Bill Text: MI HB4110 | 2015-2016 | 98th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Appropriations; supplemental; omnibus school aid supplemental adjusting certain appropriations and fund sources; provide for. Amends secs. 11, 11m, 18, 22a, 22b, 51a, 51c, 147c, 147d, 201 & 236 of 1979 PA 94 (MCL 388.1611 et seq.) & repeals sec. 31g of 1979 PA 94 (MCL 388.1631g).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2015-03-11 - Assigned Pa 05'15 With Immediate Effect [HB4110 Detail]

Download: Michigan-2015-HB4110-Engrossed.html

HB-4110, As Passed Senate, February 26, 2015

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4110

 

 

(as amended February 18, 2015)

 

 

 

 

 

 

 

 

     [A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 11, 11m, 18, 22a, 22b, 51a, 51c, 147c, 147d, 201,

 

and 236 (MCL 388.1611, 388.1611m, 388.1618, 388.1622a, 388.1622b,

 

388.1651a, 388.1651c, 388.1747c, 388.1747d, 388.1801, and 388.1836),

 

sections 11, 11m, 18, 22a, 22b, 51a, 51c, 147c, 201, and 236 as amended

 

and section 147d as added by 2014 PA 476; and to repeal acts and parts

 

of acts.]

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11. (1) For the fiscal year ending September 30, 2014,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$11,200,232,300.00 from the state school aid fund, the sum of

 

$156,000,000.00 from the MPSERS retirement obligation reform


House Bill No. 4110 (H-1) as amended February 17, 2015           (1 of 6)

 

reserve fund created under section 147b, and the sum of

 

$149,900,000.00 from the general fund. For the fiscal year ending

 

September 30, 2015, there is appropriated for the public schools of

 

this state and certain other state purposes relating to education

 

the sum of $11,929,262,900.00 $11,827,097,400.00 from the state

 

school aid fund, the sum of $18,000,000.00 from the MPSERS

 

retirement obligation reform reserve fund created under section

 

147b, and the sum of $114,900,000.00 $33,700,000.00 from the

 

general fund. In addition, all other available federal funds are

 

appropriated each fiscal year for the fiscal year ending September

 

30, 2014 and for the fiscal year ending September 30, 2015.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

from the general fund shall be expended to fund the purposes of

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

     (3) Any general fund allocations under this article that are

 

not expended by the end of the state fiscal year are transferred to

 

the school aid stabilization fund created under section 11a.

 

     Sec. 11m. From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $4,000,000.00

 

$3,000,000.00 for fiscal year cash-flow borrowing costs solely

 

related to the state school aid fund established by section 11 of

 

article IX of the state constitution of 1963.

     [Sec. 18. (1) Except as provided in another section of this article, each district or other entity shall apply the money received by the district or entity under this article to salaries and other compensation of teachers and other employees, tuition, transportation, lighting, heating, ventilation, water service, the purchase of textbooks, other supplies, and any other school operating expenditures defined in section 7. However, not more than 20% of the total amount received by a district under sections 22a and 22b or received by an intermediate district under section 81 may be transferred by the board to either the capital projects fund or to the debt retirement fund for debt service. The money shall not be applied or taken for a purpose other than as provided in this section. The department shall determine the reasonableness of expenditures and may withhold from a recipient of funds under this article the apportionment otherwise due upon a violation by the recipient.

     (2) Within 15 days after a board adopts its annual operating budget for the following school fiscal year, or after a board adopts a subsequent revision to that budget, the district shall make all of the following available through a link on its website home page, or may make the information available through a link on its intermediate district's website home page, in a form and manner prescribed by the department:

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

     (b) Using data that have already been collected and submitted to the department, a summary of district expenditures for the most recent fiscal year for which they are available, expressed in the following 2 pie charts:

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

     (A) Salaries and wages.

     (B) Employee benefit costs, including, but not limited to, medical, dental, vision, life, disability, and long-term care benefits.

     (C) Retirement benefit costs.

     (D) All other personnel costs.

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

     (A) Instruction.

     (B) Support services.

     (C) Business and administration.

     (D) Operations and maintenance.

     (c) Links to all of the following:

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

     (ii) Each health care benefits plan, including, but not limited to, medical, dental, vision, disability, long-term care, or any other type of benefits that would constitute health care services, offered to any bargaining unit or employee in the district.

     (iii) The audit report of the audit conducted under subsection (4) for the most recent fiscal year for which it is available.

     (iv) The bids required under section 5 of the public employee health benefits act, 2007 PA 106, MCL 124.75.

     (v) The district's written policy governing procurement of supplies, materials, and equipment.

     (vi) The district's written policy establishing specific categories of reimbursable expenses, as described in section 1254(2) of the revised school code, MCL 380.1254.

     (vii) Either the district's accounts payable check register for the most recent school fiscal year or a statement of the total amount of expenses incurred by board members or employees of the district that were reimbursed by the district for the most recent school fiscal year.

     (d) The total salary and a description and cost of each fringe benefit included in the compensation package for the superintendent of the district and for each employee of the district whose salary exceeds $100,000.00.

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

     (f) The annual amount spent on lobbying or lobbying services. As used in this subdivision, "lobbying" means that term as defined in section 5 of 1978 PA 472, MCL 4.415.

     (g) Any deficit elimination plan or enhanced deficit elimination plan the district was required to submit under this article.

     (h) Identification of all credit cards maintained by the district as district credit cards, the identity of all individuals authorized to use each of those credit cards, the credit limit on each credit card, and the dollar limit, if any, for each individual's authorized use of the credit card.

     (i) Costs incurred for each instance of out-of-state travel by the school administrator of the district that is fully or partially paid for by the district and the details of each of those instances of out-of-state travel, including at least identification of each individual on the trip, destination, and purpose.

     (3) For the information required under subsection (2)(a), (2)(b)(i), and (2)(c), an intermediate district shall provide the same information in the same manner as required for a district under subsection (2).

     (4) For the purposes of determining the reasonableness of expenditures, whether a district or intermediate district has received the proper amount of funds under this article, and whether a violation of this article has occurred, all of the following apply:

     (a) The department shall require that each district and intermediate district have an audit of the district's or intermediate district's financial and pupil accounting records conducted at least annually, and at such other times as determined by the department, at the expense of the district or intermediate district, as applicable. The audits must be performed by a certified public accountant or by the intermediate district superintendent, as may be required by the department, or in the case of a district of the first class by a certified public accountant, the intermediate superintendent, or the auditor general of the city. A district or intermediate district shall retain these records for the current fiscal year and from at least the 3 immediately preceding fiscal years.

     (b) If a district operates in a single building with fewer than 700 full-time equated pupils, if the district has stable membership, and if the error rate of the immediately preceding 2 pupil accounting field audits of the district is less than 2%, the district may have a pupil accounting field audit conducted biennially but must continue to have desk audits for each pupil count. The auditor must document compliance with the audit cycle in the pupil auditing manual. As used in this subdivision, "stable membership" means that the district's membership for the current fiscal year varies from the district's membership for the immediately preceding fiscal year by less than 5%.

     (c) A district's or intermediate district's annual financial audit shall include an analysis of the financial and pupil accounting data used as the basis for distribution of state school aid.

     (d) The pupil and financial accounting records and reports, audits, and management letters are subject to requirements established in the auditing and accounting manuals approved and published by the department.

     (e) All of the following shall be done not later than November 15, 2014 for reporting 2013-2014 data during 2014-2015, and not later than October 15 November 1 for reporting the prior fiscal year data for all subsequent fiscal years:

     (i) A district shall file the annual financial audit reports with the intermediate district and the department.

     (ii) The intermediate district shall file the annual financial audit reports for the intermediate district with the department.

     (iii) The intermediate district shall enter the pupil membership audit reports for its constituent districts and for the intermediate district, for the pupil membership count day and supplemental count day, in the Michigan student data system.

     (f) The annual financial audit reports and pupil accounting procedures reports shall be available to the public in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

     (g) Not later than January 31 of each year, the department shall notify the state budget director and the legislative appropriations subcommittees responsible for review of the school aid budget of districts and intermediate districts that have not filed an annual financial audit and pupil accounting procedures report required under this section for the school year ending in the immediately preceding fiscal year.

     (5) By November 15, 2014 for 2014-2015 and by October 15 November 1 for all subsequent fiscal years, each district and intermediate district shall submit to the center, in a manner prescribed by the center, annual comprehensive financial data consistent with accounting manuals and charts of accounts approved and published by the department. For an intermediate district, the report shall also contain the website address where the department can access the report required under section 620 of the revised school code, MCL 380.620. The department shall ensure that the prescribed Michigan public school accounting manual chart of accounts includes standard conventions to distinguish expenditures by allowable fund function and object. The functions shall include at minimum categories for instruction, pupil support, instructional staff support, general administration, school administration, business administration, transportation, facilities operation and maintenance, facilities acquisition, and debt service; and shall include object classifications of salary, benefits, including categories for active employee health expenditures, purchased services, supplies, capital outlay, and other. Districts shall report the required level of detail consistent with the manual as part of the comprehensive annual financial report.

     (6) By September 30 of each year, each district and intermediate district shall file with the department the special education actual cost report, known as "SE-4096", on a form and in the manner prescribed by the department.

     (7) By October 7 of each year, each district and intermediate district shall file with the center the transportation expenditure report, known as "SE-4094", on a form and in the manner prescribed by the center.

     (8) The department shall review its pupil accounting and pupil auditing manuals at least annually and shall periodically update those manuals to reflect changes in this article.

     (9) If a district that is a public school academy purchases property using money received under this article, the public school academy shall retain ownership of the property unless the public school academy sells the property at fair market value.

     (10) If a district or intermediate district does not comply with subsections (4), (5), (6), and (7), the department shall withhold all state school aid due to the district or intermediate district under this article, beginning with the next payment due to the district or intermediate district, until the district or intermediate district complies with subsections (4), (5), (6), and (7). However, the department shall not withhold the payment due on October 20 due to the operation of this subsection. If the district or intermediate district does not comply with subsections (4), (5), (6), and (7) by the end of the fiscal year, the district or intermediate district forfeits the amount withheld.

     (11) Not later than November 1, 2014, if a district or intermediate district offers online learning under section 21f, the district or intermediate district shall submit to the department a report that details the per-pupil costs of operating the online learning by vendor type. The report shall include at least all of the following information concerning the operation of online learning for the school fiscal year ending June 30, 2014:

     (a) The name of the district operating the online learning and of each district that enrolled students in the online learning.

     (b) The total number of students enrolled in the online learning and the total number of membership pupils enrolled in the online learning.

     (c) For each pupil who is enrolled in a district other than the district offering online learning, the name of that district.

     (d) The district in which the pupil was enrolled before enrolling in the district offering online learning.

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

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

     (g) The total cost to enroll a student in the program. This cost shall be reported on a per-pupil, per-course, per-semester or trimester basis by vendor type. The total shall include costs broken down by cost for content development, content licensing, training, online instruction and instructional support, personnel, hardware and software, payment to each online learning provider, and other costs associated with operating online learning.

     (h) The name of each online education provider contracted by the district and the state in which each online education provider is headquartered.

     (12) Not later than March 31, 2015, the department shall submit to the house and senate appropriations subcommittees on state school aid, the state budget director, and the house and senate fiscal agencies a report summarizing the per pupil costs by vendor type of online courses available under section 21f.

     (13) As used in subsections (11) and (12), "vendor type" means the following:

     (a) Online courses provided by the Michigan virtual university.

     (b) Online courses provided by a school of excellence that is a cyber school, as defined in section 551 of the revised school code, MCL 380.551.

     (c) Online courses provided by third party vendors not affiliated with a Michigan public school.

     (d) Online courses created and offered by a district or intermediate district.]

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

 

allocated an amount not to exceed $5,393,000,000.00

 

$5,380,000,000.00 for 2014-2015 for payments to districts and


 

qualifying public school academies to guarantee each district and

 

qualifying public school academy an amount equal to its 1994-95

 

total state and local per pupil revenue for school operating

 

purposes under section 11 of article IX of the state constitution

 

of 1963. Pursuant to section 11 of article IX of the state

 

constitution of 1963, this guarantee does not apply to a district

 

in a year in which the district levies a millage rate for school

 

district operating purposes less than it levied in 1994. However,

 

subsection (2) applies to calculating the payments under this

 

section. Funds allocated under this section that are not expended

 

in the state fiscal year for which they were allocated, as

 

determined by the department, may be used to supplement the

 

allocations under sections 22b and 51c in order to fully fund those

 

calculated allocations for the same fiscal year.

 

     (2) To ensure that a district receives an amount equal to the

 

district's 1994-95 total state and local per pupil revenue for

 

school operating purposes, there is allocated to each district a

 

state portion of the district's 1994-95 foundation allowance in an

 

amount calculated as follows:

 

     (a) Except as otherwise provided in this subsection, the state

 

portion of a district's 1994-95 foundation allowance is an amount

 

equal to the district's 1994-95 foundation allowance or $6,500.00,

 

whichever is less, minus the difference between the sum of the

 

product of the taxable value per membership pupil of all property

 

in the district that is nonexempt property times the district's

 

certified mills and, for a district with certified mills exceeding

 

12, the product of the taxable value per membership pupil of


 

property in the district that is commercial personal property times

 

the certified mills minus 12 mills and the quotient of the ad

 

valorem property tax revenue of the district captured under tax

 

increment financing acts divided by the district's membership. For

 

a district that has a millage reduction required under section 31

 

of article IX of the state constitution of 1963, the state portion

 

of the district's foundation allowance shall be calculated as if

 

that reduction did not occur. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, taxable

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district.

 

     (b) For a district that had a 1994-95 foundation allowance

 

greater than $6,500.00, the state payment under this subsection

 

shall be the sum of the amount calculated under subdivision (a)

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference


 

between the district's 1994-95 foundation allowance minus $6,500.00

 

and the current year hold harmless school operating taxes per

 

pupil. If the result of the calculation under subdivision (a) is

 

negative, the negative amount shall be an offset against any state

 

payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

a state payment or a deduction under this subdivision. The taxable

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

district's membership. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, ad valorem

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

     (3) Beginning in 2003-2004, for pupils in membership in a

 

qualifying public school academy, there is allocated under this

 

section to the authorizing body that is the fiscal agent for the

 

qualifying public school academy for forwarding to the qualifying

 

public school academy an amount equal to the 1994-95 per pupil

 

payment to the qualifying public school academy under section 20.

 

     (4) A district or qualifying public school academy may use

 

funds allocated under this section in conjunction with any federal


 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

     (5) Except as otherwise provided in this subsection, for a

 

district that is formed or reconfigured after June 1, 2000 by

 

consolidation of 2 or more districts or by annexation, the

 

resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 foundation

 

allowances of each of the original or affected districts,

 

calculated as provided in this section, weighted as to the

 

percentage of pupils in total membership in the resulting district

 

in the state fiscal year in which the consolidation takes place who

 

reside in the geographic area of each of the original districts. If

 

an affected district's 1994-95 foundation allowance is less than

 

the 1994-95 basic foundation allowance, the amount of that

 

district's 1994-95 foundation allowance shall be considered for the

 

purpose of calculations under this subsection to be equal to the

 

amount of the 1994-95 basic foundation allowance. This subsection

 

does not apply to a receiving district unless there is a subsequent

 

consolidation or annexation that affects the district.

 

     (6) Payments under this section are subject to section 25f.

 

     (7) As used in this section:

 

     (a) "1994-95 foundation allowance" means a district's 1994-95

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

in 1993 PA 336 and as amended by 1994 PA 283.

 

     (b) "Certified mills" means the lesser of 18 mills or the


 

number of mills of school operating taxes levied by the district in

 

1993-94.

 

     (c) "Current state fiscal year" means the state fiscal year

 

for which a particular calculation is made.

 

     (d) "Current year hold harmless school operating taxes per

 

pupil" means the per pupil revenue generated by multiplying a

 

district's 1994-95 hold harmless millage by the district's current

 

year taxable value per membership pupil. For a receiving district,

 

if school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

     (e) "Dissolved district" means a district that loses its

 

organization, has its territory attached to 1 or more other

 

districts, and is dissolved as provided under section 12 of the

 

revised school code, MCL 380.12.

 

     (f) "Hold harmless millage" means, for a district with a 1994-

 

95 foundation allowance greater than $6,500.00, the number of mills

 

by which the exemption from the levy of school operating taxes on a

 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, and commercial personal property could be reduced as

 

provided in section 1211 of the revised school code, MCL 380.1211,

 

and the number of mills of school operating taxes that could be


 

levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, as certified by the department

 

of treasury for the 1994 tax year. For a receiving district, if

 

school operating taxes are to be levied on behalf of a dissolved

 

district that has been attached in whole or in part to the

 

receiving district to satisfy debt obligations of the dissolved

 

district under section 12 of the revised school code, MCL 380.12,

 

school operating taxes do not include school operating taxes levied

 

within the geographic area of the dissolved district.

 

     (g) "Homestead", "qualified agricultural property", "qualified

 

forest property", "supportive housing property", "industrial

 

personal property", and "commercial personal property" mean those

 

terms as defined in section 1211 of the revised school code, MCL

 

380.1211.

 

     (h) "Membership" means the definition of that term under

 

section 6 as in effect for the particular fiscal year for which a

 

particular calculation is made.

 

     (i) "Nonexempt property" means property that is not a

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, or commercial personal property.

 

     (j) "Qualifying public school academy" means a public school

 

academy that was in operation in the 1994-95 school year and is in

 

operation in the current state fiscal year.

 

     (k) "Receiving district" means a district to which all or part

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.


 

     (l) "School operating taxes" means local ad valorem property

 

taxes levied under section 1211 of the revised school code, MCL

 

380.1211, and retained for school operating purposes as defined in

 

section 20.

 

     (m) "Tax increment financing acts" means 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, the local development financing

 

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

 

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

 

or the corridor improvement authority act, 2005 PA 280, MCL

 

125.2871 to 125.2899.

 

     (n) "Taxable value per membership pupil" means each of the

 

following divided by the district's membership:

 

     (i) For the number of mills by which the exemption from the

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, and commercial

 

personal property may be reduced as provided in section 1211 of the

 

revised school code, MCL 380.1211, the taxable value of homestead,

 

qualified agricultural property, qualified forest property,

 

supportive housing property, industrial personal property, and

 

commercial personal property for the calendar year ending in the

 

current state fiscal year. For a receiving district, if school

 

operating taxes are to be levied on behalf of a dissolved district

 

that has been attached in whole or in part to the receiving

 

district to satisfy debt obligations of the dissolved district

 

under section 12 of the revised school code, MCL 380.12, mills do


 

not include mills within the geographic area of the dissolved

 

district.

 

     (ii) For the number of mills of school operating taxes that may

 

be levied on all property as provided in section 1211(2) of the

 

revised school code, MCL 380.1211, the taxable value of all

 

property for the calendar year ending in the current state fiscal

 

year. For a receiving district, if school operating taxes are to be

 

levied on behalf of a dissolved district that has been attached in

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

revised school code, MCL 380.12, school operating taxes do not

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

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

 

allocated an amount not to exceed $3,492,000,000.00

 

$3,434,000,000.00 for 2014-2015 for discretionary nonmandated

 

payments to districts under this section. Funds allocated under

 

this section that are not expended in the state fiscal year for

 

which they were allocated, as determined by the department, may be

 

used to supplement the allocations under sections 22a and 51c in

 

order to fully fund those calculated allocations for the same

 

fiscal year.

 

     (2) Subject to subsection (3) and section 296, the allocation

 

to a district under this section shall be an amount equal to the

 

sum of the amounts calculated under sections 20, 51a(2), 51a(3),

 

and 51a(11), minus the sum of the allocations to the district under

 

sections 22a and 51c.


 

     (3) In order to receive an allocation under subsection (1),

 

each district shall do all of the following:

 

     (a) Comply with section 1280b of the revised school code, MCL

 

380.1280b.

 

     (b) Comply with sections 1278a and 1278b of the revised school

 

code, MCL 380.1278a and 380.1278b.

 

     (c) Furnish data and other information required by state and

 

federal law to the center and the department in the form and manner

 

specified by the center or the department, as applicable.

 

     (d) Comply with section 1230g of the revised school code, MCL

 

380.1230g.

 

     (e) Comply with section 21f.

 

     (4) Districts are encouraged to use funds allocated under this

 

section for the purchase and support of payroll, human resources,

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

     (5) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state related to commercial or industrial property tax appeals,

 

including, but not limited to, appeals of classification, that

 

impact revenues dedicated to the state school aid fund.

 

     (6) From the allocation in subsection (1), the department

 

shall pay up to $1,000,000.00 in litigation costs incurred by this

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required


 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

     (7) It is the intent of the legislature that all

 

constitutional obligations of this state have been fully funded

 

under sections 22a, 31d, 51a, 51c, and 152a. If a claim is made by

 

an entity receiving funds under this article that challenges the

 

legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

amount as may be necessary to satisfy the claim before making any

 

payments to districts under subsection (2). If funds are escrowed,

 

the escrowed funds are a work project appropriation and the funds

 

are carried forward into the following fiscal year. The purpose of

 

the work project is to provide for any payments that may be awarded

 

to districts as a result of litigation. The work project shall be

 

completed upon resolution of the litigation.

 

     (8) If the local claims review board or a court of competent

 

jurisdiction makes a final determination that this state is in

 

violation of section 29 of article IX of the state constitution of

 

1963 regarding state payments to districts, the state budget

 

director shall use work project funds under subsection (7) or

 

allocate from the discretionary funds for nonmandated payments

 

under this section the amount as may be necessary to satisfy the

 

amount owed to districts before making any payments to districts

 

under subsection (2).


 

     (9) If a claim is made in court that challenges the

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

an expedited review of the claim by the local claims review board.

 

If the claim exceeds $10,000,000.00, this state may remove the

 

action to the court of appeals, and the court of appeals shall have

 

and shall exercise jurisdiction over the claim.

 

     (10) If payments resulting from a final determination by the

 

local claims review board or a court of competent jurisdiction that

 

there has been a violation of section 29 of article IX of the state

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX medicaid Medicaid

 

funds is filed against this state, then, for the purpose of

 

addressing potential liability under such a lawsuit, the state

 

budget director may place funds allocated under this section in

 

escrow or allocate money from the funds otherwise allocated under

 

this section, up to a maximum of 50% of the amount allocated in

 

subsection (1). If funds are placed in escrow under this

 

subsection, those funds are a work project appropriation and the

 

funds are carried forward into the following fiscal year. The

 

purpose of the work project is to provide for any payments that may

 

be awarded to districts as a result of the litigation. The work


 

project shall be completed upon resolution of the litigation. In

 

addition, this state reserves the right to terminate future federal

 

title XIX medicaid Medicaid reimbursement payments to districts if

 

the amount or allocation of reimbursed funds is challenged in the

 

lawsuit. As used in this subsection, "title XIX" means title XIX of

 

the social security act, 42 USC 1396 to 1396v.

 

     (12) Payments under this section are subject to section 25f.

 

     Sec. 51a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $938,946,100.00 $914,946,100.00

 

for 2014-2015 from state sources and all available federal funding

 

under sections 611 to 619 of part B of the individuals with

 

disabilities education act, 20 USC 1411 to 1419, estimated at

 

$370,000,000.00 for 2014-2015, plus any carryover federal funds

 

from previous year appropriations. The allocations under this

 

subsection are for the purpose of reimbursing districts and

 

intermediate districts for special education programs, services,

 

and special education personnel as prescribed in article 3 of the

 

revised school code, MCL 380.1701 to 380.1766; net tuition payments

 

made by intermediate districts to the Michigan schools for the deaf

 

and blind; and special education programs and services for pupils

 

who are eligible for special education programs and services

 

according to statute or rule. For meeting the costs of special

 

education programs and services not reimbursed under this article,

 

a district or intermediate district may use money in general funds

 

or special education funds, not otherwise restricted, or

 

contributions from districts to intermediate districts, tuition

 

payments, gifts and contributions from individuals or other


 

entities, or federal funds that may be available for this purpose,

 

as determined by the intermediate district plan prepared pursuant

 

to article 3 of the revised school code, MCL 380.1701 to 380.1766.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

under this section shall be paid on a schedule determined by the

 

department.

 

     (2) From the funds allocated under subsection (1), there is

 

allocated the amount necessary, estimated at $252,000,000.00

 

$251,800,000.00 for 2014-2015, for payments toward reimbursing

 

districts and intermediate districts for 28.6138% of total approved

 

costs of special education, excluding costs reimbursed under

 

section 53a, and 70.4165% of total approved costs of special

 

education transportation. Allocations under this subsection shall

 

be made as follows:

 

     (a) The initial amount allocated to a district under this

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

membership, excluding pupils described in subsection (11), times

 

the foundation allowance under section 20 of the pupil's district

 

of residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, or, for a special education

 

pupil in membership in a district that is a public school academy,

 

times an amount equal to the amount per membership pupil calculated

 

under section 20(6) or, for a pupil described in this subsection

 

who is counted in membership in the education achievement system,

 

times an amount equal to the amount per membership pupil under


 

section 20(7). For an intermediate district, the amount allocated

 

under this subdivision toward fulfilling the specified percentages

 

shall be an amount per special education membership pupil,

 

excluding pupils described in subsection (11), and shall be

 

calculated in the same manner as for a district, using the

 

foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year.

 

     (b) After the allocations under subdivision (a), districts and

 

intermediate districts for which the payments calculated under

 

subdivision (a) do not fulfill the specified percentages shall be

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

     (3) From the funds allocated under subsection (1), there is

 

allocated for 2014-2015 an amount not to exceed $1,000,000.00 to

 

make payments to districts and intermediate districts under this

 

subsection. If the amount allocated to a district or intermediate

 

district for a fiscal year under subsection (2)(b) is less than the

 

sum of the amounts allocated to the district or intermediate

 

district for 1996-97 under sections 52 and 58, there is allocated

 

to the district or intermediate district for the fiscal year an

 

amount equal to that difference, adjusted by applying the same

 

proration factor that was used in the distribution of funds under

 

section 52 in 1996-97 as adjusted to the district's or intermediate

 

district's necessary costs of special education used in

 

calculations for the fiscal year. This adjustment is to reflect

 

reductions in special education program operations or services


 

between 1996-97 and subsequent fiscal years. Adjustments for

 

reductions in special education program operations or services

 

shall be made in a manner determined by the department and shall

 

include adjustments for program or service shifts.

 

     (4) If the department determines that the sum of the amounts

 

allocated for a fiscal year to a district or intermediate district

 

under subsection (2)(a) and (b) is not sufficient to fulfill the

 

specified percentages in subsection (2), then the shortfall shall

 

be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and

 

payments under subsection (3) shall be adjusted as necessary. If

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

subsection (2)(a) and (b) exceeds the sum of the amount necessary

 

to fulfill the specified percentages in subsection (2), then the

 

department shall deduct the amount of the excess from the

 

district's or intermediate district's payments under this article

 

for the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

(2)(a) in itself exceeds the amount necessary to fulfill the

 

specified percentages in subsection (2), there shall be no

 

deduction under this subsection.

 

     (5) State funds shall be allocated on a total approved cost

 

basis. Federal funds shall be allocated under applicable federal

 

requirements, except that an amount not to exceed $3,500,000.00 may

 

be allocated by the department for 2014-2015 to districts,


 

intermediate districts, or other eligible entities on a competitive

 

grant basis for programs, equipment, and services that the

 

department determines to be designed to benefit or improve special

 

education on a statewide scale.

 

     (6) From the amount allocated in subsection (1), there is

 

allocated an amount not to exceed $2,200,000.00 for 2014-2015 to

 

reimburse 100% of the net increase in necessary costs incurred by a

 

district or intermediate district in implementing the revisions in

 

the administrative rules for special education that became

 

effective on July 1, 1987. As used in this subsection, "net

 

increase in necessary costs" means the necessary additional costs

 

incurred solely because of new or revised requirements in the

 

administrative rules minus cost savings permitted in implementing

 

the revised rules. Net increase in necessary costs shall be

 

determined in a manner specified by the department.

 

     (7) For purposes of sections 51a to 58, all of the following

 

apply:

 

     (a) "Total approved costs of special education" shall be

 

determined in a manner specified by the department and may include

 

indirect costs, but shall not exceed 115% of approved direct costs

 

for section 52 and section 53a programs. The total approved costs

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and medicare Medicare and public school employee

 

retirement system contributions. The total approved costs do not

 

include salaries or other compensation paid to administrative

 

personnel who are not special education personnel as defined in


 

section 6 of the revised school code, MCL 380.6. Costs reimbursed

 

by federal funds, other than those federal funds included in the

 

allocation made under this article, are not included. Special

 

education approved personnel not utilized full time in the

 

evaluation of students or in the delivery of special education

 

programs, ancillary, and other related services shall be reimbursed

 

under this section only for that portion of time actually spent

 

providing these programs and services, with the exception of

 

special education programs and services provided to youth placed in

 

child caring institutions or juvenile detention programs approved

 

by the department to provide an on-grounds education program.

 

     (b) Beginning with the 2004-2005 fiscal year, a district or

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

2003-2004 or in a subsequent fiscal year and that in a fiscal year

 

after 2003-2004 receives the same type of support services from

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

     (c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under


 

subsections (2), (3), (6), and (11) and sections 53a, 54, and 56

 

will exceed expenditures for that fiscal year under subsections

 

(2), (3), (6), and (11) and sections 53a, 54, and 56, then for a

 

district or intermediate district whose reimbursement for that

 

fiscal year would otherwise be affected by subdivision (b),

 

subdivision (b) does not apply to the calculation of the

 

reimbursement for that district or intermediate district and

 

reimbursement for that district or intermediate district shall be

 

calculated in the same manner as it was for 2003-2004. If the

 

amount of the excess allocations under subsections (2), (3), (6),

 

and (11) and sections 53a, 54, and 56 is not sufficient to fully

 

fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis. This reimbursement

 

shall not be made after 2014-2015.

 

     (d) Reimbursement for ancillary and other related services, as

 

defined by R 340.1701c of the Michigan administrative code, shall

 

not be provided when those services are covered by and available

 

through private group health insurance carriers or federal

 

reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is

 

approved by the state budget director. Expenses, other than the

 

incidental expense of filing, shall not be borne by the parent. In

 

addition, the filing of claims shall not delay the education of a

 

pupil. A district or intermediate district shall be responsible for

 

payment of a deductible amount and for an advance payment required


 

until the time a claim is paid.

 

     (e) Beginning with calculations for 2004-2005, if an

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from

 

the constituent district is at a lower cost, adjusted for changes

 

in fuel costs; and if the cost shift from the intermediate district

 

to the constituent does not result in any net change in the revenue

 

the constituent district receives from payments under sections 22b

 

and 51c, then upon application by the intermediate district, the

 

department shall direct the intermediate district to continue to

 

report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

     (8) A pupil who is enrolled in a full-time special education

 

program conducted or administered by an intermediate district or a

 

pupil who is enrolled in the Michigan schools for the deaf and

 

blind shall not be included in the membership count of a district,

 

but shall be counted in membership in the intermediate district of

 

residence.

 

     (9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

the rights, benefits, and tenure to which the person would

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

     (10) If a district or intermediate district uses money


 

received under this section for a purpose other than the purpose or

 

purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

of money received. Money that is refunded shall be deposited in the

 

state treasury to the credit of the state school aid fund.

 

     (11) From the funds allocated in subsection (1), there is

 

allocated the amount necessary, estimated at $3,300,000.00

 

$4,000,000.00 for 2014-2015, to pay the foundation allowances for

 

pupils described in this subsection. The allocation to a district

 

under this subsection shall be calculated by multiplying the number

 

of pupils described in this subsection who are counted in

 

membership in the district times the foundation allowance under

 

section 20 of the pupil's district of residence, not to exceed the

 

basic foundation allowance under section 20 for the current fiscal

 

year, or, for a pupil described in this subsection who is counted

 

in membership in a district that is a public school academy, times

 

an amount equal to the amount per membership pupil under section

 

20(6) or, for a pupil described in this subsection who is counted

 

in membership in the education achievement system, times an amount

 

equal to the amount per membership pupil under section 20(7). The

 

allocation to an intermediate district under this subsection shall

 

be calculated in the same manner as for a district, using the

 

foundation allowance under section 20 of the pupil's district of

 

residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year. This subsection applies to

 

all of the following pupils:

 

     (a) Pupils described in section 53a.


 

     (b) Pupils counted in membership in an intermediate district

 

who are not special education pupils and are served by the

 

intermediate district in a juvenile detention or child caring

 

facility.

 

     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of community health.

 

     (12) If it is determined that funds allocated under subsection

 

(2) or (11) or under section 51c will not be expended, funds up to

 

the amount necessary and available may be used to supplement the

 

allocations under subsection (2) or (11) or under section 51c in

 

order to fully fund those allocations. After payments under

 

subsections (2) and (11) and section 51c, the remaining

 

expenditures from the allocation in subsection (1) shall be made in

 

the following order:

 

     (a) 100% of the reimbursement required under section 53a.

 

     (b) 100% of the reimbursement required under subsection (6).

 

     (c) 100% of the payment required under section 54.

 

     (d) 100% of the payment required under subsection (3).

 

     (e) 100% of the payments under section 56.

 

     (13) The allocations under subsections (2), (3), and (11)

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.

 

     (14) If a public school academy enrolls pursuant to this

 

section a pupil who resides outside of the intermediate district in

 

which the public school academy is located and who is eligible for


 

special education programs and services according to statute or

 

rule, or who is a child with disabilities, as defined under the

 

individuals with disabilities education act, Public Law 108-446,

 

the provision of special education programs and services and the

 

payment of the added costs of special education programs and

 

services for the pupil are the responsibility of the district and

 

intermediate district in which the pupil resides unless the

 

enrolling district or intermediate district has a written agreement

 

with the district or intermediate district in which the pupil

 

resides or the public school academy for the purpose of providing

 

the pupil with a free appropriate public education and the written

 

agreement includes at least an agreement on the responsibility for

 

the payment of the added costs of special education programs and

 

services for the pupil.

 

     Sec. 51c. As required by the court in the consolidated cases

 

known as Durant v State of Michigan, Michigan supreme court docket

 

no. 104458-104492, from the allocation under section 51a(1), there

 

is allocated for 2014-2015 the amount necessary, estimated at

 

$630,500,000.00, $606,000,000.00, for payments to reimburse

 

districts for 28.6138% of total approved costs of special education

 

excluding costs reimbursed under section 53a, and 70.4165% of total

 

approved costs of special education transportation. Funds allocated

 

under this section that are not expended in the state fiscal year

 

for which they were allocated, as determined by the department, may

 

be used to supplement the allocations under sections 22a and 22b in

 

order to fully fund those calculated allocations for the same

 

fiscal year.


 

     Sec. 147c. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 an amount not to exceed $656,700,000.00

 

$658,400,000.00 from the state school aid fund, and there is

 

appropriated for 2014-2015 an amount not to exceed $18,000,000.00

 

from the MPSERS retirement obligation reform reserve fund, for

 

payments to districts and intermediate districts that are

 

participating entities of the Michigan public school employees'

 

retirement system. In addition, from the general fund money

 

appropriated in section 11, there is allocated for 2014-2015 an

 

amount not to exceed $500,000.00 for payments to district libraries

 

that are participating entities of the Michigan public school

 

employees' retirement system.

 

     (2) For 2014-2015, the amounts allocated under subsection (1)

 

are estimated to provide an average MPSERS rate cap per pupil

 

amount of $441.00 $449.00 and are estimated to provide a rate cap

 

per pupil for districts ranging between $4.00 and $1,400.00.

 

$2,056.00.

 

     (3) Payments made under this section for 2014-2015 shall be

 

equal to the difference between the unfunded actuarial accrued

 

liability contribution rate as calculated pursuant to section 41 of

 

the public school employees retirement act of 1979, 1980 PA 300,

 

MCL 38.1341, as calculated without taking into account the maximum

 

employer rate of 20.96% included in section 41 of the public school

 

employees retirement act of 1979, 1980 PA 300, MCL 38.1341, and the

 

maximum employer rate of 20.96% included in section 41 of the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1341.


 

     (4) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this section shall

 

use the funds solely for the purpose of retirement contributions as

 

specified in subsection (5).

 

     (5) Each participating entity receiving funds under this

 

section shall forward an amount equal to the amount allocated under

 

subsection (4) to the retirement system in a form, manner, and time

 

frame determined by the retirement system.

 

     (6) Funds allocated under this section should be considered

 

when comparing a district's growth in total state aid funding from

 

1 fiscal year to the next.

 

     (7) Not later than October 20, 2014, the department shall

 

publish and post on its website an estimated MPSERS rate cap per

 

pupil for each district.

 

     (8) As used in this section:

 

     (a) "MPSERS rate cap per pupil" means an amount equal to the

 

quotient of the district's payment under this section divided by

 

the district's pupils in membership.

 

     (b) "Participating entity" means a district, intermediate

 

district, or district library that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

public school employees retirement act of 1979, 1980 PA 300, MCL

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable


 

fiscal year.

 

     (c) "Retirement board" means the board that administers the

 

retirement system under the public school employees retirement act

 

of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     (d) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 147d. (1) From the appropriation in section 11, there is

 

allocated for 2014-2015 only an amount not to exceed

 

$108,000,000.00 $19,634,500.00 for payments to participating

 

entities.

 

     (2) The amount allocated to each participating entity under

 

this section shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year. A participating entity that receives funds

 

under this section shall use the funds solely for purposes of this

 

section.

 

     (3) Each participating entity receiving funds under this

 

section shall forward an amount equal to the sum of the amount

 

allocated under this section and the amount allocated under section

 

147c to the retirement system in a form, manner, and time frame

 

prescribed by the retirement system.

 

     (4) Payments under this section shall be used by the

 

retirement system specifically for the payment or prepayment of the

 

final years or partial years of any additional costs to the

 

retirement system due to the operation of section 81b of the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1381b,


 

without regard to the amortization of those costs under section

 

81b(5) of the public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1381b, and in a manner and form as determined by the

 

office of retirement services.

 

     (5) As used in this section:

 

     (a) "Participating entity" means a district, intermediate

 

district, community college, or district library that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1301 to 38.1437, and that reports employees to

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

     (b) "Retirement system" means the Michigan public school

 

employees' retirement system under the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437.

 

     Sec. 201. (1) Subject to the conditions set forth in this

 

article, the amounts listed in this section are appropriated for

 

community colleges for the fiscal year ending September 30, 2015,

 

from the funds indicated in this section. The following is a

 

summary of the appropriations in this section:

 

     (a) The gross appropriation is $364,724,900.00. After

 

deducting total interdepartmental grants and intradepartmental

 

transfers in the amount of $0.00, the adjusted gross appropriation

 

is $364,724,900.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $0.00.


 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues,

 

$197,614,100.00.$364,724,900.00.

 

     (v) State general fund/general purpose money,

 

$167,110,800.00.$0.00.

 

     (2) Subject to subsection (3), the amount appropriated for

 

community college operations is $307,191,300.00, allocated as

 

follows:

 

     (a) The appropriation for Alpena Community College is

 

$5,390,700.00, $5,236,500.00 for operations and $154,200.00 for

 

performance funding.

 

     (b) The appropriation for Bay de Noc Community College is

 

$5,419,500.00, $5,279,300.00 for operations and $140,200.00 for

 

performance funding.

 

     (c) The appropriation for Delta College is $14,498,900.00,

 

$14,063,500.00 for operations and $435,400.00 for performance

 

funding.

 

     (d) The appropriation for Glen Oaks Community College is

 

$2,516,100.00, $2,441,500.00 for operations and $74,600.00 for

 

performance funding.

 

     (e) The appropriation for Gogebic Community College is

 

$4,451,400.00, $4,330,300.00 for operations and $121,100.00 for

 

performance funding.

 

     (f) The appropriation for Grand Rapids Community College is

 

$17,947,500.00, $17,454,900.00 for operations and $492,600.00 for

 

performance funding.


 

     (g) The appropriation for Henry Ford Community College is

 

$21,623,800.00, $21,060,000.00 for operations and $563,800.00 for

 

performance funding.

 

     (h) The appropriation for Jackson College is $12,087,300.00,

 

$11,758,200.00 for operations and $329,100.00 for performance

 

funding.

 

     (i) The appropriation for Kalamazoo Valley Community College

 

is $12,503,100.00, $12,122,500.00 for operations and $380,600.00

 

for performance funding.

 

     (j) The appropriation for Kellogg Community College is

 

$9,813,500.00, $9,522,000.00 for operations and $291,500.00 for

 

performance funding.

 

     (k) The appropriation for Kirtland Community College is

 

$3,167,700.00, $3,055,700.00 for operations and $112,000.00 for

 

performance funding.

 

     (l) The appropriation for Lake Michigan College is

 

$5,342,900.00, $5,178,100.00 for operations and $164,800.00 for

 

performance funding.

 

     (m) The appropriation for Lansing Community College is

 

$30,877,600.00, $30,023,700.00 for operations and $853,900.00 for

 

performance funding.

 

     (n) The appropriation for Macomb Community College is

 

$32,816,600.00, $31,931,200.00 for operations and $885,400.00 for

 

performance funding.

 

     (o) The appropriation for Mid Michigan Community College is

 

$4,682,000.00, $4,517,900.00 for operations and $164,100.00 for

 

performance funding.


 

     (p) The appropriation for Monroe County Community College is

 

$4,492,900.00, $4,342,600.00 for operations and $150,300.00 for

 

performance funding.

 

     (q) The appropriation for Montcalm Community College is

 

$3,226,700.00, $3,121,200.00 for operations and $105,500.00 for

 

performance funding.

 

     (r) The appropriation for C.S. Mott Community College is

 

$15,686,100.00, $15,247,100.00 for operations and $439,000.00 for

 

performance funding.

 

     (s) The appropriation for Muskegon Community College is

 

$8,901,000.00, $8,653,500.00 for operations and $247,500.00 for

 

performance funding.

 

     (t) The appropriation for North Central Michigan College is

 

$3,172,400.00, $3,064,400.00 for operations and $108,000.00 for

 

performance funding.

 

     (u) The appropriation for Northwestern Michigan College is

 

$9,078,800.00, $8,825,300.00 for operations and $253,500.00 for

 

performance funding.

 

     (v) The appropriation for Oakland Community College is

 

$21,123,300.00, $20,483,100.00 for operations and $640,200.00 for

 

performance funding.

 

     (w) The appropriation for St. Clair County Community College

 

is $7,061,600.00, $6,860,100.00 for operations and $201,500.00 for

 

performance funding.

 

     (x) The appropriation for Schoolcraft College is

 

$12,513,700.00, $12,112,200.00 for operations and $401,500.00 for

 

performance funding.


 

     (y) The appropriation for Southwestern Michigan College is

 

$6,576,400.00, $6,404,300.00 for operations and $172,100.00 for

 

performance funding.

 

     (z) The appropriation for Washtenaw Community College is

 

$13,077,300.00, $12,610,800.00 for operations and $466,500.00 for

 

performance funding.

 

     (aa) The appropriation for Wayne County Community College is

 

$16,727,600.00, $16,194,300.00 for operations and $533,300.00 for

 

performance funding.

 

     (bb) The appropriation for West Shore Community College is

 

$2,414,900.00, $2,349,800.00 for operations and $65,100.00 for

 

performance funding.

 

     (3) The amount appropriated in subsection (2) for community

 

college operations is $307,191,300.00, appropriated from the

 

following:

 

     (a) State state school aid fund. , $195,880,500.00.

 

     (b) State general fund/general purpose money, $111,310,800.00.

 

     (4) From the appropriations described in subsection (1),

 

subject to section 207a, the amount appropriated for fiscal year

 

2014-2015 to offset certain fiscal year 2014-2015 retirement

 

contributions is $1,733,600.00, appropriated from the state school

 

aid fund.

 

     (5) From the appropriations described in subsection (1),

 

subject to section 207b, the amount appropriated for payments to

 

community colleges that are participating entities of the

 

retirement system is $52,300,000.00, appropriated from general

 

fund/general purpose money.the state school aid fund.


 

     (6) From the appropriations described in subsection (1),

 

subject to section 207c, the amount appropriated for renaissance

 

zone tax reimbursements is $3,500,000.00, appropriated from general

 

fund/general purpose money.the state school aid fund.

 

     Sec. 236. (1) Subject to the conditions set forth in this

 

article, the amounts listed in this section are appropriated for

 

higher education for the fiscal year ending September 30, 2015,

 

from the funds indicated in this section. The following is a

 

summary of the appropriations in this section:

 

     (a) The gross appropriation is $1,516,496,300.00. After

 

deducting total interdepartmental grants and intradepartmental

 

transfers in the amount of $0.00, the adjusted gross appropriation

 

is $1,516,496,300.00.

 

     (b) The sources of the adjusted gross appropriation described

 

in subdivision (a) are as follows:

 

     (i) Total federal revenues, $97,026,400.00.

 

     (ii) Total local revenues, $0.00.

 

     (iii) Total private revenues, $0.00.

 

     (iv) Total other state restricted revenues,

 

$204,567,900.00.$206,567,900.00.

 

     (v) State general fund/general purpose money,

 

$1,214,902,000.00.$1,212,902,000.00.

 

     (2) Amounts appropriated for public universities are as

 

follows:

 

     (a) The appropriation for Central Michigan University is

 

$79,115,000.00, $73,540,100.00 for operations and $5,574,900.00 for

 

performance funding.


 

     (b) The appropriation for Eastern Michigan University is

 

$71,771,100.00, $67,275,400.00 for operations and $4,495,700.00 for

 

performance funding.

 

     (c) The appropriation for Ferris State University is

 

$49,087,000.00, $45,636,500.00 for operations and $3,450,500.00 for

 

performance funding.

 

     (d) The appropriation for Grand Valley State University is

 

$63,136,000.00, $57,823,500.00 for operations and $5,312,500.00 for

 

performance funding.

 

     (e) The appropriation for Lake Superior State University is

 

$12,782,500.00, $12,231,000.00 for operations and $551,500.00 for

 

performance funding.

 

     (f) The appropriation for Michigan State University is

 

$324,038,100.00, $249,597,800.00 for operations, $14,831,300.00 for

 

performance funding, $32,027,900.00 for MSU AgBioResearch, and

 

$27,581,100.00 for MSU extension.

 

     (g) The appropriation for Michigan Technological University is

 

$45,923,100.00, $43,473,800.00 for operations and $2,449,300.00 for

 

performance funding.

 

     (h) The appropriation for Northern Michigan University is

 

$44,277,200.00, $41,741,400.00 for operations and $2,535,800.00 for

 

performance funding.

 

     (i) The appropriation for Oakland University is

 

$48,364,100.00, $45,651,600.00 for operations and $2,712,500.00 for

 

performance funding.

 

     (j) The appropriation for Saginaw Valley State University is

 

$27,610,200.00, $25,991,000.00 for operations and $1,619,200.00 for


 

performance funding.

 

     (k) The appropriation for University of Michigan – Ann Arbor

 

is $295,174,100.00, $279,232,700.00 for operations and

 

$15,941,400.00 for performance funding.

 

     (l) The appropriation for University of Michigan – Dearborn is

 

$23,689,300.00, $22,510,400.00 for operations and $1,178,900.00 for

 

performance funding.

 

     (m) The appropriation for University of Michigan – Flint is

 

$21,337,700.00, $19,938,200.00 for operations and $1,399,500.00 for

 

performance funding.

 

     (n) The appropriation for Wayne State University is

 

$190,519,800.00, $183,398,300.00 for operations and $7,121,500.00

 

for performance funding.

 

     (o) The appropriation for Western Michigan University is

 

$102,742,000.00, $97,279,000.00 for operations and $5,463,000.00

 

for performance funding.

 

     (3) The amount appropriated in subsection (2) for public

 

universities is appropriated from the following:

 

     (a) State school aid fund, $200,019,500.00.

 

     (b) State general fund/general purpose money,

 

$1,199,547,700.00.

 

     (4) The amount appropriated for Michigan public school

 

employees' retirement system reimbursement is $2,446,200.00,

 

$446,200.00 appropriated from the state school aid fund. and

 

$2,000,000.00 appropriated from general fund/general purpose money.

 

     (5) For fiscal year 2014-2015 only, in addition to the amount

 

appropriated under subsection (4), $4,002,200.00 is appropriated


 

for Michigan public school employees' retirement system

 

reimbursement, appropriated from the state school aid fund.

 

     (6) The amount appropriated for state and regional programs is

 

$2,295,000.00 appropriated from general fund/general purpose money

 

and allocated as follows:

 

     (a) College access program, $2,000,000.00.

 

     (b) Higher education database modernization and conversion,

 

$200,000.00.

 

     (c) Midwestern higher education compact, $95,000.00.

 

     (7) The amount appropriated for the Martin Luther King, Jr. -

 

Cesar Chavez - Rosa Parks program is $2,691,500.00, appropriated

 

from general fund/general purpose money and allocated as follows:

 

     (a) Select student support services, $1,956,100.00.

 

     (b) Michigan college/university partnership program,

 

$586,800.00.

 

     (c) Morris Hood, Jr. educator development program,

 

$148,600.00.

 

     (8) Subject to subsection (9), the amount appropriated for

 

grants and financial aid is $105,494,200.00, allocated as follows:

 

     (a) State competitive scholarships, $18,361,700.00.

 

     (b) Tuition grants, $33,532,500.00.

 

     (c) Tuition incentive program, $48,500,000.00.

 

     (d) Children of veterans and officer's survivor tuition grant

 

programs, $1,400,000.00.

 

     (e) Project GEAR-UP, $3,200,000.00.

 

     (f) North American Indian tuition waivers, $500,000.00.

 

     (9) The money appropriated in subsection (8) for grants and


 

financial aid is appropriated from the following:

 

     (a) Federal revenues under the United States department of

 

education, office of elementary and secondary education, GEAR-UP

 

program, $3,200,000.00.

 

     (b) Federal revenues under the social security act, temporary

 

assistance for needy families, $93,826,400.00.

 

     (c) Contributions to children of veterans tuition grant

 

program, $100,000.00.

 

     (d) State general fund/general purpose money, $8,367,800.00.

 

     Enacting section 1. (1) In accordance with section 30 of

 

article IX of the state constitution of 1963, total state spending

 

on school aid in article I under 2014 PA 196 and this amendatory

 

act from state sources for fiscal year 2014-2015 is estimated at

 

$11,878,797,400.00 and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2014-2015 are

 

estimated at $11,720,149,600.00.

 

     (2) In accordance with section 30 of article IX of the state

 

constitution of 1963, total state spending on community colleges in

 

article II under 2014 PA 196 and this amendatory act from state

 

sources for fiscal year 2014-2015 is estimated at $364,724,900.00

 

and the amount of that state spending from state sources to be paid

 

to local units of government for fiscal year 2014-2015 is estimated

 

at $364,724,900.00.

 

     (3) In accordance with section 30 of article IX of the state

 

constitution of 1963, total state spending on higher education in

 

article III under 2014 PA 196 and this amendatory act from state

 

sources for fiscal year 2014-2015 is estimated at $1,419,469,900.00


 

and the amount of that state spending from state sources to be paid

 

to local units of government for fiscal year 2014-2015 is estimated

 

at $0.

 

     Enacting section 2. Section 31g of the state school aid act of

 

1979, 1979 PA 94, MCL 388.1631g, is repealed.

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