Bill Text: MI HB4328 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: School aid; other; deficit elimination plan requirement; revise. Amends sec. 102 of 1979 PA 94 (MCL 388.1702). TIE BAR WITH: HB 4325'15, HB 4327'15, HB 4330'15
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-07-14 - Assigned Pa 112'15 With Immediate Effect [HB4328 Detail]
Download: Michigan-2015-HB4328-Engrossed.html
HB-4328, As Passed House, April 23, 2015
SUBSTITUTE FOR
HOUSE BILL NO. 4328
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending section 102 (MCL 388.1702), as amended by 2013 PA 60.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
102. (1) A district or intermediate district receiving
money
under this article shall not adopt or operate under a deficit
budget,
and a district or intermediate district shall not incur an
operating
deficit in a fund during a school fiscal year. A district
or
intermediate district that has an existing deficit fund balance,
that
incurs a deficit fund balance in the most recently completed
school
fiscal year, or that adopts a current year budget that
projects
a deficit fund balance shall not be allotted or paid a
further
sum under this article If a
district or intermediate
district is required to submit a deficit elimination plan under
section 1220 of the revised school code, MCL 380.1220, and the
district or intermediate district fails to submit a deficit
elimination plan or the deficit elimination plan is not approved,
the department may withhold some or all of the money payable to the
district or intermediate district under this article, in an amount
the department determines necessary to incentivize the district or
intermediate district to eliminate the deficit, until the district
or
intermediate district submits to the department for approval a
an
amended budget for the current school fiscal
year and a plan to
eliminate
the district's or intermediate district's deficit not
later
than the end of the second school fiscal year after the
deficit
was incurred or the budget projecting a deficit was
adopted.
Withheld state aid payments shall be released deficit
elimination plan in the form and manner prescribed by the
department or until the deficit elimination plan is approved by the
department, as determined by the department.
(2) The department shall release money withheld under
subsection (1) after the department approves the deficit
elimination
plan. and ensures that the budget for the current
school
fiscal year is balanced. After the department approves a
district's
or intermediate district's deficit elimination plan, the
district
or intermediate district shall post the deficit
elimination
plan on the district's or intermediate district's
website.To assure greater coordination and effective
partnerships
in the development and implementation of a deficit elimination
plan, when administering this subsection and subsection (1), the
department shall consult with all of the following:
(a) The department of treasury.
(b) The chief administrative officer of the district or
intermediate district required to submit a deficit elimination plan
under section 1220 of the revised school code, MCL 380.1220.
(c) For a district required to submit a deficit elimination
plan under section 1220 of the revised school code, MCL 380.1220,
the intermediate superintendent of the intermediate district in
which the district is located.
(2)
Not later than March 1 of each year, the department shall
prepare
a report of deficits incurred or projected by districts and
intermediate
districts in the immediately preceding fiscal year and
the
progress made in reducing those deficits and submit the report
to
the standing committees of the legislature responsible for K-12
education
legislation, the appropriations subcommittees of the
legislature
responsible for K-12 education appropriations, the
house
and senate fiscal agencies, the state treasurer, and the
state
budget director. The department also shall submit quarterly
interim
reports concerning the progress made by districts and
intermediate
districts in reducing those deficits. On a quarterly
basis,
the superintendent of public instruction shall publicly
present
those reports to the appropriations subcommittees of the
legislature
responsible for K-12 education appropriations.
(3)
The amount of the permissible deficit for each school
fiscal
year shall not exceed the amount of state aid reduced by an
executive
order during that school fiscal year.
(4)
A district or intermediate district that has an existing
deficit
fund balance, that incurs a deficit fund balance in the
most
recently completed school fiscal year, or that adopts a
current
year budget that projects a deficit fund balance shall
submit
to the department a monthly monitoring report on revenue and
expenditures
in a form and manner prescribed by the department and
shall
post these reports on its website.
(5)
If a district or intermediate district is not able to
comply
with the provisions of this section, the district or
intermediate
district shall submit to the department a plan to
eliminate
its deficit. Upon approval of the plan submitted, the
superintendent
of public instruction may continue allotment and
payment
of funds under this article, extend the period of time in
which
a district or intermediate district has to eliminate its
deficit,
and set special conditions that the district or
intermediate
district must meet during the period of the extension.
After
the department approves a district's or intermediate
district's
deficit elimination plan under this subsection, the
district
or intermediate district shall post the deficit
elimination
plan on the district's or intermediate district's
website.
(3) If a district or intermediate district is required to
submit an enhanced deficit elimination plan under section 1220 of
the revised school code, MCL 380.1220, the state treasurer may
withhold some or all of the money payable to the district under
this article, in an amount the state treasurer determines necessary
to incentivize the district or intermediate district to eliminate
the deficit, until the district or intermediate district submits to
the state treasurer for approval an approved budget for the current
school fiscal year and an enhanced deficit elimination plan in the
form and manner prescribed by the department of treasury under
section 1220 of the revised school code, MCL 380.1220, or until the
enhanced deficit elimination plan is approved by the department of
treasury, as determined by the department of treasury. The state
treasurer shall release money withheld under this subsection after
the department of treasury approves the enhanced deficit
elimination plan for the district or intermediate district. To
assure greater coordination and effective partnerships in the
development and implementation of an enhanced deficit elimination
plan, when administering this subsection, the department of
treasury shall consult with all of the following:
(a) The department.
(b) The chief administrative officer of the district or
intermediate district required to submit an enhanced deficit
elimination plan under section 1220 of the revised school code, MCL
380.1220.
(c) For a district required to submit an enhanced deficit
elimination plan under section 1220 of the revised school code, MCL
380.1220, the intermediate superintendent of the intermediate
district in which the district is located.
(4) An allocation to a district or intermediate district under
this article is contingent upon the district's or intermediate
district's compliance with this section.
(5) (6)
For the purposes of As used
in this section: ,
"deficit
(a) "Deficit elimination plan" means a plan required under
section 1220 or the revised school code, MCL 380.1220, for the
elimination of a deficit that sets forth actions to be taken to
eliminate the deficit within the time period prescribed by the
department.
(b) "Deficit fund balance" means that term as defined in the
Michigan public school accounting manual published by the
department.
(c) "Enhanced deficit elimination plan" means measures
required by the state treasurer under section 1220 of the revised
school code, MCL 380.1220, to address the financial conditions
within a district or intermediate district and resolve any deficit
within the time period prescribed by the department and the state
treasurer.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) House Bill No. 4325.
(b) House Bill No. 4327.
(c) House Bill No. 4330.
