Bill Text: MI HB4043 | 2015-2016 | 98th Legislature | Introduced
Bill Title: School aid; foundation allowance; per-pupil funding formula; revise to provide greater equity. Amends sec. 20 of 1979 PA 94 (MCL 388.1620).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-01-22 - Printed Bill Filed 01/22/2015 [HB4043 Detail]
Download: Michigan-2015-HB4043-Introduced.html
HOUSE BILL No. 4043
January 21, 2015, Introduced by Rep. Johnson and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 20 (MCL 388.1620), as amended by 2014 PA 196.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
20. (1) For 2014-2015, both of the following apply:
(a)
The the basic foundation allowance is $8,099.00 .
(b)
The and the minimum foundation allowance is $7,126.00. For
2015-2016, the basic foundation allowance shall be $7,880.00 and
the minimum foundation allowance shall be $7,305.00. For 2016-2017,
the basic foundation allowance shall be $7,660.00 and the minimum
foundation allowance shall be $7,370.00. For 2017-2018, the basic
foundation allowance and the minimum foundation allowance both
shall be $7,435.00.
(2) The amount of each district's foundation allowance shall
be calculated as provided in this section, using a basic foundation
allowance in the amount specified in subsection (1).
(3) Except as otherwise provided in this section, the amount
of a district's foundation allowance shall be calculated as
follows, using in all calculations the total amount of the
district's foundation allowance as calculated before any proration:
(a) Except as otherwise provided in this subdivision, for a
district that had a foundation allowance for the immediately
preceding state fiscal year that was equal to the minimum
foundation allowance for the immediately preceding state fiscal
year, but less than the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the sum of the
district's foundation allowance for the immediately preceding state
fiscal year plus the difference between twice the dollar amount of
the adjustment from the immediately preceding state fiscal year to
the current state fiscal year made in the basic foundation
allowance and [(the difference between the basic foundation
allowance for the current state fiscal year and basic foundation
allowance for the immediately preceding state fiscal year minus
$10.00) times (the difference between the district's foundation
allowance for the immediately preceding state fiscal year and the
minimum foundation allowance for the immediately preceding state
fiscal year) divided by the difference between the basic foundation
allowance for the current state fiscal year and the minimum
foundation allowance for the immediately preceding state fiscal
year]. However, the foundation allowance for a district that had a
foundation allowance in an amount less than the basic foundation
allowance for the immediately preceding state fiscal year shall not
exceed the basic foundation allowance for the current state fiscal
year. For the purposes of this subdivision, for 2014-2015, the
minimum foundation allowance for the immediately preceding state
fiscal year shall be considered to be $7,076.00. For 2014-2015, for
a district that had a foundation allowance for the immediately
preceding state fiscal year that was at least equal to the minimum
foundation allowance for the immediately preceding state fiscal
year but less than the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a foundation allowance in an amount equal to the district's
foundation allowance for 2013-2014 plus $50.00. For the purposes of
this subdivision, for 2015-2016, the minimum foundation allowance
for the immediately preceding state fiscal year shall be considered
to be $7,251.00. For 2015-2016, for a district that had a
foundation allowance as calculated under this subdivision for 2014-
2015 that was less than $7,305.00, the district's foundation
allowance shall be $7,305.00. For 2015-2016, for a district that
had a foundation allowance as calculated under this subdivision for
2014-2015 that was at least equal to $7,305.00, the district's
foundation allowance shall be the same as the district's foundation
allowance for 2014-2015. For 2016-2017, for a district that had a
foundation allowance as calculated under this subdivision for 2015-
2016 that was less than $7,370.00, the district's foundation
allowance shall be $7,370.00. For 2016-2017, for a district that
had a foundation allowance as calculated under this subdivision for
2015-2016 that was at least equal to $7,370.00, the district's
foundation allowance shall be the same as the district's foundation
allowance for 2015-2016. For 2017-2018, for a district that had a
foundation allowance as calculated under this subdivision for 2016-
2017 that was less than $7,435.00, the district's foundation
allowance shall be $7,435.00. For 2017-2018, for a district that
had a foundation allowance as calculated under this subdivision for
2016-2017 that was at least equal to $7,435.00, the district's
foundation allowance shall be $7,435.00.
(b)
Except Beginning in
2014-2015, except as otherwise
provided in this subsection, for a district that in the immediately
preceding state fiscal year had a foundation allowance in an amount
equal to the amount of the basic foundation allowance for the
immediately preceding state fiscal year, the district shall receive
a
foundation allowance for 2014-2015 in an amount equal to the
basic
foundation allowance. for 2014-2015.
(c) For a district that had a foundation allowance for the
immediately preceding state fiscal year that was greater than the
basic foundation allowance for the immediately preceding state
fiscal year, the district's foundation allowance is an amount equal
to the sum of the district's foundation allowance for the
immediately preceding state fiscal year plus the lesser of the
increase in the basic foundation allowance for the current state
fiscal year, as compared to the immediately preceding state fiscal
year, or the product of the district's foundation allowance for the
immediately preceding state fiscal year times the percentage
increase in the United States consumer price index in the calendar
year ending in the immediately preceding fiscal year as reported by
the May revenue estimating conference conducted under section 367b
of the management and budget act, 1984 PA 431, MCL 18.1367b. For
2015-2016, for a district that in 2014-2015 had a foundation
allowance as calculated under this subdivision in an amount greater
than the amount of the basic foundation allowance for 2014-2015,
the district shall receive a foundation allowance for 2015-2016 in
an amount equal to the district's foundation allowance for 2014-
2015, minus $219.00. For 2016-2017, for a district that in 2015-
2016 had a foundation allowance as calculated under this
subdivision in an amount at least equal to the amount of the basic
foundation allowance for 2015-2016, the district shall receive a
foundation allowance for 2016-2017 in an amount equal to the
district's foundation allowance for 2015-2016, minus $220.00. For
2017-2018, for a district that in 2016-2017 had a foundation
allowance as calculated under this subdivision in an amount at
least equal to the amount of the basic foundation allowance for
2016-2017, the district shall receive a foundation allowance for
2017-2018 in an amount equal to the district's foundation allowance
for 2016-2017, minus $225.00.
(d) For a district that has a foundation allowance that is not
a whole dollar amount, the district's foundation allowance shall be
rounded up to the nearest whole dollar.
(e) For a district that received a payment under section 22c
as that section was in effect for 2013-2014, the district's 2013-
2014 foundation allowance shall be considered to have been an
amount equal to the sum of the district's actual 2013-2014
foundation allowance as otherwise calculated under this section
plus the per pupil amount of the district's equity payment for
2013-2014 under section 22c as that section was in effect for 2013-
2014.
(4) Except as otherwise provided in this subsection, the state
portion of a district's foundation allowance is an amount equal to
the district's foundation allowance or the basic foundation
allowance for the current state fiscal year, whichever is less,
minus the local portion of the district's foundation allowance
divided by the district's membership excluding special education
pupils. For a district described in subsection (3)(c), the state
portion of the district's foundation allowance is an amount equal
to $6,962.00 plus the difference between the district's foundation
allowance for the current state fiscal year and the district's
foundation allowance for 1998-99, minus the local portion of the
district's foundation allowance divided by the district's
membership excluding special education pupils. For a district that
has a millage reduction required under section 31 of article IX of
the state constitution of 1963, the state portion of the district's
foundation allowance shall be calculated as if that reduction did
not occur. For a receiving district, if school operating taxes
continue to be levied on behalf of a dissolved district that has
been attached in whole or in part to the receiving district to
satisfy debt obligations of the dissolved district under section 12
of the revised school code, MCL 380.12, the taxable value per
membership pupil of property in the receiving district used for the
purposes of this subsection does not include the taxable value of
property within the geographic area of the dissolved district.
(5) The allocation calculated under this section for a pupil
shall be based on the foundation allowance of the pupil's district
of residence. For a pupil enrolled pursuant to section 105 or 105c
in a district other than the pupil's district of residence, the
allocation calculated under this section shall be based on the
lesser of the foundation allowance of the pupil's district of
residence or the foundation allowance of the educating district.
For a pupil in membership in a K-5, K-6, or K-8 district who is
enrolled in another district in a grade not offered by the pupil's
district of residence, the allocation calculated under this section
shall be based on the foundation allowance of the educating
district if the educating district's foundation allowance is
greater than the foundation allowance of the pupil's district of
residence.
(6) Except as otherwise provided in this subsection, for
pupils in membership, other than special education pupils, in a
public school academy, the allocation calculated under this section
is an amount per membership pupil other than special education
pupils in the public school academy equal to the foundation
allowance of the district in which the public school academy is
located or the state maximum public school academy allocation,
whichever is less. However, a public school academy that had an
allocation under this subsection before 2009-2010 that was equal to
the sum of the local school operating revenue per membership pupil
other than special education pupils for the district in which the
public school academy is located and the state portion of that
district's foundation allowance shall not have that allocation
reduced as a result of the 2010 amendment to this subsection.
Notwithstanding section 101, for a public school academy that
begins operations after the pupil membership count day, the amount
per membership pupil calculated under this subsection shall be
adjusted by multiplying that amount per membership pupil by the
number of hours of pupil instruction provided by the public school
academy after it begins operations, as determined by the
department, divided by the minimum number of hours of pupil
instruction required under section 101(3). The result of this
calculation shall not exceed the amount per membership pupil
otherwise calculated under this subsection.
(7) Except as otherwise provided in this subsection, for
pupils attending an achievement school and in membership in the
education achievement system, other than special education pupils,
the allocation calculated under this section is an amount per
membership pupil other than special education pupils equal to the
foundation allowance of the district in which the achievement
school is located, not to exceed the basic foundation allowance.
Notwithstanding section 101, for an achievement school that begins
operation after the pupil membership count day, the amount per
membership pupil calculated under this subsection shall be adjusted
by multiplying that amount per membership pupil by the number of
hours of pupil instruction provided by the achievement school after
it begins operations, as determined by the department, divided by
the minimum number of hours of pupil instruction required under
section 101(3). The result of this calculation shall not exceed the
amount per membership pupil otherwise calculated under this
subsection. For the purposes of this subsection, if a public school
is transferred from a district to the state school reform/redesign
district or the achievement authority under section 1280c of the
revised school code, MCL 380.1280c, that public school is
considered to be an achievement school within the education
achievement system and not a school that is part of a district, and
a pupil attending that public school is considered to be in
membership in the education achievement system and not in
membership in the district that operated the school before the
transfer.
(8) Subject to subsection (4), for a district that is formed
or reconfigured after June 1, 2002 by consolidation of 2 or more
districts or by annexation, the resulting district's foundation
allowance under this section beginning after the effective date of
the consolidation or annexation shall be the lesser of the sum of
the average of the foundation allowances of each of the original or
affected districts, calculated as provided in this section,
weighted as to the percentage of pupils in total membership in the
resulting district who reside in the geographic area of each of the
original or affected districts plus $100.00 or the highest
foundation allowance among the original or affected districts. This
subsection does not apply to a receiving district unless there is a
subsequent consolidation or annexation that affects the district.
(9) Each fraction used in making calculations under this
section shall be rounded to the fourth decimal place and the dollar
amount of an increase in the basic foundation allowance shall be
rounded to the nearest whole dollar.
(10) State payments related to payment of the foundation
allowance for a special education pupil are not calculated under
this section but are instead calculated under section 51a.
(11) To assist the legislature in determining the basic
foundation allowance for the subsequent state fiscal year, each
revenue estimating conference conducted under section 367b of the
management and budget act, 1984 PA 431, MCL 18.1367b, shall
calculate a pupil membership factor, a revenue adjustment factor,
and an index as follows:
(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current
state fiscal year, excluding intermediate district membership, by
the estimated membership for the school year ending in the
subsequent state fiscal year, excluding intermediate district
membership. If a consensus membership factor is not determined at
the revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(b) The revenue adjustment factor shall be computed by
dividing the sum of the estimated total state school aid fund
revenue for the subsequent state fiscal year plus the estimated
total state school aid fund revenue for the current state fiscal
year, adjusted for any change in the rate or base of a tax the
proceeds of which are deposited in that fund and excluding money
transferred into that fund from the countercyclical budget and
economic stabilization fund under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated
total school aid fund revenue for the current state fiscal year
plus the estimated total state school aid fund revenue for the
immediately preceding state fiscal year, adjusted for any change in
the rate or base of a tax the proceeds of which are deposited in
that fund. If a consensus revenue factor is not determined at the
revenue estimating conference, the principals of the revenue
estimating conference shall report their estimates to the house and
senate subcommittees responsible for school aid appropriations not
later than 7 days after the conclusion of the revenue conference.
(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus
index is not determined at the revenue estimating conference, the
principals of the revenue estimating conference shall report their
estimates to the house and senate subcommittees responsible for
school aid appropriations not later than 7 days after the
conclusion of the revenue conference.
(12) Payments to districts, public school academies, or the
education achievement system shall not be made under this section.
Rather, the calculations under this section shall be used to
determine the amount of state payments under section 22b.
(13) If an amendment to section 2 of article VIII of the state
constitution of 1963 allowing state aid to some or all nonpublic
schools is approved by the voters of this state, each foundation
allowance or per pupil payment calculation under this section may
be reduced.
(14) As used in this section:
(a) "Certified mills" means the lesser of 18 mills or the
number of mills of school operating taxes levied by the district in
1993-94.
(b) "Combined state and local revenue" means the aggregate of
the district's state school aid received by or paid on behalf of
the district under this section and the district's local school
operating revenue.
(c) "Combined state and local revenue per membership pupil"
means the district's combined state and local revenue divided by
the district's membership excluding special education pupils.
(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.
(e) "Dissolved district" means a district that loses its
organization, has its territory attached to 1 or more other
districts, and is dissolved as provided under section 12 of the
revised school code, MCL 380.12.
(f) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(g) "Local portion of the district's foundation allowance"
means an amount that is equal to the difference between (the sum of
the product of the taxable value per membership pupil of all
property in the district that is nonexempt property times the
district's certified mills and, for a district with certified mills
exceeding 12, the product of the taxable value per membership pupil
of property in the district that is commercial personal property
times the certified mills minus 12 mills) and (the quotient of the
product of the captured assessed valuation under tax increment
financing acts times the district's certified mills divided by the
district's membership excluding special education pupils).
(h) "Local school operating revenue" means school operating
taxes levied under section 1211 of the revised school code, MCL
380.1211. For a receiving district, if school operating taxes are
to be levied on behalf of a dissolved district that has been
attached in whole or in part to the receiving district to satisfy
debt obligations of the dissolved district under section 12 of the
revised school code, MCL 380.12, local school operating revenue
does not include school operating taxes levied within the
geographic area of the dissolved district.
(i) "Local school operating revenue per membership pupil"
means a district's local school operating revenue divided by the
district's membership excluding special education pupils.
(j) "Maximum public school academy allocation", except as
otherwise provided in this subdivision, means the maximum per-pupil
allocation as calculated by adding the highest per-pupil allocation
among all public school academies for the immediately preceding
state fiscal year plus the difference between twice the amount of
the difference between the basic foundation allowance for the
current state fiscal year and the basic foundation for the
immediately preceding state fiscal year and [(the amount of the
difference between the basic foundation allowance for the current
state fiscal year and the basic foundation for the immediately
preceding state fiscal year minus $10.00) times (the difference
between the highest per-pupil allocation among all public school
academies for the immediately preceding state fiscal year and the
minimum foundation allowance for the immediately preceding state
fiscal year) divided by the difference between the basic foundation
allowance for the current state fiscal year and the minimum
foundation allowance for the immediately preceding state fiscal
year]. For the purposes of this subdivision, for 2014-2015, the
minimum foundation allowance for the immediately preceding state
fiscal year shall be considered to be $7,076.00. For 2014-2015, the
maximum public school academy allocation is $7,218.00. Beginning
with 2015-2016, the maximum public school academy allocation for a
fiscal year is equal to the minimum foundation allowance for that
fiscal year.
(k) "Membership" means the definition of that term under
section 6 as in effect for the particular fiscal year for which a
particular calculation is made.
(l) "Nonexempt property" means property that is not a principal
residence, qualified agricultural property, qualified forest
property, supportive housing property, industrial personal
property, or commercial personal property.
(m) "Principal residence", "qualified agricultural property",
"qualified forest property", "supportive housing property",
"industrial personal property", and "commercial personal property"
mean those terms as defined in section 1211 of the revised school
code, MCL 380.1211.
(n) "Receiving district" means a district to which all or part
of the territory of a dissolved district is attached under section
12 of the revised school code, MCL 380.12.
(o) "School operating purposes" means the purposes included in
the operation costs of the district as prescribed in sections 7 and
18 and purposes authorized under section 1211 of the revised school
code, MCL 380.1211.
(p) "School operating taxes" means local ad valorem property
taxes levied under section 1211 of the revised school code, MCL
380.1211, and retained for school operating purposes.
(q) "Tax increment financing acts" means 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, the local development financing
act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
or the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.
(r) "Taxable value per membership pupil" means taxable value,
as certified by the county treasurer and reported to the
department, for the calendar year ending in the current state
fiscal year divided by the district's membership excluding special
education pupils for the school year ending in the current state
fiscal year.
