Bill Text: MI HB5400 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Appropriations; school aid; multisection zero-budget bill for school aid; provide for fiscal year 2009-2010. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5400 Detail]
Download: Michigan-2009-HB5400-Introduced.html
HOUSE BILL No. 5400
September 17, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Appropriations.
A bill to amend 1979 PA 94, entitled
"The state school aid act of 1979,"
by amending sections 11 and 17b (MCL 388.1611 and 388.1617b),
section 11 as amended by 2009 PA 73 and section 17b as amended by
2007 PA 137.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
11. (1) For the fiscal year ending September 30, 2009
2010, there is appropriated for the public schools of this state
and certain other state purposes relating to education the sum of
$11,019,798,200.00
_________________ from the state school aid fund
established by section 11 of article IX of the state constitution
of
1963 and the sum of $78,000,000.00 ______________ from the
general
fund. For the fiscal year ending September
30, 2009 2010,
there
is also appropriated the sum of $600,000,000.00
$______________ from the federal funding awarded to this state
under title XIV of the American recovery and reinvestment act of
2009, Public Law 111-5, to be used solely for the purpose of
funding the primary funding formula calculated under section 20, in
accordance with federal law. In addition, other available federal
funds are appropriated for the fiscal year ending September 30,
2009
2010.
(2) The appropriations under this section shall be allocated
as provided in this act. Money appropriated under this section from
the general fund shall be expended to fund the purposes of this act
before the expenditure of money appropriated under this section
from the state school aid fund. If the maximum amount appropriated
under this section from the state school aid fund for a fiscal year
exceeds the amount necessary to fully fund allocations under this
act from the state school aid fund, that excess amount shall not be
expended in that state fiscal year and shall not lapse to the
general fund, but instead shall be deposited into the school aid
stabilization fund created in section 11a.
(3) If the maximum amount appropriated under this section from
the state school aid fund and the school aid stabilization fund for
a fiscal year exceeds the amount available for expenditure from the
state school aid fund for that fiscal year, payments under sections
11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f, 51a(2), 51a(12), 51c, 53a,
and 56 shall be made in full. In addition, for districts beginning
operations after 1994-95 that qualify for payments under section
22b, payments under section 22b shall be made so that the
qualifying districts receive the lesser of an amount equal to the
1994-95 foundation allowance of the district in which the district
beginning operations after 1994-95 is located or $5,500.00. The
amount of the payment to be made under section 22b for these
qualifying districts shall be as calculated under section 22a, with
the balance of the payment under section 22b being subject to the
proration otherwise provided under this subsection and subsection
(4). If proration is necessary, state payments under each of the
other sections of this act from all state funding sources shall be
prorated in the manner prescribed in subsection (4) as necessary to
reflect the amount available for expenditure from the state school
aid fund for the affected fiscal year. However, if the department
of treasury determines that proration will be required under this
subsection, or if the department of treasury determines that
further proration is required under this subsection after an
initial proration has already been made for a fiscal year, the
department of treasury shall notify the state budget director, and
the state budget director shall notify the legislature at least 30
calendar days or 6 legislative session days, whichever is more,
before the department reduces any payments under this act because
of the proration. During the 30 calendar day or 6 legislative
session day period after that notification by the state budget
director, the department shall not reduce any payments under this
act because of proration under this subsection. The legislature may
prevent proration from occurring by, within the 30 calendar day or
6 legislative session day period after that notification by the
state budget director, enacting legislation appropriating
additional funds from the general fund, countercyclical budget and
economic stabilization fund, state school aid fund balance, or
another source to fund the amount of the projected shortfall.
(4) If proration is necessary under subsection (3), the
department shall calculate the proration in district and
intermediate district payments that is required under subsection
(3) as follows:
(a) The department shall calculate the percentage of total
state school aid allocated under this act for the affected fiscal
year for each of the following:
(i) Districts.
(ii) Intermediate districts.
(iii) Entities other than districts or intermediate districts.
(b) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(i) for districts by
reducing payments to districts. This reduction shall be made by
calculating an equal dollar amount per pupil as necessary to
recover this percentage of the proration amount and reducing each
district's total state school aid from state sources, other than
payments under sections 11f, 11g, 11j, 22a, 26a, 26b, 31d, 31f,
51a(2), 51a(12), 51c, and 53a, by that amount.
(c) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(ii) for intermediate
districts by reducing payments to intermediate districts. This
reduction shall be made by reducing the payments to each
intermediate district, other than payments under sections 11f, 11g,
26a, 26b, 51a(2), 51a(12), 53a, and 56, on an equal percentage
basis.
(d) The department shall recover a percentage of the proration
amount required under subsection (3) that is equal to the
percentage calculated under subdivision (a)(iii) for entities other
than districts and intermediate districts by reducing payments to
these entities. This reduction shall be made by reducing the
payments to each of these entities, other than payments under
sections 11j, 26a, and 26b, on an equal percentage basis.
(5) Except for the allocation under section 26a, any general
fund allocations under this act 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. 17b. (1) Not later than October 20, November 20, December
20, January 20, February 20, March 20, April 20, May 20, June 20,
July 20, and August 20, the department shall prepare electronic
files of the amount to be distributed under this act in the
installment to the districts and intermediate districts and deliver
the electronic files to the state treasurer, and the state
treasurer shall pay the installments on each of those dates or, if
the date is not a business day, on the next business day following
that date. Except as otherwise provided in this act, the portion of
the district's or intermediate district's state fiscal year
entitlement to be included in each installment shall be 1/11. A
district or intermediate district shall accrue the payments
received in July and August to the school fiscal year ending the
immediately preceding June 30.
(2) The state treasurer shall make payment under this section
by drawing a warrant in favor of the treasurer of each district or
intermediate district for the amount payable to the district or
intermediate district according to the electronic files and
delivering the warrant to the treasurer of each district or
intermediate district, or if the state treasurer receives a written
request by the treasurer of the district or intermediate district
specifying an account, by electronic funds transfer to that account
of the amount payable to the district or intermediate district
according to the electronic files. The department may make
adjustments in payments made under this section through additional
payments when changes in law or errors in computation cause the
regularly scheduled payment to be less than the amount to which the
district or intermediate district is entitled pursuant to this act.
(3) Except as otherwise provided in this act, grant payments
to districts and intermediate districts under this act shall be
paid according to the installment payment schedule under subsection
(1).
(4) Upon the written request of a district or intermediate
district and the submission of proof satisfactory to the department
of a need of a temporary and nonrecurring nature, the
superintendent, with the written concurrence of the state treasurer
and the state budget director, may authorize an advance release of
funds due a district or intermediate district under this act. An
advance authorized under this subsection shall not cause funds to
be paid to a district or intermediate district more than 30 days
earlier than the established payment date for those funds.
