

(b) A list of online course titles available to districts. 29

(c) The total number of online course enrollments and information on registrations and 30

completions by course. 31

(d) The overall course completion rate percentage. 32

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(7) The governor may appoint an advisory group for the Michigan virtual learning 1

research institute established under subsection (2). The members of the advisory group shall 2

serve at the pleasure of the governor and shall serve without compensation. The purpose of 3

the advisory group is to make recommendations to the governor, the legislature, and the 4

president and board of the Michigan virtual university that will accelerate innovation in 5

this state's education system in a manner that will prepare elementary and secondary students 6

to be career and college ready and that will promote the goal of increasing the percentage of 7

citizens of this state with high-quality degrees and credentials to at least 60% by 2025. 8

(8) Not later than November 1, 2013 2014, the Michigan virtual university shall submit 9

to the house and senate appropriations subcommittees on state school aid, the state budget 10

director, and the house and senate fiscal agencies a detailed budget for the 2013-2014 2014-11

2015 fiscal year that includes a breakdown on its projected costs to deliver online 12

educational services to districts and a summary of the anticipated fees to be paid by 13

districts for those services. Beginning in 2013-2014, not later than February 1, the Michigan 14

virtual university shall submit to the house and senate appropriations subcommittees on state 15

school aid, the state budget director, and the house and senate fiscal agencies a breakdown 16

on its actual costs to deliver online educational services to districts and a summary of the 17

actual fees paid by districts for those services based on audited financial statements for 18

the immediately preceding fiscal year. 19


(a) "Blended learning" means a hybrid instructional delivery model where pupils are 21

provided content, instruction, and assessment, in part at a supervised educational facility 22

away from home where the pupil and a teacher with a valid Michigan teaching certificate are 23

in the same physical location and in part through internet-connected learning environments 24

with some degree of pupil control over time, location, and pace of instruction. 25

(b) "Cyber school" means a full-time instructional program of online courses for 26

pupils that may or may not require attendance at a physical school location. 27

(c) "Digital learning" means instruction delivered via a web-based educational 28

delivery system that uses various information technologies to provide a structured learning 29

environment, including online and blended learning instructional methods. 30

(d) "Online course" means a course of study that is capable of generating a credit or 31


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who holds a valid Michigan teaching certificate is responsible for determining appropriate 2




Sec. 99. (1) From the funds appropriated in section 11, there is allocated for 2013-6

2014 2014-2015 an amount not to exceed $2,850,000.00 $2,750,000.00 from the state school aid 7

fund and an amount not to exceed $375,000.00 $475,000.00 from the general fund to support the 8

activities and programs of mathematics and science centers and for other purposes as 9

described in this section. In addition, from the federal funds appropriated in section 11, 10

there is allocated for 2013-2014 2014-2015 an amount estimated at $5,249,300.00 from DED-11

OESE, title II, mathematics and science partnership grants. 12

(2) Within a service area designated locally, approved by the department, and 13

consistent with the comprehensive master plan for mathematics and science centers developed 14

by the department and approved by the state board, an established mathematics and science 15

center shall provide 2 or more of the following 6 basic services, as described in the master 16

plan, to constituent districts and communities: leadership, pupil services, curriculum 17

support, community involvement, professional development, and resource clearinghouse 18

services. 19

(3) The department shall not award a state grant under this section to more than 1 20

mathematics and science center located in a designated region as prescribed in the 2007 2012 21

master plan unless each of the grants serves a distinct target population or provides a 22

service that does not duplicate another program in the designated region. 23

(4) As part of the technical assistance process, the department shall provide minimum 24

standard guidelines that may be used by the mathematics and science center for providing fair 25

access for qualified pupils and professional staff as prescribed in this section. 26

(5) Allocations under this section to support the activities and programs of 27

mathematics and science centers shall be continuing support grants to all 33 established 28

mathematics and science centers. Each established mathematics and science center that was 29

funded in the immediately preceding fiscal year shall receive state funding in an amount 30

equal to 100% of the amount it was allocated under this subsection for the immediately 31

preceding fiscal year. If a center declines state funding or a center closes, the remaining 32

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money available under this section shall be distributed to the remaining centers, as 1

determined by the department. 2

(6) From the funds allocated in subsection (1), there is allocated for 2013-2014 2014-3

2015 an amount not to exceed $750,000.00 in a form and manner determined by the department to 4

those centers able to provide curriculum and professional development support to assist 5

districts in implementing the Michigan merit curriculum components for mathematics and 6

science. Funding under this subsection is in addition to funding allocated under subsection 7

(5). 8

(7) From the state school aid GENERAL fund money allocated in subsection (1), there is 9

allocated for 2013-2014 2014-2015 an amount not to exceed $100,000.00 in a form and manner 10

determined by the department to a single mathematics and science center that is a participant 11

in TO the Michigan STEM partnership, to be used to administer the grant process under this 12

subsection. From the general fund money allocated in subsection (1), there is allocated for 13

2013-2014 2014-2015 an amount not to exceed $375,000.00 to the Michigan STEM partnership to 14

be used for a competitive grant process to award competitive grants to organizations 15

conducting student-focused, project-based programs and competitions, either in the classroom 16

or extracurricular, in science, technology, engineering, and mathematics subjects such as, 17

but not limited to, robotics, coding, and design-build-test projects, from pre-kindergarten 18

through college level. Funding under this subsection is in addition to funding allocated 19

under subsection (5) and shall be used for connecting mathematics and science centers for 20

science, technology, engineering, and mathematics purposes AND TO SUPPORT THE GOALS AND 21

MISSION OF THE MICHIGAN STEM PARTNERSHIP. A program receiving funds under section 99h may not 22

receive funds under this subsection. 23

(8) In order to receive state or federal funds under this section, a grant recipient 24

shall allow access for the department or the department's designee to audit all records 25

related to the program for which it receives such funds. The grant recipient shall reimburse 26

the state for all disallowances found in the audit. 27

(9) Not later than September 30, 2013 2018, the department shall reevaluate and update 28

the comprehensive master plan described in subsection (1). 29

(10) The department shall give preference in awarding the federal grants allocated in 30

subsection (1) to eligible existing mathematics and science centers. 31

(11) In order to receive state funds under this section, a grant recipient shall 32

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provide at least a 10% local match from local public or private resources for the funds 1

received under this section. 2

(12) Not later than July 1 of each year, a mathematics and science center that 3

receives funds under this section shall report to the department in a form and manner 4

prescribed by the department on the following performance measures: 5

(a) Statistical change in pre- and post-assessment scores for students who enrolled in 6

mathematics and science activities provided to districts by the mathematics and science 7

center. 8

(b) Statistical change in pre- and post-assessment scores for teachers who enrolled in 9

professional development activities provided by the mathematics and science center. 10




Sec. 99h. (1) From the appropriation in section 11, there is allocated an amount not 14

to exceed $3,000,000.00 $2,000,000.00 for 2013-2014 2014-2015 for competitive grants to 15

districts that provide pupils in grades 7 to 12 with expanded opportunities to improve 16

mathematics, science, and technology skills by participating in events hosted by a science 17

and technology development program known as FIRST (for inspiration and recognition of science 18

and technology) robotics. 19

(2) A district applying for a FIRST tech challenge or FIRST robotics competition 20

program grant shall submit an application in a form and manner determined by the department. 21

To be eligible for a grant, a district shall demonstrate in its application that the district 22

has established a partnership for the purposes of the FIRST program with at least 1 sponsor, 23

business entity, higher education institution, or technical school. 24

(3) The department shall distribute the grant funding under this section for the 25

following purposes: 26

(a) Except as otherwise provided in subparagraph (iii), not more than $1,000,000.00 27

for grants GRANTS to districts to pay for stipends of $1,500.00 for 1 coach per team, 28

distributed as follows: 29

(i) Not more than 500 stipends for coaches of high school teams, including existing 30

teams. 31

(ii) Not more than 100 stipends for coaches of middle school or junior high teams, 32

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including existing teams. 1

(iii) If the requests for stipends exceed the numbers of stipends allowed under 2

subparagraphs (i) and (ii), and if there is funding remaining unspent under subdivisions (b) 3

and (c), the department shall use that remaining unspent funding for grants to districts to 4

pay for additional stipends in a manner that expands the geographical distribution of teams. 5

(b) not more than $1,000,000.00 for grants GRANTS to districts for event 6

registrations, materials, travel costs, and other expenses associated with the preparation 7

for and attendance at FIRST tech challenge and FIRST robotics competitions. Each grant 8

recipient shall provide a local match from other private or local funds for the funds 9

received under this subdivision equal to at least 50% of the costs of participating in an 10

event. The department shall set maximum grant amounts under this subdivision in a manner that 11

maximizes the number of teams that will be able to receive funding. 12

(c) not more than $1,000,000.00 for grants GRANTS to districts for awards to teams 13

that advance to the state and world championship competitions. The department shall determine 14

an equal amount per team for those teams that advance to the state championship and a second 15

equal award amount to those teams that advance to the world championship. 16

(4) THE FUNDS ALLOCATED UNDER THIS SECTION ARE A WORK PROJECT APPROPRIATION, AND ANY 17

UNEXPENDED FUNDS FOR 2014-2015 ARE CARRIED FORWARD INTO 2015-2016. THE PURPOSE OF THE WORK 18

PROJECT IS TO CONTINUE TO IMPLEMENT THE PROJECTS DESCRIBED UNDER SUBSECTION (1). THE 19

ESTIMATED COMPLETION DATE OF THE WORK PROJECT IS SEPTEMBER 30, 2017. 20

Sec. 101. (1) To be eligible to receive state aid under this article, not later than 21

the fifth Wednesday after the pupil membership count day and not later than the fifth 22

Wednesday after the supplemental count day, each district superintendent shall submit to the 23

center and the intermediate superintendent, in the form and manner prescribed by the center, 24

the number of pupils enrolled and in regular daily attendance in the district as of the pupil 25

membership count day and as of the supplemental count day, as applicable, for the current 26

school year. In addition, a district maintaining school during the entire year, as provided 27

under section 1561 of the revised school code, MCL 380.1561, shall submit to the center and 28

the intermediate superintendent, in the form and manner prescribed by the center, the number 29

of pupils enrolled and in regular daily attendance in the district for the current school 30

year pursuant to rules promulgated by the superintendent. Not later than the sixth Wednesday 31

after the pupil membership count day and not later than the sixth Wednesday after the 32

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supplemental count day, the district shall certify the data in a form and manner prescribed 1

by the center and file the certified data with the intermediate superintendent. If a district 2

fails to submit and certify the attendance data, as required under this subsection, the 3

center shall notify the department and state aid due to be distributed under this article 4

shall be withheld from the defaulting district immediately, beginning with the next payment 5

after the failure and continuing with each payment until the district complies with this 6

subsection. If a district does not comply with this subsection by the end of the fiscal year, 7

the district forfeits the amount withheld. A person who willfully falsifies a figure or 8

statement in the certified and sworn copy of enrollment shall be punished in the manner 9

prescribed by section 161. 10

(2) To be eligible to receive state aid under this article, not later than the twenty-11

fourth Wednesday after the pupil membership count day and not later than the twenty-fourth 12

Wednesday after the supplemental count day, an intermediate district shall submit to the 13

center, in a form and manner prescribed by the center, the audited enrollment and attendance 14

data for the pupils of its constituent districts and of the intermediate district. If an 15

intermediate district fails to submit the audited data as required under this subsection, 16

state aid due to be distributed under this article shall be withheld from the defaulting 17

intermediate district immediately, beginning with the next payment after the failure and 18

continuing with each payment until the intermediate district complies with this subsection. 19

If an intermediate district does not comply with this subsection by the end of the fiscal 20

year, the intermediate district forfeits the amount withheld. 21

(3) Except as otherwise provided in subsections (11) and (12), all of the following 22

apply to the provision of pupil instruction: 23

(a) Except as otherwise provided in this section, each district shall provide at least 24

1,098 hours and, beginning in 2010-2011, the required minimum number of days of pupil 25

instruction. Beginning in 2012-2013, the required minimum number of days of pupil instruction 26

is 170. Beginning in 2014-2015, the required minimum number of days of pupil instruction is 27

175. However, a district shall not provide fewer days of pupil instruction than the district 28

provided for 2009-2010. IF A COLLECTIVE BARGAINING AGREEMENT THAT PROVIDES A COMPLETE SCHOOL 29

CALENDAR WAS IN EFFECT FOR EMPLOYEES OF A DISTRICT AS OF JUNE 13, 2013, AND IF THAT SCHOOL 30

CALENDAR IS NOT IN COMPLIANCE WITH THIS SUBSECTION, THEN THIS SUBSECTION DOES NOT APPLY TO 31

THAT DISTRICT UNTIL AFTER THE EXPIRATION OF THAT COLLECTIVE BARGAINING AGREEMENT. A district 32

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may apply for a waiver under subsection (9) from the requirements of this subdivision. For 1

2012-2013 only, if a district is unable to provide the required minimum number of days of 2

pupil instruction because of school closures occurring before April 20, 2013 due to 3

conditions not within the control of school authorities, such as severe storms, fires, 4

epidemics, utility power unavailability, water or sewer failure, or health conditions as 5

defined by the city, county, or state health authorities, but the district does provide at 6

least the required minimum number of hours of pupil instruction, the district is not subject 7

to the minimum number of days of pupil instruction requirement of this subsection. A district 8

that uses the 2012-2013 exception from the minimum number of days of pupil instruction 9

requirement shall submit to the department not later than July 1, 2013, in the form and 10

manner prescribed by the department, a report that details the amount of instructional time 11

that was lost due to school closures and the amount of additional instructional time that was 12

added to compensate; when the additional instructional time was provided; the activities that 13

were carried out and subject areas addressed during the additional instructional time; and 14

other information specified by the department to assess whether appropriate instruction 15

occurred during the additional instructional time. The department shall aggregate and provide 16

these reports to the senate and house standing committees on education. 17

(b) Except as otherwise provided in this article, a district failing to comply with 18

the required minimum hours and days of pupil instruction under this subsection shall forfeit 19

from its total state aid allocation an amount determined by applying a ratio of the number of 20

hours or days the district was in noncompliance in relation to the required minimum number of 21

hours and days under this subsection. Not later than August 1, the board of each district 22

shall certify to the department the number of hours and days of pupil instruction in the 23

previous school year. If the district did not provide at least the required minimum number of 24

hours and days of pupil instruction under this subsection, the deduction of state aid shall 25

be made in the following fiscal year from the first payment of state school aid. A district 26

is not subject to forfeiture of funds under this subsection for a fiscal year in which a 27

forfeiture was already imposed under subsection (6). 28

(c) Hours or days lost because of strikes or teachers' conferences shall not be 29

counted as hours or days of pupil instruction. 30

(d) If a collective bargaining agreement that provides a complete school calendar is 31

in effect for employees of a district as of October 19, 2009, and if that school calendar is 32

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not in compliance with this subsection, then this subsection does not apply to that district 1

until after the expiration of that collective bargaining agreement. 2

(e) Except as otherwise provided in subdivision (f), a district not having at least 3

75% of the district's membership in attendance on any day of pupil instruction shall receive 4

state aid in that proportion of 1/180 that the actual percent of attendance bears to the 5

specified percentage. 6

(f) At the request of a district that operates a department-approved alternative 7

education program and that does not provide instruction for pupils in all of grades K to 12, 8

the superintendent may grant a waiver from the requirements of subdivision (e). The waiver 9

shall indicate that an eligible district is subject to the proration provisions of 10

subdivision (e) only if the district does not have at least 50% of the district's membership 11

in attendance on any day of pupil instruction. In order to be eligible for this waiver, a 12

district must maintain records to substantiate its compliance with the following 13

requirements: 14

(i) The district offers the minimum hours of pupil instruction as required under this 15

section. 16

(ii) For each enrolled pupil, the district uses appropriate academic assessments to 17

develop an individual education plan that leads to a high school diploma. 18

(iii) The district tests each pupil to determine academic progress at regular 19

intervals and records the results of those tests in that pupil's individual education plan. 20

(g) All of the following apply to a waiver granted under subdivision (f): 21

(i) If the waiver is for a blended model of delivery, a waiver that is granted for the 22

2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by 23

the superintendent. 24

(ii) If the waiver is for a 100% online model of delivery and the educational program 25

for which the waiver is granted makes educational services available to pupils for a minimum 26

of at least 1,098 hours during a school year and ensures that each pupil participates in the 27

educational program for at least 1,098 hours during a school year, a waiver that is granted 28

for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is 29

revoked by the superintendent. 30

(iii) A waiver that is not a waiver described in subparagraph (i) or (ii) is valid for 31

1 fiscal year and must be renewed annually to remain in effect. 32

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(h) The superintendent shall promulgate rules for the implementation of this 1

subsection. 2

(4) Except as otherwise provided in this subsection, the first 6 days or the 3

equivalent number of hours for which pupil instruction is not provided because of conditions 4

not within the control of school authorities, such as severe storms, fires, epidemics, 5

utility power unavailability, water or sewer failure, or health conditions as defined by the 6

city, county, or state health authorities, shall be counted as hours and days of pupil 7

instruction. With the approval of the superintendent of public instruction, the department 8

shall count as hours and days of pupil instruction for a fiscal year not more than 6 9

additional days or the equivalent number of additional hours for which pupil instruction is 10

not provided in a district after April 1 of the applicable school year due to unusual and 11

extenuating occurrences resulting from conditions not within the control of school 12

authorities such as those conditions described in this subsection. Subsequent such hours or 13

days shall not be counted as hours or days of pupil instruction. 14

(5) A district shall not forfeit part of its state aid appropriation because it adopts 15

or has in existence an alternative scheduling program for pupils in kindergarten if the 16

program provides at least the number of hours required under subsection (3) for a full-time 17

equated membership for a pupil in kindergarten as provided under section 6(4). 18

(6) In addition to any other penalty or forfeiture under this section, if at any time 19

the department determines that 1 or more of the following have occurred in a district, the 20

district shall forfeit in the current fiscal year beginning in the next payment to be 21

calculated by the department a proportion of the funds due to the district under this article 22

that is equal to the proportion below the required minimum number of hours and days of pupil 23

instruction under subsection (3), as specified in the following: 24

(a) The district fails to operate its schools for at least the required minimum number 25

of hours and days of pupil instruction under subsection (3) in a school year, including hours 26

and days counted under subsection (4). 27

(b) The board of the district takes formal action not to operate its schools for at 28

least the required minimum number of hours and days of pupil instruction under subsection (3) 29

in a school year, including hours and days counted under subsection (4). 30

(7) In providing the minimum number of hours and days of pupil instruction required 31

under subsection (3), a district shall use the following guidelines, and a district shall 32

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maintain records to substantiate its compliance with the following guidelines: 1

(a) Except as otherwise provided in this subsection, a pupil must be scheduled for at 2

least the required minimum number of hours of instruction, excluding study halls, or at least 3

the sum of 90 hours plus the required minimum number of hours of instruction, including up to 4

2 study halls. 5

(b) The time a pupil is assigned to any tutorial activity in a block schedule may be 6

considered instructional time, unless that time is determined in an audit to be a study hall 7

period. 8

(c) Except as otherwise provided in this subdivision, a pupil in grades 9 to 12 for 9

whom a reduced schedule is determined to be in the individual pupil's best educational 10

interest must be scheduled for a number of hours equal to at least 80% of the required 11

minimum number of hours of pupil instruction to be considered a full-time equivalent pupil. A 12

pupil in grades 9 to 12 who is scheduled in a 4-block schedule may receive a reduced schedule 13

under this subsection if the pupil is scheduled for a number of hours equal to at least 75% 14

of the required minimum number of hours of pupil instruction to be considered a full-time 15

equivalent pupil. 16

(d) If a pupil in grades 9 to 12 who is enrolled in a cooperative education program or 17

a special education pupil cannot receive the required minimum number of hours of pupil 18

instruction solely because of travel time between instructional sites during the school day, 19

that travel time, up to a maximum of 3 hours per school week, shall be considered to be pupil 20

instruction time for the purpose of determining whether the pupil is receiving the required 21

minimum number of hours of pupil instruction. However, if a district demonstrates to the 22

satisfaction of the department that the travel time limitation under this subdivision would 23

create undue costs or hardship to the district, the department may consider more travel time 24

to be pupil instruction time for this purpose. 25

(e) In grades 7 through 12, instructional time that is part of a junior reserve 26

officer training corps (JROTC) program shall be considered to be pupil instruction time 27

regardless of whether the instructor is a certificated teacher if all of the following are 28

met: 29

(i) The instructor has met all of the requirements established by the United States 30

department of defense and the applicable branch of the armed services for serving as an 31

instructor in the junior reserve officer training corps program. 32

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(ii) The board of the district or intermediate district employing or assigning the 1

instructor complies with the requirements of sections 1230 and 1230a of the revised school 2

code, MCL 380.1230 and 380.1230a, with respect to the instructor to the same extent as if 3

employing the instructor as a regular classroom teacher. 4

(8) Except as otherwise provided in subsections (11) and (12), the department shall 5

apply the guidelines under subsection (7) in calculating the full-time equivalency of pupils. 6

(9) Upon application by the district for a particular fiscal year, the superintendent 7

may waive for a district the minimum number of hours and days of pupil instruction 8

requirement of subsection (3) for a department-approved alternative education program or 9

another innovative program approved by the department, including a 4-day school week. If a 10

district applies for and receives a waiver under this subsection and complies with the terms 11

of the waiver, the district is not subject to forfeiture under this section for the specific 12

program covered by the waiver. If the district does not comply with the terms of the waiver, 13

the amount of the forfeiture shall be calculated based upon a comparison of the number of 14

hours and days of pupil instruction actually provided to the minimum number of hours and days 15

of pupil instruction required under subsection (3). Pupils enrolled in a department-approved 16

alternative education program under this subsection shall be reported to the center in a form 17

and manner determined by the center. All of the following apply to a waiver granted under 18

this subsection: 19

(a) If the waiver is for a blended model of delivery, a waiver that is granted for the 20

2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is revoked by 21

the superintendent. 22

(b) If the waiver is for a 100% online model of delivery and the educational program 23

for which the waiver is granted makes educational services available to pupils for a minimum 24

of at least 1,098 hours during a school year and ensures that each pupil participates in the 25

educational program for at least 1,098 hours during a school year, a waiver that is granted 26

for the 2011-2012 fiscal year or a subsequent fiscal year remains in effect unless it is 27

revoked by the superintendent. 28

(c) A waiver that is not a waiver described in subdivision (a) or (b) is valid for 1 29

fiscal year and must be renewed annually to remain in effect. 30

(10) Until 2014-2015, a district may count up to 38 hours of qualifying professional 31

development for teachers as hours of pupil instruction. Professional development provided 32

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online is allowable and encouraged, as long as the instruction has been approved by the 1

district. The department shall issue a list of approved online professional development 2

providers, which shall include the Michigan virtual school. As used in this subsection, 3

"qualifying professional development" means professional development that is focused on 1 or 4

more of the following: 5

(a) Achieving or improving adequate yearly progress as defined under the no child left 6


(b) Achieving accreditation or improving a school's accreditation status under section 8


(c) Achieving highly qualified teacher status as defined under the no child left 10


(d) Integrating technology into classroom instruction. 12

(e) Maintaining teacher certification. 13

(11) Subsections (3) and (8) do not apply to a school of excellence that is a cyber 14

school, as defined in section 551 of the revised school code, MCL 380.551, and is in 15

compliance with section 553a of the revised school code, MCL 380.553a. 16

(12) Subsections (3) and (8) do not apply to eligible pupils enrolled in a dropout 17

recovery program that meets the requirements of section 23a. As used in this subsection, 18

"eligible pupil" means that term as defined in section 23a. 19

(13) Beginning in 2013, at least every 2 years the superintendent shall review the 20

waiver standards set forth in the pupil accounting and auditing manuals to ensure that the 21

waiver standards and waiver process continue to be appropriate and responsive to changing 22

trends in online learning. The superintendent shall solicit and consider input from 23

stakeholders as part of this review. 24

Sec. 102. (1) A district or intermediate district receiving money under this article 25

shall not adopt or operate under a deficit budget, and a district or intermediate district 26

shall not incur an operating deficit in a fund during a school fiscal year. A IF A district 27

or intermediate district that has an existing deficit fund balance, that incurs a deficit 28

fund balance in the most recently completed school fiscal year, or that adopts a current year 29

budget that projects a deficit fund balance, shall not be allotted or paid a further sum 30

under this article ALL OF THE FOLLOWING APPLY 31

(A) THE DISTRICT OR INTERMEDIATE DISTRICT SHALL NOTIFY THE DEPARTMENT IMMEDIATELY UPON 32

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THE OCCURRENCE OF THE CIRCUMSTANCE. 1

(B) WITHIN 30 DAYS AFTER NOTIFYING THE DEPARTMENT, THE DISTRICT OR INTERMEDIATE 2

DISTRICT SHALL SUBMIT TO THE DEPARTMENT AND THE STATE TREASURER A PREPLAN FINANCIAL REPORT IN 3

THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT OF TREASURY. 4

(C) THE DEPARTMENT MAY WITHHOLD SOME OR ALL OF THE MONEY PAYABLE TO THE DISTRICT OR 5

INTERMEDIATE DISTRICT UNDER THIS ARTICLE, IN AN AMOUNT THE DEPARTMENT DETERMINES NECESSARY TO 6

INCENTIVIZE THE DISTRICT OR INTERMEDIATE DISTRICT TO ELIMINATE THE DEFICIT, until the 7

district or intermediate district submits to the department for approval a budget for the 8

current school fiscal year and a plan to eliminate the district's or intermediate district's 9

deficit not later than the end of the second school fiscal year after the deficit was 10

incurred or the budget projecting a deficit was adopted. Withheld state aid payments shall be 11

released DEFICIT ELIMINATION PLAN IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT OR 12

UNTIL THE DEFICIT ELIMINATION PLAN IS APPROVED BY THE DEPARTMENT, AS DETERMINED BY THE 13

DEPARTMENT. THE DEPARTMENT MAY REQUIRE A DEFICIT ELIMINATION PLAN TO INCLUDE AN EDUCATION 14

PLAN FOR THE DISTRICT OR INTERMEDIATE DISTRICT. 15

(D) THE DEPARTMENT SHALL RELEASE MONEY WITHHELD UNDER THIS SUBSECTION after the 16

department approves the deficit elimination plan. and ensures that the budget for the current 17

school fiscal year is balanced. 18

(E) After the department approves a district's or intermediate district's deficit 19

elimination plan, the district or intermediate district shall post the deficit elimination 20

plan on the district's or intermediate district's website. 21

(2) Not later than March 1 of each year, the department shall prepare a report of 22

deficits incurred or projected by districts and intermediate districts in the immediately 23

preceding fiscal year and the progress made in reducing those deficits and submit the report 24

to the standing committees of the legislature responsible for K-12 education legislation, the 25

appropriations subcommittees of the legislature responsible for K-12 education 26

appropriations, the house and senate fiscal agencies, the state treasurer, and the state 27

budget director. The department also shall submit quarterly interim reports concerning the 28

progress made by districts and intermediate districts in reducing those deficits TO THE 29

APPROPRIATIONS SUBCOMMITTEES OF THE LEGISLATURE RESPONSIBLE FOR K-12 EDUCATION 30

APPROPRIATIONS, THE HOUSE AND SENATE FISCAL AGENCIES, THE STATE TREASURER, AND THE STATE 31

BUDGET DIRECTOR. On a quarterly basis, the superintendent of public instruction shall 32

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publicly present those reports to the appropriations subcommittees of the legislature 1

responsible for K-12 education appropriations. 2

(3) The amount of the permissible deficit for each school fiscal year shall not exceed 3

the amount of state aid reduced by an executive order during that school fiscal year. 4

(3) (4) A district or intermediate district that has an existing deficit fund balance, 5

that incurs a deficit fund balance in the most recently completed school fiscal year, or that 6

adopts a current year budget that projects a deficit fund balance shall submit to the 7

department AND THE STATE TREASURER a monthly monitoring report on revenue and expenditures in 8

a form and manner prescribed by the department and shall post these reports on its website. 9

(4) (5) If a district or intermediate district is not able to comply with the 10

provisions of this section, the district or intermediate district shall submit to the 11

department a plan to eliminate its deficit. Upon approval of the plan submitted, REQUIRED TO 12

SUBMIT A DEFICIT ELIMINATION PLAN UNDER THIS SECTION, AND THE DEFICIT ELIMINATION PLAN IS 13

APPROVED BY THE DEPARTMENT, the superintendent of public instruction may continue allotment 14

and payment of funds under this article., extend WHEN APPROVING A DEFICIT ELIMINATION PLAN, 15

THE SUPERINTENDENT SHALL ESTABLISH the period of time in WITHIN which a district or 16

intermediate district has to MUST eliminate its deficit, and MAY set special conditions that 17

the district or intermediate district must meet during the period of the extension. WHILE THE 18

DEFICIT ELIMINATION PLAN IS IN EFFECT. After the department approves a district's or 19

intermediate district's deficit elimination plan under this subsection, the district or 20

intermediate district shall post the deficit elimination plan on the district's or 21

intermediate district's website. THE REQUIREMENTS OF THIS SECTION RELATING TO A DEFICIT 22

ELIMINATION PLAN DO NOT APPLY TO A DISTRICT OR INTERMEDIATE DISTRICT IF THE DISTRICT OR 23

INTERMEDIATE DISTRICT IS REQUIRED TO SUBMIT AN ENHANCED DEFICIT ELIMINATION PLAN UNDER 24

SUBSECTION (5). 25

(5) IF, BASED UPON INFORMATION INCLUDED IN A PERIODIC FINANCIAL STATUS REPORT REQUIRED 26

UNDER SECTION 102A OR NOTIFICATION FROM THE SUPERINTENDENT OF PUBLIC INSTRUCTION, A PREPLAN 27

FINANCIAL REPORT REQUIRED UNDER THIS SECTION, OR A DEFICIT ELIMINATION PLAN REQUIRED UNDER 28

THIS SECTION, THE STATE TREASURER DETERMINES THAT A DISTRICT OR INTERMEDIATE DISTRICT IS 29

SUBJECT TO RAPIDLY DETERIORATING FINANCIAL CIRCUMSTANCES, PERSISTENTLY DECLINING ENROLLMENT, 30

OR OTHER INDICATORS OF FINANCIAL STRESS LIKELY TO RESULT IN RECURRING OPERATING DEFICITS OR 31

RECURRING FINANCIAL STRESS WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, THE STATE TREASURER 32

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MAY REQUIRE THE DISTRICT OR INTERMEDIATE DISTRICT TO SUBMIT AN ENHANCED DEFICIT ELIMINATION 1

PLAN IN THE FORM AND MANNER DETERMINED BY THE DEPARTMENT OF TREASURY. AN ENHANCED DEFICIT 2

ELIMINATION PLAN SHALL PROVIDE FOR THE RESOLUTION OF THE DETERIORATING FINANCIAL 3

CIRCUMSTANCES, PERSISTENTLY DECLINING ENROLLMENT, OR OTHER INDICATORS OF RECURRING OPERATING 4

DEFICITS OR RECURRING FINANCIAL STRESS AND IS SUBJECT TO APPROVAL BY THE STATE TREASURER. AS 5

A CONDITION OF APPROVING THE ENHANCED DEFICIT ELIMINATION PLAN, THE STATE TREASURER MAY 6

REQUIRE THE DISTRICT OR INTERMEDIATE SCHOOL DISTRICT TO ENTER INTO A FINANCIAL RECOVERY 7

AGREEMENT WITH THE STATE TREASURER. A FINANCIAL RECOVERY AGREEMENT MAY PROVIDE FOR, BUT IS 8

NOT LIMITED TO, ALL OF THE FOLLOWING: 9

(A) ASSISTANCE AND GUIDANCE FROM THE DEPARTMENT OF TREASURY AND OTHER STATE 10

DEPARTMENTS AND AGENCIES. 11

(B) A FINANCIAL AND OPERATING PLAN FOR THE DISTRICT. 12

(C) THE APPOINTMENT OF A LOCAL AUDITOR OR INSPECTOR, OR BOTH. 13

(D) REMEDIAL MEASURES NECESSARY TO ADDRESS THE FINANCIAL CIRCUMSTANCES OF THE DISTRICT 14

OR INTERMEDIATE DISTRICT. 15

(E) ALTERNATIVE MEANS TO MORE EFFECTIVELY AND EFFICIENTLY PROVIDE PUBLIC EDUCATIONAL 16

SERVICES TO RESIDENTS OF THE DISTRICT OR INTERMEDIATE DISTRICT AND PERFORM OTHER FUNCTIONS 17

AND RESPONSIBILITIES OF THE DISTRICT OR INTERMEDIATE DISTRICT, INCLUDING, BUT NOT LIMITED TO, 18

ENTERING INTO AGREEMENTS OR COOPERATIVE ARRANGEMENTS WITH OTHER ENTITIES, PUBLIC OR PRIVATE, 19

OR JOINING ORGANIZATIONS AS PART OF PERFORMING THE FUNCTIONS OF THE DISTRICT OR INTERMEDIATE 20

DISTRICT UNDER SECTION 11A OR SECTION 601A OF THE REVISED SCHOOL CODE. 21

(F) THE REQUIRED RETENTION BY THE DISTRICT OR INTERMEDIATE DISTRICT OF A CONSULTANT OR 22

1 OR MORE OTHER EXPERTS FOR THE PURPOSE OF ASSISTING THE DISTRICT OR INTERMEDIATE DISTRICT TO 23

ACHIEVE THE GOALS AND OBJECTIVES OF THE FINANCIAL RECOVERY AGREEMENT. 24

(G) OTHER MEASURES CONSIDERED NECESSARY BY THE STATE TREASURER TO ADDRESS THE 25

FINANCIAL CONDITIONS WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT. 26

(6) IF A DISTRICT OR INTERMEDIATE DISTRICT IS REQUIRED TO SUBMIT AN ENHANCED DEFICIT 27

ELIMINATION PLAN UNDER SUBSECTION (5), SOME OR ALL OF THE MONEY PAYABLE TO THE DISTRICT UNDER 28

THIS ARTICLE MAY BE WITHHELD IN AN AMOUNT THE STATE TREASURER DETERMINES NECESSARY TO 29

INCENTIVIZE THE DISTRICT OR INTERMEDIATE DISTRICT TO ELIMINATE THE DEFICIT, UNTIL THE 30

DISTRICT OR INTERMEDIATE DISTRICT SUBMITS TO THE STATE TREASURER FOR APPROVAL A BUDGET FOR 31

THE CURRENT SCHOOL FISCAL YEAR AND AN ENHANCED DEFICIT ELIMINATION PLAN IN THE FORM AND 32

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MANNER PRESCRIBED BY THE DEPARTMENT OF TREASURY UNDER THIS SECTION OR UNTIL THE ENHANCED 1

DEFICIT ELIMINATION PLAN IS APPROVED BY THE DEPARTMENT OF TREASURY, AS DETERMINED BY THE 2

DEPARTMENT OF TREASURY. THE DEPARTMENT SHALL RELEASE MONEY WITHHELD UNDER THIS SUBSECTION 3

AFTER THE DEPARTMENT OF TREASURY APPROVES THE ENHANCED DEFICIT ELIMINATION PLAN FOR THE 4

DISTRICT OR INTERMEDIATE DISTRICT. WHEN APPROVING AN ENHANCED DEFICIT ELIMINATION PLAN, THE 5

STATE TREASURER SHALL ESTABLISH THE PERIOD OF TIME WITHIN WHICH A DISTRICT OR INTERMEDIATE 6

DISTRICT MUST ELIMINATE ITS DEFICIT AND MAY SET SPECIAL CONDITIONS THAT THE DISTRICT OR 7

INTERMEDIATE DISTRICT MUST MEET WHILE THE DEFICIT ELIMINATION PLAN IS IN EFFECT. 8

(7) AFTER THE STATE TREASURER APPROVES AN ENHANCED DEFICIT ELIMINATION PLAN FOR A 9

DISTRICT OR INTERMEDIATE DISTRICT, THE DISTRICT OR INTERMEDIATE DISTRICT SHALL POST THE 10

ENHANCED DEFICIT ELIMINATION PLAN ON THE DISTRICT’S WEBSITE. 11

(8) IF A DISTRICT OR INTERMEDIATE DISTRICT IS REQUIRED TO SUBMIT AN ENHANCED DEFICIT 12

ELIMINATION PLAN UNDER SUBSECTION (5), THE SUPERINTENDENT AND THE STATE TREASURER MAY NOT 13

CONTINUE ALLOTMENT AND PAYMENT OF FUNDS UNDER THIS ACT UNTIL THE ENHANCED DEFICIT ELIMINATION 14

PLAN IS APPROVED BY THE STATE TREASURER. 15

(9) IF A DISTRICT OR INTERMEDIATE SCHOOL DISTRICT IS REQUIRED TO SUBMIT AN ENHANCED 16

DEFICIT ELIMINATION PLAN UNDER SUBSECTION (5), THE DISTRICT OR INTERMEDIATE DISTRICT SHALL 17

SUBMIT TO THE DEPARTMENT OF TREASURY AND THE DEPARTMENT AN ENHANCED MONTHLY MONITORING REPORT 18

ON REVENUE, EXPENDITURES, CASH FLOW, LIABILITIES, BUDGET AMENDMENTS, PUPIL MEMBERSHIP, AND 19

OTHER DATA RELATING TO THE FINANCES OF THE DISTRICT OR INTERMEDIATE DISTRICT IN A FORM AND 20

MANNER PRESCRIBED BY THE DEPARTMENT OF TREASURY AND SHALL POST THESE REPORTS ON ITS WEBSITE. 21

(10) (6) For the purposes of AS USED IN this section:, "deficit 22

(A) “DEFICIT ELIMINATION PLAN” MEANS A PLAN REQUIRED UNDER THIS SECTION FOR THE 23

ELIMINATION OF A DEFICIT THAT SETS FORTH ACTIONS TO BE TAKEN TO ELIMINATE THE DEFICIT WITHIN 24

THE TIME PERIOD PRESCRIBED BY THE DEPARTMENT. 25

(B) “DEFICIT fund balance" means that term as defined in the Michigan public school 26

accounting manual published by the department. 27

(C) “ENHANCED DEFICIT ELIMINATION PLAN” MEANS MEASURES REQUIRED BY THE STATE TREASURER 28

UNDER THIS SECTION TO ADDRESS THE FINANCIAL CONDITIONS WITHIN A DISTRICT OR INTERMEDIATE 29

DISTRICT AND RESOLVE ANY DEFICIT WITHIN THE TIME PERIOD PRESCRIBED BY THE DEPARTMENT AND THE 30

STATE TREASURER. 31

(D) “PREPLAN FINANCIAL REPORT” MEANS A REPORT ON THE FINANCIAL CONDITIONS WITHIN A 32

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DISTRICT OR INTERMEDIATE DISTRICT REQUIRED UNDER THIS SECTION AND SUBMITTED IN A FORM AND 1

MANNER PRESCRIBED BY THE STATE TREASURER, WHICH MAY INCLUDE, BUT IS NOT LIMITED TO, FINANCIAL 2

DATA AND OTHER INFORMATION ON LIABILITIES, PAYMENTS, ENROLLMENT, BORROWING, AND OTHER 3

CRITERIA RELATING TO THE FINANCIAL CONDITIONS WITHIN A DISTRICT OR INTERMEDIATE DISTRICT. 4

SEC. 102A. (1) THE SUPERINTENDENT OR THE STATE TREASURER MAY REQUIRE A DISTRICT OR 5

INTERMEDIATE DISTRICT TO SUBMIT PERIODIC FINANCIAL STATUS REPORTS UNDER THIS SECTION IF THE 6

SUPERINTENDENT OR THE STATE TREASURER DETERMINES THAT POTENTIAL FINANCIAL STRESS MAY EXIST 7

WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, THAT AN OPERATING DEFICIT MAY ARISE WITHIN THE 8

DISTRICT OR INTERMEDIATE DISTRICT DURING THE CURRENT SCHOOL FISCAL YEAR OR THE FOLLOWING 2 9

SCHOOL FISCAL YEARS, OR THAT THE DISTRICT OR INTERMEDIATE DISTRICT MAY BE UNABLE TO MEET ITS 10

FINANCIAL OBLIGATIONS WHILE ALSO SATISFYING THE DISTRICT’S OR THE INTERMEDIATE DISTRICT’S 11

OBLIGATIONS TO PROVIDE PUBLIC EDUCATIONAL SERVICES IN A MANNER THAT COMPLIES WITH THIS ACT, 12

THE REVISED SCHOOL CODE, AND APPLICABLE RULES, BASED UPON 1 OR MORE OF THE FOLLOWING: 13

(A) FINANCIAL DATA OR OTHER INFORMATION SUBMITTED BY THE DISTRICT OR INTERMEDIATE 14

DISTRICT TO A STATE DEPARTMENT OR AGENCY. 15

(B) FINANCIAL DATA OR OTHER INFORMATION INCLUDED WITHIN AN AUDITED FINANCIAL STATEMENT 16

OF THE DISTRICT OR INTERMEDIATE DISTRICT. 17

(C) FINANCIAL DATA OR OTHER INFORMATION PROVIDED TO A STATE DEPARTMENT, AGENCY, OR 18

AUTHORITY IN CONNECTION WITH A REQUEST TO ISSUE BONDS, NOTES, OR OTHER DEBT OBLIGATIONS. 19

(D) FINANCIAL DATA OR OTHER INFORMATION INCLUDED WITHIN A RECOMMENDED BUDGET, BUDGET, 20

OR GENERAL APPROPRIATIONS ACT OF THE DISTRICT OR INTERMEDIATE DISTRICT. 21

(E) THE FAILURE OF THE DISTRICT OR INTERMEDIATE DISTRICT TO TIMELY TRANSMIT TO THE 22

DEPARTMENT OF TREASURY TAX PAYMENTS WITHHELD FROM PAYMENTS TO EMPLOYEES OF THE DISTRICT OR 23

INTERMEDIATE DISTRICT. 24

(F) THE FAILURE OF THE DISTRICT OR INTERMEDIATE DISTRICT TO MAKE TIMELY PAYMENTS TO 25

THE MICHIGAN PUBLIC SCHOOL EMPLOYEES’ RETIREMENT SYSTEM UNDER THE PUBLIC SCHOOL EMPLOYEES 26

RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1301 TO 38.1437. 27

(G) THE FAILURE OF THE DISTRICT OR INTERMEDIATE DISTRICT TO MAKE TIMELY REQUIRED 28

PAYMENTS TO THE MICHIGAN UNEMPLOYMENT INSURANCE AGENCY. 29

(H) INFORMATION SUBMITTED BY A VENDOR OF THE DISTRICT OR INTERMEDIATE DISTRICT 30

INDICATING THAT THE DISTRICT OR INTERMEDIATE DISTRICT HAS FAILED TO MAKE TIMELY PAYMENTS TO 31

THE VENDOR AS REQUIRED UNDER A CONTRACT BETWEEN THE VENDOR AND THE DISTRICT OR INTERMEDIATE 32

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DISTRICT. 1

(I) FINANCIAL DATA OR OTHER INFORMATION PROVIDED TO A STATE DEPARTMENT, AGENCY, OR 2

AUTHORITY BY AN OFFICER, EMPLOYEE, CONTRACTOR, OR AGENT OF THE DISTRICT OR INTERMEDIATE 3

DISTRICT. 4

(J) A REQUEST FOR A DETERMINATION UNDER THIS SUBSECTION SUBMITTED TO THE 5

SUPERINTENDENT OR STATE TREASURER BY THE SUPERINTENDENT OR BOARD OF THE DISTRICT OR 6


(K) THE EXPENDITURE OF TAX REVENUE FOR UNAUTHORIZED PURPOSES BY THE DISTRICT OR 8

INTERMEDIATE DISTRICT OR THE UNAUTHORIZED TRANSFER OR DEPOSIT OF TAX REVENUE BY THE DISTRICT 9

OR INTERMEDIATE DISTRICT. 10

(2) IF A DISTRICT OR INTERMEDIATE DISTRICT IS REQUIRED BY THE SUPERINTENDENT OR THE 11

STATE TREASURER TO SUBMIT A FINANCIAL STATUS REPORT UNDER SUBSECTION (1), THE DISTRICT OR 12

INTERMEDIATE DISTRICT SHALL FILE A PERIODIC FINANCIAL STATUS REPORT DESCRIBED IN SUBSECTION 13

(3) WITH THE DEPARTMENT AND THE DEPARTMENT OF TREASURY. BEFORE A DISTRICT OR INTERMEDIATE 14

DISTRICT FILES A FINANCIAL STATUS REPORT WITH THE DEPARTMENT AND THE DEPARTMENT OF TREASURY, 15

THE FINANCIAL STATUS REPORT SHALL BE REVIEWED AND APPROVED BY THE BOARD OF THE DISTRICT OR 16


(3) A PERIODIC FINANCIAL STATUS REPORT SHALL BE SUBMITTED IN THE FORM AND MANNER 18

DETERMINED BY THE DEPARTMENT OF TREASURY AFTER CONSULTATION WITH THE DEPARTMENT AND THE 19

CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION. THE REPORT SHALL INCLUDE WITHOUT 20

LIMITATION FINANCIAL DATA AND OTHER INFORMATION THAT THE DEPARTMENT OF TREASURY AFTER 21

CONSULTATION WITH THE DEPARTMENT AND THE CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION 22

DETERMINES CAN ASSIST THE STATE IN DEVELOPING AN EARLY WARNING SYSTEM OF FINANCIAL STRESS OR 23

OPERATING DEFICITS IN DISTRICTS OR INTERMEDIATE DISTRICTS. FINANCIAL DATA OR OTHER 24

INFORMATION THAT MAY BE REQUIRED BY THE DEPARTMENT OF TREASURY TO BE REPORTED ON A PERIODIC 25

FINANCIAL STATUS REPORT MAY INCLUDE, BUT IS NOT LIMITED TO, SOME OR ALL OF THE FOLLOWING: 26

(A) PUPIL MEMBERSHIP COUNTS FOR THE DISTRICT OR INTERMEDIATE DISTRICT AND PROJECTED 27

PUPIL MEMBERSHIP COUNTS FOR THE DISTRICT OR INTERMEDIATE DISTRICT. 28

(B) AN ASSET SUFFICIENCY RATIO. AS USED IN THIS SUBDIVISION, “ASSET SUFFICIENCY RATIO” 29

MEANS THE QUOTIENT OF THE DISTRICT’S OR INTERMEDIATE DISTRICT’S GENERAL FUND ASSETS DIVIDED 30

BY THE DISTRICT’S OR INTERMEDIATE DISTRICT’S GENERAL FUND LIABILITIES. 31

(C) AN OPERATING RESERVE RATIO. AS USED IN THIS SUBDIVISION, “OPERATING RESERVE RATIO” 32

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MEANS THE QUOTIENT OF THE DISTRICT’S OR INTERMEDIATE DISTRICT’S GENERAL FUND BALANCE DIVIDED 1

BY THE DISTRICT’S OR INTERMEDIATE DISTRICT’S TOTAL GENERAL FUND EXPENDITURES FOR A FISCAL 2

YEAR. 3

(D) AN OPERATING MARGIN RATIO. AS USED IN THIS SUBDIVISION, “OPERATING MARGIN RATIO” 4

MEANS THE QUOTIENT OF THE DIFFERENCE BETWEEN DISTRICT’S OR INTERMEDIATE DISTRICT’S TOTAL 5

GENERAL FUND REVENUE AND TOTAL GENERAL FUND EXPENDITURES FOR A FISCAL YEAR DIVIDED BY THE 6

DISTRICT'S OR INTERMEDIATE DISTRICT'S TOTAL GENERAL FUND REVENUE FOR THE FISCAL YEAR. 7

(E) A DEFICIT FUND BALANCE RATIO. AS USED IN THIS SUBPARAGRAPH, "DEFICIT FUND 8

BALANCE RATIO" MEANS THE QUOTIENT OF THE DIFFERENCE BETWEEN DISTRICT'S OR INTERMEDIATE 9

DISTRICT'S TOTAL REVENUE FOR A FISCAL YEAR AND THE TOTAL OF ANY DEFICIT FUND BALANCES 10

FOR THE FISCAL YEAR DIVIDED BY THE TOTAL REVENUE IN THE DEFICIT FUNDS . 11

(F) A FUND BALANCE CHANGE RATIO. AS USED IN THIS SUBPARAGRAPH, "FUND BALANCE CHANGE 12

RATIO" MEANS THE QUOTIENT OF THE DISTRICT'S OR INTERMEDIATE DISTRICT'S PRIOR FISCAL YEAR 13

GENERAL FUND BALANCE AND THE CURRENT FISCAL YEAR GENERAL FUND BALANCE DIVIDED BY PRIOR 14

FISCAL YEAR GENERAL FUND BALANCE. 15

(G) A CASH FLOW BORROWING RATIO. AS USED IN THIS SUBPARAGRAPH, "CASH FLOW BORROWING 16

RATIO" MEANS THE QUOTIENT OF THE SUM OF THE TOTAL AMOUNT OF TAX ANTICIPATION NOTES ISSUED 17

BY THE DISTRICT OR INTERMEDIATE DISTRICT IN THE FISCAL YEAR AND THE TOTAL AMOUNT OF STATE 18

SCHOOL AID ANTICIPATION NOTES ISSUED BY THE DISTRICT OR INTERMEDIATE DISTRICT IN THE 19

FISCAL YEAR DIVIDED BY THE DISTRICT'S OR INTERMEDIATE DISTRICT'S TOTAL GENERAL FUND 20

REVENUE FOR THE FISCAL YEAR. 21

(H) A CASH FLOW PROJECTION FOR THE DISTRICT OR INTERMEDIATE DISTRICT. 22

(I) A COMPARISON OF EXPENDITURES BUDGETED BY THE DISTRICT OR INTERMEDIATE DISTRICT 23

FOR THE PRIOR MONTH COMPARED TO ACTUAL EXPENDITURES FOR THE PRIOR MONTH. 24

(J) OUTSTANDING ACCOUNTS PAYABLE AS OF THE PRIOR MONTH. 25

(K) FOR A DISTRICT, THE NUMBER OF STUDENTS ENROLLED IN THE DISTRICT WHO ARE 26

RESIDENTS OF THE DISTRICT AND THE NUMBER OF STUDENTS ENROLLED IN THE DISTRICT WHO ARE NOT 27

RESIDENTS OF THE DISTRICT. 28

(4) A DISTRICT OR INTERMEDIATE DISTRICT REQUIRED TO SUBMIT PERIODIC FINANCIAL 29

STATUS REPORTS UNDER THIS SECTION SHALL DO ALL OF THE FOLLOWING: 30

(A) PROVIDE THE DEPARTMENT OF TREASURY OR THE DEPARTMENT WITH OTHER FINANCIAL DATA 31

OR INFORMATION RELATING TO THE FINANCIAL CONDITION OF THE SCHOOL DISTRICT AS REQUESTED BY 32

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THE DEPARTMENT OF TREASURY OR THE DEPARTMENT. 1

(B) ALLOW THE DEPARTMENT OF TREASURY OR THE DEPARTMENT TO EXAMINE ALL FINANCIAL 2

RECORDS AND BOOKS OF ACCOUNT OF THE DISTRICT OR INTERMEDIATE DISTRICT. THE DEPARTMENT OF 3

TREASURY OR THE DEPARTMENT MAY REQUIRE THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF 4

BOOKS, PAPERS, CONTRACTS, AND OTHER DOCUMENTS RELEVANT TO AN ANALYSIS OF THE FINANCIAL 5

CONDITION OF THE DISTRICT OR INTERMEDIATE DISTRICT. 6

(C) PROMPTLY AND FULLY PROVIDE THE ASSISTANCE AND INFORMATION NECESSARY AND 7

PROPERLY REQUESTED BY THE DEPARTMENT OF TREASURY OR THE DEPARTMENT IN THE EFFECTUATION OF 8

THE DEPARTMENT OF TREASURY'S DUTIES UNDER THIS SECTION. 9

(5) IF A DISTRICT OR INTERMEDIATE DISTRICT FAILS TO SUBMIT A PERIODIC FINANCIAL 10

STATUS REPORT REQUIRED UNDER THIS SECTION, OR IF THE STATE TREASURER DETERMINES OR IS 11

NOTIFIED BY THE SUPERINTENDENT OF PUBLIC INSTRUCTION THAT INFORMATION INCLUDED ON A 12

PERIODIC FINANCIAL STATUS REPORT INDICATES THAT FINANCIAL STRESS EXISTS WITHIN THE 13

DISTRICT OR INTERMEDIATE DISTRICT, THAT AN OPERATING DEFICIT HAS OCCURRED OR IS PROJECTED 14

TO OCCUR WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, OR THAT THE DISTRICT OR 15

INTERMEDIATE DISTRICT WOULD BENEFIT FROM STATE ASSISTANCE WITH FINANCIAL DIFFICULTIES 16

WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, THE STATE TREASURER MAY REQUIRE THE 17

DISTRICT OR INTERMEDIATE DISTRICT TO SUBMIT AN ENHANCED DEFICIT ELIMINATION PLAN UNDER 18

SECTION 102. THE FAILURE OF AN OFFICER OF A DISTRICT OR INTERMEDIATE TO PREPARE AND 19

SUBMIT A PERIODIC FINANCIAL REPORT AS PROVIDED UNDER THIS SECTION CONSTITUTES MALFEASANCE 20

AND IS GROUNDS FOR REMOVAL OF THE OFFICER FROM OFFICE. 21

(6) A DISTRICT OR INTERMEDIATE DISTRICT IS NOT REQUIRED TO SUBMIT PERIODIC 22

FINANCIAL STATUS REPORTS UNDER THIS SECTION IF THE DISTRICT OR INTERMEDIATE DISTRICT IS 23

REQUIRED TO SUBMIT AN ENHANCED DEFICIT ELIMINATION PLAN UNDER SECTION 102 OR IF A 24

FINANCIAL EMERGENCY HAS BEEN DECLARED FOR THE DISTRICT OR INTERMEDIATE DISTRICT UNDER 25

THE LOCAL FINANCIAL STABILITY AND CHOICE ACT, 2012 PA 436, MCL 141.1541 TO 141.1575. 26

(7) A DISTRICT OR INTERMEDIATE DISTRICT IS NO LONGER REQUIRED TO SUBMIT PERIODIC 27

FINANCIAL STATUS REPORTS UNDER THIS SECTION IF THE PERIODIC FINANCIAL STATUS REPORTS 28

SUBMITTED BY A DISTRICT OR INTERMEDIATE DISTRICT INDICATE TO THE STATE TREASURER THAT 29

POTENTIAL FINANCIAL STRESS DOES NOT EXIST WITHIN THE DISTRICT OR INTERMEDIATE DISTRICT, 30

THAT AN OPERATING DEFICIT IS NOT PROJECTED TO ARISE WITHIN THE DISTRICT OR INTERMEDIATE 31

SCHOOL DISTRICT WITH THE CURRENT SCHOOL FISCAL YEAR OR THE FOLLOWING 2 SCHOOL FISCAL 32

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YEARS, AND THAT THE DISTRICT OR INTERMEDIATE SCHOOL DISTRICT WILL ABLE TO MEET ITS 1

FINANCIAL OBLIGATIONS WHILE ALSO SATISFYING THE SCHOOL DISTRICT'S OR THE INTERMEDIATE 2

DISTRICT'S OBLIGATIONS TO PROVIDE PUBLIC EDUCATIONAL SERVICES IN A MANNER THAT COMPLIES 3

WITH THIS ACT, THE REVISED SCHOOL CODE, AND APPLICABLE RULES PROMULGATED BY THE 4

DEPARTMENT. 5

(8) THE STATE TREASURER SHALL NOTIFY A DISTRICT OR INTERMEDIATE DISTRICT WHEN 6

SUBSECTION (7) APPLIES TO THE DISTRICT OR INTERMEDIATE DISTRICT. THE SUPERINTENDENT OF 7

PUBLIC INSTRUCTION MAY NOTIFY THE STATE TREASURER THAT THE SUPERINTENDENT OF PUBLIC 8

INSTRUCTION HAS DETERMINED THAT CONDITIONS UNDER SUBSECTION (7) APPLY TO THE DISTRICT OR 9


Sec. 104. (1) In order to receive state aid under this article, a district shall 11

comply with sections 1249, 1278a, 1278b, 1279, 1279g, and 1280b of the revised school code, 12

MCL 380.1249, 380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970 PA 38, MCL 13

388.1081 to 388.1086. Subject to subsection (2), from the state school aid fund money 14

appropriated in section 11, there is allocated for 2013-2014 2014-2015 an amount not to 15

exceed $26,694,400.00 $33,894,400.00 for payments on behalf of districts for costs associated 16

with complying with those provisions of law. In addition, from the federal funds appropriated 17

in section 11, there is allocated for 2013-2014 2014-2015 an amount estimated at 18

$8,250,000.00 $6,250,000.00, funded from DED-OESE, title VI, state assessment funds, and from 19

DED-OSERS, section 504 of part B of the individuals with disabilities education act, Public 20

Law 94-142, plus any carryover federal funds from previous year appropriations, for the 21

purposes of complying with the federal no child left behind act of 2001, Public Law 107-110. 22

(2) The results of each test administered as part of the Michigan educational 23

assessment program, including tests administered to high school students, shall include an 24

item analysis that lists all items that are counted for individual pupil scores and the 25

percentage of pupils choosing each possible response. 26

(3) All federal funds allocated under this section shall be distributed in accordance 27

with federal law and with flexibility provisions outlined in Public Law 107-116, and in the 28

education flexibility partnership act of 1999, Public Law 106-25. 29

(4) Notwithstanding section 17b, payments on behalf of districts, intermediate 30

districts, and other eligible entities under this section shall be paid on a schedule 31

determined by the department. 32

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(5) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED 1

$4,000,000.00 FOR THE MULTI-YEAR DEVELOPMENT OR SELECTION OF INTERIM ASSESSMENTS TO SUPPORT 2

LOCAL IMPLEMENTATION OF THE EDUCATOR AND ADMINISTRATOR EVALUATION SYSTEMS PURSUANT TO 3

SECTIONS 1249 AND 1249B OF THE REVISED SCHOOL CODE. THE MULTI-YEAR DEVELOPMENT PLAN TO HAVE 4

OPERATIONAL INTERIM ASSESSMENTS IN CORE CONTENT AREAS WILL BE AS FOLLOWS: 5

(A) ENGLISH LANGUAGE ARTS IN GRADES 3-8 AND 11 IN 2014-15. 6

(B) MATHEMATICS IN GRADES 3-8 AND 11 IN 2014-15. 7

(C) ENGLISH LANGUAGE ARTS IN GRADES KINDERGARTEN-2 IN 2015-16. 8

(D) MATHEMATICS IN GRADES KINDERGARTEN-2 IN 2015-16. 9

(E) REQUIRED MICHIGAN MERIT CURRICULUM SCIENCE CREDITS IN 2015-16. 10

(F) REQUIRED MICHIGAN MERIT CURRICULUM SOCIAL STUDIES CREDITS IN 2015-16. 11

(G) REQUIRED MICHIGAN MERIT CURRICULUM ENGLISH LANGUAGE ARTS CREDITS IN 2016-17. 12

(H) REQUIRED MICHIGAN MERIT CURRICULUM MATHEMATICS CREDITS IN 2016-17. 13

(I) SCIENCE IN GRADES 3-8 IN 2017-18. 14

(J) SOCIAL STUDIES IN GRADES 3-8 IN 2017-18. 15

(6) FROM THE ALLOCATION IN SUBSECTION (1), THERE IS ALLOCATED AN AMOUNT NOT TO EXCEED 16

$3,200,000.00 FOR THE DEVELOPMENT OR SELECTION OF AN ONLINE REPORTING TOOL TO PROVIDE 17

STUDENT-LEVEL ASSESSMENT DATA IN A SECURE ENVIRONMENT TO EDUCATORS, PARENTS AND PUPILS 18

IMMEDIATELY AFTER ASSESSMENTS ARE SCORED. 19




(c) "DED-OSERS" means the DED office of special education and rehabilitative services. 23

Sec. 104b. (1) In order to receive state aid under this act ARTICLE, a district shall 24

comply with this section and shall administer the Michigan merit examination to pupils in 25

grade 11, and to pupils in grade 12 who did not take the complete Michigan merit examination 26

in grade 11, as provided in this section. 27

(2) For the purposes of this section, the department of management and budget shall 28

contract with 1 or more providers to develop, supply, and score the Michigan merit 29

examination. The Michigan merit examination shall consist of all of the following: 30

(a) Assessment instruments that measure English language arts, mathematics, reading, 31

and science and are used by colleges and universities in this state for entrance or placement 32

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purposes. This shall include a writing component in which the pupil produces an extended 1

writing sample. The Michigan merit examination shall not require any other extended writing 2

sample. 3

(b) One or more tests from 1 or more test developers that assess a pupil's ability to 4

apply at least reading and mathematics skills in a manner that is intended to allow employers 5

to use the results in making employment decisions. The department of management and budget 6

and the superintendent shall ensure that any test or tests selected under this subdivision 7

have all the components necessary to allow a pupil to be eligible to receive the results of a 8

nationally recognized evaluation of workforce readiness if the pupil's test performance is 9

adequate. 10

(c) A social studies component. 11

(d) Any other component that is necessary to obtain the approval of the United States 12

department of education to use the Michigan merit examination for the purposes of the no 13

child left behind act of 2001, Public Law 107-110. 14

(3) In addition to all other requirements of this section, all of the following apply 15

to the Michigan merit examination: 16

(a) The department of management and budget and the superintendent shall ensure that 17

any contractor used for scoring the Michigan merit examination supplies an individual report 18

for each pupil that will identify for the pupil's parents and teachers whether the pupil met 19

expectations or failed to meet expectations for each standard, to allow the pupil's parents 20

and teachers to assess and remedy problems before the pupil moves to the next grade. 21

(b) The department of management and budget and the superintendent shall ensure that 22

any contractor used for scoring, developing, or processing the Michigan merit examination 23

meets quality management standards commonly used in the assessment industry, including at 24

least meeting level 2 of the capability maturity model developed by the software engineering 25

institute of Carnegie Mellon university for the first year the Michigan merit examination is 26

offered to all grade 11 pupils and at least meeting level 3 of the capability maturity model 27

for subsequent years. 28

(c) The department of management and budget and the superintendent shall ensure that 29

any contract for scoring, administering, or developing the Michigan merit examination 30

includes specific deadlines for all steps of the assessment process, including, but not 31

limited to, deadlines for the correct testing materials to be supplied to schools and for the 32

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correct results to be returned to schools, and includes penalties for noncompliance with 1

these deadlines. 2

(d) The superintendent shall ensure that the Michigan merit examination meets all of 3

the following: 4

(i) Is designed to test pupils on grade level content expectations or course content 5

expectations, as appropriate, in all subjects tested. 6

(ii) Complies with requirements of the no child left behind act of 2001, Public Law 7

107-110. 8

(iii) Is consistent with the code of fair testing practices in education prepared by 9

the joint committee on testing practices of the American psychological association. 10

(iv) Is factually accurate. If the superintendent determines that a question is not 11

factually accurate and should be excluded from scoring, the state board and the 12

superintendent shall ensure that the question is excluded from scoring. 13

(4) A district shall include on each pupil's high school transcript all of the 14

following: 15

(a) For each high school graduate who has completed the Michigan merit examination 16

under this section, the pupil's scaled score on each subject area component of the Michigan 17

merit examination. 18

(b) The number of school days the pupil was in attendance at school each school year 19

during high school and the total number of school days in session for each of those school 20

years. 21

(5) The superintendent shall work with the provider or providers of the Michigan merit 22

examination to produce Michigan merit examination subject area scores for each pupil 23

participating in the Michigan merit examination, including scaling and merging of test items 24

for the different subject area components. The superintendent shall design and distribute to 25

districts, intermediate districts, and nonpublic schools a simple and concise document that 26

describes the scoring for each subject area and indicates the scaled score ranges for each 27

subject area. 28

(6) The Michigan merit examination shall be administered each year after March 1 and 29

before June 1 to pupils in grade 11 DURING THE LAST 12 WEEKS OF EACH DISTRICT’S SCHOOL YEAR. 30

The superintendent shall ensure that the Michigan merit examination is scored and the scores 31

are returned to pupils, their parents or legal guardians, and districts not later than the 32

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beginning of the pupil's first semester of grade 12. The returned scores shall indicate at 1

least the pupil's scaled score for each subject area component and the range of scaled scores 2

for each subject area. In reporting the scores to pupils, parents, and schools, the 3

superintendent shall provide standards-specific, meaningful, and timely feedback on the 4

pupil's performance on the Michigan merit examination. 5

(7) A district shall administer the complete Michigan merit examination to a pupil 6

only once and shall not administer the complete Michigan merit examination to the same pupil 7

more than once. If a pupil does not take the complete Michigan merit examination in grade 11, 8

the district shall administer the complete Michigan merit examination to the pupil in grade 9

12. If a pupil chooses to retake the college entrance examination component of the Michigan 10

merit examination, as described in subsection (2)(a), the pupil may do so through the 11

provider of the college entrance examination component and the cost of the retake is the 12

responsibility of the pupil unless all of the following are met: 13

(a) The pupil has taken the complete Michigan merit examination. 14

(b) The pupil did not qualify for a Michigan promise grant under section 6 of the 15

Michigan promise grant act, 2006 PA 479, MCL 390.1626, based on the pupil's performance on 16

the complete Michigan merit examination. 17

(c) The pupil meets the income eligibility criteria for free breakfast, lunch, or 18

milk, as determined under the Richard B. Russell national school lunch act, 42 USC 1751 to 19

1769i. 20

(d) The pupil has applied to the provider of the college entrance examination 21

component for a scholarship or fee waiver to cover the cost of the retake and that 22

application has been denied. 23

(e) After taking the complete Michigan merit examination, the pupil has not already 24

received a free retake of the college entrance examination component paid for either by this 25

state or through a scholarship or fee waiver by the provider. 26

(8) The superintendent shall ensure that the length of the Michigan merit examination 27

and the combined total time necessary to administer all of the components of the Michigan 28

merit examination are the shortest possible that will still maintain the degree of 29

reliability and validity of the Michigan merit examination results determined necessary by 30

the superintendent. The superintendent shall ensure that the maximum total combined length of 31

time that schools are required to set aside for pupils to answer all test questions on the 32

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Michigan merit examination does not exceed 8 hours if the superintendent determines that 1

sufficient alignment to applicable Michigan merit curriculum content standards can be 2

achieved within that time limit. 3

(9) A district shall provide accommodations to a pupil with disabilities for the 4

Michigan merit examination, as provided under section 504 of title V of the rehabilitation 5

act of 1973, 29 USC 794; subtitle A of title II of the Americans with disabilities act of 6

1990, 42 USC 12131 to 12134; the individuals with disabilities education act amendments of 7

1997, Public Law 105-17; and the implementing regulations for those statutes. The provider or 8

providers of the Michigan merit examination and the superintendent shall mutually agree upon 9

the accommodations to be provided under this subsection. 10

(10) To the greatest extent possible, the Michigan merit examination shall be based on 11

grade level content expectations or course content expectations, as appropriate. Not later 12

than July 1, 2008, the department shall identify specific grade level content expectations to 13

be taught before and after the middle of grade 11, so that teachers will know what content 14

will be covered within the Michigan merit examination. 15

(11) A child who is a student in a nonpublic school or home school may take the 16

Michigan merit examination under this section. To take the Michigan merit examination, a 17

child who is a student in a home school shall contact the district in which the child 18

resides, and that district shall administer the Michigan merit examination, or the child may 19

take the Michigan merit examination at a nonpublic school if allowed by the nonpublic school. 20

Upon request from a nonpublic school, the superintendent shall direct the provider or 21

providers to supply the Michigan merit examination to the nonpublic school and the nonpublic 22

school may administer the Michigan merit examination. If a district administers the Michigan 23

merit examination under this subsection to a child who is not enrolled in the district, the 24

scores for that child are not considered for any purpose to be scores of a pupil of the 25

district. 26

(12) In contracting under subsection (2), the department of management and budget 27

shall consider a contractor that provides electronically-scored essays with the ability to 28

score constructed response feedback in multiple languages and provide ongoing instruction and 29

feedback. 30

(13) The purpose of the Michigan merit examination is to assess pupil performance in 31

mathematics, science, social studies, and English language arts for the purpose of improving 32

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academic achievement and establishing a statewide standard of competency. The assessment 1

under this section provides a common measure of data that will contribute to the improvement 2

of Michigan schools' curriculum and instruction by encouraging alignment with Michigan's 3

curriculum framework standards and promotes pupil participation in higher level mathematics, 4

science, social studies, and English language arts courses. These standards are based upon 5

the expectations of what pupils should learn through high school and are aligned with 6

national standards. 7

(14) For a pupil enrolled in a middle college program, other than a middle college 8

operated as a shared educational entity or a specialized shared educational entity, if the 9

pupil receives at least 50% of his or her instruction at the high school while in grade 11, 10

the Michigan merit examination shall be administered to the pupil at the high school at which 11

the pupil receives high school instruction, and the department shall include the pupil's 12

scores on the Michigan merit examination in the scores for that high school for all purposes 13

for which a school's or district's results are reported. The department shall allow the 14

middle college program to use a 5-year graduation rate for determining adequate yearly 15

progress. As used in this subsection, "middle college" means a program consisting of a series 16

of courses and other requirements and conditions, including an early college or other program 17

created under a memorandum of understanding, that allows a pupil to graduate from high school 18

with both a high school diploma and a certificate or degree from a community college or state 19

public university. 20


(a) "English language arts" means reading and writing. 22

(b) "Social studies" means United States history, world history, world geography, 23

economics, and American government. 24

Sec. 107. (1) From the appropriation in section 11, there is allocated an amount not 25

to exceed $22,000,000.00 for 2013-2014 2014-2015 for adult education programs authorized 26

under this section. Funds allocated under this section are restricted for adult education 27

programs as authorized under this section only. A recipient of funds under this section shall 28

not use those funds for any other purpose. 29

(2) To be eligible for funding under this section, a program shall employ certificated 30

teachers and qualified administrative staff and shall offer continuing education 31

opportunities for teachers to allow them to maintain certification. 32

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(3) To be eligible to be a participant funded under this section, a person shall be 1

enrolled in an adult basic education program, an adult English as a second language program, 2

a general educational development (G.E.D.) test preparation program, a job- or employment-3

related program, or a high school completion program, that meets the requirements of this 4

section, AND FOR WHICH INSTRUCTION IS PROVIDED, and shall meet either of the following, as 5

applicable: 6

(a) If the individual has obtained a high school diploma or a general educational 7

development (G.E.D.) certificate, the individual meets 1 of the following: 8

(i) Is less than 20 years of age on September 1 of the school year and is enrolled in 9

the Michigan career and technical institute. 10

(ii) Is less than 20 years of age on September 1 of the school year, is not attending 11

an institution of higher education, and is enrolled in a job- or employment-related program 12

through a referral by an employer OR BY A MICHIGAN WORKFORCE AGENCY. 13

(iii) Is enrolled in an English as a second language program. 14

(iv) Is enrolled in a high school completion program. 15

(b) If the individual has not obtained a high school diploma or G.E.D. certificate, 16

the individual meets 1 of the following: 17

(i) Is at least 20 years of age on September 1 of the school year. 18

(ii) Is at least 16 years of age on September 1 of the school year, has been 19

permanently expelled from school under section 1311(2) or 1311a of the revised school code, 20

MCL 380.1311 and 380.1311a, and has no appropriate alternative education program available 21

through his or her district of residence. 22

(4) Except as otherwise provided in subsection (5), the money allocated under this 23

section shall be distributed as follows: 24

(a) For districts and consortia that received payments for 2012-2013 under this 25

section, the amount allocated to each for 2013-2014 shall be based on the number of 26

participants served by the district or consortium for 2013-2014, using the amount allocated 27

per full-time equated participant under subsection (7), up to a maximum total allocation 28

under this subsection in an amount equal to the amount the district or consortium received 29

for 2012-2013 under this section before any reallocations made for 2012-2013 under subsection 30

(5). 31

(b) A district or consortium that received funding in 2012-2013 under this section may 32

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operate independently of a consortium or join or form a consortium for 2013-2014. The 1

allocation for 2013-2014 to the district or the newly formed consortium under this subsection 2

shall be determined by the department and shall be based on the proportion of the amounts 3

that are attributable to the district or consortium that received funding in 2012-2013. A 4

district or consortium described in this subdivision shall notify the department of its 5

intention with regard to 2013-2014 by October 1, 2013. 6

(5) A district that operated an adult education program in 2012-2013 and does not 7

intend to operate a program in 2013-2014 shall notify the department by October 1, 2013 of 8

its intention. The money intended to be allocated under this section to a district that does 9

not operate a program in 2013-2014 and the unspent money originally allocated under this 10

section to a district or consortium that subsequently operates a program at less than the 11

level of funding allocated under subsection (4) and any other unallocated money under this 12

section shall instead be proportionately reallocated to the other districts described in 13

subsection (4)(a) that are operating an adult education program in 2013-2014 under this 14

section. 15

(4) FROM THE FUNDS ALLOCATED UNDER SUBSECTION (1), AN AMOUNT SHALL BE ALLOCATED TO 16

EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT FOR ADULT EDUCATION PROGRAMS IN EACH OF 17

THE 10 PROSPERITY REGIONS IDENTIFIED BY THE DEPARTMENT. FOR 2014-2015, 67% OF THE ALLOCATION 18

PROVIDED TO EACH INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT SHALL BE BASED ON THE 19

PROPORTION OF TOTAL FUNDING FORMERLY RECEIVED BY THE ADULT EDUCATION PROVIDERS IN THAT 20

PROSPERITY REGION IN 2013-2014 AND 33% SHALL BE ALLOCATED BASED ON THE FACTORS IN 21

SUBDIVISIONS (A), (B) AND (C). FOR 2015-2016, 33% OF THE ALLOCATION PROVIDED TO EACH 22

INTERMEDIATE DISTRICT SERVING AS A FISCAL AGENT SHALL BE BASED UPON THE PROPORTION OF TOTAL 23

FUNDING FORMERLY RECEIVED BY THE ADULT EDUCATION PROVIDERS IN THAT PROSPERITY REGION IN 2013-24

2014 AND 67% OF THE ALLOCATION SHALL BE BASED UPON THE FACTORS IN SUBDIVISIONS (A), (B) AND 25

(C). FOR 2016-2017, 100% OF THE ALLOCATION PROVIDED TO EACH INTERMEDIATE DISTRICT SERVING AS 26

A FISCAL AGENT SHALL BE BASED ON THE FACTORS IN SUBDIVISIONS (A), (B), AND (C). NOT MORE THAN 27

5% OF AN ALLOCATION AWARDED TO AN INTERMEDIATE DISTRICT THAT IS A FISCAL AGENT SHALL BE USED 28

FOR ADMINISTRATION OF THE PROGRAMS AUTHORIZED UNDER THIS SECTION BY THE INTERMEDIATE DISTRICT 29

ACTING AS THE FISCAL AGENT AND THE PROGRAM PROVIDERS. 30

(A) SIXTY PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE STATE 31

POPULATION OF PERSONS BETWEEN THE AGES OF 18 AND 24 THAT ARE NOT HIGH SCHOOL GRADUATES 32

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CONTAINED IN EACH OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-YEAR ESTIMATES 1

FROM THE AMERICAN COMMUNITY SURVEY (ACS) FROM THE UNITED STATES CENSUS BUREAU. 2

(B) THIRTY-FIVE PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE STATE 3

POPULATION OF PERSONS AGED 25 OR OLDER THAT ARE NOT HIGH SCHOOL GRADUATES CONTAINED IN EACH 4

OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-YEAR ESTIMATES FROM THE AMERICAN 5

COMMUNITY SURVEY (ACS) FROM THE UNITED STATES CENSUS BUREAU. 6

(C) FIVE PERCENT SHALL BE DISTRIBUTED BASED UPON THE PROPORTION OF THE STATE 7

POPULATION OF PERSONS AGED 18 AND OLDER THAT LACK BASIC ENGLISH PROFICIENCY CONTAINED IN EACH 8

OF THE PROSPERITY REGIONS, AS REPORTED BY THE MOST RECENT 5-YEAR ESTIMATES FROM THE AMERICAN 9

COMMUNITY SURVEY (ACS) FROM THE UNITED STATES CENSUS BUREAU. 10

(5) TO BE AN ELIGIBLE FISCAL AGENT, AN INTERMEDIATE DISTRICT MUST AGREE TO DO THE 11

FOLLOWING IN A FORM AND MANNER DETERMINED BY THE DEPARTMENT: 12

(A) DISTRIBUTE FUNDS TO ADULT EDUCATION PROGRAMS IN A PROSPERITY REGION AS DESCRIBED 13

IN THIS SECTION. 14

(B) COLLABORATE WITH EDUCATION ADVISORY GROUPS OF THE WORKFORCE DEVELOPMENT BOARDS 15

LOCATED IN THE PROSPERITY REGION TO DEVELOP A REGIONAL STRATEGY THAT ALIGNS ADULT EDUCATION 16

PROGRAMS AND SERVICES INTO AN EFFICIENT AND EFFECTIVE DELIVERY SYSTEM FOR ADULT EDUCATION 17

LEARNERS. 18

(C) COLLABORATE WITH EDUCATION ADVISORY GROUPS OF THE WORKFORCE DEVELOPMENT BOARDS 19

LOCATED IN THE PROSPERITY REGION TO CREATE A LOCAL PROCESS AND CRITERIA THAT WILL IDENTIFY 20

ELIGIBLE ADULT EDUCATION PROVIDERS TO RECEIVE FUNDS ALLOCATED UNDER THIS SECTION BASED ON 21

LOCATION, DEMAND FOR SERVICES, AND COST TO PROVIDE INSTRUCTIONAL SERVICES. ALL LOCAL 22

PROCESSES, CRITERIA AND PROVIDER DETERMINATIONS MUST BE APPROVED BY THE DEPARTMENT BEFORE 23

FUNDS MAY BE DISTRIBUTED TO THE FISCAL AGENT. 24

(D) REPORT ADULT EDUCATION PROGRAM AND PARTICIPANT DATA AND INFORMATION AS PRESCRIBED 25

BY THE DEPARTMENT. 26

(6) The amount allocated under this section per full-time equated participant is SHALL 27

NOT EXCEED $2,850.00 for a 450-hour program. The amount shall be proportionately reduced for 28

a program offering less than 450 hours of instruction. 29

(7) An adult basic education program or an adult English as a second language program 30

operated on a year-round or school year basis may be funded under this section, subject to 31

all of the following: 32

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(a) The program enrolls adults who are determined by a department-approved assessment, 1

in a form and manner prescribed by the department, to be below ninth grade level in reading 2

or mathematics, or both, or to lack basic English proficiency. 3

(b) The program tests individuals for eligibility under subdivision (a) before 4

enrollment and upon completion of the program in compliance with the state-approved 5

assessment policy. 6

(c) A participant in an adult basic education program is eligible for reimbursement 7

until 1 of the following occurs: 8

(i) The participant's reading and mathematics proficiency are assessed at or above the 9

ninth grade level. 10

(ii) The participant fails to show progress on 2 successive assessments after having 11

completed at least 450 hours of instruction. 12

(d) A funding recipient enrolling a participant in an English as a second language 13

program is eligible for funding according to subsection (11) until the participant meets 1 of 14

the following: 15

(i) The participant is assessed as having attained basic English proficiency as 16

determined by a department-approved assessment. 17

(ii) The participant fails to show progress on 2 successive department-approved 18

assessments after having completed at least 450 hours of instruction. The department shall 19

provide information to a funding recipient regarding appropriate assessment instruments for 20

this program. 21

(8) A general educational development (G.E.D.) test preparation program operated on a 22

year-round or school year basis may be funded under this section, subject to all of the 23

following: 24

(a) The program enrolls adults who do not have a high school diploma. 25

(b) The program shall administer a G.E.D. pre-test approved by the department before 26

enrolling an individual to determine the individual's LITERACY LEVELS, ADMINISTER A G.E.D. 27

PRACTICE TEST TO DETERMINE THE INDIVIDUAL’S potential for success on the G.E.D. test, and 28

shall administer a post-test upon completion of the program in compliance with the state-29

approved assessment policy. 30

(c) A funding recipient shall receive funding according to subsection (11) for a 31

participant, and a participant may be enrolled in the program until 1 of the following 32

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occurs: 1

(i) The participant passes OBTAINS the G.E.D. test. 2

(ii) The participant fails to show progress on 2 successive department-approved 3

assessments used to determine readiness to take the G.E.D. test after having completed at 4

least 450 hours of instruction. 5

(9) A high school completion program operated on a year-round or school year basis may 6

be funded under this section, subject to all of the following: 7

(a) The program enrolls adults who do not have a high school diploma. 8

(b) The program tests participants described in subdivision (a) before enrollment and 9

upon completion of the program in compliance with the state-approved assessment policy. 10

(c) A funding recipient shall receive funding according to subsection (11) for a 11

participant in a course offered under this subsection until 1 of the following occurs: 12

(i) The participant passes the course and earns a high school diploma. 13

(ii) The participant fails to earn credit in 2 successive semesters or terms in which 14

the participant is enrolled after having completed at least 900 hours of instruction. 15

(10) A job- or employment-related adult education program operated on a year-round or 16

school year basis may be funded under this section, subject to all of the following: 17

(a) The program enrolls adults referred by their employer who are less than 20 years 18

of age, have a high school diploma, are determined to be in need of remedial mathematics or 19

communication arts skills and are not attending an institution of higher education. 20

(b) The program tests participants described in subdivision (a) before enrollment and 21

upon completion of the program in compliance with the department-approved assessment policy. 22

(c) An individual may be enrolled in this program and the grant recipient shall 23

receive funding according to subsection (11) until 1 of the following occurs: 24

(i) The individual achieves the requisite skills as determined by department-approved 25

assessment instruments. 26

(ii) The individual fails to show progress on 2 successive assessments after having 27

completed at least 450 hours of instruction. 28

(11) A funding recipient shall receive payments under this section in accordance with 29

the following: 30

(a) Ninety SEVENTY-FIVE percent for enrollment of eligible participants.31

(b) Ten TWENTY-FIVE percent for PARTICIPANT completion of the adult basic education 32

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objectives by achieving an increase of at least 1 grade level of proficiency in reading or 1

mathematics EDUCATIONAL GAIN AS DEFINED BY THE NATIONAL REPORTING SYSTEM LEVELS; for 2

achieving basic English proficiency, as defined by the department in the adult education 3

guidebook; for obtaining a G.E.D. or passage of 1 or more individual G.E.D. tests; for 4

attainment of a high school diploma or passage of a course required for a participant to 5

attain a high school diploma; or for completion of the course and demonstrated proficiency in 6

the academic skills to be learned in the course FOR ENROLLMENT IN A POSTSECONDARY 7

INSTITUTION; OR FOR ENTRY OR RETAINMENT OF EMPLOYMENT, as applicable. 8

(12) As used in this section, "participant" means the sum of the number of full-time 9

equated individuals enrolled in and attending a department-approved adult education program 10

under this section, using quarterly participant count days on the schedule described in 11

section 6(7)(b). 12

(12) (13) A person who is not eligible to be a participant funded under this section 13

may receive adult education services upon the payment of tuition. In addition, a person who 14

is not eligible to be served in a program under this section due to the program limitations 15

specified in subsection (7), (8), (9), or (10) may continue to receive adult education 16

services in that program upon the payment of tuition. The tuition level shall be determined 17

by the local or intermediate district conducting the program. 18

(13) (14) An individual who is an inmate in a state correctional facility shall not be 19

counted as a participant under this section. 20

(14) (15) A district FUNDING RECIPIENT shall not commingle money received under this 21

section or from another source for adult education purposes with any other funds of the 22

district. A district receiving adult education funds BUT shall establish a separate ledger 23

account for those funds RECEIVED UNDER THIS SECTION. This subsection does not prohibit a 24

district from using general funds of the district to support an adult education or community 25

education program. 26

(15) (16) A district or intermediate district FUNDING RECIPIENT receiving funds under 27

this section may establish a sliding scale of tuition rates based upon a participant's family 28

income. A district or intermediate district FUNDING RECIPIENT may charge a participant 29

tuition to receive adult education services under this section from that sliding scale of 30

tuition rates on a uniform basis. The amount of tuition charged per participant shall not 31

exceed the actual operating cost per participant minus any funds received under this section 32

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per participant. A district or intermediate district FUNDING RECIPIENT may not charge a 1

participant tuition under this section if the participant's income is at or below 200% of the 2

federal poverty guidelines published by the United States department of health and human 3

services. 4

(16) (17) In order to receive funds under this section, a district FUNDING RECIPIENT 5

shall furnish to the department, in a form and manner determined by the department, all 6

information needed to administer this program and meet federal reporting requirements; shall 7

allow the department or the department's designee to review all records related to the 8

program for which it receives funds; and shall reimburse the state for all disallowances 9

found in the review, as determined by the department. 10

(17) (18) All intermediate district participant audits of adult education programs 11

shall be performed pursuant to the adult education participant auditing and accounting 12

manuals published by the department. 13

(19) It is the intent of the legislature to study allocating funds under this section 14

on a competitive basis beginning for 2014-2015. 15

(18) (20) As used in this section, "department" means the Michigan strategic fund.: 16

(A) "DEPARTMENT" MEANS THE MICHIGAN STRATEGIC FUND. 17

(B) “ELIGIBLE ADULT EDUCATION PROVIDER” IS A DISTRICT, INTERMEDIATE DISTRICT, A 18

CONSORTIUM OF DISTRICTS, A CONSORTIUM OF INTERMEDIATE DISTRICTS, OR A CONSORTIUM OF DISTRICTS 19

AND INTERMEDIATE DISTRICTS THAT ARE IDENTIFIED AS PART OF THE LOCAL PROCESS DESCRIBED IN 20

SECTION (5)(A)(III)AND APPROVED BY THE DEPARTMENT. 21

(C) "PARTICIPANT" MEANS THE SUM OF THE NUMBER OF FULL-TIME EQUATED INDIVIDUALS 22

ENROLLED IN AND ATTENDING A DEPARTMENT-APPROVED ADULT EDUCATION PROGRAM UNDER THIS SECTION, 23

USING QUARTERLY PARTICIPANT COUNT DAYS ON THE SCHEDULE DESCRIBED IN SECTION 6(7)(B). 24

Sec. 147. (1) The allocation each fiscal year for 2013-2014 and for 2014-2015 for the 25

public school employees' retirement system pursuant to the public school employees retirement 26

act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, shall be made using the individual 27

projected benefit entry age normal cost method of valuation and risk assumptions adopted by 28

the public school employees retirement board and the department of technology, management, 29

and budget. 30

(2) The annual level percentage of payroll contribution rates for the 2013-2014 fiscal 31

year, as determined by the retirement system, are estimated as follows: 32

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(a) For public school employees who first worked for a public school reporting unit 1

before July 1, 2010 and who are enrolled in the health premium subsidy, the annual level 2

percentage of payroll contribution rate is estimated at 29.35%, with 24.79% paid directly by 3

the employer. 4

(b) For public school employees who first worked for a public school reporting unit on 5

or after July 1, 2010 and who are enrolled in the health premium subsidy, the annual level 6


the employer. 8

(c) For public school employees who first worked for a public school reporting unit on 9

or after July 1, 2010 and who participate in the pension plus plan and in the personal 10

healthcare fund, the annual level percentage of payroll contribution rate is estimated at 11

28.19%, with 23.63% paid directly by the employer. 12

(d) For public school employees who first worked for a public school reporting unit on 13

or after September 4, 2012, who elect defined contribution, and who participate in the 14

personal healthcare fund, the annual level percentage of payroll contribution rate is 15

estimated at 25.52%, with 20.96% paid directly by the employer. 16

(e) For public school employees who first worked for a public school reporting unit 17

before July 1, 2010, who elect defined contribution, and who are enrolled in the health 18

premium subsidy, the annual level percentage of payroll contribution rate is estimated at 19


(f) For public school employees who first worked for a public school reporting unit 21

before July 1, 2010, who elect defined contribution, and who participate in the personal 22



(g) For public school employees who first worked for a public school reporting unit 25

before July 1, 2010 and who participate in the personal healthcare fund, the annual level 26


the employer. 28

(2) (3) The annual level percentage of payroll contribution rates for the 2014-2015 29

fiscal year, as determined by the retirement system, are estimated as follows: 30

(a) For public school employees who first worked for a public school reporting unit 31

before July 1, 2010 and who are enrolled in the health premium subsidy, the annual level 32

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percentage of payroll contribution rate is estimated at 33.10% 33.99%, with 25.78% 24.58% 1

paid directly by the employer. 2

(b) For public school employees who first worked for a public school reporting unit on 3

or after July 1, 2010 and who are enrolled in the health premium subsidy, the annual level 4



(c) For public school employees who first worked for a public school reporting unit on 7

or after July 1, 2010 and who participate in the personal healthcare fund, the annual level 8



(d) For public school employees who first worked for a public school reporting unit on 11

or after September 4, 2012, who elect defined contribution, and who participate in the 12

personal healthcare fund, the annual level percentage of payroll contribution rate is 13

estimated at 28.28% 29.17%, with 20.96% 19.76% paid directly by the employer. 14

(e) For public school employees who first worked for a public school reporting unit 15

before July 1, 2010, who elect defined contribution, and who are enrolled in the health 16

premium subsidy, the annual level percentage of payroll contribution rate is estimated at 17

28.79% 29.68%, with 21.47% 20.27% paid directly by the employer. 18

(f) For public school employees who first worked for a public school reporting unit 19

before July 1, 2010, who elect defined contribution, and who participate in the personal 20


28.28% 29.17%, with 20.96% 19.76% paid directly by the employer. 22

(g) For public school employees who first worked for a public school reporting unit 23

before July 1, 2010 and who participate in the personal healthcare fund, the annual level 24



(4) In addition to the employer payments described in subsections (2) and (3), the 27

employer shall pay the applicable contributions to the Tier 2 plan, as determined by the 28

public school employees retirement act of 1979, 1980 PA 300 MCL 38.1301 to 38.1408. 29

(5) The contribution rates in subsection (2) reflect an amortization period of 25 24 30

years for 2013-2014 2014-2015. The public school employees' retirement system board shall 31

notify each district and intermediate district by February 28 of each fiscal year of the 32

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estimated contribution rate for the next fiscal year. 1

Sec. 147b. (1) The MPSERS retirement obligation reform reserve fund is created as a 2

separate account within the state school aid fund. 3

(2) The state treasurer may receive money or other assets from any source for deposit 4

into the MPSERS retirement obligation reform reserve fund. The state treasurer shall direct 5

the investment of the MPSERS retirement obligation reform reserve fund. The state treasurer 6

shall credit to the MPSERS retirement obligation reform reserve fund interest and earnings 7

from the MPSERS retirement obligation reform reserve fund. 8

(3) Money available in the MPSERS retirement obligation reform reserve fund shall not 9

be expended without a specific appropriation. 10

(4) Money in the MPSERS retirement obligation reform reserve fund at the close of the 11

fiscal year shall remain in the MPSERS retirement obligation reform reserve fund and shall 12

not lapse to the state school aid fund or to the general fund. The department of treasury 13

shall be the administrator of the MPSERS retirement obligation reform reserve fund for 14

auditing purposes. 15

(5) If the contributions described in section 43e of the public school employees 16

retirement act of 1979, 1980 PA 300, MCL 38.1343e, as that section was added by 2010 PA 75, 17

are determined by a final order of a court of competent jurisdiction for which all rights of 18

appeal have been exhausted to be constitutional and if the order for preliminary injunction 19

in case no. 10-45-MM issued on July 13, 2010 is lifted, the money placed in a separate 20

interest bearing account as a result of implementing the preliminary injunction shall be 21

deposited into the MPSERS retirement obligation reform reserve fund created in this section 22

to be used solely for health care unfunded accrued liabilities. 23

(6) IN ADDITION TO THE APPROPRIATION IN SECTION 11, THERE IS TRANSFERRED FROM THE 24

STATE SCHOOL AID FUND TO THE MPSERS RETIREMENT OBLIGATION REFORM RESERVE FUND AN AMOUNT EQUAL 25

TO $50,000,000.00. 26

Sec. 147c. (1) From the state school aid fund money appropriated in section 11, there 27

is allocated for 2012-2013 an amount not to exceed $160,000,000.00 for payments to districts 28

and intermediate districts that are participating entities of the retirement system. From the 29

appropriation in section 11, there is allocated for 2013-2014 2014-2015 an amount not to 30

exceed $247,300,000.00 $765,944,000.00 from the state school aid fund, and there is 31

appropriated for 2013-2014 2014-2015 an amount not to exceed $156,000,000.00 $18,000,000.00 32

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from the MPSERS retirement obligation reform reserve fund, for payments to districts and 1

intermediate districts that are participating entities of the Michigan public school 2

employees' retirement system. 3


appropriated under section 11, there is allocated for payments to district libraries that are 5

participating entities of the retirement system an amount not to exceed $500,000.00 for 2012-6

2013 and an amount not to exceed $1,300,000.00 for 2013-2014. 7

(2) (3) Payments made under this section for 2012-2013 shall be equal to the 8

difference between the unfunded actuarial accrued liability contribution rate as calculated 9

pursuant to section 41 of the public school employees retirement act of 1979, 1980 PA 300, 10

MCL 38.1341, and the maximum employer rate of 20.96% included in section 41 of the public 11

school employees retirement act of 1979, 1980 PA 300, MCL 38.1341. Payments made under this 12

section for 2013-2014 2014-2015 shall be equal to the difference between the unfunded 13

actuarial accrued liability contribution rate as calculated pursuant to section 41 of the 14

public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, as calculated 15

without taking into account the maximum employer rate of 20.96% 19.76% included in section 41 16

of the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the 17

maximum employer rate of 20.96% 19.76% included in section 41 of the public school employees 18

retirement act of 1979, 1980 PA 300, MCL 38.1341. 19

(3) (4) The amount allocated to each participating entity under this section shall be 20

based on each participating entity's proportion of the total covered payroll for the 21

immediately preceding fiscal year for the same type of participating entities. A 22

participating entity that receives funds under this section shall use the funds solely for 23

the purpose of retirement contributions as specified in subsection (5) (4). 24

(4) (5) Each participating entity receiving funds under this section shall forward an 25

amount equal to the amount allocated under subsection (4) (3) to the retirement system in a 26

form, manner, and time frame determined by the retirement system. 27

(5) (6) Funds allocated under this section should be considered when comparing a 28

district's growth in total state aid funding from 1 fiscal year to the next. 29


(a) "Participating entity" means a district, intermediate district, or district 31

library that is a reporting unit of the Michigan public school employees' retirement system 32

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under the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 1

38.1437, and that reports employees to the Michigan public school employees' retirement 2

system for the applicable fiscal year. 3

(b) "Retirement board" means the board that administers the retirement system under 4

the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437. 5

(c) "Retirement system" means the Michigan public school employees' retirement system 6


38.1437. 8

Sec. 152a. (1) As required by the court in the consolidated cases known as Adair v 9

State of Michigan, Michigan supreme court docket nos. 137424 and 137453, from the state 10

school aid fund money appropriated in section 11 there is allocated for 2013-2014 2014-2015 11

an amount not to exceed $38,000,500.00 to be used solely for the purpose of paying necessary 12

costs related to the state-mandated collection, maintenance, and reporting of data to this 13

state. 14

(2) From the allocation in subsection (1), the department shall make payments to 15

districts and intermediate districts in an equal amount per pupil based on the total number 16

of pupils in membership in each district and intermediate district. The department shall not 17

make any adjustment to these payments after the final installment payment under section 17b 18

is made. 19

Sec. 161. A school official or member of a board or other person who neglects or 20

refuses to do or perform an act required by this act or who violates or knowingly permits or 21

consents to the violation of this act is guilty of a misdemeanor, punishable by imprisonment 22

for not more than 90 days, or a fine of not more than $1,500.00, or both. THIS PENALTY IS IN 23

ADDITION TO ALL OTHER FINANCIAL PENALTIES OTHERWISE SPECIFIED IN THIS ARTICLE. 24

Sec. 163. (1) Except as provided in the revised school code, the board of a district 25

or intermediate district shall not permit any of the following: 26

(a) A noncertificated teacher to teach in an elementary or secondary school or in an 27

adult basic education or high school completion program. 28

(b) A noncertificated counselor to provide counseling services to pupils in an 29

elementary or secondary school or in an adult basic education or high school completion 30

program. 31

(2) Except as provided in the revised school code, a district or intermediate district 32

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employing teachers or counselors not legally certificated shall have deducted the sum equal 1

to the amount paid the teachers or counselors for the period of noncertificated or illegal 2

employment. Each intermediate superintendent shall notify the department of the name of the 3

noncertificated teacher or counselor, and the district employing that individual and the 4

amount of salary the noncertificated teacher or counselor was paid within a constituent 5

district. 6

(3) If a school official is notified by the department that he or she is employing a 7

nonapproved noncertificated teacher or counselor in violation of this section and knowingly 8

continues to employ that teacher or counselor, the school official is guilty of a 9

misdemeanor, punishable by a fine of $1,500.00 for each incidence. THIS PENALTY IS IN 10

ADDITION TO ALL OTHER FINANCIAL PENALTIES OTHERWISE SPECIFIED IN THIS ARTICLE. 11

Sec. 168. In order to receive funds under this act, a district, intermediate district, grant 12

recipient, contractor, or other entity that directly or indirectly receives funds under this 13

act shall allow access for the department or the department's designee to audit all records 14

related to a program for which it receives, OR HAS RECEIVED DURING THE PREVIOUS THREE FISCAL 15

YEARS, such funds. The district, intermediate district, grant recipient, contractor, or 16

otherentity shall reimburse the state for all disallowances found in the ANY audit CONDUCTED 17

PURSUANT TO THIS ACT.18

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1

2

3

4

5

6

7

8

9

10

11

12

13

ARTICLE II 14

15

STATE AID TO COMMUNITY COLLEGES 16

17

18

19

20

21

22

23

24

25

Sec. 201. (1) Subject to the conditions set forth in this article, the amounts listed 26

in subsections (2), (4), AND (5), (6), and (7) are appropriated for community colleges for 27

the fiscal year ending September 30, 2014, 2015 from the funds indicated in this section. The 28

following is a summary of the appropriations in subsections (2), (4), AND (5), (6), and (7): 29

(a) The gross appropriation is $335,977,600.00. $371,524,900.00. After deducting total 30

interdepartmental grants and intradepartmental transfers in the amount of $0.00, the adjusted 31

gross appropriation is $335,977,600.00. $371,524,900.00. 32

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(b) The sources of the adjusted gross appropriation described in subdivision (a) are 1

as follows: 2

(i) Total federal revenues, $0.00. 3

(ii) Total local revenues, $0.00. 4

(iii) Total private revenues, $0.00. 5

(iv) Total other state restricted revenues, $197,614,100.00. 6

(v) State general fund/general purpose money, $138,363,500.00. $173,910,800.00. 7

(2) Subject to subsection (3), the amount appropriated for community college 8

operations is $298,244,000.00, $307,191,300.00, allocated as follows: 9

(a) THE APPROPRIATION FOR Alpena Community College, $5,221,100.00. IS $5,367,100.00, 10

$5,236,500.00 FOR OPERATIONS AND $130,600.00 FOR PERFORMANCE FUNDING. 11

(b) THE APPROPRIATION FOR Bay de Noc Community College, $5,263,800.00. IS 12

$5,395,700.00, $5,279,300.00 FOR OPERATIONS AND $116,400.00 FOR PERFORMANCE FUNDING. 13

(c) THE APPROPRIATION FOR Delta College, $14,022,200.00. IS $14,435,600.00, 14


(d) THE APPROPRIATION FOR Glen Oaks Community College, $2,434,300.00. IS 16


(e) THE APPROPRIATION FOR Gogebic Community College, $4,317,500.00. IS $4,431,900.00, 18


(f) THE APPROPRIATION FOR Grand Rapids Community College, $17,403,500.00. IS 20


(g) THE APPROPRIATION FOR Henry Ford Community College, $20,997,900.00. IS 22


(h) THE APPROPRIATION FOR Jackson Community College, $11,723,600.00. IS 24


(i) THE APPROPRIATION FOR Kalamazoo Valley Community College, $12,086,900.00 IS 26


(j) THE APPROPRIATION FOR Kellogg Community College, $9,494,000.00. IS $9,770,700.00, 28


(k) THE APPROPRIATION FOR Kirtland Community College, $3,046,800.00. IS $3,153,900.00, 30


(l) THE APPROPRIATION FOR Lake Michigan College, $5,162,900.00. IS $5,319,600.00, 32

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(m) THE APPROPRIATION FOR Lansing Community College, $29,935,300.00. IS 2


(n) THE APPROPRIATION FOR Macomb Community College, $31,837,200.00. IS $32,672,900.00, 4


(o) THE APPROPRIATION FOR Mid Michigan Community College, $4,504,700.00. IS 6


(p) THE APPROPRIATION FOR Monroe County Community College, $4,329,900.00. IS 8


(q) THE APPROPRIATION FOR Montcalm Community College, $3,112,000.00. IS $3,212,700.00, 10


(r) THE APPROPRIATION FOR C.S. Mott Community College, $15,202,200.00. IS 12


(s) THE APPROPRIATION FOR Muskegon Community College, $8,628,000.00. IS $8,862,100.00, 14


(t) THE APPROPRIATION FOR North Central Michigan College, $3,055,400.00. IS 16


(u) THE APPROPRIATION FOR Northwestern Michigan College, $8,799,300.00. IS 18


(v) THE APPROPRIATION FOR Oakland Community College, $20,422,900.00. IS 20


(w) THE APPROPRIATION FOR St. Clair County Community College, $6,839,900.00. IS 22


(x) THE APPROPRIATION FOR Schoolcraft College, $12,076,700.00. IS $12,459,200.00, 24


(y) THE APPROPRIATION FOR Southwestern Michigan College, $6,385,400.00. IS 26


(z) THE APPROPRIATION FOR Washtenaw Community College, $12,573,900.00. IS 28


(aa) THE APPROPRIATION FOR Wayne County Community College, $16,146,700.00. IS 30


(bb) THE APPROPRIATION FOR West Shore Community College, $2,342,900.00. IS 32

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(cc) Local strategic value, $877,100.00. $1,342,100.00. 2

(3) The amount appropriated in subsection (2) for community college operations is 3

appropriated from the following: 4

(a) State school aid fund, $195,880,500.00. 5

(b) State general fund/general purpose money, $102,363,500.00. $111,310,800.00. 6

(4) From the appropriations described in subsection (1), there is appropriated for 7

fiscal year 2013-2014 an amount not to exceed $1,733,600.00 for payments to community 8

colleges from the state school aid fund. A community college that receives money under this 9

subsection shall use that money solely for the purpose of offsetting a portion of the 10

retirement contributions owed by the college for the fiscal year ending September 30, 2014. 11

The amount allocated to each participating community college under this section shall be 12

based on each participating college's total payroll covered by the retirement system-covered 13

payroll for all participating colleges for the immediately preceding state fiscal year. 14

(4) (5) From the appropriations described in subsection (1), there is appropriated an 15

amount not to exceed $31,400,000.00 from the state general fund THE AMOUNT APPROPRIATED for 16

payments to community colleges that are participating entities of the retirement system IS 17

$60,833,600.00, $1,733,600.00 APPROPRIATED FROM THE STATE SCHOOL AID FUND AND $59,100,000.00 18

APPROPRIATED FROM GENERAL FUND/GENERAL PURPOSE MONEY. All of the following apply to the 19

appropriations described in this subsection: 20

(a) The amount of a payment under this subsection shall be the difference between the 21

unfunded actuarial accrued liability contribution rate as calculated under section 41 of the 22

public school employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the maximum 23

employer rate of 20.96% under section 41 of the public school employees retirement act of 24

1979, 1980 PA 300, MCL 38.1341. 25

(b) The amount allocated to each community college under this subsection shall be 26

based on each community college's percentage of the total covered payroll for all community 27

colleges that are participating colleges in the immediately preceding fiscal year. A 28

community college that receives funds under this subsection shall use the funds solely for 29

the purpose of retirement contributions under subdivision (c). 30

(c) Each participating college receiving funds under this subsection shall forward an 31

amount equal to the amount allocated under subdivision (b) to the retirement system in a form 32

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and manner determined by the retirement system. 1

(5) (6) All of the following apply to community colleges described in section 12(3) of 2

the Michigan renaissance zone act, MCL 125.2692: THE AMOUNT APPROPRIATED FOR RENAISSANCE ZONE 3

TAX REIMBURSEMENTS IS $3,500,000.00, APPROPRIATED FROM GENERAL FUND/GENERAL PURPOSE MONEY. 4

(a) From the appropriations described in subsection (1), the following amount is 5

appropriated for reimbursement to community colleges under section 12(3) of the Michigan 6

renaissance zone act, MCL 125.2692: 7

(i) If the amount of tax revenue lost by community colleges as a result of the 8

exemption of property under the Michigan renaissance zone act in fiscal year 2012-2013 is 9

$3,500,000.00 or more, $3,500,000.00 from the state general fund. 10

(ii) If the amount of tax revenue lost by community colleges as a result of the 11

exemption of property under the Michigan renaissance zone act in fiscal year 2012-2013 is 12

less than $3,500,000.00, the actual amount of tax revenue lost by the community colleges. 13

(b) The amount allocated to each community college under this subsection shall be 14

based on that community college's proportion of total revenue lost by community colleges in 15

fiscal year 2012-2013 as a result of the exemption of property under the Michigan renaissance 16

zone act. 17

(c) The appropriations described in this subsection shall be made to each eligible 18

community college within 60 days after the department of treasury certifies to the state 19

budget director that it has received all necessary information to properly determine the 20

amounts of tax revenue lost by each eligible community college in fiscal year 2012-2013 under 21

section 12 of the Michigan renaissance zone act, MCL 125.2692. 22

(7) From the appropriations described in subsection (1), there is appropriated 23

$1,100,000.00 from the state general fund, for fiscal year 2013-2014 only, to the Michigan 24

community college association, for the purpose of expanding the Michigan community college 25

virtual learning collaborative. The Michigan community college association shall provide 26

information on request to the house and senate subcommittees on community colleges, the house 27

and senate fiscal agencies, and the state budget director on the use of these funds until the 28

project is completed. 29


(a) "Michigan renaissance zone act" means the Michigan renaissance zone act, 1996 PA 31

376, MCL 125.2681 to 125.2696. 32

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(b) "Participating college" means a community college that is a reporting unit of the 1

retirement system and that reports employees to the retirement system for the state fiscal 2

year. 3

(c) "Retirement board" means the board that administers the retirement system under 4

the public school employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437. 5

(d) "Retirement system" means the Michigan public school employees' retirement system 6


38.1437. 8

Sec. 201a. It is the intent of the legislature to provide appropriations 9

APPROPRIATIONS SHALL BE MADE for the fiscal year ending on September 30, 2015 2016 for the 10

items listed in section 201. The fiscal year 2014-2015 2015-2016 appropriations are 11

anticipated to be the same as those for fiscal year 2013-2014, 2014-2015, except that the 12

amounts will be adjusted for changes in RETIREMENT COSTS, caseload and related costs, federal 13

fund match rates, economic factors, and available revenue. These adjustments will be 14

determined after the January 2014 2015 consensus revenue estimating conference. 15

Sec. 202a. As used in this article,: 16

(1) "MICHIGAN RENAISSANCE ZONE ACT" MEANS THE MICHIGAN RENAISSANCE ZONE ACT, 1996 PA 17

376, MCL 125.2681 TO 125.2696. 18

(2) "PARTICIPATING COLLEGE" MEANS A COMMUNITY COLLEGE THAT IS A REPORTING UNIT OF THE 19

RETIREMENT SYSTEM AND THAT REPORTS EMPLOYEES TO THE RETIREMENT SYSTEM FOR THE STATE FISCAL 20

YEAR. 21

(3) "RETIREMENT BOARD" MEANS THE BOARD THAT ADMINISTERS THE RETIREMENT SYSTEM UNDER 22

THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1301 TO 38.1437. 23

(4) "RETIREMENT SYSTEM" MEANS THE MICHIGAN PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM 24

UNDER THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1301 TO 25

38.1437. 26

(5) "workforce WORKFORCE development agency" means the workforce development agency of 27

the Michigan strategic fund. 28

Sec. 206. The funds appropriated in section 201 are appropriated for community 29

colleges with fiscal years ending June 30, 2014 2015 and shall be paid out of the state 30

treasury and distributed by the state treasurer to the respective community colleges in 11 31

monthly installments on the sixteenth of each month, or the next succeeding business day, 32

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beginning with October 16, 2013 2014. Each community college shall accrue its July and August 1

2014 2015 payments to its institutional fiscal year ending June 30, 2014 2015. However, if 2

the state budget director determines that a community college failed to submit all verified 3

Michigan community colleges activities classification structure data for school year 2012-4

2013 2013-2014 to the workforce development agency by November 1, 2013 2014, or failed to 5

submit its longitudinal data system data set for school year 2012-2013 2013-2014 to the 6

center for educational performance and information under section 219, the state treasurer 7

shall withhold the monthly installments from that community college until those data are 8

submitted. The state budget director shall notify the chairs of the house and senate 9

appropriations subcommittees on community colleges at least 10 days before withholding funds 10

from any community college. 11

SEC. 207A. (1) APPROPRIATIONS IN SECTION 201(4) FOR PAYMENTS TO COMMUNITY COLLEGES 12

THAT ARE PARTICIPATING ENTITIES OF THE RETIREMENT SYSTEM SHALL BE ALLOCATED IN ACCORDANCE 13

WITH THIS SECTION. 14

(2) THE AMOUNT OF A PAYMENT UNDER SECTION 201(4) SHALL BE THE DIFFERENCE BETWEEN THE 15

UNFUNDED ACTUARIAL ACCRUED LIABILITY CONTRIBUTION RATE AS CALCULATED UNDER SECTION 41 OF THE 16

PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 1979, 1980 PA 300, MCL 38.1341, AND THE MAXIMUM 17

EMPLOYER RATE OF 19.76% UNDER SECTION 41 OF THE PUBLIC SCHOOL EMPLOYEES RETIREMENT ACT OF 18

1979, 1980 PA 300, MCL 38.1341. 19

(3) THE AMOUNT ALLOCATED TO EACH COMMUNITY COLLEGE UNDER SECTION 201(4) SHALL BE BASED 20

ON EACH COMMUNITY COLLEGE'S PERCENTAGE OF THE TOTAL COVERED PAYROLL FOR ALL COMMUNITY 21

COLLEGES THAT ARE PARTICIPATING COLLEGES IN THE IMMEDIATELY PRECEDING FISCAL YEAR. A 22

COMMUNITY COLLEGE THAT RECEIVES FUNDS UNDER THIS SUBSECTION SHALL USE THE FUNDS SOLELY FOR 23

THE PURPOSE OF RETIREMENT CONTRIBUTIONS UNDER SUBSECTION (4). 24

(4) EACH PARTICIPATING COLLEGE RECEIVING FUNDS UNDER SECTION 201(4) FOR PURPOSES 25

DESCRIBED IN THIS SECTION SHALL FORWARD AN AMOUNT EQUAL TO THE AMOUNT ALLOCATED UNDER 26

SUBSECTION (3) TO THE RETIREMENT SYSTEM IN A FORM AND MANNER DETERMINED BY THE RETIREMENT 27

SYSTEM. 28

SEC. 207B. (1) THIS SECTION SHALL APPLY TO COMMUNITY COLLEGES DESCRIBED IN SECTION 29

12(3) OF THE MICHIGAN RENAISSANCE ZONE ACT, MCL 125.2692. 30

(2) THE AMOUNT ALLOCATED TO EACH COMMUNITY COLLEGE UNDER SECTION 201(5) SHALL BE BASED 31

ON THAT COMMUNITY COLLEGE'S PROPORTION OF TOTAL REVENUE LOST BY COMMUNITY COLLEGES IN FISCAL 32

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YEAR 2013-2014 AS A RESULT OF THE EXEMPTION OF PROPERTY UNDER THE MICHIGAN RENAISSANCE ZONE 1

ACT. 2

(3) THE APPROPRIATIONS DESCRIBED IN SECTION 201(5) AND MADE IN ACCORDANCE WITH THIS 3

SECTION SHALL BE MADE TO EACH ELIGIBLE COMMUNITY COLLEGE WITHIN 60 DAYS AFTER THE DEPARTMENT 4

OF TREASURY CERTIFIES TO THE STATE BUDGET DIRECTOR THAT IT HAS RECEIVED ALL NECESSARY 5

INFORMATION TO PROPERLY DETERMINE THE AMOUNTS OF TAX REVENUE LOST BY EACH ELIGIBLE COMMUNITY 6

COLLEGE IN FISCAL YEAR 2013-2014 UNDER SECTION 12 OF THE MICHIGAN RENAISSANCE ZONE ACT, MCL 7

125.2692. 8

Sec. 209. (1) Within 30 days after the board of a community college adopts its annual 9

operating budget for the following school fiscal year, or after the board adopts a subsequent 10

revision to that budget, the community college shall make all of the following available 11

through a link on its website homepage: 12


(b) A link to the most recent "Activities Classification Structure Manual for Michigan 14

Community Colleges DATA BOOK AND COMPANION". 15

(c) General fund revenue and expenditure projections for fiscal year 2013-2014 and 16

fiscal year 2014-2015 THE CURRENT FISCAL YEAR AND NEXT FISCAL YEAR. 17

(d) A listing of all debt service obligations, detailed by project, anticipated fiscal 18

year 2013-2014 payment of each project, and total outstanding debt FOR THE CURRENT FISCAL 19

YEAR. 20

(e) The estimated cost to the community college resulting from the patient protection 21

and affordable care act, Public Law 111-148, as amended by the health care and education 22

reconciliation act of 2010, Public Law 111-152. 23

(E) (f) Links to all of the following for the community college: 24




health care services, offered to any bargaining unit or employee of the community college. 28

(iii) Audits and financial reports for the most recent fiscal year for which they are 29

available. 30

(iv) A copy of the board of trustees resolution regarding compliance with best 31

practices for the local strategic value component described in section 230(3). 32

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(2) For statewide consistency and public visibility, community colleges must use the 1

icon badge provided by the department of technology, management, and budget consistent with 2

the icon badge developed by the department of education for K-12 school districts. It must 3

appear on the front of each community college's homepage. The size of the icon may be reduced 4

to 150 x 150 pixels. 5

(3) The state budget director shall determine whether a community college has complied 6

with this section. The state budget director may withhold a community college's monthly 7

installments described in section 206 until the community college complies with this section. 8

The state budget director shall notify the chairs of the house and senate appropriations 9

subcommittee on community colleges at least 10 days before withholding funds from any 10

community college. 11

(3) (4) Each community college shall report the following information to the senate 12

and house appropriations subcommittees on community colleges, the senate and house fiscal 13

agencies, and the state budget office by November 15, 2013, OF EACH FISCAL YEAR and post that 14

information on the internet website required under subsection (1): 15

(a) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from tuition and fees. 16

(b) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from state 17

appropriations. 18

(c) Budgeted CURRENT fiscal year 2013-2014 general fund revenue from property taxes. 19

(d) Budgeted CURRENT fiscal year 2013-2014 total general fund revenue. 20

(e) Budgeted CURRENT fiscal year 2013-2014 total general fund expenditures. 21

Sec. 210. (1) Recognizing the critical importance of education in strengthening 22

Michigan's workforce, the legislature encourages each community college IS ENCOURAGED to 23

explore ways of increasing collaboration and cooperation with 4-year universities, 24

particularly in the areas related to training, instruction, and program articulation. 25

(2) Recognizing the central role of community colleges in responding to local 26

employment needs and challenges, community colleges shall develop and continue efforts to 27

collaborate with local employers and students to identify local employment needs and 28

strategies to meet them. 29

(3) Community colleges are encouraged to collaborate with each other on innovations to 30

identify and meet local employment needs. 31

(4) Community colleges are encouraged to work with universities to develop equivalency 32

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standards of core college courses and identify equivalent courses offered by postsecondary 1

institutions. 2

Sec. 213. It is the intent of the legislature that community (1) COMMUNITY colleges 3

ARE ENCOURAGED TO work with public universities in the state to implement statewide reverse 4

transfer agreements to increase the number of students that are awarded credentials of value 5

upon completion of the necessary credits. These statewide agreements shall enable students 6

who have earned a significant number of credits at a community college and transferred to a 7

baccalaureate-granting institution before completing a degree to transfer the credits earned 8

at the baccalaureate institution back to the community college in order to be awarded a 9

credential of value. 10

(2) IT IS EXPECTED THAT THE MICHIGAN ASSOCIATION OF COLLEGIATE REGISTRARS AND 11

ADMISSIONS OFFICERS SHALL IMPLEMENT ANY AGREEMENT OR AGREEMENTS AMONG THE COMMUNITY COLLEGES 12

AND UNIVERSITIES CONCERNING THE TRANSFERABILITY OF COLLEGE COURSES RESULTING FROM THE 13

RECOMMENDATIONS OF THE COMMITTEE CREATED UNDER FORMER SECTION 210A. 14

Sec. 222. Each community college shall have an annual audit of all income and 15

expenditures performed by an independent auditor and shall furnish the independent auditor's 16

management letter and an annual audited accounting of all general and current funds income 17

and expenditures including audits of college foundations to the members of the senate and 18

house appropriations subcommittees on community colleges, the senate and house fiscal 19

agencies, the auditor general, the workforce development agency, and the state budget 20

director before November 15 of each year. If a community college fails to furnish the audit 21

materials, the monthly state aid installments shall be withheld from that college until the 22

information is submitted. All reporting shall conform to the requirements set forth in the 23

"2001 Manual for Uniform Financial Reporting, Michigan Public Community Colleges". It is the 24

intent of the legislature that a A community college shall make the information the community 25

college is required to provide under this section available to the public on its internet 26

website. 27

Sec. 224. A community college shall use the P-20 longitudinal data system to inform 28

interested Michigan high schools AND THE PUBLIC of the aggregate academic status of its 29

students for the previous academic year, in a manner prescribed by the Michigan community 30

college association and in cooperation with the Michigan association of secondary school 31

principals. Community colleges shall cooperate with the center for educational performance 32

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and information to design and implement MAINTAIN a systematic approach for accomplishing this 1

work. 2

Sec. 225. Each community college shall report to the house and senate fiscal agencies, 3

the state budget director, and the workforce development agency by August 31, 2013 2014, the 4

tuition and mandatory fees paid by a full-time in-district student and a full-time out-of-5

district student as established by the college governing board for the 2013-2014 2014-2015 6

academic year. This report should also include the annual cost of attendance based on a full-7

time course load of 30 credits. Each community college shall also report any revisions to the 8

reported 2012-2013 or 2013-2014 2014-2015 academic year tuition and mandatory fees adopted by 9

the college governing board to the house and senate fiscal agencies, the state budget 10

director, and the workforce development agency within 15 days of being adopted. 11

Sec. 229. (1) It is the intent of the legislature EXPECTED that each community college 12

that receives an appropriation in section 201 include in its admission application process a 13

specific question as to whether an applicant for admission is a veteran, an active member of 14

the military, a member of the national guard or military reserves, or the spouse or dependent 15

of a veteran, active member of the military, or member of the national guard or military 16

reserves, in order to more quickly identify potential educational assistance available to 17

that applicant. 18

(2) It is the intent of the legislature EXPECTED that each public community college 19

that receives an appropriation in section 201 shall work with the house and senate community 20

college subcommittees, the Michigan community college association, and veterans groups to 21

review the issue of in-district tuition for veterans of this state when determining tuition 22

rates and fees. 23

(3) As used in this section, "veteran" means an honorably discharged veteran entitled 24

to educational assistance under the provisions of section 5003 of the post-911 veterans 25

educational assistance act of 2008, 38 USC 3301 to 3324. 26

Sec. 229a. Included in the fiscal year 2013-2014 2014-2015 appropriations for the 27

department of technology, management, and budget are appropriations to provide funding for 28

the state share of costs for previously constructed capital projects for community colleges. 29

Those appropriations for state building authority rent represent additional state general 30

fund support for community colleges, and the following is an estimate of the amount of that 31

support to each community college: 32

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(a) Alpena Community College, $434,500.00. $485,400.00. 1

(b) Bay de Noc Community College, $644,500.00. $636,600.00. 2

(c) Delta College, $2,877,700.00. $2,842,800.00. 3

(d) Glen Oaks Community College, $124,900.00. $123,300.00. 4

(e) Gogebic Community College, $78,100.00. $16,900.00. 5

(f) Grand Rapids Community College, $1,700,400.00. $1,792,400.00. 6

(g) Henry Ford Community College, $1,126,800.00. $1,030,800.00. 7

(h) Jackson Community College, $1,809,500.00. $1,787,300.00. 8

(i) Kalamazoo Valley Community College, $1,489,300.00. $1,471,000.00. 9

(j) Kellogg Community College, $527,900.00. $521,400.00. 10

(k) Kirtland Community College, $368,800.00. $364,000.00. 11

(l) Lake Michigan College, $345,200.00. $340,900.00. 12

(m) Lansing Community College, $617,600.00. $610,100.00. 13

(n) Macomb Community College, $1,332,900.00. $1,316,600.00. 14

(o) Mid Michigan Community College, $928,900.00. $1,117,300.00. 15

(p) Monroe County Community College, $1,375,600.00. $1,266,500.00. 16

(q) Montcalm Community College, $1,015,700.00. $973,700.00. 17

(r) C.S. Mott Community College, $1,830,400.00. $1,808,000.00. 18

(s) Muskegon Community College, $201,000.00. $198,500.00. 19

(t) North Central Michigan College, $476,300.00. $117,600.00. 20

(u) Northwestern Michigan College, $1,324,800.00. $1,308,600.00. 21

(v) Oakland Community College, $472,100.00. $466,300.00. 22

(w) St. Clair County Community College, $361,400.00. $357,000.00. 23

(x) Schoolcraft College, $1,569,500.00. $1,550,300.00. 24

(y) Southwestern Michigan College, $538,600.00. $231,100.00. 25

(z) Washtenaw Community College, $2,023,100.00. $1,680,600.00. 26

(aa) Wayne County Community College, $1,918,700.00. $1,466,000.00. 27

(bb) West Shore Community College, $585,800.00. $578,600.00. 28

Sec. 230. (1) It is the intent of the legislature that the recommendations and 29

performance measures developed by the performance indicators task force formed under section 30

242 of 2005 PA 154 be reviewed and more fully implemented for distribution of state funding 31

to community colleges in future years. 32

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(1) (2) Any additional PERFORMANCE funding provided to community college operations 1

under section 201(2) in fiscal year 2013-2014 2014-2015 that exceeds the amounts appropriated 2

for operations in fiscal year 2012-2013 is distributed based on the following formula: 3

(a) Allocated proportionate to fiscal year 2012-2013 2013-2014 base appropriations, 4

50%. 5

(b) Based on contact hour equated students, 10%. 6

(c) Based on administrative costs, 7.5%. 7

(d) Based on a weighted degree formula as provided for in the 2006 recommendations of 8

the performance indicators task force, 17.5%. 9

(e) Based on the local strategic value component, as developed in cooperation with the 10

Michigan community college association and described in subsection (3) (2), 15%. 11

(2) (3) The appropriation in section 201(2)(cc) for local strategic value shall be 12

allocated to each community college that certifies to the state budget director, through a 13

board of trustees resolution on or before November 1, 2013 OCTOBER 15, 2014, that the college 14

has met 4 out of 5 best practices listed in each category described in subsection (4) (3). 15

The resolution shall provide specifics as to how the community college meets each best 16

practice measure within each category. One-third of funding available under the strategic 17

value component shall be allocated to each category described in subsection (4) (3). Amounts 18

distributed under local strategic value shall be on a proportionate basis to each college's 19

fiscal year 2012-2013 2013-2014 operations funding. Payments to community colleges that 20

qualify for local strategic value funding shall be distributed with the November installment 21

payment described in section 206. 22

(3) (4) For purposes of subsection (3) (2), the following categories of best practices 23

reflect functional activities of community colleges that have strategic value to the local 24

communities and regional economies: 25

(a) For Category A, economic development and business or industry partnerships, the 26

following: 27

(i) The community college has active partnerships with local employers including 28

hospitals and health care providers. 29

(ii) The community college provides customized on-site training for area companies, 30

employees, or both. 31

(iii) The community college supports entrepreneurship through a small business 32

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assistance center or other training or consulting activities targeted toward small 1

businesses. 2

(iv) The community college supports technological advancement through industry 3

partnerships, incubation activities, or operation of a Michigan technical education center or 4

other advanced technology center. 5

(v) The community college has active partnerships with local or regional workforce and 6

economic development agencies. 7

(b) For Category B, educational partnerships, the following: 8

(i) The community college has active partnerships with regional high schools, 9

intermediate school districts, and career-tech centers to provide instruction through dual 10

enrollment, direct credit, middle college, or academy programs. 11

(ii) The community college hosts, sponsors, or participates in enrichment programs for 12

area K-12 students, such as college days, summer or after-school programming, or science 13

Olympiad. 14

(iii) The community college provides, supports, or participates in programming to 15

promote successful transitions to college for traditional age students, including grant 16

programs such as talent search, upward bound, or other activities to promote college 17

readiness in area high schools and community centers. 18

(iv) The community college provides, supports, or participates in programming to 19

promote successful transitions to college for new or reentering adult students, such as adult 20

basic education, GED preparation, GED testing, or recruiting, advising, or orientation 21

activities specific to adults. 22

(v) The community college has active partnerships with regional 4-year colleges and 23

universities to promote successful transfer, such as articulation, 2+2, or reverse transfer 24

agreements or operation of a university center. 25

(c) For Category C, community services, the following: 26

(i) The community college provides continuing education programming for leisure, 27

wellness, personal enrichment, or professional development. 28

(ii) The community college operates or sponsors opportunities for community members to 29

engage in activities that promote leisure, wellness, cultural or personal enrichment such as 30

community sports teams, theater or musical ensembles, or artist guilds. 31

(iii) The community college operates public facilities to promote cultural, 32

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educational, or personal enrichment for community members, such as libraries, computer labs, 1

performing arts centers, museums, art galleries, or television or radio stations. 2

(iv) The community college operates public facilities to promote leisure or wellness 3

activities for community members, including gymnasiums, athletic fields, tennis courts, 4

fitness centers, hiking or biking trails, or natural areas. 5

(v) The community college promotes, sponsors, or hosts community service activities 6

for students, staff, or community members. 7

SEC. 230A. (1) PAYMENTS UNDER SECTION 201 FOR PERFORMANCE FUNDING AND LOCAL STRATEGIC 8

VALUE SHALL ONLY BE MADE TO A COMMUNITY COLLEGE THAT CERTIFIES TO THE STATE BUDGET DIRECTOR 9

BY AUGUST 31, 2014 THAT ITS BOARD DID NOT ADOPT AN INCREASE IN TUITION AND FEE RATES FOR 10

RESIDENT STUDENTS AFTER FEBRUARY 5, 2014 FOR THE 2013-2014 ACADEMIC YEAR AND THAT ITS BOARD 11

WILL NOT ADOPT AN INCREASE IN TUITION AND FEE RATES FOR RESIDENT STUDENTS FOR THE 2014-2015 12

ACADEMIC YEAR THAT IS GREATER THAN 3.2%. AS USED IN THIS SECTION: 13

(A) “FEE” MEANS ANY BOARD-AUTHORIZED FEE THAT WILL BE PAID BY MORE THAN 1/2 OF ALL 14

RESIDENT STUDENTS AT LEAST ONCE DURING THEIR ENROLLMENT AT A COMMUNITY COLLEGE. A COMMUNITY 15

COLLEGE INCREASING A FEE THAT APPLIES TO A SPECIFIC SUBSET OF STUDENTS OR COURSES SHALL 16

PROVIDE SUFFICIENT INFORMATION TO PROVE THAT THE INCREASE APPLIED TO THAT SUBSET WILL NOT 17

CAUSE THE INCREASE IN THE AVERAGE AMOUNT OF BOARD-AUTHORIZED TOTAL TUITION AND FEES PAID BY 18

RESIDENT STUDENTS IN THE 2014-2015 ACADEMIC YEAR TO EXCEED THE LIMIT ESTABLISHED IN THIS 19

SUBSECTION. 20

(B) “RESIDENT STUDENT” MEANS A STUDENT THAT IS CONSIDERED BY THE COMMUNITY COLLEGE TO 21

BE A RESIDENT OF THE STATE OF MICHIGAN, AND SHALL INCLUDE BOTH STUDENTS PAYING IN-DISTRICT 22

TUITION AND FEES AND STUDENTS PAYING OUT-OF-DISTRICT TUITION AND FEES. 23

(C) “TUITION AND FEE RATE” MEANS THE TOTAL OF ANY CHARGED FEES QUALIFYING UNDER THE 24

DEFINITION IN SUBDIVISION (A) AND THE CREDIT HOUR OR CONTACT HOUR TUITION RATE, DEPENDING 25

UPON THE COMMUNITY COLLEGE’S PRIMARY METHOD OF CHARGING TUITION. THE TUITION RATE FOR THE 2 26

SEMESTERS WITH THE HIGHEST LEVELS OF FULL-TIME EQUATED RESIDENT STUDENT ENROLLMENT DURING THE 27

ACADEMIC YEAR SHALL BE USED. 28

(2) THE STATE BUDGET DIRECTOR SHALL IMPLEMENT UNIFORM REPORTING REQUIREMENTS TO ENSURE 29

THAT A COMMUNITY COLLEGE RECEIVING A PAYMENT UNDER SECTION 201 FOR PERFORMANCE FUNDING OR 30

LOCAL STRATEGIC VALUE HAS SATISFIED THE TUITION RESTRAINT REQUIREMENTS OF THIS SECTION. THE 31

STATE BUDGET DIRECTOR SHALL HAVE THE SOLE AUTHORITY TO DETERMINE IF A COMMUNITY COLLEGE HAS 32

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MET THE REQUIREMENTS OF THIS SECTION. INFORMATION REPORTED BY A COMMUNITY COLLEGE TO THE 1

STATE BUDGET DIRECTOR UNDER THIS SUBSECTION SHALL ALSO BE REPORTED TO THE HOUSE AND SENATE 2

APPROPRIATIONS SUBCOMMITTEES ON COMMUNITY COLLEGES AND THE HOUSE AND SENATE FISCAL AGENCIES. 3

(3) ANY PERFORMANCE FUNDING AMOUNTS UNDER SECTION 201 THAT ARE NOT PAID TO A COMMUNITY 4

COLLEGE BECAUSE IT DID NOT COMPLY WITH ANY REQUIREMENT UNDER SUBSECTION (1) ARE 5

UNAPPROPRIATED AND REAPPROPRIATED FOR PERFORMANCE FUNDING TO THOSE COMMUNITY COLLEGES THAT 6

MEET THE REQUIREMENTS UNDER SUBSECTION (1), DISTRIBUTED IN PROPORTION TO THEIR PERFORMANCE 7

FUNDING APPROPRIATION AMOUNTS UNDER SECTION 201. 8

(4) THE STATE BUDGET DIRECTOR SHALL REPORT TO THE HOUSE AND SENATE APPROPRIATIONS 9

SUBCOMMITTEES ON COMMUNITY COLLEGES AND THE HOUSE AND SENATE FISCAL AGENCIES BY SEPTEMBER 17, 10

2014, REGARDING ANY PERFORMANCE FUNDING OR LOCAL STRATEGIC VALUE AMOUNTS THAT ARE NOT PAID TO 11

A COMMUNITY COLLEGE BECAUSE IT DID NOT COMPLY WITH 1 OR MORE REQUIREMENTS UNDER SUBSECTION 12

(1) AND ANY REAPPROPRIATION OF FUNDS UNDER SUBSECTION (3).13

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1

2

3

4

5

6

7

8

9

10

11

12

13

ARTICLE III 14

15

STATE AID FOR UNIVERSITIES AND STUDENT FINANCIAL AID 16

17

18

19

20

21

22

23

24

25

Sec. 236. (1) Subject to the conditions set forth in this article, the amounts listed 26

in subsections (2) to (6) are appropriated for higher education for the fiscal year ending 27

September 30, 2014 2015, from the funds indicated in this section. The following is a summary 28

of the appropriations in subsections (2) to (6): 29

(a) The gross appropriation is $1,430,573,500.00. $1,512,494,100.00. After deducting 30

total interdepartmental grants and intradepartmental transfers in the amount of $0.00, the 31

adjusted gross appropriation is $1,430,573,500.00. $1,512,494,100.00. 32

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(b) The sources of the adjusted gross appropriation described in subdivision (a) are 1

as follows: 2

(i) Total federal revenues, $97,026,400.00. 3

(ii) Total local revenues, $0.00. 4

(iii) Total private revenues, $0.00. 5

(iv) Total other state restricted revenues, $200,565,700.00. 6

(v) State general fund/general purpose money, $1,132,981,400.00. $1,214,902,000.00. 7

(2) Amounts appropriated for public universities are as follows: 8

(a) The appropriation for Central Michigan University is $73,486,600.00, 9

$79,283,400.00, $71,352,300.00 $73,540,100.00 for operations and $2,134,300.00 $5,743,300.00 10

for performance funding, appropriated from the following: 11

(i) State school aid fund, $11,284,600.00. $11,815,000.00. 12

(ii) State general fund/general purpose money, $62,202,000.00. $67,468,400.00. 13

(b) The appropriation for Eastern Michigan University is $67,255,600.00, 14

$71,906,800.00, $66,466,700.00 $67,275,400.00 for operations and $788,900.00 $4,631,400.00 15




(c) The appropriation for Ferris State University is $45,602,600.00, $49,191,200.00, 19

$44,250,700.00 $45,636,500.00 for operations and $1,351,900.00 $3,554,700.00 for performance 20

funding, appropriated from the following: 21



(d) The appropriation for Grand Valley State University is $57,765,100.00, 24





(e) The appropriation for Lake Superior State University is $12,226,500.00, 29

$12,799,100.00, $12,046,100.00 $12,231,000.00 for operations and $180,400.00 $568,100.00 for 30

performance funding, appropriated from the following: 31


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(f) The appropriation for Michigan State University is $305,775,000.00, 2

$324,599,500.00, $245,037,000.00 $249,597,800.00 for operations, $4,449,300.00 $15,279,400.00 3

for performance funding, $30,243,900.00 $32,088,800.00 for MSU AgBioResearch, and 4

$26,044,800.00 $27,633,500.00 for MSU extension, appropriated from the following: 5



(g) The appropriation for Michigan Technological University is $43,451,900.00, 8





(h) The appropriation for Northern Michigan University is $41,719,800.00, 13





(i) The appropriation for Oakland University is $45,634,800.00, $48,446,100.00, 18

$44,964,100.00 $45,651,600.00 for operations and $670,700.00 $2,794,500.00 for performance 19

funding, appropriated from the following: 20



(j) The appropriation for Saginaw Valley State University is $25,982,800.00, 23





(k) The appropriation for University of Michigan - Ann Arbor is $279,108,700.00, 28

$295,655,600.00, $274,156,700.00 $279,232,700.00 for operations and $4,952,000.00 29

$16,422,900.00 for performance funding, appropriated from the following: 30



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(l) The appropriation for University of Michigan - Dearborn is $22,503,700.00, 1





(m) The appropriation for University of Michigan - Flint is $19,928,100.00, 6





(n) The appropriation for Wayne State University is $183,933,000.00, $190,734,900.00, 11

$183,398,300.00 for operations and $534,700.00 $7,336,600.00 for performance funding, 12




(o) The appropriation for Western Michigan University is $97,235,200.00, 16





(3) The amount appropriated for Michigan public school employees’ retirement system 21

reimbursement is $2,446,200.00, $446,200.00 appropriated from the state school aid fund and 22

$2,000,000.00 appropriated from general fund/general purpose money. 23

(4) The amount appropriated for state and regional programs is $2,200,000.00 24

$2,295,000.00 appropriated from general fund/general purpose money and allocated as follows: 25

(a) College access program, $2,000,000.00. 26

(b) Higher education database modernization and conversion, $105,000.00. $200,000.00. 27

(c) Midwestern higher education compact, $95,000.00. 28

(5) The amount appropriated for the Martin Luther King, Jr. - Cesar Chavez - Rosa 29

Parks program is $2,691,500.00, appropriated from general fund/general purpose money and 30

allocated as follows: 31

(a) Select student support services, $1,956,100.00. 32

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(b) Michigan college/university partnership program, $586,800.00. 1

(c) Morris Hood, Jr. educator development program, $148,600.00. 2

(6) Subject to subsection (7), the amount appropriated for grants and financial aid is 3

$101,626,400.00, $103,126,400.00, allocated as follows: 4

(a) State competitive scholarships, $18,361,700.00. 5

(b) Tuition grants, $31,664,700.00. 6

(c) Tuition incentive program, $47,000,000.00. $48,500,000.00. 7

(d) Children of veterans and officer’s survivor tuition grant programs, $1,400,000.00. 8

(e) Project GEAR-UP, $3,200,000.00. 9

(7) The money appropriated in subsection (6) for grants and financial aid is 10


(a) Federal revenues under the United States department of education, office of 12

elementary and secondary education, GEAR-UP program, $3,200,000.00. 13

(b) Federal revenues under the social security act, temporary assistance for needy 14

families, $93,826,400.00. 15

(c) Contributions to children of veterans tuition grant program, $100,000.00. 16

(d) State general fund/general purpose money, $4,500,000.00. $6,000,000.00. 17

Sec. 236a. It is the intent of the legislature to provide appropriations 18

APPROPRIATIONS SHALL BE MADE for the fiscal year ending on September 30, 2015 2016 for the 19

items listed in section 236. The fiscal year 2014-2015 2015-2016 appropriations are 20

anticipated to be the same as those for fiscal year 2013-2014 2014-2015, except that the 21

amounts will be adjusted for changes in, caseload and related costs, federal fund match 22

rates, economic factors, and available revenue. These adjustments will be determined after 23

the January 2014 2015 consensus revenue estimating conference. 24

Sec. 236b. In addition to the funds appropriated in section 236, there is appropriated 25

for grants and financial aid in fiscal year 2013-2014 2014-2015 an amount not to exceed 26

$6,000,000.00 for federal contingency funds. These funds are not available for expenditure 27

until they have been transferred under section 393(2) of the management and budget act, 1984 28

PA 431, MCL 18.1393, for another purpose under this article. 29

Sec. 236c. In addition to the funds appropriated for fiscal year 2013-2014 2014-2015 30

in section 236, appropriations to the department of technology, management, and budget in the 31

act providing general appropriations for fiscal year 2013-2014 2014-2015 for state building 32

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authority rent, totaling an estimated $125,370,600.00, $124,825,300.00, provide funding for 1

the state share of costs for previously constructed capital projects for state universities. 2

These appropriations for state building authority rent represent additional state general 3

fund support provided to public universities, and the following is an estimate of the amount 4

of that support to each university: 5

(a) Central Michigan University, $9,155,600.00. $9,103,200.00. 6

(b) Eastern Michigan University, $5,234,800.00. $4,861,700.00. 7

(c) Ferris State University, $6,360,600.00. $6,252,200.00. 8

(d) Grand Valley State University, $4,277,000.00. $4,252,500.00. 9

(e) Lake Superior State University, $915,600.00. $1,112,900.00. 10

(f) Michigan State University, $16,194,400.00. $16,101,200.00. 11

(g) Michigan Technological University, $7,692,200.00. $7,444,600.00. 12

(h) Northern Michigan University, $8,062,600.00. $8,016,400.00. 13

(i) Oakland University, $10,791,500.00. $10,969,800.00. 14

(j) Saginaw Valley State University, $9,833,700.00. $9,777,400.00. 15

(k) University of Michigan - Ann Arbor, $9,212,000.00. $9,159,200.00. 16

(l) University of Michigan - Dearborn, $6,332,400.00. $6,296,200.00. 17

(m) University of Michigan - Flint, $2,871,400.00. $2,855,000.00. 18

(n) Wayne State University, $13,079,500.00. $13,679,800.00. 19

(o) Western Michigan University, $15,357,300.00. $14,943,200.00. 20

Sec. 241. (1) Subject to section 265a, the funds appropriated in section 236 to public 21

universities shall be paid out of the state treasury and distributed by the state treasurer 22

to the respective institutions in 11 equal monthly installments on the sixteenth of each 23

month, or the next succeeding business day, beginning with October 16, 2013 2014. Except for 24

Wayne State University, each institution shall accrue its July and August 2014 2015 payments 25

to its institutional fiscal year ending June 30, 2014 2015. 26

(2) All public universities shall submit higher education institutional data inventory 27

(HEIDI) data and associated financial and program information requested by and in a manner 28

prescribed by the state budget director. For public universities with fiscal years ending 29

June 30, 2013 2014, these data shall be submitted to the state budget director by October 15, 30

2013 2014. Public universities with a fiscal year ending September 30, 2013 2014 shall submit 31

preliminary HEIDI data by November 15, 2013 2014 and final data by December 15, 2013 2014. If 32

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a public university fails to submit HEIDI data and associated financial aid program 1

information in accordance with this reporting schedule, the state treasurer may withhold the 2

monthly installments under subsection (1) to the public university until those data are 3

submitted. 4

Sec. 242. Funds received by the state from the federal government or private sources 5

for the use of a college or university are appropriated for the purposes for which they are 6

provided. The acceptance and use of federal or private funds do not place an obligation on 7

the legislature to continue the purposes for which the funds are made available. 8

Sec. 245. (1) Within 30 days after the board of a public university adopts its annual 9

operating budget for the following school fiscal year, or after the board adopts a subsequent 10

revision to that budget, the A public university shall make all of the following MAINTAIN A 11

PUBLIC TRANSPARENCY WEBSITE, available through a link on its website homepage:. THIS WEBSITE 12

SHALL BE UPDATED WITHIN 30 DAYS AFTER THE UNIVERSITY’S GOVERNING BOARD ADOPTS ITS ANNUAL 13

OPERATING BUDGET FOR THE FOLLOWING ACADEMIC FISCAL YEAR, OR AFTER THE BOARD ADOPTS A 14

SUBSEQUENT REVISION TO THAT BUDGET. 15

(2) THE WEBSITE REQUIRED UNDER SUBSECTION (1) SHALL INCLUDE ALL OF THE FOLLOWING: 16


(b) A summary of current expenditures for the most recent fiscal year for which they 18

are available, expressed as pie charts in the following 2 categories: 19

(i) A chart of personnel expenditures, broken into the following subcategories: 20

(A) Earnings and wages. 21

(B) Employee benefit costs, including, but not limited to, medical, dental, vision, 22

life, disability, and long-term care benefits. 23

(C) Retirement benefit costs. 24

(D) All other personnel costs. 25

(ii) A chart of all current expenditures the public university reported as part of its 26

higher education institutional data inventory data under section 241(2), broken into the same 27

subcategories in which it reported those data. 28

(c) Links to all of the following for the public university: 29




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health care services, offered to any bargaining unit or employee of the public university. 1

(iii) Audits and financial reports for the most recent fiscal year for which they are 2

available. 3

(iv) Campus security policies and crime statistics pursuant to the student right-to-4

know and campus security act, Public Law 101-542, 104 Stat. 2381. Information shall include 5

all material prepared pursuant to the public information reporting requirements under the 6

crime awareness and campus security act of 1990, title II of the student right-to-know and 7

campus security act, Public Law 101-542, 104 Stat. 2381. 8

(d) A list of all positions funded partially or wholly through institutional general 9

fund revenue that includes the position title and annual salary or wage amount for each 10

position. 11

(e) General fund revenue and expenditure projections for THE CURRENT fiscal year 2013-12

2014 and THE NEXT fiscal year 2014-2015. 13

(f) A listing of all debt service obligations, detailed by project, anticipated fiscal 14

year 2013-2014 payment for each project, and total outstanding debt FOR THE CURRENT FISCAL 15

YEAR. 16

(g) The institution's policy regarding the transferability of core college courses 17

between community colleges and the university. 18

(h) A listing of all community colleges that have entered into reverse transfer 19

agreements with the university. 20

(3) (2) A ON THE WEBSITE REQUIRED UNDER SUBSECTION (1), A public university shall 21

provide a dashboard or report card demonstrating the university's performance in several 22

"best practice" measures. The dashboard or report card shall include at least all of the 23

following for the 3 most recent school ACADEMIC years for which the data are available: 24

(a) Enrollment. 25

(b) Student retention rate. 26

(c) Six-year graduation rates. 27

(d) Number of Pell grant recipients and graduating Pell grant recipients. 28

(e) Geographic origination of students, categorized as in-state, out-of-state, and 29

international. 30

(f) Faculty to student ratios and total university employee to student ratios. 31

(g) Teaching load by faculty classification. 32

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(h) Graduation outcome rates, including employment and continuing education. 1

(3) For statewide consistency and public visibility, public universities must use the 2

icon badge provided by the department of technology, management, and budget consistent with 3

the icon badge developed by the department of education for K-12 school districts. It must 4

appear on the front of each public university's homepage. The size of the icon may be reduced 5

to 150 x 150 pixels. The font size and style for this reporting must be consistent with other 6

documents on each university's website. 7

(4) The state budget director shall determine whether a public university has complied 8

with this section. The state budget director may withhold a public university's monthly 9

installments described in section 241 until the public university complies with this section. 10

Sec. 252. (1) The amounts appropriated in section 236 for the state tuition grant 11

program shall be distributed pursuant to 1966 PA 313, MCL 390.991 to 390.997a. 12

(2) Tuition grant awards shall be made to all eligible Michigan residents enrolled in 13

undergraduate degree programs who are qualified and who apply before July 1, 2012 MARCH 1 OF 14

EACH YEAR for the 2012-2013 school NEXT ACADEMIC year or July 1, 2013 for the 2013-2014 15

school year, as applicable. 16

(3) Pursuant to section 5 of 1966 PA 313, MCL 390.995, and subject to subsection (7), 17

the department of treasury shall determine an actual maximum tuition grant award per student, 18

which shall be no less than $1,512.00, that ensures that the aggregate payments for the 19

tuition grant program do not exceed the appropriation contained in section 236 for the state 20

tuition grant program. If the department determines that insufficient funds are available to 21

establish a maximum award amount equal to at least $1,512.00, the department shall 22

immediately report to the house and senate appropriations subcommittees on higher education, 23

the house and senate fiscal agencies, and the state budget director regarding the estimated 24

amount of additional funds necessary to establish a $1,512.00 maximum award amount. If the 25

department determines that sufficient funds are available to establish a maximum award amount 26

equal to at least $1,512.00, the department shall immediately report to the house and senate 27

appropriations subcommittees on higher education, the house and senate fiscal agencies, and 28

the state budget director regarding the maximum award amount established and the projected 29

amount of any projected year-end appropriation balance based on that maximum award amount. By 30

December 15, and again by February 18 of each fiscal year, the department shall analyze the 31

status of award commitments, shall make any necessary adjustments, and shall confirm that 32

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those award commitments will not exceed the appropriation contained in section 236 for the 1

tuition grant program. The determination and actions shall be reported to the state budget 2

director and the house and senate fiscal agencies no later than the final day of February of 3

each year. If award adjustments are necessary, the students shall be notified of the 4

adjustment by March 4 of each year. 5

(4) Any unexpended and unencumbered funds remaining on September 30, 2013 from the 6

amounts appropriated in section 236 for the tuition grant program for fiscal year 2012-2013 7

shall not lapse on September 30, 2013, but shall continue to be available for expenditure for 8

tuition grants provided in the 2013-2014 fiscal year under a work project account. The use of 9

these unexpended fiscal year 2012-2013 funds shall terminate at the end of the 2013-2014 10

fiscal year. Any unexpended and unencumbered funds remaining on September 30, 2014 from the 11

amounts appropriated in section 236 for the tuition grant program for fiscal year 2013-2014 12

shall not lapse on September 30, 2014, but shall continue to be available for expenditure for 13

tuition grants provided in the 2014-2015 fiscal year under a work project account. The use of 14

these unexpended fiscal year 2013-2014 funds shall terminate at the end of the 2014-2015 15

fiscal year. 16

(4) (5) The department of treasury shall continue a proportional tuition grant maximum 17

award level for recipients enrolled less than full-time in a given semester or term. 18

(5) (6) If the department of treasury increases the maximum award per eligible student 19

from that provided in the previous fiscal year, it shall not have the effect of reducing the 20

number of eligible students receiving awards in relation to the total number of eligible 21

applicants. Any increase in the maximum grant shall be proportional for all eligible students 22

receiving awards for that fiscal year. 23

(6) (7) In any fiscal year, the department of treasury shall not award more than 24

$3,000,000.00 in tuition grants to eligible students enrolled in the same independent 25

nonprofit college or university in this state. Any decrease in the maximum grant shall be 26

proportional for all eligible students enrolled in that college or university, as determined 27

by the department. 28

(7) THE DEPARTMENT OF TREASURY SHALL NOT AWARD TUITION GRANTS TO ELIGIBLE STUDENTS 29

ENROLLED IN AN INDEPENDENT COLLEGE OR UNIVERSITY THAT DOES NOT MEET THE FOLLOWING 30

REQUIREMENTS IN A MANNER SATISFACTORY TO THE DEPARTMENT OF TREASURY: 31

(A) THE INDEPENDENT COLLEGE OR UNIVERSITY MUST SUBMIT AS DIRECTED BY THE DEPARTMENT OF 32

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TREASURY BY JUNE 30 OF EACH YEAR THE ANNUAL P-20 LONGITUDINAL DATA SYSTEM DATA SETS TO THE 1

CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION, AS VERIFIED BY THE CENTER. 2

(B) THE INDEPENDENT COLLEGE OR UNIVERSITY MUST REPORT IN A FORM AND MANNER AS DIRECTED 3

BY THE DEPARTMENT OF TREASURY BY AUGUST 31 OF EACH YEAR THE FOLLOWING: 4

(I) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT RECEIVED 5

STATE TUITION GRANTS AND SUCCESSFULLY COMPLETED A PROGRAM OR GRADUATED. 6

(II) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT RECEIVED 7

STATE TUITION GRANTS AND TOOK REMEDIAL EDUCATION CLASSES. 8

(III) THE NUMBER OF STUDENTS IN THE MOST RECENTLY COMPLETED ACADEMIC YEAR THAT 9

RECEIVED PELL GRANTS AND SUCCESSFULLY COMPLETED A PROGRAM OR GRADUATED. 10

Sec. 256. (1) The funds appropriated in section 236 for the tuition incentive program 11

shall be distributed as provided in this section and pursuant to the administrative 12

procedures for the tuition incentive program of the department of treasury. 13


(a) "Phase I" means the first part of the tuition incentive assistance program defined 15

as the academic period of 80 semester or 120 term credits, or less, leading to an associate 16

degree or certificate. 17

(b) "Phase II" means the second part of the tuition incentive assistance program which 18

provides assistance in the third and fourth year of 4-year degree programs. 19

(c) "Department" means the department of treasury. 20

(3) An individual shall meet the following basic criteria and financial thresholds to 21

be eligible for tuition incentive benefits: 22

(a) To be eligible for phase I, an individual shall meet all of the following 23

criteria: 24

(i) Apply for certification to the department ANY TIME AFTER COMMENCING THE SIXTH 25

GRADE BUT before AUGUST 31 OF THE SCHOOL YEAR IN WHICH HE OR SHE GRADUATES graduating from 26

high school or BEFORE completing the general education development (GED) certificate. 27

(ii) Be less than 20 years of age at the time he or she graduates from high school 28

with a diploma or certificate of completion or completes his or her GED. 29

(iii) Be a United States citizen and a resident of Michigan according to institutional 30

criteria. 31

(iv) Be at least a half-time student, earning less than 80 semester or 120 term 32

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credits at a participating educational institution within 4 years of high school graduation 1

or GED certificate completion. 2

(v) Request information on filing a FAFSA. 3

(VI) MUST MEET INSTITUTION’S SATISFACTORY ACADEMIC PROGRESS POLICY. 4

(b) To be eligible for phase II, an individual shall meet either of the following 5

criteria in addition to the criteria in subdivision (a): 6

(i) Complete at least 56 transferable semester or 84 transferable term credits. 7

(ii) Obtain an associate degree or certificate at a participating institution. 8

(c) To be eligible for phase I or phase II, an individual must not be incarcerated and 9

must be financially eligible as determined by the department. An individual is financially 10

eligible for the tuition incentive program if he or she was eligible for Medicaid from the 11

state of Michigan for 24 months within the 36 months before application. The department shall 12

accept certification of Medicaid eligibility only from the department of human services for 13

the purposes of verifying if a person is Medicaid eligible for 24 months within the 36 months 14

before application. Certification of eligibility may begin in the sixth grade. As used in 15

this subdivision, "incarcerated" does not include detention of a juvenile in a state-operated 16

or privately operated juvenile detention facility. 17

(4) For phase I, the department shall provide payment on behalf of a person eligible 18

under subsection (3). The department shall reject billings that are excessive or outside the 19

guidelines for the type of educational institution. 20

(5) For phase I, all of the following apply: 21

(a) Payments for associate degree or certificate programs shall not be made for more 22

than 80 semester or 120 term credits for any individual student at any participating 23

institution. 24

(b) For persons enrolled at a Michigan community college, the department shall pay the 25

current in-district tuition and mandatory fees. For persons residing in an area that is not 26

included in any community college district, the out-of-district tuition rate may be 27

authorized. 28

(c) For persons enrolled at a Michigan public university, the department shall pay 29

lower division resident tuition and mandatory fees for the current year. 30

(d) For persons enrolled at a Michigan independent, nonprofit degree-granting college 31

or university, or a Michigan federal tribally controlled community college, or Focus: HOPE, 32

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the department shall pay mandatory fees for the current year and a per-credit payment that 1

does not exceed the average community college in-district per-credit tuition rate as reported 2

on August 1, for the immediately preceding academic year. 3

(6) A person participating in phase II may be eligible for additional funds not to 4

exceed $500.00 per semester or $400.00 per term up to a maximum of $2,000.00 subject to the 5

following conditions: 6

(a) Credits are earned in a 4-year program at a Michigan degree-granting 4-year 7

college or university. 8

(b) The tuition reimbursement is for coursework completed within 30 months of 9

completion of the phase I requirements. 10

(7) The department shall work closely with participating institutions to develop an 11

application and eligibility determination process that will provide the highest level of 12

participation and ensure that all requirements of the program are met. 13

(8) Applications for the tuition incentive program may be approved at any time after 14

the student begins the sixth grade. If a determination of financial eligibility is made, that 15

determination is valid as long as the student meets all other program requirements and 16

conditions. 17

(9) Each institution shall ensure that all known available restricted grants for 18

tuition and fees are used prior to billing the tuition incentive program for any portion of a 19

student's tuition and fees. 20

(10) The department shall ensure that the tuition incentive program is well publicized 21

and that eligible Medicaid clients are provided information on the program. The department 22

shall provide the necessary funding and staff to fully operate the program. 23

Sec. 263. (1) Included in the appropriation in section 236 FOR FISCAL YEAR 2014-2015 24

for MSU AgBioResearch is $2,982,900.00 and included in the appropriation in section 236 for 25

MSU extension is $2,645,200.00 for project GREEEN. Project GREEEN is intended to address 26

critical regulatory, food safety, economic, and environmental problems faced by this state's 27

plant-based agriculture, forestry, and processing industries. "GREEEN" is an acronym for 28

generating research and extension to meet environmental and economic needs. 29

(2) The department of agriculture and rural development and Michigan State University, 30

in consultation with agricultural commodity groups and other interested parties, shall 31

develop project GREEEN and its program priorities. 32

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Sec. 263a. (1) Not later than September 30 of each year, Michigan State University 1

shall submit a report on MSU AgBioResearch and MSU extension to the house and senate 2

appropriations subcommittees on agriculture and on higher education, the house and senate 3

standing committees on agriculture, the house and senate fiscal agencies, and the state 4

budget director for the preceding school ACADEMIC fiscal year. 5

(2) The report required under subsection (1) shall include all of the following: 6

(a) Total funds expended by MSU AgBioResearch and by MSU extension service identified 7

by state, local, private, federal, and university fund sources. 8

(b) The metric goals that were used to evaluate the impacts of programs operated by 9

MSU extension and MSU AgBioResearch. It is the intent of the legislature that the AT LEAST 10

THE following metric goals will SHOULD be used to evaluate the impacts of those programs: 11

(i) Increasing the number of agriculture and food-related firms collaborating with and 12

using services of research and extension faculty and staff by 3% per year. 13

(ii) Increasing the number of individuals utilizing MSU extension's educational 14

services by 5% per year. 15

(iii) Increasing external funds generated in support of research and extension, beyond 16

state appropriations, by 10% over the amounts generated in the past 3 state fiscal years. 17

(iv) Increasing the sector's total economic impact from today's $71,000,000,000.00 to 18

$100,000,000,000.00. 19

(v) Doubling Michigan's agricultural exports from $1,750,000,000.00 to 20

$3,500,000,000.00. 21

(vi) Increasing jobs in the food and agriculture sector by 10%. 22

(vii) Improving access by Michigan consumers to healthy foods by 20%. 23

(c) A review of major programs within both MSU AgBioResearch and MSU extension with 24

specific reference to accomplishments, impacts, and the metrics described in subdivision (b), 25

including a specific accounting of Project GREEEN expenditures and the impact of those 26

expenditures. 27

Sec. 264. Included in the appropriation in section 236 for fiscal year 2013-2014 2014-28

2015 for Michigan State University is $80,000.00 for the Michigan future farmers of America 29

association. This $80,000.00 allocation shall not supplant any existing support that Michigan 30

State University provides to the Michigan future farmers of America association. 31

Sec. 265. (1) Payments under section 265a for performance funding shall only be made 32

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to a public university that certifies to the state budget director by August 31, 2013 2014 1

that its board did not adopt an increase in tuition and fee rates for resident undergraduate 2

students after September 1, 2012 2013 for the 2012-2013 2013-2014 academic year and that its 3

board will not adopt an increase in tuition and fee rates for resident undergraduate students 4

for the 2013-2014 2014-2015 academic year that is greater than 3.75% 3.2%. As used in this 5

subsection: 6

(a) Subject to subdivision (c), “fee” “FEE” means any board-authorized fee that will 7

be paid by more than 1/2 of all resident undergraduate students at least once during their 8

enrollment at a public university. A university increasing a fee that applies to a specific 9

subset of students or courses shall provide sufficient information to prove that the increase 10

applied to that subset will not cause the increase in the average amount of board-authorized 11

total tuition and fees paid by resident undergraduate students in the 2013-2014 2014-2015 12

academic year to exceed the limit established in this subsection. 13

(b) "Tuition and fee rate" means the average of full-time rates for all undergraduate 14

classes, based on an average of the rates authorized by the university board and actually 15

charged to students, deducting any uniformly-rebated or refunded amounts, for the 2 semesters 16

with the highest levels of full-time equated resident undergraduate enrollment during the 17

academic year. 18

(c) For purposes of subdivision (a), for a public university that compels resident 19

undergraduate students to be covered by health insurance as a condition to enroll at the 20

university, "fee" includes the annual amount a student is charged for coverage by the 21

university-affiliated group health insurance policy if he or she does not provide proof that 22

he or she is otherwise covered by health insurance. This subdivision does not apply to 23

limited subsets of resident undergraduate students to be covered by health insurance for 24

specific reasons other than general enrollment at the university. 25

(2) The state budget director shall implement uniform reporting requirements to ensure 26

that a public university receiving a payment under section 265a for performance funding has 27

satisfied the tuition restraint requirements of this section. The state budget director shall 28

have the sole authority to determine if a public university has met the requirements of this 29

section. Information reported by a public university to the state budget director under this 30

subsection shall also be reported to the house and senate appropriations subcommittees on 31

higher education and the house and senate fiscal agencies. 32

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Sec. 265a. (1) Appropriations to public universities in section 236 FOR FISCAL YEAR 1

2014-2015 for performance funding shall be paid only to a public university that complies 2

with section 265 and certifies to the state budget director, the house and senate 3

appropriations subcommittees on higher education, and the house and senate fiscal agencies by 4

August 31, 2013 2014 that it complies with all of the following requirements: 5

(a) The university participates in reverse transfer agreements described in section 6

286 with at least 3 Michigan community colleges or has made a good-faith effort to enter into 7

reverse transfer agreements. 8

(b) The university does not and will not consider whether dual enrollment credits 9

earned by an incoming student were utilized towards his or her high school graduation 10

requirements when making a determination as to whether those credits may be used by the 11

student toward completion of a university degree or certificate program. 12

(c) The university participates in the Michigan transfer network created as part of 13

the Michigan association of collegiate registrars and admissions officers transfer agreement. 14

(2) Any performance funding amounts under section 236 that are not paid to a public 15

university because it did not comply with 1 or more requirements under subsection (1) are 16

unappropriated and reappropriated for performance funding to those public universities that 17

meet the requirements under subsection (1), distributed in proportion to their performance 18

funding appropriation amounts under section 236. 19

(3) The state budget director shall report to the house and senate appropriations 20

subcommittees on higher education and the house and senate fiscal agencies by September 17, 21

2013 2014, regarding any performance funding amounts that are not paid to a public university 22

because it did not comply with 1 or more requirements under subsection (1) and any 23

reappropriation of funds under subsection (2). 24

(4) Performance funding amounts described in section 236 are distributed based on the 25

following formula: 26

(A) PROPORTIONAL TO EACH UNIVERSITY’S SHARE OF TOTAL OPERATIONS FUNDING APPROPRIATED 27

IN FISCAL YEAR 2010-2011, 50.0%. 28

(B) (a) Based on weighted undergraduate completions in critical skills areas, 22.2% 29

11.1%. 30

(C) (b) Based on research and development expenditures, for universities classified in 31

Carnegie classifications as doctoral/research universities, research universities (high 32

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research activity), or research universities (very high research activity) only, 11.1% 5.6%. 1

(D) (c) Based on 6-year graduation rate, total degree completions, and institutional 2

support as a percentage of core expenditures, AND STUDENTS RECEIVING PELL GRANTS, scored 3

against national Carnegie classification peers and weighted by total undergraduate fiscal 4

year equated students, 66.7% 33.3%. 5

(5) For purposes of determining the score of a university under subsection (4)(c)(D), 6

each university is assigned 1 of the following scores: 7

(a) A university classified as in the top 20%, a score of 3. 8

(b) A university classified as above national median, a score of 2. 9

(c) A university classified as improving, a score of 2. It is the intent of the 10

legislature that, beginning in the 2014-2015 state fiscal year, a university classified as 11

improving is assigned a score of 1. 12

(d) A university that is not included in subdivision (a), (b), or (c), a score of 0. 13

(6) For purposes of this section, "Carnegie classification" shall mean the basic 14

classification of the university according to the most recent version of the Carnegie 15

classification of institutions of higher education, published by the Carnegie foundation for 16

the advancement of teaching. 17

Sec. 267. All public universities shall submit the amount of tuition and fees actually 18

charged to a full-time resident undergraduate student for academic year 2013-2014 2014-2015 19

as part of their higher education institutional data inventory (HEIDI) data by August 31 of 20

each year. A public university shall report any revisions for any semester of the reported 21

academic year 2013-2014 2014-2015 tuition and fee charges to HEIDI within 15 days of being 22

adopted. 23

Sec. 268. (1) For the fiscal year ending September 30, 2014, it is the intent of the 24

legislature that funds be allocated for unfunded North American Indian tuition waiver costs 25

incurred by public universities under 1976 PA 174, MCL 390.1251 to 390.1253, from the general 26

fund. 27

(2) By February 15 of each year, the department of civil rights shall annually submit 28

to the state budget director, the house and senate appropriations subcommittees on higher 29

education, and the house and senate fiscal agencies for the preceding fiscal year a report on 30

North American Indian tuition waivers FOR THE PRECEDING FISCAL YEAR that includes, but is not 31

limited to, all of the following information for each postsecondary institution: 32

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(a) The total number of waiver applications. 1

(b) The total number of waivers granted and the monetary value of each waiver. 2

(c) The number of students who withdraw from classes. 3

(d) The number of students who successfully complete a degree or certificate program 4

and the 6-year graduation rate. 5

Sec. 269. For fiscal year 2013-2014 2014-2015, from the amount appropriated in section 6

236 to Central Michigan University for operations, $29,700.00 shall be paid to Saginaw 7

Chippewa Tribal College for the costs of waiving tuition for North American Indians under 8

1976 PA 174, MCL 390.1251 to 390.1253. 9

Sec. 270. For fiscal year 2013-2014 2014-2015 from the amount appropriated in section 10

236 to Lake Superior State University for operations, $100,000.00 shall be paid to Bay Mills 11

Community College for the costs of waiving tuition for North American Indians under 1976 PA 12

174, MCL 390.1251 to 390.1253. 13

Sec. 272a. By February 15, 2014, OF EACH YEAR, each public university receiving funds 14

under section 236 shall submit a report to the house and senate appropriations subcommittees 15

on higher education, the house and senate fiscal agencies, and the state budget director 16

regarding the rejection of transfer credits by the university in the prior year. The report 17

shall include information on the number of credits earned by incoming RESIDENT students at 18

other postsecondary institutions IN MICHIGAN, with the equivalent of a letter grade of C or 19

higher, that were rejected by the university for transfer, reported by both academic program 20

area and prior institution, along with explanatory information regarding the rationale for 21

the rejection of the credits. Data may be reported on either an academic or calendar year 22

basis. 23

Sec. 275. (1) It is the intent of the legislature that each EACH public university 24

that receives an appropriation in section 236 IS ENCOURAGED TO do all of the following: 25

(a) Meet the provisions of section 5003 of the post-911 veterans educational 26

assistance act of 2008, 38 USC 3301 to 3324, including voluntary participation in the yellow 27

ribbon GI education enhancement program established in that act in 38 USC 3317. By October 1 28

of each year, each public university shall report to the house and senate appropriations 29

subcommittees on higher education, the house and senate fiscal agencies, and the presidents 30

council, state universities of Michigan on whether or not it has chosen to participate in the 31

yellow ribbon GI education enhancement program. If at any time during the fiscal year a 32

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university participating in the yellow ribbon program chooses to leave the yellow ribbon 1

program, it shall notify the house and senate appropriations subcommittees on higher 2

education, the house and senate fiscal agencies, and the presidents council, state 3

universities of Michigan. 4

(b) Establish an on-campus veterans' liaison to provide information and assistance to 5

all student veterans. 6

(c) Provide flexible enrollment application deadlines for all veterans. 7

(d) Include in its admission application process a specific question as to whether an 8

applicant for admission is a veteran, an active member of the military, a member of the 9

national guard or military reserves, or the spouse or dependent of a veteran, active member 10

of the military, or member of the national guard or military reserves, in order to more 11

quickly identify potential educational assistance available to that applicant. 12

(e) Consider all veterans residents of this state for determining their tuition rates 13

and fees. 14

(f) Waive enrollment fees for all veterans. 15

(2) As used in this section, "veteran" means an honorably discharged veteran entitled 16

to educational assistance under the provisions of section 5003 of the post-911 veterans 17

educational assistance act of 2008, 38 USC 3301 to 3324. 18

Sec. 276. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015 for 19

each public university in section 236 is funding for the Martin Luther King, Jr. - Cesar 20

Chavez - Rosa Parks future faculty program that is intended to increase the pool of 21

academically or economically disadvantaged candidates pursuing faculty teaching careers in 22

postsecondary education. Preference may not be given to applicants on the basis of race, 23

color, ethnicity, gender, or national origin. Institutions should encourage applications from 24

applicants who would otherwise not adequately be represented in the graduate student and 25

faculty populations. Each public university shall apply the percentage change applicable to 26

every public university in the calculation of appropriations in section 236 to the amount of 27

funds allocated to the future faculty program. 28

(2) The program shall be administered by each public university in a manner prescribed 29

by the workforce development agency. The workforce development agency shall use a good faith 30

effort standard to evaluate whether a fellowship is in default. 31


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Chavez - Rosa Parks college day program that is intended to introduce academically or 2

economically disadvantaged schoolchildren to the potential of a college education. Preference 3

may not be given to participants on the basis of race, color, ethnicity, gender, or national 4

origin. Public universities should encourage participation from those who would otherwise not 5

adequately be represented in the student population. 6

(2) Individual program plans of each public university shall include a budget of equal 7

contributions from this program, the participating public university, the participating 8

school district, and the participating independent degree-granting college. College day funds 9

shall not be expended to cover indirect costs. Not more than 20% of the university match 10

shall be attributable to indirect costs. Each public university shall apply the percentage 11

change applicable to every public university in the calculation of appropriations in section 12

236 to the amount of funds allocated to the college day program. 13

(3) The program described in this section shall be administered by each public 14

university in a manner prescribed by the workforce development agency. 15

Sec. 278. (1) Included in section 236 for fiscal year 2013-2014 2014-2015 is funding 16

for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks select student support services 17

program for developing academically or economically disadvantaged student retention programs 18

for 4-year public and independent educational institutions in this state. Preference may not 19

be given to participants on the basis of race, color, ethnicity, gender, or national origin. 20

Institutions should encourage participation from those who would otherwise not adequately be 21

represented in the student population. 22

(2) An award made under this program to any 1 institution shall not be greater than 23

$150,000.00, and the amount awarded shall be matched on a 70% state, 30% college or 24

university basis. 25

(3) The program described in this section shall be administered by the workforce 26

development agency. 27

Sec. 279. (1) Included in section 236 for fiscal year 2013-2014 2014-2015 is funding 28

for the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks college/university partnership 29

program between 4-year public and independent colleges and universities and public community 30

colleges, which is intended to increase the number of academically or economically 31

disadvantaged students who transfer from community colleges into baccalaureate programs. 32

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Preference may not be given to participants on the basis of race, color, ethnicity, gender, 1

or national origin. Institutions should encourage participation from those who would 2

otherwise not adequately be represented in the transfer student population. 3

(2) The grants shall be made under the program described in this section to Michigan 4

public and independent colleges and universities. An award to any 1 institution shall not be 5

greater than $150,000.00, and the amount awarded shall be matched on a 70% state, 30% college 6

or university basis. 7





Chavez - Rosa Parks visiting professors program which is intended to increase the number of 12

instructors in the classroom to provide role models for academically or economically 13

disadvantaged students. Preference may not be given to participants on the basis of race, 14

color, ethnicity, gender, or national origin. Public universities should encourage 15

participation from those who would otherwise not adequately be represented in the student 16

population. 17



Sec. 281. (1) Included in the appropriation for fiscal year 2013-2014 2014-2015 in 20

section 236 is funding under the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks 21

initiative for the Morris Hood, Jr. educator development program which is intended to 22

increase the number of academically or economically disadvantaged students who enroll in and 23

complete K-12 teacher education programs at the baccalaureate level. Preference may not be 24

given to participants on the basis of race, color, ethnicity, gender, or national origin. 25

Institutions should encourage participation from those who would otherwise not adequately be 26

represented in the teacher education student population. 27

(2) The program described in this section shall be administered by each state-approved 28

teacher education institution in a manner prescribed by the workforce development agency. 29

(3) Approved teacher education institutions may and are encouraged to use student 30

support services funding in coordination with the Morris Hood, Jr. funding to achieve the 31

goals of the program described in this section. 32

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Sec. 282. (1) Each institution receiving funds under section 278, 279, or 281 shall 1

notify the workforce development agency by April 15, 2014 OF EACH YEAR as to whether it will 2

expend by the end of its fiscal year the funds received under section 278, 279, or 281. 3

Notwithstanding the award limitations in sections 278 and 279, the amount of funding reported 4

as not being expended will be reallocated to the institutions that intend to expend all 5

funding received under section 278, 279, or 281. 6

(2) UP TO $100,000.00 OF FISCAL YEAR 2014-2015 FUNDS THAT ARE IDENTIFIED AS UNEXPENDED 7

BY MAY 15, 2015 MAY BE UTILIZED BY THE WORKFORCE DEVELOPMENT AGENCY TO ADMINISTER THE PROGRAM 8

IF NO INSTITUTION INTENDS TO EXPEND ALL FUNDING RECEIVED UNDER SECTION 278, 279, OR 281. 9

Sec. 283. (1) From the amount appropriated in section 236, the public universities 10

shall systematically inform Michigan high schools regarding the academic status of students 11

from each high school in a manner prescribed by the presidents council, state universities of 12

Michigan in cooperation with the Michigan association of secondary school principals. Public 13

universities shall also work with the center for educational performance and information to 14

design and implement MAINTAIN a systematic approach for accomplishing this task. 15

(2) Michigan high schools shall systematically inform the public universities about 16

the use of information received under this section in a manner prescribed by the Michigan 17

association of secondary school principals in cooperation with the presidents council, state 18

universities of Michigan. 19

Sec. 284. From the amount appropriated in section 236, the public universities shall 20

inform Michigan community colleges regarding the academic status of community college 21

transfer students in a manner prescribed by the presidents council, state universities of 22

Michigan in cooperation with the Michigan community college association. Public universities 23

shall also work with the center for educational performance and information to design and 24

implement MAINTAIN a systematic approach for accomplishing this task. 25

Sec. 286. It is the intent of the legislature that public PUBLIC universities SHALL 26

work with community colleges in the state to implement statewide reverse transfer agreements 27

to increase the number of students that are awarded credentials of value upon completion of 28

the necessary credits. It is the intent of the legislature that these THESE statewide 29

agreements shall enable students who have earned a significant number of credits at a 30

community college and transfer to a baccalaureate granting institution before completing a 31

degree to transfer the credits earned at the baccalaureate institution back to the community 32

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college in order to be awarded a credential of value.1

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ARTICLE IV 11

12

GENERAL PROVISIONS 13

14

15

16

17

Sec. 296. (1) If the maximum amount appropriated under this act from the state school 18

aid fund for a fiscal year exceeds the amount necessary to fully fund allocations under this 19

act from the state school aid fund, that excess amount shall not be expended in that state 20

fiscal year and shall not lapse to the general fund, but instead shall be deposited into the 21

school aid stabilization fund created in section 11a. 22

(2) If the total maximum amount appropriated under all articles of this act from the 23

state school aid fund and the school aid stabilization fund exceeds the amount available for 24

expenditure from the state school aid fund for that fiscal year, payments under sections 11f, 25

11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51A(11), 51c, 53a, 56, and 152a shall be 26

made in full. In addition, for districts beginning operations after 1994-95 that qualify for 27

payments under section 22b, payments under section 22b shall be made so that the qualifying 28

districts receive the lesser of an amount equal to the 1994-95 foundation allowance of the 29

district in which the district beginning operations after 1994-95 is located or $5,500.00. 30

The amount of the payment to be made under section 22b for these qualifying districts shall 31

be as calculated under section 22a, with the balance of the payment under section 22b being 32

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subject to the proration otherwise provided under this subsection and subsection (3). If 1

proration is necessary, state payments under each of the other sections of article I from all 2

state funding sources, and state appropriations to community colleges and public universities 3

under articles II and III from the state school aid fund, shall be prorated in the manner 4

prescribed in subsection (3) as necessary to reflect the amount available for expenditure 5

from the state school aid fund for the affected fiscal year. However, if the department of 6

treasury determines that proration will be required under this subsection, or if the 7

department of treasury determines that further proration is required under this subsection 8

after an initial proration has already been made for a fiscal year, the department of 9

treasury shall notify the state budget director, and the state budget director shall notify 10

the legislature at least 30 calendar days or 6 legislative session days, whichever is more, 11

before the department reduces any payments under this act because of the proration. During 12

the 30-calendar-day or 6-legislative-session-day period after that notification by the state 13

budget director, the department shall not reduce any payments under this act because of 14

proration under this subsection. The legislature may prevent proration from occurring by, 15

within the 30-calendar-day or 6-legislative-session-day period after that notification by the 16

state budget director, enacting legislation appropriating additional funds from the general 17

fund, countercyclical budget and economic stabilization fund, state school aid fund balance, 18

or another source to fund the amount of the projected shortfall. 19

(3) If proration is necessary under subsection (2), the department shall calculate the 20

proration in district and intermediate district payments under article I that is required 21

under subsection (2), and the department of treasury shall calculate the proration in 22

community college and public university payments under articles II and III that is required 23

under subsection (2), as follows: 24

(a) The department and the department of treasury shall calculate the percentage of 25

total state school aid fund money that is appropriated and allocated under this act for the 26

affected fiscal year for each of the following: 27

(i) Districts. 28

(ii) Intermediate districts. 29

(iii) Entities receiving funding from the state school aid fund under article I other 30

than districts or intermediate districts. 31

(iv) Community colleges and public universities that receive funding from the state 32

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school aid fund. 1

(b) The department shall recover a percentage of the proration amount required under 2

subsection (2) that is equal to the percentage calculated under subdivision (a)(i) for 3

districts by reducing payments to districts. This reduction shall be made by calculating an 4

equal dollar amount per pupil as necessary to recover this percentage of the proration amount 5

and reducing each district's total state school aid from state sources, other than payments 6

under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51A(11), 51c, 53a, 7

and 152a, by that amount. 8

(c) The department shall recover a percentage of the proration amount required under 9

subsection (2) that is equal to the percentage calculated under subdivision (a)(ii) for 10

intermediate districts by reducing payments to intermediate districts. This reduction shall 11

be made by reducing the payments to each intermediate district, other than payments under 12

sections 11f, 11g, 26a, 26b, 51a(2), 51a(12), 51A(11), 53a, 56, and 152a, on an equal 13

percentage basis. 14

(d) The department shall recover a percentage of the proration amount required under 15

subsection (2) that is equal to the percentage calculated under subdivision (a)(iii) for 16

entities receiving funding from the state school aid fund under article I other than 17

districts and intermediate districts by reducing payments to these entities. This reduction 18

shall be made by reducing the payments to each of these entities, other than payments under 19

sections 11j, 26a, and 26b, on an equal percentage basis. 20

(e) The department of treasury shall recover a percentage of the proration amount 21

required under subsection (2) that is equal to the percentage calculated under subdivision 22

(a)(iv) for community colleges and public universities that receive funding from the state 23

school aid fund by reducing that portion of the payments under articles II and III to these 24

community colleges and public universities that is from the state school aid fund on an equal 25

percentage basis. 26

SEC. 298. (1) SUBJECT TO THE CONDITIONS SET FORTH IN THIS ACT, THE AMOUNTS LISTED IN 27

THIS SECTION FOR THE PUBLIC SCHOOLS, INTERMEDIATE SCHOOL DISTRICTS, COMMUNITY COLLEGES AND 28

PUBLIC UNIVERSITIES OF THIS STATE, AND CERTAIN OTHER STATE PURPOSES RELATING TO EDUCATION ARE 29

A SUMMARY OF APPROPRIATIONS CONTAINED IN THIS ACT FOR FISCAL YEAR ENDING SEPTEMBER 30, 2015, 30

AND ANTICIPATED APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2016, FROM THE FUNDS 31

INDICATED IN THIS ACT:32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 (2) SUMMARY OF EDUCATION OMNIBUS APPROPRIATIONS 1

GROSS APPROPRIATION ..................................... $ 15,731,158,600 $ 15,693,442,500 2

TOTAL INTERDEPARTMENTAL GRANTS AND 3

INTRADEPARTMENTAL TRANSFERS.......................... 0 0 4

ADJUSTED GROSS APPROPRIATION .......................... $ 15,731,158,600 $ 15,693,442,500 5

TOTAL FEDERAL REVENUES ................................ 1,905,189,100 1,905,189,100 6

TOTAL LOCAL REVENUES .................................. 0 0 7

TOTAL PRIVATE REVENUES ................................ 0 0 8

TOTAL OTHER STATE RESTRICTED REVENUES ................. 12,257,156,700 12,200,740,600 9

STATE GENERAL FUND/GENERAL PURPOSE .................... $ 1,568,812,800 $ 1,587,512,800 10

SEC. 298A. (1) SUMMARY OF APPROPRIATIONS FOR SCHOOL AID (ARTICLE I) 11

APPROPRIATION SUMMARY 12





TOTAL FEDERAL REVENUES ................................ 1,808,162,700 1,808,162,700 17



TOTAL OTHER STATE RESTRICTED REVENUES ................. 11,858,976,900 11,802,560,800 20

STATE GENERAL FUND/GENERAL PURPOSE .................... $ 180,000,000 $ 180,000,000 21

(2) BASIC OPERATIONS 22

PROPOSAL A OBLIGATION PAYMENT ......................... $ 5,403,000,000 $ 5,277,000,000 23

DISCRETIONARY PAYMENT ................................. 3,578,000,000 3,655,000,000 24

ISD GENERAL OPERATIONS ................................ 64,115,000 64,108,000 25

HOLD HARMLESS PROVISION ............................... 6,000,000 6,000,000 26

DISTRICT DISSOLUTION TRANSITION COSTS ................. 2,200,000 0 27

MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM 28

REFORM COSTS......................................... 783,944,000 1,017,444,000 29

MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM 30

RESERVE FUND DEPOSIT................................. 50,000,000 0 31

ISOLATED DISTRICT FUNDING ............................. 2,584,600 2,584,600 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 GROSS APPROPRIATION ................................... $ 9,889,843,600 $ 10,022,136,600 1

APPROPRIATED FROM: 2

STATE RESTRICTED REVENUES ............................. 9,737,758,900 9,866,821,900 3


(3) SPECIAL EDUCATION 5

SPECIAL EDUCATION HEADLEE OBLIGATION .................. $ 630,500,000 $ 648,600,000 6

SPECIAL EDUCATION FOUNDATIONS ......................... 252,000,000 256,000,000 7

SPECIAL EDUCATION HOLD HARMLESS PAYMENT ............... 1,000,000 1,000,000 8

SPECIAL EDUCATION NON-SEC. 52 PAYMENT ................. 3,300,000 3,900,000 9

SPECIAL EDUCATION RULE CHANGE ......................... 2,200,000 2,200,000 10

SPECIAL EDUCATION COURT PLACED FTES ................... 10,500,000 10,500,000 11

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND ............... 1,688,000 1,688,000 12

SPECIAL EDUCATION MILLAGE EQUALIZATION ................ 37,758,100 37,758,100 13

SPECIAL EDUCATION FEDERAL PROGRAMS .................... 444,000,000 444,000,000 14

GROSS APPROPRIATION ................................... $ 1,382,946,100 $ 1,405,646,100 15


FEDERAL REVENUES ...................................... 444,000,000 444,000,000 17

STATE RESTRICTED REVENUES ............................. 938,946,100 961,646,100 18

STATE GENERAL FUND/GENERAL PURPOSE .................... $ 0 $ 0 19

(4) SUPPORT SERVICES 20

COURT-PLACED CHILDREN ................................. $ 8,000,000 $ 8,000,000 21

JUVENILE DETENTION FACILITIES ......................... 2,195,500 2,195,500 22

YOUTH CHALLENGE PROGRAM ............................... 1,500,000 1,500,000 23

AT-RISK PROGRAM ....................................... 308,988,200 308,988,200 24

CHILD AND ADOLESCENT HEALTH CENTERS ................... 3,557,300 3,557,300 25

HEARING AND VISION SCREENING .......................... 5,150,000 5,150,000 26

MATH AND SCIENCE CENTERS .............................. 8,474,300 8,474,300 27

YEAR-ROUND SCHOOLS PILOT PROGRAM ...................... 2,000,000 0 28

BILINGUAL EDUCATION ................................... 1,200,000 1,200,000 29

DISTRICT FISCAL EMERGENCY CONTINGENCY FUND ............ 10,000,000 0 30

FEDERAL PROGRAMS ...................................... 839,269,900 839,269,900 31

GROSS APPROPRIATION ................................... $ 1,190,335,200 $ 1,178,335,200 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 APPROPRIATED FROM: 1



STATE GENERAL FUND/GENERAL PURPOSE .................... $ 475,000 $ 475,000 4

(5) SCHOOL MEAL PROGRAMS 5

SCHOOL LUNCH .......................................... $ 535,695,100 $ 535,695,100 6

SCHOOL BREAKFAST ...................................... 5,625,000 5,625,000 7

GROSS APPROPRIATION ................................... $ 541,320,100 $ 541,320,100 8





(6) EARLY CHILDHOOD EDUCATION 13

GREAT START READINESS PROGRAM ......................... $ 239,575,000 $ 239,575,000 14

GREAT START EARLY CHILDHOOD BLOCK GRANTS .............. 10,900,000 10,900,000 15




STATE GENERAL FUND/GENERAL PURPOSE .................... $ 300,000 $ 300,000 19

(7) PERFORMANCE INITIATIVES 20

BEST PRACTICES GRANTS ................................. $ 80,000,000 $ 0 21

DISTRICT PERFORMANCE FUNDING .......................... 46,400,000 0 22

CONSOLIDATION INNOVATION GRANTS ....................... 5,000,000 0 23

GROSS APPROPRIATION ................................... $ 131,400,000 $ 0 24


STATE RESTRICTED REVENUES ............................. 131,400,000 0 26


(8) STUDENT ASSESSMENT AND ACCOUNTABILITY 28

MICHIGAN COUNCIL FOR EDUCATOR EFFECTIVENESS 29

RECOMMENDATIONS...................................... $ 27,800,000 $ 21,845,100 30

CENTER FOR EDUCATIONAL PERFORMANCE AND INFORMATION .... 12,216,300 14,716,300 31

STUDENT ASSESSMENTS ................................... 40,144,400 51,276,500 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 DATA COLLECTION AND REPORTING COSTS ................... 38,000,500 38,000,500 1






(9) TECHNOLOGY INITIATIVES 7

MICHIGAN VIRTUAL HIGH SCHOOL .......................... $ 9,387,500 $ 9,387,500 8

FIRST ROBOTICS ........................................ 2,000,000 09

TECHNOLOGY INFRASTRUCTURE IMPROVEMENT GRANTS .......... 50,000,000 0 10



STATE RESTRICTED REVENUES ............................. 52,000,000 0 13


(10) COLLEGE AND CAREER READINESS 15

VOCATIONAL EDUCATION .................................. $ 27,611,300 $ 26,611,300 16

VOCATIONAL EDUCATION MILLAGE REIMBURSEMENT ............ 9,190,000 9,190,000 17

DUAL ENROLLMENT INITIATIVE ............................ 1,750,000 0 18

ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE 19

TESTING.............................................. 250,000 0 20

STATEWIDE CAREER READINESS STUDY ...................... 250,000 0 21





(11) ADULT EDUCATION 26

ADULT EDUCATION ....................................... $ 22,000,000 $ 22,000,000 27





(12) TRANSPORTATION SAFETY 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 BUS DRIVER SAFETY ..................................... $ 1,625,000 $ 1,625,000 1

SCHOOL BUS INSPECTIONS ................................ 1,691,500 1,691,500 2





(13) DEBT SERVICE AND OTHER REQUIRED PAYMENTS 7

DEBT SERVICE ON NON-DURANT DISTRICT BONDS ............. $ 39,500,000 $ 0 8

SCHOOL BOND LOAN REDEMPTION FUND ...................... 142,600,000 160,500,000 9

SCHOOL AID FUND BORROWING COSTS ....................... 4,000,000 5,000,000 10

RENAISSANCE ZONE REIMBURSEMENT ........................ 26,300,000 26,300,000 11

PAYMENT IN LIEU OF TAXES REIMBURSEMENT ................ 4,210,000 4,210,000 12

PROMISE ZONE PAYMENTS ................................. 293,100 456,800 13





SEC. 298B. (1) SUMMARY OF APPROPRIATIONS FOR COMMUNITY COLLEGES (ARTICLE II) 18

APPROPRIATION SUMMARY 19

GROSS APPROPRIATION ..................................... $ 371,524,900 $ 390,224,900 20



ADJUSTED GROSS APPROPRIATION .......................... $ 371,524,900 $ 390,224,900 23

TOTAL FEDERAL REVENUES ................................ 0 0 24



TOTAL OTHER STATE RESTRICTED REVENUES ................. 197,614,100 197,614,100 27


(2) OPERATIONS 29

(A) ALPENA COMMUNITY COLLEGE 30

OPERATIONS ............................................ $ 5,236,500 $ 5,367,100 31

PERFORMANCE FUNDING ................................... 130,600 0 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 GROSS APPROPRIATION ................................... $ 5,367,100 $ 5,367,100 1

(B) BAY DE NOC COMMUNITY COLLEGE 2

OPERATIONS ............................................ $ 5,279,300 $ 5,395,700 3



(C) DELTA COLLEGE 6

OPERATIONS ............................................ $ 14,063,500 $ 14,435,600 7



(D) GLEN OAKS COMMUNITY COLLEGE 10

OPERATIONS ............................................ $ 2,441,500 $ 2,505,100 11



(E) GOGEBIC COMMUNITY COLLEGE 14

OPERATIONS ............................................ $ 4,330,300 $ 4,431,900 15



(F) GRAND RAPIDS COMMUNITY COLLEGE 18

OPERATIONS ............................................ $ 17,454,900 $ 17,869,000 19



(G) HENRY FORD COMMUNITY COLLEGE 22

OPERATIONS ............................................ $ 21,060,000 $ 21,529,000 23



(H) JACKSON COMMUNITY COLLEGE 26

OPERATIONS ............................................ $ 11,758,200 $ 12,034,400 27



(I) KALAMAZOO VALLEY COMMUNITY COLLEGE 30

OPERATIONS ............................................ $ 12,122,500 $ 12,448,500 31


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(J) KELLOGG COMMUNITY COLLEGE 2

OPERATIONS ............................................ $ 9,522,000 $ 9,770,700 3



(K) KIRTLAND COMMUNITY COLLEGE 6

OPERATIONS ............................................ $ 3,055,700 $ 3,153,900 7



(L) LAKE MICHIGAN COLLEGE 10

OPERATIONS ............................................ $ 5,178,100 $ 5,319,600 11



(M) LANSING COMMUNITY COLLEGE 14

OPERATIONS ............................................ $ 30,023,700 $ 30,742,500 15



(N) MACOMB COMMUNITY COLLEGE 18

OPERATIONS ............................................ $ 31,931,200 $ 32,672,900 19



(O) MID MICHIGAN COMMUNITY COLLEGE 22

OPERATIONS ............................................ $ 4,517,900 $ 4,661,700 23



(P) MONROE COUNTY COMMUNITY COLLEGE 26

OPERATIONS ............................................ $ 4,342,600 $ 4,473,400 27



(Q) MONTCALM COMMUNITY COLLEGE 30

OPERATIONS ............................................ $ 3,121,200 $ 3,212,700 31


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(R) C.S. MOTT COMMUNITY COLLEGE 2

OPERATIONS ............................................ $ 15,247,100 $ 15,617,500 3



(S) MUSKEGON COMMUNITY COLLEGE 6

OPERATIONS ............................................ $ 8,653,500 $ 8,862,100 7



(T) NORTH CENTRAL MICHIGAN COLLEGE 10

OPERATIONS ............................................ $ 3,064,400 $ 3,158,600 11



(U) NORTHWESTERN MICHIGAN COLLEGE 14

OPERATIONS ............................................ $ 8,825,300 $ 9,039,100 15



(V) OAKLAND COMMUNITY COLLEGE 18

OPERATIONS ............................................ $ 20,483,100 $ 21,031,100 19



(W) ST. CLAIR COUNTY COMMUNITY COLLEGE 22

OPERATIONS ............................................ $ 6,860,100 $ 7,030,700 23



(X) SCHOOLCRAFT COLLEGE 26

OPERATIONS ............................................ $ 12,112,200 $ 12,459,200 27



(Y) SOUTHWESTERN MICHIGAN COLLEGE 30

OPERATIONS ............................................ $ 6,404,300 $ 6,547,600 31


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(Z) WASHTENAW COMMUNITY COLLEGE 2

OPERATIONS ............................................ $ 12,610,800 $ 13,020,600 3



(AA) WAYNE COUNTY COMMUNITY COLLEGE 6

OPERATIONS ............................................ $ 16,194,300 $ 16,654,700 7



(BB) WEST SHORE COMMUNITY COLLEGE 10

OPERATIONS ............................................ $ 2,349,800 $ 2,404,300 11



(CC) LOCAL STRATEGIC VALUE ....................... $ 1,342,100 $ 1,342,100 14



STATE SCHOOL AID FUND ................................. 195,880,500 195,880,500 17


(3) MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT 19

SYSTEM (MPSERS) 20

MPSERS REIMBURSEMENT COSTS ............................ $ 60,833,600 $ 79,533,600 21





(4) RENAISSANCE ZONE REIMBURSEMENTS 26

RENAISSANCE ZONE REIMBURSEMENTS ....................... $ 3,500,000 $ 3,500,000 27




SEC. 298C. (1) SUMMARY OF APPROPRIATIONS FOR UNIVERSITIES AND STUDENT FINANCIAL AID 31

(ARTICLE III) 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 APPROPRIATION SUMMARY 1





TOTAL FEDERAL REVENUES ................................ 97,026,400 97,026,400 6



TOTAL OTHER STATE RESTRICTED REVENUES ................. 200,565,700 200,565,700 9

STATE GENERAL FUND/GENERAL PURPOSE .................... $ 1,214,902,000 $ 1,214,902,000 10

(2) UNIVERSITY OPERATIONS 11

(A) CENTRAL MICHIGAN UNIVERSITY 12

OPERATIONS ............................................ $ 73,540,100 $ 79,283,400 13

PERFORMANCE FUNDING ................................... 5,743,300 0 14





(B) EASTERN MICHIGAN UNIVERSITY 19

OPERATIONS ............................................ $ 67,275,400 $ 71,906,800 20






(C) FERRIS STATE UNIVERSITY 26

OPERATIONS ............................................ $ 45,636,500 $ 49,191,200 27






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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 (D) GRAND VALLEY STATE UNIVERSITY 1

OPERATIONS ............................................ $ 57,823,500 $ 63,296,500 2






(E) LAKE SUPERIOR STATE UNIVERSITY 8

OPERATIONS ............................................ $ 12,231,000 $ 12,799,100 9






(F) MICHIGAN STATE UNIVERSITY 15

OPERATIONS ............................................ $ 249,597,800 $ 264,877,200 16


MSU AGBIORESEARCH ..................................... 32,088,800 32,088,80018

MSU EXTENSION ......................................... 27,633,500 27,633,50019





(G) MICHIGAN TECHNOLOGICAL UNIVERSITY 24

OPERATIONS ............................................ $ 43,473,800 $ 45,997,100 25






(H) NORTHERN MICHIGAN UNIVERSITY 31

OPERATIONS ............................................ $ 41,741,400 $ 44,353,800 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 PERFORMANCE FUNDING ................................... 2,612,400 0 1





(I) OAKLAND UNIVERSITY 6

OPERATIONS ............................................ $ 45,651,600 $ 48,446,100 7






(J) SAGINAW VALLEY STATE UNIVERSITY 13

OPERATIONS ............................................ $ 25,991,000 $ 27,659,100 14






(K) UNIVERSITY OF MICHIGAN - ANN ARBOR 20

OPERATIONS ............................................ $ 279,232,700 $ 295,655,600 21






(L) UNIVERSITY OF MICHIGAN – DEARBORN 27

OPERATIONS ............................................ $ 22,510,400 $ 23,724,900 28





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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 STATE GENERAL FUND/GENERAL PURPOSE .................... $ 20,189,400 $ 20,189,400 1

(M) UNIVERSITY OF MICHIGAN – FLINT 2

OPERATIONS ............................................ $ 19,938,200 $ 21,380,000 3






(N) WAYNE STATE UNIVERSITY 9

OPERATIONS ............................................ $ 183,398,300 $ 190,734,900 10






(O) WESTERN MICHIGAN UNIVERSITY 16

OPERATIONS ............................................ $ 97,279,000 $ 102,907,000 17






(3) MICHIGAN PUBLIC SCHOOL EMPLOYEES RETIREMENT 23

SYSTEM (MPSERS) 24

MPSERS REIMBURSEMENT .................................. $ 2,446,200 $ 2,446,200 25



STATE SCHOOL AID FUND ................................. 446,200 446,200 28


(4) STATE AND REGIONAL PROGRAMS 30

COLLEGE ACCESS PROGRAM ................................ $ 2,000,000 $ 2,000,000 31

HIGHER EDUCATION DATABASE MODERNIZATION AND 32

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For Fiscal For Fiscal Year Ending Year Ending Sept. 30, 2015 Sept. 30, 2016 CONVERSION ......................................... 200,000 200,000 1

MIDWESTERN HIGHER EDUCATION COMPACT ................... 95,000 95,000 2




(5) MARTIN LUTHER KING, JR. – CESAR CHAVEZ – ROSA 6

PARKS PROGRAM 7

SELECT STUDENT SUPPORT SERVICES ....................... $ 1,956,100 $ 1,956,100 8

MICHIGAN COLLEGE/UNIVERSITY PARTNERSHIP PROGRAM ....... 586,800 586,800 9

MORRIS HOOD, JR. EDUCATOR DEVELOPMENT PROGRAM ......... 148,600 148,600 10




(6) GRANTS AND FINANCIAL AID 14

STATE COMPETITIVE SCHOLARSHIPS ........................ $ 18,361,700 $ 18,361,700 15

TUITION GRANTS ........................................ 31,664,700 31,664,700 16

TUITION INCENTIVE PROGRAM ............................. 48,500,000 48,500,000 17

CHILDREN OF VETERANS AND OFFICER’S SURVIVOR 18

TUITION PROGRAM...................................... 1,400,000 1,400,000 19

PROJECT GEAR-UP ....................................... 3,200,000 3,200,00020



UNITED STATES DEPARTMENT OF EDUCATION, OFFICE OF 23

ELEMENTARY AND SECONDARY EDUCATION, GEAR-UP PROGRAM.. 3,200,000 3,200,000 24

SOCIAL SECURITY ACT, TEMPORARY ASSISTANCE FOR NEEDY 25

FAMILIES............................................. 93,826,400 93,826,400 26

CONTRIBUTIONS TO CHILDREN OF VETERANS TUITION GRANT 27

PROGRAM.............................................. 100,000 100,000 28


Enacting section 1. (1) In accordance with section 30 of article I of the state 30

constitution of 1963, total state spending on school aid under article I as amended by this 31

amendatory act from state sources for fiscal year 2014-2015 is estimated at 11,988,976,900.0032

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and state appropriations for school aid to be paid to local units of government for fiscal 1

year 2014-2015 are estimated at $11,833,379,100.00; and total state spending on school aid 2

under article I as amended by this amendatory act from state sources for fiscal year 2015-3

2016 is estimated at $11,982,560,800.00 and state appropriations for school aid to be paid to 4

local units of government for fiscal year 2015-2016 are estimated at $11,801,763,000.00. 5

(2) In accordance with section 30 of article IX of the state constitution of 1963, 6

total state spending from state sources for community colleges for fiscal year 2014-2015 7

under article II as amended by this amendatory act is estimated at $371,524,900.00 and the 8

amount of that state spending from state sources to be paid to local units of government for 9

fiscal year 2014-2015 is estimated at $371,524,900.00; and total state spending from state 10

sources for community colleges for fiscal year 2015-2016 under article II as amended by this 11

amendatory act is estimated at $390,224,900.00 and the amount of that state spending from 12

state sources to be paid to local units of government for fiscal year 2015-2016 is estimated 13

at $390,224,900.00. 14

(3) In accordance with section 30 of article IX of the state constitution of 1963, 15

total state spending from state sources for higher education for fiscal year 2014-2015 under 16

article III as amended by this amendatory act is estimated at $1,415,467,700.00 and the 17

amount of that state spending from state sources to be paid to local units of government for 18

fiscal year 2014-2015 is estimated at $0; and total state spending from state sources for 19

higher education for fiscal year 2015-2016 under article III as amended by this amendatory 20

act is estimated at $1,415,467,700.00 and the amount of that state spending from state 21

sources to be paid to local units of government for fiscal year 2015-2016 is estimated at $0. 22

Enacting Section 2. Sections 22c, 22k, 64a, 82, 93, 95, 101a, 147a, 166, 208, 210b, 23

212, 217, 227, 228, 229b, 239a, 261, 262a, 273, 274, 274a, 275a, and 293 of the state school 24

aid act of 1979, 1979 PA 94, MCL 388.1622c, 388.1622k, 388.1664a, 388.1682, 388.1693, 25

388.1695, 388.1701a, 388.1747a, 388.1766, 388.1808, 388.1810b, 388.1812, 388.1817, 388.1827, 26

388.1828, 388.1829b, 388.1839a, 388.1861, 388.1862a, 388.1873, 388.1874, 388.1874a, 27

388.1875a, and 388.1893 are repealed effective October 1, 2014. 28

Enacting section 3. (1) Except as otherwise provided in subsection (2), this 29

amendatory act takes effect October 1, 2014. 30

(2) Sections 225, 265, 265a, and 267 of the state school aid act of 1979, 1979 PA 94, 31

MCL 388.1825, 388.1865, 388.1865a, and 388.1867, sections 225, 265, 265a, and 267 as amended, 32

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and section 230a as added by this amendatory act, take effect upon enactment of this 1

amendatory act. 2

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2 8 9 10 11 12 13 14 15 executive budget recommendation ...msbo.org/sites/default/files/executive...

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