Bill Text: MI SB0146 | 2019-2020 | 100th Legislature | Engrossed

Michigan Senate Bill 146 (Prior Session Legislation)

Bill Title: Appropriations: zero budget; school aid appropriations; provide for fiscal year 2019-2020. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2019-05-14 - Referred To Committee On Appropriations [SB0146 Detail]

Download: Michigan-2019-SB0146-Engrossed.html

SB-0146, As Passed Senate, May 15, 2019

SUBSTITUTE FOR

SENATE BILL NO. 146

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 4, 6, 8b, 11, 11a, 11j, 11k, 11m, 11s, 15, 18,

20, 20d, 20f, 21h, 22a, 22b, 22d, 22m, 22p, 24, 24a, 25e, 25f, 25g,

26a, 26b, 26c, 31a, 31b, 31d, 31f, 31j, 31n, 32d, 32p, 35a, 39,

39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 54d, 55, 56, 61a, 61b, 61c,

61d, 61f, 62, 65, 67, 74, 74a, 81, 94, 94a, 95a, 98, 99h, 99s, 99t,

99u, 99v, 99x, 101, 102d, 104, 104d, 107, 147, 147a, 147c, 147e,

152a, and 152b (MCL 388.1604, 388.1606, 388.1608b, 388.1611,

388.1611a, 388.1611j, 388.1611k, 388.1611m, 388.1611s, 388.1615,

388.1618, 388.1620, 388.1620d, 388.1620f, 388.1621h, 388.1622a,

388.1622b, 388.1622d, 388.1622m, 388.1622p, 388.1624, 388.1624a,

388.1625e, 388.1625f, 388.1625g, 388.1626a, 388.1626b, 388.1626c,

388.1631a, 388.1631b, 388.1631d, 388.1631f, 388.1631j, 388.1631n,

388.1632d, 388.1632p, 388.1635a, 388.1639, 388.1639a, 388.1641,

388.1651a, 388.1651c, 388.1651d, 388.1653a, 388.1654, 388.1654b,

388.1654d, 388.1655, 388.1656, 388.1661a, 388.1661b, 388.1661c,

388.1661d, 388.1661f, 388.1662, 388.1665, 388.1667, 388.1674,

388.1674a, 388.1681, 388.1694, 388.1694a, 388.1695a, 388.1698,

388.1699h, 388.1699s, 388.1699t, 388.1699u, 388.1699v, 388.1699x,

388.1701, 388.1702d, 388.1704, 388.1704d, 388.1707, 388.1747,

388.1747a, 388.1747c, 388.1747e, 388.1752a, and 388.1752b),

sections 4 and 8b as amended by 2017 PA 108, sections 6, 11, 18,

31a, 31j, 32d, 35a, 39a, 99h, 99u, and 101 as amended and sections

31n, 61f, 74a, and 99x as added by 2018 PA 586, sections 11a, 11j,

11k, 11m, 11s, 15, 20, 20d, 20f, 21h, 22a, 22b, 22d, 22m, 24, 24a,

25e, 25f, 25g, 26a, 26b, 26c, 31b, 31d, 31f, 32p, 39, 41, 51a, 51c,

51d, 53a, 54, 54b, 55, 56, 61a, 61b, 61c, 62, 65, 67, 74, 81, 94,

94a, 98, 99s, 99t, 102d, 104, 104d, 107, 147, 147a, 147c, 147e,

152a, and 152b as amended and sections 22p, 54d, 61d, and 99v as

added by 2018 PA 265, and section 95a as amended by 2015 PA 85, and

by adding sections 67a, 97, and 99z; and to repeal acts and parts

of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) "Elementary pupil" means a pupil in membership in

grades K to 8 in a district not maintaining classes above the

eighth grade or in grades K to 6 in a district maintaining classes

above the eighth grade or a child enrolled and in regular

attendance in a publicly funded prekindergarten setting. ~~For the~~

~~purposes of calculating universal service fund (e-rate) discounts,~~

~~"elementary pupil" includes children enrolled in a preschool~~

~~program operated by a district in its facilities.~~

(2) "Extended school year" means an educational program

conducted by a district in which pupils must be enrolled but not

necessarily in attendance on the pupil membership count day in an

extended year program. The mandatory clock hours ~~shall~~ must be

completed by each pupil not more than 365 calendar days after the

pupil's first day of classes for the school year prescribed. The

department shall prescribe pupil, personnel, and other reporting

requirements for the educational program.

(3) "Fiscal year" means the state fiscal year that commences

October 1 and continues through September 30.

(4) "High school equivalency certificate" means a certificate

granted for the successful completion of a high school equivalency

test.

(5) "High school equivalency test" means the G.E.D. test

developed by the GED Testing Service, the Test Assessing Secondary

Completion (TASC) developed by CTS/McGraw-Hill, the HISET test

developed by ~~the Education~~ Educational Testing Service (ETS), or

another comparable test approved by the department of talent and

economic development.

(6) "High school equivalency test preparation program" means a

program that has high school level courses in English language

arts, social studies, science, and mathematics and that prepares an

individual to successfully complete a high school equivalency test.

(7) "High school pupil" means a pupil in membership in grades

7 to 12, except in a district not maintaining grades above the

eighth grade.

Sec. 6. (1) "Center program" means a program operated by a

district or by an intermediate district for special education

pupils from several districts in programs for pupils with autism

spectrum disorder, pupils with severe cognitive impairment, pupils

with moderate cognitive impairment, pupils with severe multiple

impairments, pupils with hearing impairment, pupils with visual

impairment, and pupils with physical impairment or other health

impairment. Programs for pupils with emotional impairment housed in

buildings that do not serve regular education pupils also qualify.

Unless otherwise approved by the department, a center program

either ~~shall serve~~ serves all constituent districts within an

intermediate district or ~~shall serve~~ serves several districts with

less than 50% of the pupils residing in the operating district. In

addition, special education center program pupils placed part-time

in noncenter programs to comply with the least restrictive

environment provisions of section 1412 of the individuals with

disabilities education act, 20 USC 1412, may be considered center

program pupils for pupil accounting purposes for the time scheduled

in either a center program or a noncenter program.

(2) "District and high school graduation rate" means the

annual completion and pupil dropout rate that is calculated by the

center pursuant to nationally recognized standards.

(3) "District and high school graduation report" means a

report of the number of pupils, excluding adult education

participants, in the district for the immediately preceding school

year, adjusted for those pupils who have transferred into or out of

the district or high school, who leave high school with a diploma

or other credential of equal status.

(4) "Membership", except as otherwise provided in this

article, means for a district, a public school academy, or an

intermediate district the sum of the product of .90 times the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the pupil membership

count day for the current school year, plus the product of .10

times the final audited count from the supplemental count day for

the immediately preceding school year. A district's, public school

academy's, or intermediate district's membership ~~shall be~~ is

adjusted as provided under section 25e for pupils who enroll after

the pupil membership count day in a strict discipline academy

operating under sections 1311b to 1311m of the revised school code,

MCL 380.1311b to 380.1311m. However, for a district that is a

community district, "membership" means the sum of the product of

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

actually enrolled and in regular daily attendance in the community

district on the pupil membership count day for the current school

year, plus the product of .10 times the sum of the final audited

count from the supplemental count day of pupils in grades K to 12

actually enrolled and in regular daily attendance in the community

district for the immediately preceding school year. ~~plus the final~~

~~audited count from the supplemental count day of pupils in grades K~~

~~to 12 actually enrolled and in regular daily attendance in the~~

~~education achievement system for the immediately preceding school~~

~~year.~~ All pupil counts used in this subsection are as determined by

the department and calculated by adding the number of pupils

registered for attendance plus pupils received by transfer and

minus pupils lost as defined by rules promulgated by the

superintendent, and as corrected by a subsequent department audit.

The amount of the foundation allowance for a pupil in membership is

determined under section 20. In making the calculation of

membership, all of the following, as applicable, apply to

determining the membership of a district, a public school academy,

or an intermediate district:

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

pursuant to subsection (6), a pupil ~~shall be~~ is counted in

membership in the pupil's educating district or districts. An

individual pupil shall not be counted for more than a total of 1.0

full-time equated membership.

(b) If a pupil is educated in a district other than the

pupil's district of residence, if the pupil is not being educated

as part of a cooperative education program, if the pupil's district

of residence does not give the educating district its approval to

count the pupil in membership in the educating district, and if the

pupil is not covered by an exception specified in subsection (6) to

the requirement that the educating district must have the approval

of the pupil's district of residence to count the pupil in

membership, the pupil ~~shall not be~~ is not counted in membership in

any district.

district ~~shall be~~ is counted in membership in the intermediate

district.

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

program of a juvenile detention facility, a child caring

institution, or a mental health institution, or a pupil funded

under section 53a, ~~shall be~~ is counted in membership in the

district or intermediate district approved by the department to

operate the program.

(e) A pupil enrolled in the Michigan Schools for the Deaf and

Blind ~~shall be~~ is counted in membership in the pupil's intermediate

district of residence.

(f) A pupil enrolled in a career and technical education

program supported by a millage levied over an area larger than a

single district or in an area vocational-technical education

program established ~~pursuant to~~ under section 690 of the revised

school code, MCL 380.690, ~~shall be~~ is counted in membership only in

the pupil's district of residence.

(g) A pupil enrolled in a public school academy ~~shall be~~ is

counted in membership in the public school academy.

(h) For the purposes of this section and section 6a, for a

cyber school, as defined in section 551 of the revised school code,

MCL 380.551, that is in compliance with section 553a of the revised

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

school's educational program is considered regular daily

attendance, and for a district or public school academy, a pupil's

participation in a virtual course as defined in section 21f is

considered regular daily attendance. For the purposes of this

subdivision, for a pupil enrolled in a cyber school and utilizing

sequential learning, participation means that term as defined in

the pupil accounting manual, section 5-o-d: requirements for

counting pupils in membership-subsection 10.

(i) For a new district or public school academy beginning its

operation after December 31, 1994, membership for the first 2 full

or partial fiscal years of operation ~~shall be~~ is determined as

follows:

(i) If operations begin before the pupil membership count day

for the fiscal year, membership is the average number of full-time

equated pupils in grades K to 12 actually enrolled and in regular

daily attendance on the pupil membership count day for the current

school year and on the supplemental count day for the current

school year, as determined by the department and calculated by

adding the number of pupils registered for attendance on the pupil

membership count day plus pupils received by transfer and minus

pupils lost as defined by rules promulgated by the superintendent,

and as corrected by a subsequent department audit, plus the final

audited count from the supplemental count day for the current

school year, and dividing that sum by 2.

(ii) If operations begin after the pupil membership count day

for the fiscal year and not later than the supplemental count day

for the fiscal year, membership is the final audited count of the

number of full-time equated pupils in grades K to 12 actually

enrolled and in regular daily attendance on the supplemental count

day for the current school year.

(j) If a district is the authorizing body for a public school

academy, then, in the first school year in which pupils are counted

in membership on the pupil membership count day in the public

school academy, the determination of the district's membership

~~shall exclude~~ excludes from the district's pupil count for the

immediately preceding supplemental count day any pupils who are

counted in the public school academy on that first pupil membership

count day who were also counted in the district on the immediately

preceding supplemental count day.

(k) For an extended school year program approved by the

superintendent, a pupil enrolled, but not scheduled to be in

regular daily attendance, on a pupil membership count day, ~~shall be~~

is counted in membership.

(l) To be counted in membership, a pupil ~~shall~~ must meet the

minimum age requirement to be eligible to attend school under

section 1147 of the revised school code, MCL 380.1147, or ~~shall~~

must be enrolled under subsection (3) of that section, and ~~shall~~

must be less than 20 years of age on September 1 of the school year

except as follows:

(i) A special education pupil who is enrolled and receiving

instruction in a special education program or service approved by

the department, who does not have a high school diploma, and who is

less than 26 years of age as of September 1 of the current school

year ~~shall be~~ is counted in membership.

(ii) A pupil who is determined by the department to meet all

of the following may be counted in membership:

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

education high school diploma program, that is primarily focused on

educating pupils with extreme barriers to education, such as being

homeless as defined under 42 USC 11302.

(B) Had dropped out of school.

current school year.

(iii) If a child does not meet the minimum age requirement to

be eligible to attend school for that school year under section

1147 of the revised school code, MCL 380.1147, but will be 5 years

of age not later than December 1 of that school year, the district

may count the child in membership for that school year if the

parent or legal guardian has notified the district in writing that

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

school year.

(m) An individual who has achieved a high school diploma ~~shall~~

~~not be~~ is not counted in membership. An individual who has achieved

a high school equivalency certificate ~~shall not be~~ is not counted

in membership unless the individual is a student with a disability

as defined in R 340.1702 of the Michigan Administrative Code. An

individual participating in a job training program funded under

former section 107a or a jobs program funded under former section

107b, administered by the department of talent and economic

development, or participating in any successor of either of those 2

programs, ~~shall not be~~ is not counted in membership.

(n) If a pupil counted in membership in a public school

academy is also educated by a district or intermediate district as

part of a cooperative education program, the pupil ~~shall be~~ is

counted in membership only in the public school academy unless a

written agreement signed by all parties designates the party or

parties in which the pupil ~~shall be~~ is counted in membership, and

the instructional time scheduled for the pupil in the district or

intermediate district ~~shall be~~ is included in the full-time equated

membership determination under subdivision (q) and section 101.

However, for pupils receiving instruction in both a public school

academy and in a district or intermediate district but not as a

part of a cooperative education program, the following apply:

(i) If the public school academy provides instruction for at

least 1/2 of the class hours required under section 101, the public

school academy ~~shall receive~~ receives as its prorated share of the

full-time equated membership for each of those pupils an amount

equal to 1 times the product of the hours of instruction the public

school academy provides divided by the number of hours required

under section 101 for full-time equivalency, and the remainder of

the full-time membership for each of those pupils ~~shall be~~ is

allocated to the district or intermediate district providing the

remainder of the hours of instruction.

(ii) If the public school academy provides instruction for

less than 1/2 of the class hours required under section 101, the

district or intermediate district providing the remainder of the

hours of instruction ~~shall receive~~ receives as its prorated share

of the full-time equated membership for each of those pupils an

amount equal to 1 times the product of the hours of instruction the

district or intermediate district provides divided by the number of

hours required under section 101 for full-time equivalency, and the

remainder of the full-time membership for each of those pupils

~~shall be~~ is allocated to the public school academy.

(o) An individual less than 16 years of age as of September 1

of the current school year who is being educated in an alternative

education program ~~shall not be~~ is not counted in membership if

there are also adult education participants being educated in the

same program or classroom.

(p) The department shall give a uniform interpretation of

full-time and part-time memberships.

(q) The number of class hours used to calculate full-time

equated memberships ~~shall~~ must be consistent with section 101. In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution or for pupils engaged in an

internship or work experience under section 1279h of the revised

school code, MCL 380.1279h, a pupil ~~shall not be~~ is not considered

to be less than a full-time equated pupil solely because of the

effect of his or her postsecondary enrollment or engagement in the

internship or work experience, including necessary travel time, on

the number of class hours provided by the district to the pupil.

(r) Full-time equated memberships for pupils in kindergarten

~~shall be~~ are determined by dividing the number of instructional

hours scheduled and provided per year per kindergarten pupil by the

same number used for determining full-time equated memberships for

pupils in grades 1 to 12. However, to the extent allowable under

federal law, for a district or public school academy that provides

evidence satisfactory to the department that it used federal title

I money in the 2 immediately preceding school fiscal years to fund

full-time kindergarten, full-time equated memberships for pupils in

kindergarten ~~shall be~~ are determined by dividing the number of

class hours scheduled and provided per year per kindergarten pupil

by a number equal to 1/2 the number used for determining full-time

equated memberships for pupils in grades 1 to 12. The change in the

counting of full-time equated memberships for pupils in

kindergarten that took effect for 2012-2013 is not a mandate.

(s) For a district or a public school academy that has pupils

enrolled in a grade level that was not offered by the district or

public school academy in the immediately preceding school year, the

number of pupils enrolled in that grade level to be counted in

membership is the average of the number of those pupils enrolled

and in regular daily attendance on the pupil membership count day

and the supplemental count day of the current school year, as

determined by the department. Membership ~~shall be~~ is calculated by

adding the number of pupils registered for attendance in that grade

level on the pupil membership count day plus pupils received by

transfer and minus pupils lost as defined by rules promulgated by

the superintendent, and as corrected by subsequent department

audit, plus the final audited count from the supplemental count day

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

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

counted in membership in the pupil's district of residence with the

written approval of all parties to the cooperative agreement.

(u) If, as a result of a disciplinary action, a district

determines through the district's alternative or disciplinary

education program that the best instructional placement for a pupil

is in the pupil's home or otherwise apart from the general school

population, if that placement is authorized in writing by the

district superintendent and district alternative or disciplinary

education supervisor, and if the district provides appropriate

instruction as described in this subdivision to the pupil at the

pupil's home or otherwise apart from the general school population,

the district may count the pupil in membership on a pro rata basis,

with the proration based on the number of hours of instruction the

district actually provides to the pupil divided by the number of

hours required under section 101 for full-time equivalency. For the

purposes of this subdivision, a district ~~shall be~~ is considered to

be providing appropriate instruction if all of the following are

met:

(i) The district provides at least 2 nonconsecutive hours of

instruction per week to the pupil at the pupil's home or otherwise

apart from the general school population under the supervision of a

certificated teacher.

(ii) The district provides instructional materials, resources,

and supplies that are comparable to those otherwise provided in the

district's alternative education program.

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

alternative education program.

(iv) Credit earned is awarded to the pupil and placed on the

pupil's transcript.

(v) If a pupil was enrolled in a public school academy on the

pupil membership count day, if the public school academy's contract

with its authorizing body is revoked or the public school academy

otherwise ceases to operate, and if the pupil enrolls in a district

within 45 days after the pupil membership count day, the department

shall adjust the district's pupil count for the pupil membership

count day to include the pupil in the count.

(w) For a public school academy that has been in operation for

at least 2 years and that suspended operations for at least 1

semester and is resuming operations, membership is the sum of the

product of .90 times the number of full-time equated pupils in

grades K to 12 actually enrolled and in regular daily attendance on

the first pupil membership count day or supplemental count day,

whichever is first, occurring after operations resume, plus the

product of .10 times the final audited count from the most recent

pupil membership count day or supplemental count day that occurred

before suspending operations, as determined by the superintendent.

(x) If a district's membership for a particular fiscal year,

as otherwise calculated under this subsection, would be less than

1,550 pupils and the district has 4.5 or fewer pupils per square

mile, as determined by the department, and if the district does not

receive funding under section 22d(2), the district's membership

~~shall be~~ is considered to be the membership figure calculated under

this subdivision. If a district educates and counts in its

membership pupils in grades 9 to 12 who reside in a contiguous

district that does not operate grades 9 to 12 and if 1 or both of

the affected districts request the department to use the

determination allowed under this sentence, the department shall

include the square mileage of both districts in determining the

number of pupils per square mile for each of the districts for the

purposes of this subdivision. The membership figure calculated

under this subdivision is the greater of the following:

(i) The average of the district's membership for the 3-fiscal-

year period ending with that fiscal year, calculated by adding the

district's actual membership for each of those 3 fiscal years, as

otherwise calculated under this subsection, and dividing the sum of

those 3 membership figures by 3.

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

otherwise calculated under this subsection.

(y) Full-time equated memberships for special education pupils

who are not enrolled in kindergarten but are enrolled in a

classroom program under R 340.1754 of the Michigan Administrative

Code ~~shall be~~ are determined by dividing the number of class hours

scheduled and provided per year by 450. Full-time equated

memberships for special education pupils who are not enrolled in

kindergarten but are receiving early childhood special education

services under R 340.1755 or R 340.1862 of the Michigan

Administrative Code ~~shall be~~ are determined by dividing the number

of hours of service scheduled and provided per year per-pupil by

180.

(z) A pupil of a district that begins its school year after

Labor Day who is enrolled in an intermediate district program that

begins before Labor Day ~~shall not be~~ is not considered to be less

than a full-time pupil solely due to instructional time scheduled

but not attended by the pupil before Labor Day.

(aa) For the first year in which a pupil is counted in

membership on the pupil membership count day in a middle college

program, the membership is the average of the full-time equated

membership on the pupil membership count day and on the

supplemental count day for the current school year, as determined

by the department. If a pupil described in this subdivision was

counted in membership by the operating district on the immediately

preceding supplemental count day, the pupil ~~shall be~~ is excluded

from the district's immediately preceding supplemental count for

the purposes of determining the district's membership.

(bb) A district or public school academy that educates a pupil

who attends a United States Olympic Education Center may count the

pupil in membership regardless of whether or not the pupil is a

resident of this state.

(cc) A pupil enrolled in a district other than the pupil's

district of residence ~~pursuant to~~ under section 1148(2) of the

revised school code, MCL 380.1148, ~~shall be~~ is counted in the

educating district.

(dd) For a pupil enrolled in a dropout recovery program that

meets the requirements of section 23a, the pupil ~~shall be~~ is

counted as 1/12 of a full-time equated membership for each month

that the district operating the program reports that the pupil was

enrolled in the program and was in full attendance. However, if the

special membership counting provisions under this subdivision and

the operation of the other membership counting provisions under

this subsection result in a pupil being counted as more than 1.0

FTE in a fiscal year, the payment made for the pupil under sections

22a and 22b ~~shall~~ must not be based on more than 1.0 FTE for that

pupil, and any portion of an FTE for that pupil that exceeds 1.0

~~shall~~ is instead be paid under section 25g. The district operating

the program shall report to the center the number of pupils who

were enrolled in the program and were in full attendance for a

month not later than 30 days after the end of the month. A district

shall not report a pupil as being in full attendance for a month

unless both of the following are met:

(i) A personalized learning plan is in place on or before the

first school day of the month for the first month the pupil

participates in the program.

(ii) The pupil meets the district's definition under section

23a of satisfactory monthly progress for that month or, if the

pupil does not meet that definition of satisfactory monthly

progress for that month, the pupil did meet that definition of

satisfactory monthly progress in the immediately preceding month

and appropriate interventions are implemented within 10 school days

after it is determined that the pupil does not meet that definition

of satisfactory monthly progress.

(ee) A pupil participating in a virtual course under section

21f ~~shall be~~ is counted in membership in the district enrolling the

pupil.

(ff) If a public school academy that is not in its first or

second year of operation closes at the end of a school year and

does not reopen for the next school year, the department shall

adjust the membership count of the district or other public school

academy in which a former pupil of the closed public school academy

enrolls and is in regular daily attendance for the next school year

to ensure that the district or other public school academy receives

the same amount of membership aid for the pupil as if the pupil

were counted in the district or other public school academy on the

supplemental count day of the preceding school year.

(gg) If a special education pupil is expelled under section

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

380.1311a, and is not in attendance on the pupil membership count

day because of the expulsion, and if the pupil remains enrolled in

the district and resumes regular daily attendance during that

school year, the district's membership ~~shall be~~ is adjusted to

count the pupil in membership as if he or she had been in

attendance on the pupil membership count day.

(hh) A pupil enrolled in a community district ~~shall be~~ is

counted in membership in the community district.

(ii) A part-time pupil enrolled in a nonpublic school in

grades K to 12 in accordance with section 166b shall not be counted

as more than 0.75 of a full-time equated membership.

(jj) A district that borders another state or a public school

academy that operates at least grades 9 to 12 and is located within

20 miles of a border with another state may count in membership a

pupil who is enrolled in a course at a college or university that

is located in the bordering state and within 20 miles of the border

with this state if all of the following are met:

(i) The pupil would meet the definition of an eligible student

under the postsecondary enrollment options act, 1996 PA 160, MCL

388.511 to 388.524, if the course were an eligible course under

that act.

(ii) The course in which the pupil is enrolled would meet the

definition of an eligible course under the postsecondary enrollment

options act, 1996 PA 160, MCL 388.511 to 388.524, if the course

were provided by an eligible postsecondary institution under that

act.

(iii) The department determines that the college or university

is an institution that, in the other state, fulfills a function

comparable to a state university or community college, as those

terms are defined in section 3 of the postsecondary enrollment

options act, 1996 PA 160, MCL 388.513, or is an independent

nonprofit degree-granting college or university.

(iv) The district or public school academy pays for a portion

of the pupil's tuition at the college or university in an amount

equal to the eligible charges that the district or public school

academy would pay to an eligible postsecondary institution under

the postsecondary enrollment options act, 1996 PA 160, MCL 388.511

to 388.524, as if the course were an eligible course under that

act.

(v) The district or public school academy awards high school

credit to a pupil who successfully completes a course as described

in this subdivision.

(kk) A pupil enrolled in a middle college program may be

counted for more than a total of 1.0 full-time equated membership

if the pupil is enrolled in more than the minimum number of

instructional days and hours required under section 101 and the

pupil is expected to complete the 5-year program with both a high

school diploma and at least 60 transferable college credits or is

expected to earn an associate's degree in fewer than 5 years.

(ll) If a district's or public school academy's membership for

a particular fiscal year, as otherwise calculated under this

subsection, includes pupils counted in membership who are enrolled

under section 166b, all of the following apply for the purposes of

this subdivision:

(i) If the district's or public school academy's membership

for pupils counted under section 166b equals or exceeds 5% of the

district's or public school academy's membership for pupils not

counted in membership under section 166b in the immediately

preceding fiscal year, then the growth in the district's or public

school academy's membership for pupils counted under section 166b

must not exceed 10%.

(ii) If the district's or public school academy's membership

for pupils counted under section 166b is less than 5% of the

district's or public school academy's membership for pupils not

counted in membership under section 166b in the immediately

preceding fiscal year, then the district's or public school

academy's membership for pupils counted under section 166b must not

exceed the greater of the following:

(A) 5% of the district's or public school academy's membership

for pupils not counted in membership under section 166b.

(B) 10% more than the district's or public school academy's

membership for pupils counted under section 166b in the immediately

preceding fiscal year.

(iii) If 1 or more districts consolidate or are parties to an

annexation, then the calculations under subdivisions (i) and (ii)

must be applied to the combined total membership for pupils counted

in those districts for the fiscal year immediately preceding the

consolidation or annexation.

~~(mm) Beginning with the 2019-2020 school year, if a district,~~

~~intermediate district, or public school academy charges tuition for~~

~~a pupil that resided out of state in the immediately preceding~~

~~school year, the pupil shall not be counted in membership in the~~

~~district, intermediate district, or public school academy.~~

(5) "Public school academy" means that term as defined in

section 5 of the revised school code, MCL 380.5.

(6) "Pupil" means an individual in membership in a public

school. A district must have the approval of the pupil's district

of residence to count the pupil in membership, except approval by

the pupil's district of residence is not required for any of the

following:

(a) A nonpublic part-time pupil enrolled in grades K to 12 in

accordance with section 166b.

(b) A pupil receiving 1/2 or less of his or her instruction in

a district other than the pupil's district of residence.

(d) A pupil enrolled in a district other than the pupil's

district of residence under an intermediate district schools of

choice pilot program as described in section 91a or former section

91 if the intermediate district and its constituent districts have

been exempted from section 105.

(e) A pupil enrolled in a district other than the pupil's

district of residence if the pupil is enrolled in accordance with

section 105 or 105c.

(f) A pupil who has made an official written complaint or

whose parent or legal guardian has made an official written

complaint to law enforcement officials and to school officials of

the pupil's district of residence that the pupil has been the

victim of a criminal sexual assault or other serious assault, if

the official complaint either indicates that the assault occurred

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

pupils enrolled in the school the pupil would otherwise attend in

the district of residence or by an employee of the district of

residence. A person who intentionally makes a false report of a

crime to law enforcement officials for the purposes of this

subdivision is subject to section 411a of the Michigan penal code,

1931 PA 328, MCL 750.411a, which provides criminal penalties for

that conduct. As used in this subdivision:

(i) "At school" means in a classroom, elsewhere on school

premises, on a school bus or other school-related vehicle, or at a

school-sponsored activity or event whether or not it is held on

school premises.

(ii) "Serious assault" means an act that constitutes a felony

violation of chapter XI of the Michigan penal code, 1931 PA 328,

MCL 750.81 to 750.90h, or that constitutes an assault and

infliction of serious or aggravated injury under section 81a of the

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

(g) A pupil whose district of residence changed after the

pupil membership count day and before the supplemental count day

and who continues to be enrolled on the supplemental count day as a

nonresident in the district in which he or she was enrolled as a

resident on the pupil membership count day of the same school year.

(h) A pupil enrolled in an alternative education program

operated by a district other than his or her district of residence

who meets 1 or more of the following:

(i) The pupil has been suspended or expelled from his or her

district of residence for any reason, including, but not limited

to, a suspension or expulsion under section 1310, 1311, or 1311a of

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

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

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

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

(i) A pupil enrolled in the Michigan Virtual School, for the

pupil's enrollment in the Michigan Virtual School.

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

district or who is the child of a person who worked at the district

as of the time the pupil first enrolled in the district but who no

longer works at the district due to a workforce reduction. As used

in this subdivision, "child" includes an adopted child, stepchild,

or legal ward.

(k) An expelled pupil who has been denied reinstatement by the

expelling district and is reinstated by another school board under

section 1311 or 1311a of the revised school code, MCL 380.1311 and

380.1311a.

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

district of residence in a middle college program if the pupil's

district of residence and the enrolling district are both

constituent districts of the same intermediate district.

(m) A pupil enrolled in a district other than the pupil's

district of residence who attends a United States Olympic Education

Center.

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

district of residence pursuant to section 1148(2) of the revised

school code, MCL 380.1148.

(o) A pupil who enrolls in a district other than the pupil's

district of residence as a result of the pupil's school not making

adequate yearly progress under the no child left behind act of

2001, Public Law 107-110, or the every student succeeds act, Public

Law 114-95.

However, ~~except for pupils enrolled in the youth challenge~~

~~program at the site at which the youth challenge program operated~~

~~for 2015-2016,~~ if a district educates pupils who reside in another

district and if the primary instructional site for those pupils is

established by the educating district after 2009-2010 and is

located within the boundaries of that other district, the educating

district must have the approval of that other district to count

those pupils in membership.

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

district means:

(a) Except as provided in subdivision (b), the first Wednesday

in October each school year or, for a district or building in which

school is not in session on that Wednesday due to conditions not

within the control of school authorities, with the approval of the

superintendent, the immediately following day on which school is in

session in the district or building.

(b) For a district or intermediate district maintaining school

during the entire school year, the following days:

(i) Fourth Wednesday in July.

(ii) First Wednesday in October.

(iii) Second Wednesday in February.

(iv) Fourth Wednesday in April.

(8) "Pupils in grades K to 12 actually enrolled and in regular

daily attendance" means pupils in grades K to 12 in attendance and

receiving instruction in all classes for which they are enrolled on

the pupil membership count day or the supplemental count day, as

applicable. Except as otherwise provided in this subsection, a

pupil who is absent from any of the classes in which the pupil is

enrolled on the pupil membership count day or supplemental count

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

consecutive school days immediately following the pupil membership

count day or supplemental count day, except for a pupil who has

been excused by the district, ~~shall not be~~ is not counted as 1.0

full-time equated membership. A pupil who is excused from

attendance on the pupil membership count day or supplemental count

day and who fails to attend each of the classes in which the pupil

is enrolled within 30 calendar days after the pupil membership

count day or supplemental count day ~~shall not be~~ is not counted as

1.0 full-time equated membership. In addition, a pupil who was

enrolled and in attendance in a district, intermediate district, or

public school academy before the pupil membership count day or

supplemental count day of a particular year but was expelled or

suspended on the pupil membership count day or supplemental count

day ~~shall~~ is only be counted as 1.0 full-time equated membership if

the pupil resumed attendance in the district, intermediate

district, or public school academy within 45 days after the pupil

membership count day or supplemental count day of that particular

year. ~~Pupils~~ A pupil not counted as 1.0 full-time equated

membership due to an absence from a class ~~shall be~~ is counted as a

prorated membership for the classes the pupil attended. For

purposes of this subsection, "class" means a period of time in 1

day when pupils and a certificated teacher, a teacher engaged to

teach under section 1233b of the revised school code, MCL

380.1233b, or an individual working under a valid substitute

permit, authorization, or approval issued by the department, are

together and instruction is taking place.

(9) "Rule" means a rule promulgated pursuant to the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328.

(10) "The revised school code" means the revised school code,

1976 PA 451, MCL 380.1 to 380.1852.

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

district", and "district of the first class" mean, for the purposes

of this article only, a district that had at least 40,000 pupils in

membership for the immediately preceding fiscal year.

(12) "School fiscal year" means a fiscal year that commences

July 1 and continues through June 30.

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

(14) "Superintendent", unless the context clearly refers to a

district or intermediate district superintendent, means the

superintendent of public instruction described in section 3 of

article VIII of the state constitution of 1963.

(15) "Supplemental count day" means the day on which the

supplemental pupil count is conducted under section 6a.

(16) "Tuition pupil" means a pupil of school age attending

school in a district other than the pupil's district of residence

for whom tuition may be charged to the district of residence.

Tuition pupil does not include a pupil who is a special education

pupil, a pupil described in subsection (6)(c) to (o), or a pupil

whose parent or guardian voluntarily enrolls the pupil in a

district that is not the pupil's district of residence. A pupil's

district of residence shall not require a high school tuition

pupil, as provided under section 111, to attend another school

district after the pupil has been assigned to a school district.

(17) "State school aid fund" means the state school aid fund

established in section 11 of article IX of the state constitution

of 1963.

(18) "Taxable value" means the taxable value of property as

determined under section 27a of the general property tax act, 1893

PA 206, MCL 211.27a.

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

instructional print or electronic resource that is selected and

approved by the governing board of a district and that contains a

presentation of principles of a subject, or that is a literary work

relevant to the study of a subject required for the use of

classroom pupils, or another type of course material that forms the

basis of classroom instruction.

(20) "Total state aid" or "total state school aid" means the

total combined amount of all funds due to a district, intermediate

district, or other entity under this article.

Sec. 8b. (1) The department shall work with the center to

assign a district code to each public school academy that is

authorized under the revised school code and is eligible to receive

funding under this article within 30 days after a contract is

submitted to the department by the authorizing body of a public

school academy.

(2) If the department or the center does not assign a district

code to a public school academy within the 30-day period described

in subsection (1), the district code to be used by the department

~~shall use~~ to make payments under this article to the newly

authorized public school academy ~~shall be~~ is a number that is

equivalent to the sum of the last district code assigned to a

public school academy located in the same county as the newly

authorized public school academy plus 1. However, if there is not

an existing public school academy located in the same county as the

newly authorized public school academy, then the district code to

be used by the department ~~shall use~~ to make payments under this

article to the newly authorized public school academy ~~shall be~~ is a

5-digit number that has the county code in which the public school

academy is located as its first 2 digits, 9 as its third digit, 0

as its fourth digit, and 1 as its fifth digit. If the number of

public school academies in a county grows to exceed 100, then the

third digit in this 5-digit number ~~shall then be~~ is 7 for the

public school academies in excess of 100. If the number of public

school academies in a county grows to exceed 200, then the third

digit in this 5-digit number is 5 for the public school academies

in excess of 200.

(3) For each school of excellence that is a cyber school and

is authorized under part 6e of the revised school code, MCL 380.551

to 380.561, by a school district, intermediate school district,

community college other than a federal tribally controlled

community college, or other authorizing body that is not empowered

to authorize a school of excellence to operate statewide and is

eligible to receive funding under this article, all of the

following apply:

(a) The department shall assign a district code that includes

as the first 2 digits the county code in which the authorizing body

is located.

(b) If the cyber school does not provide instruction at a

specific location, the intermediate district that would normally

provide programs and services to the school district in which the

administrative office of the cyber school is located shall provide

programs and services to the cyber school. The intermediate school

district required to provide programs and services to a cyber

school under this subdivision remains the same for as long as that

cyber school is in operation.

Sec. 11. (1) ~~For the fiscal year ending September 30, 2018,~~

~~there is appropriated for the public schools of this state and~~

~~certain other state purposes relating to education the sum of~~

~~$12,682,127,200.00 from the state school aid fund, the sum of~~

~~$78,500,000.00 from the general fund, an amount not to exceed~~

~~$72,000,000.00 from the community district education trust fund~~

~~created under section 12 of the Michigan trust fund act, 2000 PA~~

~~489, MCL 12.262, an amount not to exceed $23,100,000.00 from the~~

~~MPSERS retirement obligation reform reserve fund, and an amount not~~

~~to exceed $100.00 from the water emergency reserve fund.~~ For the

fiscal year ending September 30, 2019, there is appropriated for

the public schools of this state and certain other state purposes

relating to education the sum of ~~$12,876,825,200.00~~

$12,828,425,200.00 from the state school aid fund, the sum of

$87,920,000.00 from the general fund, an amount not to exceed

$72,000,000.00 from the community district education trust fund

created under section 12 of the Michigan trust fund act, 2000 PA

489, MCL 12.262, an amount not to exceed ~~$31,900,000.00~~

$30,000,000.00 from the MPSERS retirement obligation reform reserve

fund, an amount not to exceed $30,000,000.00 from the school mental

health and support services fund created under section 31m, and an

amount not to exceed $100.00 from the water emergency reserve fund.

For the fiscal year ending September 30, 2020, there is

appropriated for the public schools of this state and certain other

state purposes relating to education the sum of $13,148,679,300.00

from the state school aid fund, the sum of $268,000,000.00 from the

general fund, an amount not to exceed $72,000,000.00 from the

community district education trust fund created under section 12 of

the Michigan trust fund act, 2000 PA 489, MCL 12.262, an amount not

to exceed $1,900,000.00 from the MPSERS retirement obligation

reform reserve fund, and an amount not to exceed $100.00 from the

water emergency reserve fund. In addition, all available federal

funds are appropriated each fiscal year for the fiscal years ending

September 30, ~~2018~~ 2019 and September 30, ~~2019.~~2020.

(2) The appropriations under this section ~~shall be~~ are

allocated as provided in this article. Money appropriated under

this section from the general fund ~~shall~~ must 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. 11a. (1) The school aid stabilization fund is created as

a separate account within the state school aid fund established by

section 11 of article IX of the state constitution of 1963.

(2) The state treasurer may receive money or other assets from

any source for deposit into the school aid stabilization fund. The

state treasurer shall deposit into the school aid stabilization

fund all of the following:

(a) Unexpended and unencumbered state school aid fund revenue

for a fiscal year that remains in the state school aid fund as of

the bookclosing for that fiscal year.

(b) Money statutorily dedicated to the school aid

stabilization fund.

(3) Money available in the school aid stabilization fund may

not be expended without a specific appropriation from the school

aid stabilization fund. Money in the school aid stabilization fund

~~shall~~ must be expended only for purposes for which state school aid

fund money may be expended.

(4) The state treasurer shall direct the investment of the

school aid stabilization fund. The state treasurer shall credit to

the school aid stabilization fund interest and earnings from fund

investments.

(5) Money in the school aid stabilization fund at the close of

a fiscal year ~~shall remain~~ remains in the school aid stabilization

fund and ~~shall~~ does not lapse to the unreserved school aid fund

balance or the general fund.

(6) If the maximum amount appropriated under section 11 from

the state school aid fund for a fiscal year exceeds the amount

available for expenditure from the state school aid fund for that

fiscal year, there is appropriated from the school aid

stabilization fund to the state school aid fund an amount equal to

the projected shortfall as determined by the department of

treasury, but not to exceed 1/2 of the available money in the

school aid stabilization fund. If 1/2 of the available money in the

school aid stabilization fund is insufficient to fully fund an

amount equal to the projected shortfall, the state budget director

shall notify the legislature as required under section 296(2) and

state payments in an amount equal to the remainder of the projected

shortfall ~~shall~~ must be prorated in the manner provided under

section 296(3).

(7) For ~~2018-2019,~~ 2019-2020, in addition to the

appropriations in section 11, there is appropriated from the school

aid stabilization fund to the state school aid fund the amount

necessary to fully fund the allocations under this article.

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

allocated an amount not to exceed $125,500,000.00 for ~~2018-2019~~

2019-2020 for payments to the school loan bond redemption fund in

the department of treasury on behalf of districts and intermediate

districts. Notwithstanding section 296 or any other provision of

this act, funds allocated under this section are not subject to

proration and ~~shall~~ must be paid in full.

Sec. 11k. For ~~2018-2019,~~ 2019-2020, there is appropriated from

the general fund to the school loan revolving fund an amount equal

to the amount of school bond loans assigned to the Michigan finance

authority, not to exceed the total amount of school bond loans held

in reserve as long-term assets. As used in this section, "school

loan revolving fund" means that fund created in section 16c of the

shared credit rating act, 1985 PA 227, MCL 141.1066c.

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

allocated for ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$18,000,000.00~~ $43,000,000.00 and there is allocated for ~~2018-2019~~

2019-2020 an amount not to exceed ~~$24,000,000.00~~ $56,000,000.00 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. 11s. (1) From the general fund appropriation in section

11, there is allocated ~~$3,230,000.00 for 2018-2019~~ $8,075,100.00

for 2019-2020 for the purpose of providing services and programs to

children who reside within the boundaries of a district with the

majority of its territory located within the boundaries of a city

for which an executive proclamation of emergency is issued in the

current or immediately preceding 3 fiscal years under the emergency

management act, 1976 PA 390, MCL 30.401 to 30.421. From the funding

appropriated in section 11, there is allocated for ~~fiscal year~~

~~2018-2019~~ 2019-2020 $100.00 from the water emergency reserve fund

for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

to a district with the majority of its territory located within the

boundaries of a city in which an executive proclamation of

emergency is issued in the current or immediately preceding 3 4

fiscal years and that has at least 4,500 pupils in membership for

the 2016-2017 fiscal year or has at least 4,000 pupils in

membership for a fiscal year after 2016-2017, an amount not to

exceed ~~$2,625,000.00 for 2018-2019~~ $2,425,000.00 for 2019-2020 for

the purpose of employing school nurses, classroom aides, and school

social workers. The district shall provide a report to the

department in a form, manner, and frequency prescribed by the

department. The department shall provide a copy of that report to

the governor, the house and senate school aid subcommittees, the

house and senate fiscal agencies, and the state budget director

within 5 days after receipt. The report ~~shall~~ must provide at least

the following information:

(a) How many personnel were hired using the funds allocated

under this subsection.

(b) A description of the services provided to pupils by those

personnel.

in subdivision (b).

(d) Any other information the department considers necessary

to ensure that the children described in subsection (1) received

appropriate levels and types of services.

(3) For ~~2018-2019~~ 2019-2020 only, from the allocation in

subsection (1), there is allocated an amount not to exceed ~~$0.00~~

$4,000,000.00 to an intermediate district that has a constituent

district described in subsection (2) to provide state early

intervention services for children described in subsection (1) who

are ~~less than 4 years of age as of September 1, 2016.~~ between age 3

and age 5. The intermediate district shall use these funds to

provide state early intervention services that are similar to the

services described in the early on Michigan state plan, including

ensuring that all children described in subsection (1) who are less

than 4 years of age as of September 1, 2016 are assessed and

evaluated at least twice annually.

(4) From the allocation in subsection (1), there is allocated

an amount not to exceed $1,000,000.00 for 2019-2020 to the

intermediate district described in subsection (3) to enroll

children described in subsection (1) in school-day great start

readiness programs, regardless of household income eligibility

requirements contained in section 32d. The department shall

administer this funding consistent with all other provisions that

apply to great start readiness programs under sections 32d and 39.

(5) ~~(4)~~ For ~~2018-2019,~~ 2019-2020, from the allocation in

subsection (1), there is allocated an amount not to exceed

~~$605,000.00~~ $650,000.00 for nutritional services to children

described in subsection (1).

(6) ~~(5)~~ In addition to other funding allocated and

appropriated in this section, there is appropriated an amount not

to exceed $15,000,000.00 for ~~fiscal year 2018-2019~~ 2019-2020 for

state restricted contingency funds. These contingency funds are not

available for expenditure until they have been transferred to a

section within this article under section 393(2) of the management

and budget act, 1984 PA 431, MCL 18.1393.

(7) ~~(6)~~ Notwithstanding section 17b, the department shall make

payments under this section ~~shall be paid~~ on a schedule determined

by the department.

Sec. 15. (1) If a district or intermediate district fails to

receive its proper apportionment, the department, upon satisfactory

proof that the district or intermediate district was entitled

justly, shall apportion the deficiency in the next apportionment.

Subject to subsections (2) and (3), if a district or intermediate

district has received more than its proper apportionment, the

department, upon satisfactory proof, shall deduct the excess in the

next apportionment. Notwithstanding any other provision in this

article, state aid overpayments to a district, other than

overpayments in payments for special education or special education

transportation, may be recovered from any payment made under this

article other than a special education or special education

transportation payment, from the proceeds of a loan to the district

under the emergency municipal loan act, 1980 PA 243, MCL 141.931 to

141.942, or from the proceeds of millage levied or pledged under

section 1211 of the revised school code, MCL 380.1211. State aid

overpayments made in special education or special education

transportation payments may be recovered from subsequent special

education or special education transportation payments, from the

proceeds of a loan to the district under the emergency municipal

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

of millage levied or pledged under section 1211 of the revised

school code, MCL 380.1211.

(2) If the result of an audit conducted by or for the

department affects the current fiscal year membership, the

department shall adjust affected payments ~~shall be adjusted~~ in the

current fiscal year. A deduction due to an adjustment made as a

result of an audit conducted by or for the department, or as a

result of information obtained by the department from the district,

an intermediate district, the department of treasury, or the office

of auditor general, ~~shall~~ must be deducted from the district's

apportionments when the adjustment is finalized. At the request of

the district and upon the district presenting evidence satisfactory

to the department of the hardship, the department may grant up to

an additional 9 4 years for the adjustment and may advance payments

to the district otherwise authorized under this article if the

district would otherwise experience a significant hardship in

satisfying its financial obligations. However, a district that has

presented satisfactory evidence of hardship and is undergoing an

extended adjustment during 2018-2019 may continue to use the period

of extended adjustment as originally granted by the department.

(3) If, based on an audit by the department or the

department's designee or because of new or updated information

received by the department, the department determines that the

amount paid to a district or intermediate district under this

article for the current fiscal year or a prior fiscal year was

incorrect, the department shall make the appropriate deduction or

payment in the district's or intermediate district's allocation in

the next apportionment after the adjustment is finalized. The

department shall calculate the deduction or payment ~~shall be~~

~~calculated~~ according to the law in effect in the fiscal year in

which the incorrect amount was paid. If the district does not

receive an allocation for the fiscal year or if the allocation is

not sufficient to pay the amount of any deduction, the amount of

any deduction otherwise applicable ~~shall~~ must be satisfied from the

proceeds of a loan to the district under the emergency municipal

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

of millage levied or pledged under section 1211 of the revised

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

(4) If the department makes an adjustment under this section

based in whole or in part on a membership audit finding that a

district or intermediate district employed an educator in violation

of certification requirements under the revised school code and

rules promulgated by the department, the department shall prorate

the adjustment according to the period of noncompliance with the

certification requirements.

(5) ~~(4)~~ The department may conduct audits, or may direct

audits by designee of the department, for the current fiscal year

and the immediately preceding fiscal year of all records related to

a program for which a district or intermediate district has

received funds under this article.

(6) ~~(5)~~ Expenditures made by the department under this article

that are caused by the write-off of prior year accruals may be

funded by revenue from the write-off of prior year accruals.

(7) ~~(6)~~ In addition to funds appropriated in section 11 for

all programs and services, there is appropriated for ~~2018-2019~~

2019-2020 for obligations in excess of applicable appropriations an

amount equal to the collection of overpayments, but not to exceed

amounts available from overpayments.

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~~ A district or other entity shall not apply

or take the money 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) A district or intermediate district shall adopt an annual

budget in a manner that complies with the uniform budgeting and

accounting act, 1968 PA 2, MCL 141.421 to 141.440a. Within 15 days

after a district board adopts its annual operating budget for the

following school fiscal year, or after a district board adopts a

subsequent revision to that budget, the district shall make all of

the following available through a link on its website homepage, or

may make the information available through a link on its

intermediate district's website homepage, 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 visual displays:

(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.

(D) All other personnel costs.

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

following subcategories:

(A) Instruction.

(B) Support services.

(D) Operations and maintenance.

(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 employees

health benefit 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 the

revised school code.

(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%.

audit ~~shall~~ must 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

1 each year for reporting the prior fiscal year data:

(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~~ must 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 1 each fiscal year, each district and

intermediate district shall submit to the center, in a manner

prescribed by the center, annual comprehensive financial data

consistent with the district's or intermediate district's audited

financial statements and consistent with accounting manuals and

charts of accounts approved and published by the department. For an

intermediate district, the report ~~shall~~ must 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~~ must 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~~ must include object

classifications of salary, benefits, including categories for

active employee health expenditures, purchased services, supplies,

capital outlay, and other. ~~Districts~~ A district 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 center the special

education actual cost report, known as "SE-4096", on a form and in

the manner prescribed by the center. An intermediate district shall

certify the audit of a district's report.

(7) By October 7 of each year, each district and intermediate

district shall file with the center the audited transportation

expenditure report, known as "SE-4094", on a form and in the manner

prescribed by the center. An intermediate district shall certify

the audit of a district's report.

(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), (7), and (12), or if the department

determines that the financial data required under subsection (5)

are not consistent with audited financial statements, 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), (7), and (12). If the district or intermediate

district does not comply with subsections (4), (5), (6), (7), and

(12) by the end of the fiscal year, the district or intermediate

district forfeits the amount withheld.

(11) If a district or intermediate district does not comply

with subsection (2), the department may withhold up to 10% of the

total 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 subsection (2). If the district

or intermediate district does not comply with subsection (2) by the

end of the fiscal year, the district or intermediate district

forfeits the amount withheld.

(12) By November 1 of each year, if a district or intermediate

district offers virtual learning under section 21f, or for a school

of excellence that is a cyber school, as defined in section 551 of

the revised school code, MCL 380.551, the district or intermediate

district shall submit to the department a report that details the

per-pupil costs of operating the virtual learning by vendor type

and virtual learning model. The report ~~shall~~ must include

information concerning the operation of virtual learning for the

immediately preceding school fiscal year, including information

concerning summer programming. Information must be collected in a

form and manner determined by the department and must be collected

in the most efficient manner possible to reduce the administrative

burden on reporting entities.

(13) By March 31 of each year, 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

virtual courses available under section 21f and virtual 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.

(14) As used in subsections (12) and (13), "vendor type" means

the following:

(a) Virtual courses provided by the Michigan Virtual

University.

(b) Virtual 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.

affiliated with a Michigan public school.

(d) Virtual courses created and offered by a district or

intermediate district.

(15) An allocation to a district or another entity under this

article is contingent upon the district's or entity's compliance

with this section.

~~(16) Beginning October 1, 2018, and annually thereafter, the~~

~~department shall submit to the senate and house subcommittees on~~

~~school aid and to the senate and house standing committees on~~

~~education an itemized list of allocations under this article to any~~

~~association or consortium consisting of associations in the~~

~~immediately preceding fiscal year. The report shall detail the~~

~~recipient or recipients, the amount allocated, and the purpose for~~

~~which the funds were distributed.~~

Sec. 20. (1) For ~~2018-2019,~~ 2019-2020, both of the following

apply:

(a) The ~~basic~~ target foundation allowance, formerly known as

the basic foundation allowance, is ~~$8,409.00.~~$8,544.00.

(b) The minimum foundation allowance is ~~$7,871.00.~~$8,141.00.

(2) The department shall calculate the amount of each

district's foundation allowance ~~shall be calculated~~ as provided in

this section, using a ~~basic~~ target foundation allowance in the

amount specified in subsection (1). For the purpose of these

calculations, a reference to the target foundation allowance for a

preceding fiscal year is equivalent to a reference to the "basic"

foundation allowance for that fiscal year.

(3) Except as otherwise provided in this section, the

department shall calculate the amount of a district's foundation

allowance ~~shall be calculated~~ as follows, using in all calculations

the total amount of the district's foundation allowance as

calculated before any proration:

(a) Except as otherwise provided in this subdivision, for a

district that had a foundation allowance for the immediately

preceding ~~state~~ fiscal year that was at least equal to the minimum

foundation allowance for the immediately preceding ~~state~~ fiscal

year, but less than the ~~basic~~ target foundation allowance for the

immediately preceding ~~state~~ fiscal year, the district ~~shall receive~~

receives a foundation allowance in an amount equal to the sum of

the district's foundation allowance for the immediately preceding

~~state~~ fiscal year plus the difference between twice the dollar

amount of the adjustment from the immediately preceding ~~state~~

fiscal year to the current ~~state~~ fiscal year made in the ~~basic~~

target foundation allowance and [(the difference between the ~~basic~~

target foundation allowance for the current ~~state~~ fiscal year and

~~basic~~ target foundation allowance for the immediately preceding

~~state~~ fiscal year minus $40.00) times (the difference between the

district's foundation allowance for the immediately preceding ~~state~~

fiscal year and the minimum foundation allowance for the

immediately preceding ~~state~~ fiscal year) divided by the difference

between the ~~basic~~ target foundation allowance for the current ~~state~~

fiscal year and the minimum foundation allowance for the

immediately preceding ~~state~~ fiscal year.] However, the foundation

allowance for a district that had less than the ~~basic~~ target

foundation allowance for the immediately preceding ~~state~~ fiscal

year ~~shall~~ must not exceed the ~~basic~~ target foundation allowance

for the current ~~state~~ fiscal year.

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

district that in the immediately preceding ~~state~~ fiscal year had a

foundation allowance in an amount equal to the amount of the ~~basic~~

target foundation allowance for the immediately preceding ~~state~~

fiscal year, the district ~~shall receive~~ receives a foundation

allowance for ~~2018-2019~~ 2019-2020 in an amount equal to the ~~basic~~

target foundation allowance for ~~2018-2019.~~2019-2020.

immediately preceding ~~state~~ fiscal year that was greater than the

~~basic~~ target foundation allowance for the immediately preceding

~~state~~ fiscal year, the district's foundation allowance is an amount

equal to the sum of the district's foundation allowance for the

immediately preceding ~~state~~ fiscal year plus the lesser of the

increase in the ~~basic~~ target foundation allowance for the current

~~state~~ fiscal year, as compared to the immediately preceding ~~state~~

fiscal year, or the product of the district's foundation allowance

for the immediately preceding ~~state~~ fiscal year times the

percentage increase in the United States ~~consumer price index~~

Consumer Price Index in the calendar year ending in the immediately

preceding fiscal year as reported by the May revenue estimating

conference conducted under section 367b of the management and

budget act, 1984 PA 431, MCL 18.1367b.

(d) For a district that has a foundation allowance that is not

a whole dollar amount, the department shall round the district's

foundation allowance ~~shall be rounded~~ up to the nearest whole

dollar.

~~(e) For a district that received a foundation allowance~~

~~supplemental payment calculated under section 20m and paid under~~

~~section 22b for 2017-2018, the district's 2017-2018 foundation~~

~~allowance is considered to have been an amount equal to the sum of~~

~~the district's actual 2017-2018 foundation allowance as otherwise~~

~~calculated under this section plus the lesser of the per pupil~~

~~amount of the district's supplemental payment for 2017-2018 as~~

~~calculated under section 20m or the product of the district's~~

~~foundation allowance for the immediately preceding state fiscal~~

~~year times the percentage increase in the United States consumer~~

~~price index in the calendar year ending in the immediately~~

~~preceding fiscal year as reported by the May revenue estimating~~

~~conference conducted under section 367b of the management and~~

~~budget act, 1984 PA 431, MCL 18.1367b.~~

(4) Except as otherwise provided in this subsection, beginning

in 2014-2015, the state portion of a district's foundation

allowance is an amount equal to the district's foundation allowance

or the ~~basic~~ target foundation allowance for the current ~~state~~

fiscal year, whichever is less, minus the local portion of the

district's foundation allowance. For a district described in

subsection (3)(c), beginning in 2014-2015, the state portion of the

district's foundation allowance is an amount equal to $6,962.00

plus the difference between the district's foundation allowance for

the current ~~state~~ fiscal year and the district's foundation

allowance for 1998-99, minus the local portion of the district's

foundation allowance. For a district that has a millage reduction

required under section 31 of article IX of the state constitution

of 1963, the department shall calculate the state portion of the

district's foundation allowance ~~shall be calculated~~ as if that

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

operating taxes continue to be levied on behalf of a dissolved

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

receiving district to satisfy debt obligations of the dissolved

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

the taxable value per membership pupil of property in the receiving

district used for the purposes of this subsection does not include

the taxable value of property within the geographic area of the

dissolved district. For a community district, if school operating

taxes continue to be levied by a qualifying school district under

section 12b of the revised school code, MCL 380.12b, with the same

geographic area as the community district, the taxable value per

membership pupil of property in the community district to be used

for the purposes of this subsection does not include the taxable

value of property within the geographic area of the community

district.

(5) The allocation calculated under this section for a pupil

~~shall be~~ is based on the foundation allowance of the pupil's

district of residence. For a pupil enrolled pursuant to section 105

or 105c in a district other than the pupil's district of residence,

the allocation calculated under this section ~~shall be~~ is based on

the lesser of the foundation allowance of the pupil's district of

residence or the foundation allowance of the educating district.

For a pupil in membership in a K-5, K-6, or K-8 district who is

enrolled in another district in a grade not offered by the pupil's

district of residence, the allocation calculated under this section

~~shall be~~ is based on the foundation allowance of the educating

district if the educating district's foundation allowance is

greater than the foundation allowance of the pupil's district of

residence. ~~The calculation under this subsection shall take into~~

~~account a district's per-pupil allocation under section 20m.~~

(6) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. Except as otherwise provided in this subsection,

for pupils in membership, other than special education pupils, in a

public school academy that is a cyber school and is authorized by a

school district, the allocation calculated under this section is an

amount per membership pupil other than special education pupils in

the public school academy equal to the foundation allowance of the

district that authorized the public school academy or the state

maximum public school academy allocation, whichever is less.

However, for a public school academy that had an allocation under

this subsection before 2009-2010 that was equal to the sum of the

local school operating revenue per membership pupil other than

special education pupils for the district in which the public

school academy is located and the state portion of that district's

foundation allowance, ~~shall not have~~ that allocation is not reduced

as a result of the 2010 amendment to this subsection.

Notwithstanding section 101, for a public school academy that

begins operations after the pupil membership count day, the amount

per membership pupil calculated under this subsection ~~shall~~ must be

adjusted by multiplying that amount per membership pupil by the

number of hours of pupil instruction provided by the public school

academy after it begins operations, as determined by the

department, divided by the minimum number of hours of pupil

instruction required under section 101(3). The result of this

calculation ~~shall~~ must not exceed the amount per membership pupil

otherwise calculated under this subsection.

(7) Except as otherwise provided in this subsection, for

pupils in membership, other than special education pupils, in a

community district, the allocation calculated under this section is

an amount per membership pupil other than special education pupils

in the community district equal to the foundation allowance of the

qualifying school district, as described in section 12b of the

revised school code, MCL 380.12b, that is located within the same

geographic area as the community district.

(8) Subject to subsection (4), for a district that is formed

or reconfigured after June 1, 2002 by consolidation of 2 or more

districts or by annexation, the resulting district's foundation

allowance under this section beginning after the effective date of

the consolidation or annexation ~~shall be~~ is the lesser of the sum

of the average of the foundation allowances of each of the original

or affected districts, calculated as provided in this section,

weighted as to the percentage of pupils in total membership in the

resulting district who reside in the geographic area of each of the

original or affected districts plus $100.00 or the highest

foundation allowance among the original or affected districts. This

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

subsequent consolidation or annexation that affects the district.

~~The calculation under this subsection shall take into account a~~

~~district's per-pupil allocation under section 20m.~~

(9) ~~Each~~ The department shall round each fraction used in

making calculations under this section ~~shall be rounded~~ to the

fourth decimal place and shall round the dollar amount of an

increase in the ~~basic~~ target foundation allowance ~~shall be rounded~~

to the nearest whole dollar.

(10) State payments related to payment of the foundation

allowance for a special education pupil are not calculated under

this section but are instead calculated under section 51a.

(11) To assist the legislature in determining the ~~basic~~ target

foundation allowance for the subsequent ~~state~~ fiscal year, each

revenue estimating conference conducted under section 367b of the

management and budget act, 1984 PA 431, MCL 18.1367b, ~~shall~~ must

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor ~~shall be~~ is computed by

dividing the estimated membership in the school year ending in the

current ~~state~~ fiscal year, excluding intermediate district

membership, by the estimated membership for the school year ending

in the subsequent ~~state~~ fiscal year, excluding intermediate

district membership. If a consensus membership factor is not

determined at the revenue estimating conference, the principals of

the revenue estimating conference shall report their estimates to

the house and senate subcommittees responsible for school aid

appropriations not later than 7 days after the conclusion of the

revenue conference.

(b) The revenue adjustment factor ~~shall be~~ is computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent ~~state~~ fiscal year plus the estimated

total state school aid fund revenue for the current ~~state~~ fiscal

year, adjusted for any change in the rate or base of a tax the

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding ~~state~~ fiscal year, adjusted for any change in

the rate or base of a tax the proceeds of which are deposited in

that fund. If a consensus revenue factor is not determined at the

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

later than 7 days after the conclusion of the revenue conference.

membership factor by the revenue adjustment factor. If a consensus

index is not determined at the revenue estimating conference, the

principals of the revenue estimating conference shall report their

estimates to the house and senate subcommittees responsible for

school aid appropriations not later than 7 days after the

conclusion of the revenue conference.

(12) Payments to districts and public school academies ~~shall~~

~~not be~~ are not made under this section. Rather, the calculations

under this section ~~shall be~~ are used to determine the amount of

state payments under section 22b.

(13) If an amendment to section 2 of article VIII of the state

constitution of 1963 allowing state aid to some or all nonpublic

schools is approved by the voters of this state, each foundation

allowance or per-pupil payment calculation under this section may

be reduced.

(14) For the purposes of section 1211 of the revised school

code, MCL 380.1211, the basic foundation allowance under this

section is considered to be the target foundation allowance under

this section.

(15) ~~(14)~~ As used in this section:

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

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

1993-94.

(b) "Combined state and local revenue" means the aggregate of

the district's state school aid received by or paid on behalf of

the district under this section and the district's local school

operating revenue.

means the district's combined state and local revenue divided by

the district's membership excluding special education pupils.

(d) "Current ~~state~~ fiscal year" means the ~~state~~ fiscal year

for which a particular calculation is made.

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

organization, has its territory attached to 1 or more other

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

revised school code, MCL 380.12.

(f) "Immediately preceding ~~state~~ fiscal year" means the ~~state~~

fiscal year immediately preceding the current ~~state~~ fiscal year.

(g) "Local portion of the district's foundation allowance"

means an amount that is equal to the difference between (the sum of

the product of the taxable value per membership pupil of all

property in the district that is nonexempt property times the

district's certified mills and, for a district with certified mills

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

of property in the district that is commercial personal property

times the certified mills minus 12 mills) and (the quotient of the

product of the captured assessed valuation under tax increment

financing acts times the district's certified mills divided by the

district's membership excluding special education pupils).

(h) "Local school operating revenue" means school operating

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

380.1211. For a receiving district, if school operating taxes are

to be levied on behalf of a dissolved district that has been

attached in whole or in part to the receiving district to satisfy

debt obligations of the dissolved district under section 12 of the

revised school code, MCL 380.12, local school operating revenue

does not include school operating taxes levied within the

geographic area of the dissolved district.

(i) "Local school operating revenue per membership pupil"

means a district's local school operating revenue divided by the

district's membership excluding special education pupils.

(j) "Maximum public school academy allocation", except as

otherwise provided in this subdivision, means the maximum per-pupil

allocation as calculated by adding the highest per-pupil allocation

among all public school academies for the immediately preceding

~~state~~ fiscal year plus the difference between twice the amount of

the difference between the ~~basic~~ target foundation allowance for

the current ~~state~~ fiscal year and the ~~basic~~ target foundation

allowance for the immediately preceding ~~state~~ fiscal year and [(the

amount of the difference between the ~~basic~~ target foundation

allowance for the current ~~state~~ fiscal year and the ~~basic~~ target

foundation allowance for the immediately preceding ~~state~~ fiscal

year minus $40.00) times (the difference between the highest per-

pupil allocation among all public school academies for the

immediately preceding ~~state~~ fiscal year and the minimum foundation

allowance for the immediately preceding ~~state~~ fiscal year) divided

by the difference between the ~~basic~~ target foundation allowance for

the current ~~state~~ fiscal year and the minimum foundation allowance

for the immediately preceding ~~state~~ fiscal year.] For the purposes

of this subdivision, for ~~2018-2019,~~ 2019-2020, the maximum public

school academy allocation is ~~$7,871.00.~~$8,141.00.

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

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

particular calculation is made.

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

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(m) "Principal residence", "qualified agricultural property",

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in section 1211 of the revised school

code, MCL 380.1211.

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

of the territory of a dissolved district is attached under section

12 of the revised school code, MCL 380.12.

(o) "School operating purposes" means the purposes included in

the operation costs of the district as prescribed in sections 7 and

18 and purposes authorized under section 1211 of the revised school

code, MCL 380.1211.

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

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

380.1211, and retained for school operating purposes.

(q) "Target foundation allowance for the immediately preceding

fiscal year" means, for 2019-2020 only, the basic foundation

allowance in effect for the 2018-2019 fiscal year.

(r) ~~(q)~~ "Tax increment financing acts" means 1975 PA 197, MCL

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

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

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

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2670,

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

125.2871 to 125.2899.

(s) ~~(r)~~ "Taxable value per membership pupil" means taxable

value, as certified by the county treasurer and reported to the

department, for the calendar year ending in the current state

fiscal year divided by the district's membership excluding special

education pupils for the school year ending in the current state

fiscal year.

Sec. 20d. In making the final determination required under

former section 20a of a district's combined state and local revenue

per membership pupil in 1993-94 and in making calculations under

section 20 for ~~2018-2019,~~ 2019-2020, the department and the

department of treasury shall comply with all of the following:

(a) For a district that had combined state and local revenue

per membership pupil in the 1994-95 state fiscal year of $6,500.00

or more and served as a fiscal agent for a state board designated

area vocational education center in the 1993-94 school year, total

state school aid received by or paid on behalf of the district

~~pursuant to~~ under this act in 1993-94 ~~shall exclude~~ excludes

payments made under former section 146 and under section 147 on

behalf of the district's employees who provided direct services to

the area vocational education center. Not later than June 30, 1996,

the department shall make an adjustment under this subdivision to

the district's combined state and local revenue per membership

pupil in the 1994-95 state fiscal year and the department of

treasury shall make a final certification of the number of mills

that may be levied by the district under section 1211 of the

revised school code, MCL 380.1211, as a result of the adjustment

under this subdivision.

(b) If a district had an adjustment made to its 1993-94 total

state school aid that excluded payments made under former section

146 and under section 147 on behalf of the district's employees who

provided direct services for intermediate district center programs

operated by the district under sections 51 to 56, if nonresident

pupils attending the center programs were included in the

district's membership for purposes of calculating the combined

state and local revenue per membership pupil for 1993-94, and if

there is a signed agreement by all constituent districts of the

intermediate district ~~that~~ agreeing to an adjustment under this

subdivision, ~~shall be made,~~ the department shall calculate the

foundation allowances for 1995-96 and 1996-97 of all districts that

had pupils attending the intermediate district center program

operated by the district that had the adjustment ~~shall be~~

~~calculated~~ as if their combined state and local revenue per

membership pupil for 1993-94 included resident pupils attending the

center program and excluded nonresident pupils attending the center

program.

Sec. 20f. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $18,000,000.00 for ~~2018-2019~~

2019-2020 for payments to eligible districts under this section.

(2) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection if the district received a payment under this section as

it was in effect for 2013-2014. A district was eligible for funding

in 2013-2014 if the sum of the following was less than $5.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2012-2013 to

2013-2014.

(b) The district's equity payment per membership pupil under

former section 22c for 2013-2014.

147a for 2012-2013 divided by the district's membership pupils for

2012-2013 minus the quotient of the district's allocation under

section 147a for 2013-2014 divided by the district's membership

pupils for 2013-2014.

(3) The amount allocated to each eligible district under

subsection (2) is an amount per membership pupil equal to the

amount per membership pupil the district received under this

section in 2013-2014.

(4) The funding under this subsection is from the allocation

under subsection (1). A district is eligible for funding under this

subsection if the sum of the following is less than $25.00:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under former section 22f from 2014-2015 to 2015-2016.

funding under former section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(5) The amount allocated to each eligible district under

subsection (4) is an amount per membership pupil equal to $25.00

minus the sum of the following:

(a) The increase in the district's foundation allowance or

per-pupil payment as calculated under section 20 from 2014-2015 to

2015-2016.

(b) The decrease in the district's best practices per-pupil

funding under former section 22f from 2014-2015 to 2015-2016.

funding under former section 22j from 2014-2015 to 2015-2016.

(d) The quotient of the district's allocation under section

31a for 2015-2016 divided by the district's membership pupils for

2015-2016 minus the quotient of the district's allocation under

section 31a for 2014-2015 divided by the district's membership

pupils for 2014-2015.

(6) If the allocation under subsection (1) is insufficient to

fully fund payments under subsections (3) and (5) as otherwise

calculated under this section, the department shall prorate

payments under this section on an equal per-pupil basis.

Sec. 21h. (1) From the appropriation in section 11, there is

allocated $7,000,000.00 for ~~2018-2019~~ 2019-2020 for assisting

districts assigned by the superintendent to participate in a

partnership to improve student achievement. The purpose of the

partnership is to identify district needs, develop intervention

plans, and partner with public, private, and nonprofit

organizations to coordinate resources and improve student

achievement. Assignment of a district to a partnership is at the

sole discretion of the superintendent.

(2) A district assigned to a partnership by the superintendent

is eligible for funding under this section if the district includes

at least 1 school that has been rated with a grade of "F", or

comparable performance rating, in the most recent state

accountability system rating ~~, that is not under the supervision of~~

~~the state school reform/redesign office,~~ and that does all of the

following:

(a) Completes a comprehensive needs evaluation in

collaboration with an intermediate school district, community

members, education organizations, and postsecondary institutions,

as applicable and approved by the superintendent, within 90 days of

assignment to the partnership described in this section. The

comprehensive needs evaluation ~~shall~~ must include at least all of

the following:

(i) A review of the district's implementation and utilization

of a multi-tiered system of supports to ensure that it is used to

appropriately inform instruction.

(ii) A review of the district and school building leadership

and educator capacity to substantially improve student outcomes.

(iii) A review of classroom, instructional, and operational

practices and curriculum to ensure alignment with research-based

instructional practices and state curriculum standards.

(b) Develops an intervention plan that has been approved by

the superintendent and that addresses the needs identified in the

comprehensive needs evaluation completed under subdivision (a). The

intervention plan ~~shall~~ must include at least all of the following:

(i) Specific actions that will be taken by the district and

each of its partners to improve student achievement.

(ii) Specific measurable benchmarks that will be met within 18

months to improve student achievement and identification of

expected student achievement outcomes to be attained within 3 years

after assignment to the partnership.

exceed grade level proficiency.

(3) Upon approval of the intervention plan developed under

subsection (2), the department shall assign a team of individuals

with expertise in comprehensive school and district reform to

partner with the district, the intermediate district, community

organizations, education organizations, and postsecondary

institutions identified in the intervention plan to review the

district's use of existing financial resources to ensure that those

resources are being used as efficiently and effectively as possible

to improve student academic achievement. The superintendent of

public instruction may waive burdensome administrative rules for a

partnership district for the duration of the partnership agreement.

(4) Funds allocated under this section may be used to pay for

district expenditures approved by the superintendent to improve

student achievement. Funds may be used for professional development

for teachers or district or school leadership, increased

instructional time, teacher mentors, or other expenditures that

directly impact student achievement and cannot be paid from

existing district financial resources. An eligible district shall

not receive funds under this section for more than 3 years.

Notwithstanding section 17b, the department shall make payments to

eligible districts under this section ~~shall be paid~~ on a schedule

determined by the department.

(5) The department shall annually report in person to the

legislature on the activities funded under this section and how

those activities impacted student achievement in eligible districts

that received funds under this section. To the extent possible,

participating districts receiving funding under this section shall

participate in the report.

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

allocated an amount not to exceed ~~$5,176,000,000.00 for 2017-2018~~

$5,049,000,000.00 for 2018-2019 and there is allocated an amount

not to exceed ~~$5,107,000,000.00 for 2018-2019~~ $4,953,000,000.00 for

2019-2020 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 department

shall calculate 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. For a community district, the department shall

reduce the allocation as otherwise calculated under this section

~~shall be reduced~~ by an amount equal to the amount of local school

operating tax revenue that would otherwise be due to the community

district if not for the operation of section 386 of the revised

school code, MCL 380.386, and the amount of this reduction ~~shall be~~

is offset by the increase in funding under section 22b(2).

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

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

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

plus the amount calculated under this subdivision. The amount

calculated under this subdivision ~~shall~~ must 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~~ is 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~~ is not 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~~ is 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~~ is 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 25g.

(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.

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,~~ principal residence, qualified agricultural property,

qualified forest property, supportive housing property, industrial

personal property, commercial personal property, and property

occupied by a public school academy 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.~~

(g) ~~(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.

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

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, or property occupied by a

public school academy.

(i) "Principal residence", "qualified agricultural property",

"qualified forest property", "supportive housing property",

"industrial personal property", and "commercial personal property"

mean those terms as defined in section 1211 of the revised school

code, MCL 380.1211.

(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,~~

125.2670, 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,~~ principal residence,

qualified agricultural property, qualified forest property,

supportive housing property, industrial personal property,

commercial personal property, and property occupied by a public

school academy may be reduced as provided in section 1211 of the

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

principal residence, qualified agricultural property, qualified

forest property, supportive housing property, industrial personal

property, commercial personal property, and property occupied by a

public school academy 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) For discretionary nonmandated payments to

districts under this section, there is allocated for ~~2017-2018~~

2018-2019 an amount not to exceed ~~$3,957,000,000.00~~

$4,223,000,000.00 from the state school aid fund and general fund

appropriations in section 11 and an amount not to exceed

$72,000,000.00 from the community district education trust fund

appropriation in section 11, and there is allocated for ~~2018-2019~~

2019-2020 an amount not to exceed ~~$4,252,000,000.00~~

$4,530,000,000.00 from the state school aid fund and general fund

appropriations in section 11 and an amount not to exceed

$72,000,000.00 from the community district education trust fund

appropriation in section 11. ~~Except for money allocated from the~~

~~community district trust fund, money allocated under this section~~

~~that is not expended in the state fiscal year for which it was~~

~~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~~ is an amount equal to the

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

51a(3), and 51a(11), minus the sum of the allocations to the

district under sections 22a and 51c. For a community district, the

allocation as otherwise calculated under this section ~~shall be~~ is

increased by an amount equal to the amount of local school

operating tax revenue that would otherwise be due to the community

district if not for the operation of section 386 of the revised

school code, MCL 380.386, and this increase ~~shall~~ must be paid from

the community district education trust fund allocation in

subsection (1) in order to offset the absence of local school

operating revenue in a community district in the funding of the

state portion of the foundation allowance under section 20(4).

(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.

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.

(f) For a district or public school academy that ~~has entered~~

~~into a partnership agreement with the department,~~ offers

kindergarten, comply with section ~~22p.~~104(4).

(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~~ must

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~~

is 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~~

has 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 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~~ is completed

upon resolution of the litigation. In addition, this state reserves

the right to terminate future federal title XIX 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 1396w-5.

Sec. 22d. (1) From the appropriation in section 11, an amount

not to exceed ~~$6,000,000.00~~ $7,000,000.00 is allocated for ~~2018-~~

~~2019~~ 2019-2020 for supplemental payments to rural districts under

this section.

(2) From the allocation under subsection (1), there is

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$957,300.00 for payments under this subsection to districts that

meet all of the following:

(a) Operates grades K to 12.

(b) Has fewer than 250 pupils in membership.

least 1 of the following:

(i) Is located in the Upper Peninsula at least 30 miles from

any other public school building.

(ii) Is located on an island that is not accessible by bridge.

(3) The amount of the additional funding to each eligible

district under subsection (2) ~~shall be~~ is determined under a

spending plan developed as provided in this subsection and approved

by the superintendent of public instruction. The spending plan

~~shall~~ must be developed cooperatively by the intermediate

superintendents of each intermediate district in which an eligible

district is located. The intermediate superintendents shall review

the financial situation of each eligible district, determine the

minimum essential financial needs of each eligible district, and

develop and agree on a spending plan that distributes the available

funding under subsection (2) to the eligible districts based on

those financial needs. The intermediate superintendents shall

submit the spending plan to the superintendent of public

instruction for approval. Upon approval by the superintendent of

public instruction, the amounts specified for each eligible

district under the spending plan are allocated under subsection (2)

and ~~shall~~ must be paid to the eligible districts in the same manner

as payments under section 22b.

(4) Subject to subsection (6), from the allocation in

subsection (1), there is allocated for ~~2018-2019~~ 2019-2020 an

amount not to exceed ~~$5,042,700.00~~ $6,042,700.00 for payments under

this subsection to districts that have ~~7.7~~ 9.7 or fewer pupils per

square mile as determined by the department.

(5) The funds allocated under subsection (4) ~~shall be~~ are

allocated on an equal per-pupil basis.

(6) A district receiving funds allocated under subsection (2)

is not eligible for funding allocated under subsection (4).

Sec. 22m. (1) From the appropriations in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$2,200,000.00 for supporting the integration of local data systems

into the Michigan data hub network based on common standards and

applications that are in compliance with section 19(6).

(2) An entity that is the fiscal agent for no more than 5

consortia of intermediate districts that previously received

funding from the technology readiness infrastructure grant under

former section 22i for the purpose of establishing regional data

hubs that are part of the Michigan data hub network is eligible for

funding under this section.

(3) The center shall work with an advisory committee composed

of representatives from intermediate districts within each of the

data hub regions to coordinate the activities of the Michigan data

hub network.

(4) The center, in collaboration with the Michigan data hub

network, shall determine the amount of funds distributed under this

section to each participating regional data hub within the network,

based upon a competitive grant process. ~~Entities~~ The center shall

ensure that the entities receiving funding under this section ~~shall~~

represent geographically diverse areas in this state.

(5) Notwithstanding section 17b, the department shall make

payments under this section ~~shall be made~~ on a schedule determined

by the center.

(6) To receive funding under this section, a regional data hub

must have a governance model that ensures local control of data,

data security, and student privacy issues. The integration of data

within each of the regional data hubs ~~shall~~ must provide for the

actionable use of data by districts and intermediate districts

through common reports and dashboards and for efficiently providing

information to meet state and federal reporting purposes.

(7) Participation in a data hub region in the Michigan data

hub network under this section is voluntary and is not required.

(8) Entities receiving funding under this section shall use

the funds for all of the following:

(a) Creating an infrastructure that effectively manages the

movement of data between data systems used by intermediate

districts, districts, and other educational organizations in

Michigan based on common data standards to improve student

achievement.

(b) Utilizing the infrastructure to put in place commonly

needed integrations, reducing cost and effort to do that work while

increasing data accuracy and usability.

promoting systems that integrate with the Michigan data hub

network.

(d) Promoting 100% district adoption of the Michigan data hub

network by September 30, 2020.

(e) Ensuring local control of data, data security, and student

data privacy.

(f) Utilizing the infrastructure to promote the actionable use

of data through common reports and dashboards that are consistent

statewide.

(g) Creating a governance model to facilitate sustainable

operations of the infrastructure in the future, including

administration, legal agreements, documentation, staffing, hosting,

and funding.

(h) Evaluating future data initiatives at all levels to

determine whether the initiatives can be enhanced by using the

standardized environment in the Michigan data hub network.

(9) Not later than January 1 of each fiscal year, the center

shall prepare a summary report of information provided by each

entity that received funds under this section that includes

measurable outcomes based on the objectives described under this

section ~~. The report shall include~~ and a summary of compiled data

from each entity to provide a means to evaluate the effectiveness

of the project. The center shall submit the report to the house and

senate appropriations subcommittees on state school aid and to the

house and senate fiscal agencies.

Sec. 22p. In order to receive funding under section 22b, a

district or public school academy that has a signed partnership

agreement with the department must meet both of the following:

(a) Amends the partnership agreement to include measurable

academic outcomes that will be achieved after 18 months and after

36 months from the date the agreement was originally signed.

Measurable academic outcomes under this subdivision must include

outcomes that put pupils on track to meet or exceed grade level

proficiency.

(b) Amends the partnership agreement to include accountability

measures to be imposed if the district or public school academy

does not achieve the measurable academic outcomes under subdivision

(a) for a school subject to a partnership agreement. Accountability

measures under this subdivision may include either the closure of

the school at the end of the current school year or the

reconstitution of the school in a final attempt to improve student

educational performance or to avoid interruption of the educational

process. For a public school academy that amends a partnership

agreement under this subdivision, the amended agreement must

include a requirement that if reconstitution is imposed on a school

that is operated by the public school academy and that is subject

to the partnership agreement, the school ~~shall~~ must be

reconstituted as described in section 507 of the revised school

code, MCL 380.507. For a district that amends a partnership

agreement under this subdivision, the amended agreement must

include a requirement that if reconstitution is imposed on a school

that is operated by the district and that is subject to the

partnership agreement, all of the following apply:

(i) The district shall make significant changes to the

instructional and noninstructional programming of the school based

on the needs identified through a comprehensive review of data.

(ii~~) The district shall replace at least 25% of the faculty~~

~~and staff of the school.~~

(ii) (~~iii~~) The district shall replace the principal of the

school, unless the current principal has been in place for less

than 3 years and the board of the district determines that it is in

the best interests of the district to retain current school

leadership.

(iii) (iv) The reconstitution plan for the school shall

require the adoption of goals similar to the goals included in a

partnership agreement, with a limit of 5 years to achieve the

goals. If the goals are not achieved within 5 years, the

superintendent of public instruction shall either impose a second

reconstitution plan on the school or close the school.

Sec. 24. (1) From the appropriation in section 11, there is

allocated ~~each fiscal year for 2017-2018 and for 2018-2019~~ for

2019-2020 an amount not to exceed $7,150,000.00 for payments to the

educating district or intermediate district for educating pupils

assigned by a court or the department of health and human services

to reside in or to attend a juvenile detention facility or child

caring institution licensed by the department of health and human

services and approved by the department to provide an on-grounds

education program. The amount of the payment under this section to

a district or intermediate district ~~shall be~~ is calculated as

prescribed under subsection (2).

(2) The department shall allocate the total amount allocated

under this section ~~shall be allocated~~ by paying to the educating

district or intermediate district an amount equal to the lesser of

the district's or intermediate district's added cost or the

department's approved per-pupil allocation for the district or

intermediate district. For the purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils assigned by a court or the department of

health and human services to reside in or to attend a juvenile

detention facility or child caring institution licensed by the

department of health and human services or the department of

licensing and regulatory affairs and approved by the department to

provide an on-grounds education program. Added cost ~~shall be~~ is

computed by deducting all other revenue received under this article

for pupils described in this section from total costs, as approved

by the department, in whole or in part, for educating those pupils

in the on-grounds education program or in a program approved by the

department that is located on property adjacent to a juvenile

detention facility or child caring institution. Costs reimbursed by

federal funds are not included.

(b) "Department's approved per-pupil allocation" for a

district or intermediate district ~~shall be~~ is determined by

dividing the total amount allocated under this section for a fiscal

year by the full-time equated membership total for all pupils

approved by the department to be funded under this section for that

fiscal year for the district or intermediate district.

(3) A district or intermediate district educating pupils

described in this section at a residential child caring institution

may operate, and receive funding under this section for, a

department-approved on-grounds educational program for those pupils

that is longer than 181 days, but not longer than 233 days, if the

child caring institution was licensed as a child caring institution

and offered in 1991-92 an on-grounds educational program that was

longer than 181 days but not longer than 233 days and that was

operated by a district or intermediate district.

(4) Special education pupils funded under section 53a ~~shall~~

~~not be~~ are not funded under this section.

Sec. 24a. From the appropriation in section 11, there is

allocated an amount not to exceed $1,355,700.00 for ~~2018-2019~~ 2019-

2020 for payments to intermediate districts for pupils who are

placed in juvenile justice service facilities operated by the

department of health and human services. ~~Each~~ The amount of the

payment to each intermediate district ~~shall receive~~ is an amount

equal to the state share of those costs that are clearly and

directly attributable to the educational programs for pupils placed

in facilities described in this section that are located within the

intermediate district's boundaries. The intermediate districts

receiving payments under this section shall cooperate with the

department of health and human services to ensure that all funding

allocated under this section is utilized by the intermediate

district and department of health and human services for

educational programs for pupils described in this section. Pupils

described in this section are not eligible to be funded under

section 24. However, a program responsibility or other fiscal

responsibility associated with these pupils ~~shall~~ must not be

transferred from the department of health and human services to a

district or intermediate district unless the district or

intermediate district consents to the transfer.

Sec. 25e. (1) The pupil membership transfer application and

pupil transfer process administered by the center under this

section ~~shall be~~ is used for processing pupil transfers.

(2) If a pupil counted in membership for the pupil membership

count day transfers from a district or intermediate district to

enroll in another district or intermediate district after the pupil

membership count day and before the supplemental count day and, due

to the pupil's enrollment and attendance status as of the pupil

membership count day, the pupil was not counted in membership in

the educating district or intermediate district, the educating

district or intermediate district may report the enrollment and

attendance information to the center through the pupil transfer

process within 30 days after the transfer or within 30 days after

the pupil membership count certification date, whichever is later.

Pupil transfers may be submitted no earlier than the first day

after the certification deadline for the pupil membership count day

and before the supplemental count day. Upon receipt of the transfer

information under this subsection indicating that a pupil has

enrolled and is in attendance in an educating district or

intermediate district as described in this subsection, the ~~pupil~~

~~transfer process~~ center shall do the following:

(a) Notify the district in which the pupil was previously

enrolled.

(b) Notify both the pupil auditing staff of the intermediate

district in which the educating district is located and the pupil

auditing staff of the intermediate district in which the district

that previously enrolled the pupil is located. The pupil auditing

staff shall investigate a representative sample based on required

audit sample sizes in the pupil auditing manual and may deny the

pupil membership transfer.

department for use in adjusting the state aid payment system.

(3) The department shall do all of the following:

(a) Adjust the membership calculation for each district or

intermediate district in which the pupil was previously counted in

membership or that previously received an adjustment in its

membership calculation under this section due to a change in the

pupil's enrollment and attendance so that the district's or

intermediate district's membership is prorated to allow the

district or intermediate district to receive for each school day,

as determined by the financial calendar furnished by the center, in

which the pupil was enrolled and in attendance in the district or

intermediate district an amount equal to 1/105 of a full-time

equated membership claimed in the fall pupil membership count. The

department shall pay the district or intermediate district ~~shall~~

~~receive~~ a prorated foundation allowance in an amount equal to the

product of the adjustment under this subdivision for the district

or intermediate district multiplied by the foundation allowance or

per-pupil payment as calculated under section 20 for the district

or intermediate district. The foundation allowance or per-pupil

payment ~~shall be~~ is adjusted by the pupil's full-time equated

status as affected by the membership definition under section 6(4).

(b) Adjust the membership calculation for the educating

district or intermediate district in which the pupil is enrolled

and is in attendance so that the district's or intermediate

district's membership is increased to allow the district or

intermediate district to receive an amount equal to the difference

between the full-time equated membership claimed in the fall pupil

membership count and the sum of the adjustments calculated under

subdivision (a) for each district or intermediate district in which

the pupil was previously enrolled and in attendance. The department

shall pay the educating district or intermediate district ~~shall~~

~~receive~~ a prorated foundation allowance in an amount equal to the

product of the adjustment under this subdivision for the educating

district or intermediate district multiplied by the per-pupil

payment as calculated under section 20 for the educating district

or intermediate district. The foundation allowance or per-pupil

payment ~~shall be~~ is adjusted by the pupil's full-time equated

status as affected by the membership definition under section 6(4).

(4) The changes in calculation of state school aid required

under subsection (3) ~~shall~~ take effect as of the date that the

pupil becomes enrolled and in attendance in the educating district

or intermediate district, and the department shall base all

subsequent payments under this article for the fiscal year to the

affected districts or intermediate districts on this recalculation

of state school aid.

(5) If a pupil enrolls in an educating district or

intermediate district as described in subsection (2), the district

or intermediate district in which the pupil is counted in

membership or another educating district or intermediate district

that received an adjustment in its membership calculation under

subsection (3), if any, and the educating district or intermediate

district shall provide to the center and the department all

information they require to comply with this section.

(6) The portion of the full-time equated pupil membership for

which a pupil is enrolled in 1 or more online courses under section

21f that is representative of the amount that the primary district

paid in course costs to the course provider ~~shall not be~~ is not

counted or transferred under the pupil transfer process under this

section.

(7) ~~It is the intent of the legislature that the center~~

~~determine the number of pupils who did not reside in this state as~~

~~of the 2018-2019 pupil membership count day but who newly enrolled~~

~~in a district or intermediate district after that pupil membership~~

~~count day and before the 2018-2019 supplemental count day. It is~~

~~the intent of the legislature that the center further determine the~~

~~number of pupils who were counted in membership for the 2018-2019~~

~~pupil membership count day but who left this state before the 2018-~~

~~2019 supplemental count day. In 2019-2020, the~~ The center annually

shall provide a report to the senate and house appropriations

subcommittees on state school aid, and to the senate and house

fiscal agencies, detailing the number of pupils transferring in

from outside the public school system of this state and the number

of pupils transferring out of the public school system in this

state between the pupil membership count day and supplemental count

day as described in this subsection.

(8) As used in this section:

(a) "Educating district or intermediate district" means the

district or intermediate district in which a pupil enrolls after

the pupil membership count day or after an adjustment was made in

another district's or intermediate district's membership

calculation under this section due to the pupil's enrollment and

attendance.

(b) "Pupil" means that term as defined under section 6 and

also children receiving early childhood special education programs

and services.

Sec. 25f. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed $1,600,000.00 ~~each fiscal year for 2017-2018 and for 2018-~~

~~2019~~ for 2019-2020 for payments to strict discipline academies

established under sections 1311b to 1311m of the revised school

code, MCL 380.1311b to 380.1311m, as provided under this section.

(2) In order to receive funding under this section, a strict

discipline academy shall first comply with section 25e and use the

pupil transfer process under that section for changes in enrollment

as prescribed under that section.

(3) The total amount allocated to a strict discipline academy

under this section shall first be distributed as the lesser of the

strict discipline academy's added cost or the department's approved

per-pupil allocation for the strict discipline academy. Any funds

remaining after the first distribution shall be distributed by

prorating on an equal per-pupil membership basis, not to exceed a

strict discipline academy's added cost. However, the sum of the

amounts received by a strict discipline academy under this section

and under section 24 shall not exceed the product of the strict

discipline academy's per-pupil allocation calculated under section

20 multiplied by the strict discipline academy's full-time equated

membership. The department shall allocate funds to strict

discipline academies under this section on a monthly basis. For the

purposes of this subsection:

(a) "Added cost" means 100% of the added cost each fiscal year

for educating all pupils enrolled and in regular daily attendance

at a strict discipline academy. Added cost shall be computed by

deducting all other revenue received under this article for pupils

described in this subsection from total costs, as approved by the

department, in whole or in part, for educating those pupils in a

strict discipline academy. The department shall include all costs

including, but not limited to, educational costs, insurance,

management fees, technology costs, legal fees, auditing fees,

interest, pupil accounting costs, and any other administrative

costs necessary to operate the program or to comply with statutory

requirements. Costs reimbursed by federal funds are not included.

(b) "Department's approved per-pupil allocation" for a strict

discipline academy shall be determined by dividing the total amount

allocated under this subsection for a fiscal year by the full-time

equated membership total for all pupils approved by the department

to be funded under this subsection for that fiscal year for the

strict discipline academy.

(4) Special education pupils funded under section 53a shall

not be funded under this section.

(5) If the funds allocated under this section are insufficient

to fully fund the adjustments under subsection (3), payments under

this section shall be prorated on an equal per-pupil basis.

(6) ~~Payments~~ The department shall make payments to districts

under this section ~~shall be made~~ according to the payment schedule

under section 17b.

Sec. 25g. (1) From the state school aid fund money

appropriated in section 11, there is allocated an amount not to

exceed $750,000.00 for ~~2018-2019~~ 2019-2020 for the purposes of this

section. If Except as otherwise provided in this section, if the

operation of the special membership counting provisions under

section 6(4)(dd) and the other membership counting provisions under

section 6(4) result in a pupil being counted as more than 1.0 FTE

in a fiscal year, then the payment made for the pupil under

sections 22a and 22b ~~shall~~ must not be based on more than 1.0 FTE

for that pupil, and that portion of the FTE that exceeds 1.0 ~~shall~~

be is paid under this section in an amount equal to that portion

multiplied by the educating district's foundation allowance or per-

pupil payment calculated under section 20.

(2) Special education pupils funded under section 53a ~~shall~~

~~not be~~ are not funded under this section.

(3) If the funds allocated under this section are insufficient

to fully fund the adjustments under subsection (1), the department

shall prorate payments under this section ~~shall be prorated~~ on an

equal per-pupil basis.

(4) ~~Payments~~ The department shall make payments to districts

under this section ~~shall be made~~ according to the payment schedule

under section 17b.

Sec. 26a. From the funds appropriated in section 11, there is

allocated an amount not to exceed ~~$15,000,000.00 for 2017-2018~~

$13,800,000.00 for 2018-2019 and there is allocated an amount not

to exceed ~~$15,000,000.00 for 2018-2019~~ $15,300,000.00 for 2019-2020

to reimburse districts and intermediate districts pursuant to

section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL

125.2692, for taxes levied in ~~2017 and~~ 2018 and 2019, as

applicable. The department shall pay the allocations ~~shall be made~~

not later than 60 days after the department of treasury certifies

to the department and to the state budget director that the

department of treasury has received all necessary information to

properly determine the amounts due to each eligible recipient.

Sec. 26b. (1) From the appropriation in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$4,405,100.00 for payments to districts, intermediate districts,

and community college districts for the portion of the payment in

lieu of taxes obligation that is attributable to districts,

intermediate districts, and community college districts under

section 2154 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.2154.

(2) If the amount appropriated under this section is not

sufficient to fully pay obligations under this section, payments

~~shall be~~ are prorated on an equal basis among all eligible

districts, intermediate districts, and community college districts.

Sec. 26c. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$1,600,000.00 for 2017-2018~~

$3,400,000.00 for 2018-2019 and there is allocated an amount not to

exceed ~~$3,000,000.00 for 2018-2019~~ $8,400,000.00 for 2019-2020 to

the promise zone fund created in subsection (3). The funds

allocated under this section reflect the amount of revenue from the

collection of the state education tax captured under section ~~17(2)~~

17 of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1677.

(2) Funds allocated to the promise zone fund under this

section ~~shall~~ must be used solely for payments to eligible

districts and intermediate districts, in accordance with section

~~17(3)~~ 17 of the Michigan promise zone authority act, 2008 PA 549,

MCL 390.1677, that have a promise zone development plan approved by

the department of treasury under section 7 of the Michigan promise

zone authority act, 2008 PA 549, MCL 390.1667. Eligible districts

and intermediate districts shall use payments made under this

section for reimbursement for qualified educational expenses as

defined in section 3 of the Michigan promise zone authority act,

2008 PA 549, MCL 390.1663.

(3) The promise zone fund is created as a separate account

within the state school aid fund to be used solely for the purposes

of the Michigan promise zone authority act, 2008 PA 549, MCL

390.1661 to 390.1679. All of the following apply to the promise

zone fund:

(a) The state treasurer shall direct the investment of the

promise zone fund. The state treasurer shall credit to the promise

zone fund interest and earnings from fund investments.

(b) Money in the promise zone fund at the close of a fiscal

year ~~shall remain~~ remains in the promise zone fund and ~~shall~~ does

not lapse to the general fund.

(4) Subject to subsection (2), the state treasurer may make

payments from the promise zone fund to eligible districts and

intermediate districts ~~pursuant to~~ under the Michigan promise zone

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

for the purposes of a promise zone authority created under that

act.

(5) Notwithstanding section 17b, the department shall make

payments under this section ~~shall be paid~~ on a schedule determined

by the department.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2018-2019~~ 2019-

2020 an amount not to exceed ~~$528,207,300.00~~ $531,207,300.00 for

payments to eligible districts and eligible public school academies

for the purposes of ensuring that pupils are proficient in English

language arts by the end of grade 3, that pupils are proficient in

mathematics by the end of grade 8, that pupils are attending school

regularly, that high school graduates are career and college ready,

and for the purposes under subsections (7) and (8).

(2) For a district that has combined state and local revenue

per membership pupil under ~~sections 20 and 20m~~ section 20 that is

greater than the ~~basic~~ target foundation allowance under section 20

for the current fiscal year, the allocation under this section

~~shall be~~ is an amount equal to 30% of the allocation for which it

would otherwise be eligible under this section before any proration

under subsection (14).

(3) For a district or public school academy to be eligible to

receive funding under this section, other than funding under

subsection (7) or (8), the district or public school academy, for

grades K to 12, shall comply with the requirements under section

1280f of the revised school code, MCL 380.1280f, and shall use

resources to address early literacy and numeracy, and for at least

grades K to 12 or, if the district or public school academy does

not operate all of grades K to 12, for all of the grades it

operates, must implement a multi-tiered system of supports that is

an evidence-based framework that uses data-driven problem solving

to integrate academic and behavioral instruction and that uses

intervention delivered to all pupils in varying intensities based

on pupil needs. The multi-tiered system of supports described in

this subsection must provide at least all of the following

essential components:

(a) Team-based leadership.

(b) A tiered delivery system.

interventions, and supports.

(d) A comprehensive screening and assessment system.

(e) Continuous data-based decision making.

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

allocated for 2019-2020 an amount not to exceed $508,000,000.00 to

continue a weighted foundation per-pupil payment for districts and

public school academies enrolling economically disadvantaged

pupils. Except as otherwise provided in this subsection, an

~~eligible district or eligible public school academy shall receive~~

~~under this section~~ for each membership pupil in the district or

public school academy who is determined to be economically

disadvantaged, as reported to the center in the form and manner

prescribed by the center not later than the fifth Wednesday after

the pupil membership count day of the immediately preceding fiscal

year, the department shall pay under this section to each eligible

district or eligible public school academy an amount per pupil

equal to 11.5% of the statewide weighted average foundation

allowance. However, for a public school academy that began

operations as a public school academy after the pupil membership

count day of the immediately preceding school year, ~~shall receive~~

the department shall pay under this section for each membership

pupil in the public school academy , who is determined to be

economically disadvantaged, as reported to the center in the form

and manner prescribed by the center not later than the fifth

Wednesday after the pupil membership count day of the current

fiscal year, an amount per pupil equal to 11.5% of the statewide

weighted average foundation allowance.

(5) Except as otherwise provided in this section, a district

or public school academy receiving funding under this section shall

use that money only to provide instructional programs and direct

noninstructional services, including, but not limited to, medical,

mental health, or counseling services, for at-risk pupils; for

school health clinics; and for the purposes of subsection (6), (7),

or (8). In addition, a district that is a school district of the

first class or a district or public school academy in which at

least 50% of the pupils in membership were determined to be

economically disadvantaged in the immediately preceding state

fiscal year, as determined and reported as described in subsection

(4), may use not more than 20% of the funds it receives under this

section for school security that aligns to the needs assessment and

the multi-tiered system of supports model. A district or public

school academy shall not use any of that money for administrative

costs. The instruction or direct noninstructional services provided

under this section may be conducted before or after regular school

hours or by adding extra school days to the school year. Funds

spent on school security under this subsection must be counted

toward required spending under subsection (16)(c). In addition, a

district or public school academy shall use funds under this

subsection to show progress toward meeting the following goals:

(a) Providing at least 1 tutor per every 100 economically

disadvantaged pupils enrolled in the district or public school

academy.

(b) Providing at least 1 pupil support position, which may

include behavior specialists, reading support experts, and

counselors, per every 125 economically disadvantaged pupils

enrolled in the district or public school academy.

every 120 economically disadvantaged pupils enrolled in the

district or public school academy.

(d) Expanding professional development opportunities for

teachers.

(e) Providing additional supports for students on the

completion of the free application for federal student financial

aid (FAFSA).

(6) A district or public school academy that receives funds

under this section and that operates a school breakfast program

under section 1272a of the revised school code, MCL 380.1272a,

shall use from the funds received under this section an amount, not

to exceed $10.00 per pupil for whom the district or public school

academy receives funds under this section, necessary to pay for

costs associated with the operation of the school breakfast

program.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$6,057,300.00 to support primary health care services provided to

children and adolescents up to age 21. These funds ~~shall~~ must be

expended in a form and manner determined jointly by the department

and the department of health and human services. If any funds

allocated under this subsection are not used for the purposes of

this subsection for the fiscal year in which they are allocated,

those unused funds ~~shall~~ must be used that fiscal year to avoid or

minimize any proration that would otherwise be required under

subsection (14) for that fiscal year.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$5,150,000.00 for the state portion of the hearing and vision

screenings as described in section 9301 of the public health code,

1978 PA 368, MCL 333.9301. A local public health department shall

pay at least 50% of the total cost of the screenings. The frequency

of the screenings ~~shall~~ must be as required under R 325.13091 to R

325.13096 and R 325.3271 to R 325.3276 of the Michigan

Administrative Code. Funds ~~shall~~ must be awarded in a form and

manner approved jointly by the department and the department of

health and human services. Notwithstanding section 17b, the

department shall make payments to eligible entities under this

subsection ~~shall be paid~~ on a schedule determined by the

department.

(9) Each district or public school academy receiving funds

under this section shall submit to the department by July 15 of

each fiscal year a report, in the form and manner prescribed by the

department, that includes a brief description of each program

conducted or services performed by the district or public school

academy using funds under this section, the amount of funds under

this section allocated to each of those programs or services, the

total number of at-risk pupils served by each of those programs or

services, and the data necessary for the department and the

department of health and human services to verify matching funds

for the temporary assistance for needy families program. In

prescribing the form and manner of the report, the department shall

ensure that districts are allowed to expend funds received under

this section on any activities that are permissible under this

section. If a district or public school academy does not comply

with this subsection, the department shall withhold an amount equal

to the August payment due under this section until the district or

public school academy complies with this subsection. If the

district or public school academy does not comply with this

subsection by the end of the state fiscal year, the withheld funds

~~shall be~~ are forfeited to the school aid fund.

(10) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

the department's designee to audit all records related to the

program for which it receives those funds. The district or public

school academy shall reimburse the state for all disallowances

found in the audit.

(11) Subject to subsections (6), (7), and (8), for schools in

which more than 40% of pupils are identified as at-risk, a district

or public school academy may use the funds it receives under this

section to implement tier 1, evidence-based practices in schoolwide

reforms that are guided by the district's comprehensive needs

assessment and are included in the district improvement plan.

Schoolwide reforms must include parent and community supports,

activities, and services, that may include the pathways to

potential program created by the department of health and human

services or the communities in schools program. As used in this

subsection, "tier 1, evidence-based practices" means research-based

instruction and classroom interventions that are available to all

learners and effectively meet the needs of most pupils.

(12) A district or public school academy that receives funds

under this section may use up to 5% 10% of those funds to provide

research-based professional development and to implement a coaching

model that supports the multi-tiered system of supports framework.

Professional development may be provided to district and school

leadership and teachers and must be aligned to professional

learning standards; integrated into district, school building, and

classroom practices; and solely related to the following:

(a) Implementing the multi-tiered system of supports required

in subsection (3) with fidelity and utilizing the data from that

system to inform curriculum and instruction.

(b) Implementing section 1280f of the revised school code, MCL

380.1280f, as required under subsection (3), with fidelity.

(13) A district or public school academy that receives funds

under this section may use funds received under this section to

support instructional or behavioral coaches. Funds used for this

purpose are not subject to the cap under subsection (12).

(14) If necessary, and before any proration required under

section 296, the department shall prorate payments under this

section, except payments under subsection (7), (8), or (17), by

reducing the amount of the allocation as otherwise calculated under

this section by an equal percentage per district.

(15) If a district is dissolved pursuant to section 12 of the

revised school code, MCL 380.12, the intermediate district to which

the dissolved school district was constituent shall determine the

estimated number of pupils that are economically disadvantaged and

that are enrolled in each of the other districts within the

intermediate district and provide that estimate to the department

for the purposes of distributing funds under this section within 60

days after the school district is declared dissolved.

(16) Beginning in 2019-2020, if a district or public school

academy does not demonstrate to the satisfaction of the department

that at least 50% of at-risk pupils are proficient in English

language arts by the end of grade 3 as measured by the state

assessment for the immediately preceding school year, ~~or have~~

~~achieved at least 1 year's growth in English language arts during~~

~~grade 3 as measured by a local benchmark assessment for the~~

~~immediately preceding school year,~~ demonstrate to the satisfaction

of the department that at least 50% of at-risk pupils are

proficient in mathematics by the end of grade 8 as measured by the

state assessment for the immediately preceding school year, ~~or have~~

~~achieved at least 1 year's growth in mathematics during grade 8 as~~

~~measured by a local benchmark assessment for the immediately~~

~~preceding school year,~~ and demonstrate to the satisfaction of the

department improvement over each of the 3 immediately preceding

school years in the percentage of at-risk pupils that are career-

and college-ready as determined by proficiency on the English

language arts, mathematics, and science content area assessments on

the grade 11 summative assessment under section 1279g(2)(a) of the

revised school code, MCL 380.1279g, the district or public school

academy shall ensure all of the following:

(a) The district or public school academy shall determine the

proportion of at-risk pupils in grade 3 that represents the number

of at-risk pupils in grade 3 that are not proficient in English

language arts by the end of grade 3, ~~or that did not achieve at~~

~~least 1 year's growth in English language arts during grade 3,~~ and

the district or public school academy shall expend that same

proportion multiplied by 1/3 of its total at-risk funds under this

section on tutoring and other methods of improving grade 3 English

language arts proficiency or growth.

(b) The district or public school academy shall determine the

proportion of at-risk pupils in grade 8 that represents the number

of at-risk pupils in grade 8 that are not proficient in mathematics

by the end of grade 8, ~~or that did not achieve at least 1 year's~~

~~growth in mathematics during grade 8,~~ and the district or public

school academy shall expend that same proportion multiplied by 1/3

of its total at-risk funds under this section on tutoring and other

methods of improving grade 8 mathematics proficiency or growth.

proportion of at-risk pupils in grade 11 that represents the number

of at-risk pupils in grade 11 that are not career- and college-

ready as measured by the student's score on the English language

arts, mathematics, and science content area assessments on the

grade 11 summative assessment under section 1279g(2)(a) of the

revised school code, MCL 380.1279g, and the district or public

school academy shall expend that same proportion multiplied by 1/3

of its total at-risk funds under this section on tutoring and other

activities to improve scores on the college entrance examination

portion of the Michigan merit examination.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

~~$18,000,000.00~~ $12,000,000.00 for payments to districts and public

school academies that otherwise received an allocation under this

~~section in~~ subsection for 2018-2019 and ~~that~~ whose allocation ~~was~~

~~less~~ under this section for 2018-2019, excluding any payments under

subsection (7) or (8), would have been more than the district's or

public school academy's allocation under this section ~~in 2017-2018.~~

for 2019-2020 as calculated under subsection (4) only and as

adjusted under subsection (14). The allocation for each district or

public school academy under this subsection is an amount equal to

its allocation under this section ~~in 2017-2018~~ for 2018-2019 minus

its allocation as otherwise calculated under ~~this section for 2018-~~

~~2019.~~ subsection (4) for 2019-2020, as adjusted by subsection (14),

using in those calculations the 2017-2018 number of pupils

determined to be economically disadvantaged. However, if the

allocation as otherwise calculated under this subsection would have

been less than $0.00, the allocation under this subsection is

$0.00. If necessary, and before any proration required under

section 296, the department shall prorate payments under this

subsection by reducing the amount of the allocation as otherwise

calculated under this subsection by an equal percentage per

district or public school academy.

(18) A district or public school academy that receives funds

under this section may use funds received under this section to

provide an anti-bullying or crisis intervention program.

(19) The department shall collaborate with the department of

health and human services to prioritize assigning Pathways to

Potential Success coaches to elementary schools that have a high

percentage of pupils in grades K to 3 who are not proficient in

English language arts, based upon state assessments for pupils in

those grades.

(20) In addition to the funds allocated under subsection (1),

from the state school aid fund appropriation under section 11 there

is allocated for 2019-2020 only an amount not to exceed

$35,000,000.00 for 1-time payments to districts and public school

academies for capital improvements in support of programming and

instruction for at-risk pupils. The department shall make payments

under this subsection to districts and public school academies in

the same proportion as the sum of the district's or public school

academy's payments under subsections (4) and (17) represents

compared to the total payments made under subsections (4) and (17).

Capital improvements under this subsection may include any type of

non-ongoing purchase or investment that can be used in support of

programming and instruction for at-risk pupils.

(21) ~~(20)~~ As used in this section:

(a) "At-risk pupil" means a pupil in grades K to 12 for whom

the district has documentation that the pupil meets any of the

following criteria:

(i) The pupil is economically disadvantaged.

(ii) The pupil is an English language learner.

(iii) The pupil is chronically absent as defined by and

reported to the center.

(iv) The pupil is a victim of child abuse or neglect.

(v) The pupil is a pregnant teenager or teenage parent.

(vi) The pupil has a family history of school failure,

incarceration, or substance abuse.

(vii) The pupil is an immigrant who has immigrated within the

immediately preceding 3 years.

(viii) The pupil did not complete high school in 4 years and

is still continuing in school as identified in the Michigan cohort

graduation and dropout report.

(ix) For pupils for whom the results of the state summative

assessment have been received, is a pupil who did not achieve

proficiency on the English language arts, mathematics, science, or

social studies content area assessment.

(x) Is a pupil who is at risk of not meeting the district's or

public school academy's core academic curricular objectives in

English language arts or mathematics, as demonstrated on local

assessments.

(b) "Economically disadvantaged" means a pupil who has been

determined eligible for free or reduced-price meals as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769j; who is in a household receiving supplemental nutrition

assistance program or temporary assistance for needy families

assistance; or who is homeless, migrant, or in foster care, as

reported to the center.

proficient pupils who speak a language other than English as their

primary language and have difficulty speaking, reading, writing, or

understanding English as reported to the center.

(d) "Statewide weighted average foundation allowance" means

the number that is calculated by adding together the result of each

district's or public school academy's foundation allowance, not to

exceed the target foundation allowance for the current fiscal year,

or per pupil payment calculated under section 20 multiplied by the

number of pupils in membership in that district or public school

academy, and then dividing that total by the statewide number of

pupils in membership. ~~For the purposes of this calculation, a~~

~~district's foundation allowance shall not exceed the basic~~

~~foundation allowance under section 20 for the current state fiscal~~

~~year.~~

Sec. 31b. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $750,000.00 for ~~2018-2019~~ 2019-

2020 for grants to at-risk districts for implementing a balanced

calendar instructional program for at least 1 of its schools.

(2) The department shall select districts for grants under

this section from among applicant districts that meet both of the

following:

(a) The district meets 1 or both of the following:

(i) Is eligible in ~~2018-2019~~ 2019-2020 for the community

eligibility option for free and reduced price lunch under 42 USC

1759a.

(ii) At least 50% of the pupils in membership in the district

met the income eligibility criteria for free breakfast, lunch, or

milk in the immediately preceding state fiscal year, as determined

under the Richard B. Russell national school lunch act, 42 USC 1751

to 1769j.

(b) The board of the district has adopted a resolution stating

that the district will implement for the first time a balanced

calendar instructional program that will begin in ~~2019-2020~~ 2020-

2021 for at least 1 school operated by the district and committing

to providing the balanced calendar instructional program in each of

those schools for at least 3 school years.

(3) A district seeking a grant under this section shall apply

to the department in the form and manner prescribed by the

department not later than December 1, ~~2018.~~ 2019. The department

shall select districts for grants and make notification not later

than February 1, ~~2019.~~2020.

(4) The department shall award grants under this section on a

competitive basis, but shall give priority based solely on

consideration of the following criteria:

(a) Giving priority to districts that, in the immediately

preceding fiscal year, had lower general fund balances as a

percentage of revenues.

(b) Giving priority to districts that operate at least 1

school that has been identified by the department as either a

priority school or a focus school.

districts.

(5) The amount of a grant under this section to any 1 district

~~shall~~ must not exceed $750,000.00.

(6) A district shall use a grant payment under this section to

~~a district shall be used~~ for necessary modifications to

instructional facilities and other nonrecurring costs of preparing

for the operation of a balanced calendar instructional program as

approved by the department.

(7) A district receiving a grant under this section is not

required to provide more than the minimum number of days and hours

of pupil instruction prescribed under section 101, but shall spread

at least those minimum amounts of pupil instruction over the entire

year in each of its schools in which a balanced calendar

instructional calendar is implemented. The district shall commit to

providing the balanced calendar instructional calendar in each of

those schools for at least 3 school years.

(8) For a district receiving a grant under this section,

excessive heat is considered to be a condition not within the

control of school authorities for the purpose of days or hours

being counted as days or hours of pupil instruction under section

101(4).

(9) Notwithstanding section 17b, the department shall make

grant payments to districts under this section ~~shall be paid~~ on a

schedule determined by the department.

Sec. 31d. (1) From the appropriations in section 11, there is

allocated ~~an amount not to exceed $22,802,000.00 for 2017-2018 and~~

~~there is allocated~~ an amount not to exceed $23,144,000.00 for ~~2018-~~

~~2019~~ 2019-2020 for the purpose of making payments to districts and

other eligible entities under this section.

(2) The amounts allocated from state sources under this

section ~~shall be~~ are used to pay the amount necessary to reimburse

districts for 6.0127% of the necessary costs of the state mandated

portion of the school lunch programs provided by those districts.

The department shall calculate the amount due to each district

under this section ~~shall be computed by the department~~ using the

methods of calculation adopted by the Michigan supreme court in the

consolidated cases known as Durant v State of Michigan, 456 Mich

175 (1997).

(3) The payments made under this section include all state

payments made to districts so that each district receives at least

6.0127% of the necessary costs of operating the state mandated

portion of the school lunch program in a fiscal year.

(4) The payments made under this section to districts and

other eligible entities that are not required under section 1272a

of the revised school code, MCL 380.1272a, to provide a school

lunch program ~~shall~~ must be in an amount not to exceed $10.00 per

eligible pupil plus 5 cents for each free lunch and 2 cents for

each reduced price lunch provided, as determined by the department.

(5) From the federal funds appropriated in section 11, there

is allocated for ~~2018-2019~~ 2019-2020 all available federal funding,

estimated at ~~$520,000,000.00~~ $533,000,000.00 for the national

school lunch program and all available federal funding, estimated

at ~~$3,200,000.00~~ $4,200,000.00 for the emergency food assistance

program.

(6) Notwithstanding section 17b, the department shall make

payments to eligible entities other than districts under this

section ~~shall be paid~~ on a schedule determined by the department.

(7) In purchasing food for a school lunch program funded under

this section, a district or other eligible entity shall give

preference ~~shall be given~~ to food that is grown or produced by

Michigan businesses if it is competitively priced and of comparable

quality.

Sec. 31f. (1) From the appropriations in section 11, there is

allocated an amount not to exceed $4,500,000.00 for ~~2018-2019~~ 2019-

2020 for the purpose of making payments to districts to reimburse

for the cost of providing breakfast.

(2) The funds allocated under this section for school

breakfast programs ~~shall be~~ are made available to all eligible

applicant districts that meet all of the following criteria:

(a) The district participates in the federal school breakfast

program and meets all standards as prescribed by 7 CFR parts 220

and 245.

(b) Each breakfast eligible for payment meets the federal

standards described in subdivision (a).

(3) The payment for a district under this section is at a per

meal rate equal to the lesser of the district's actual cost or 100%

of the statewide average cost of a breakfast served, as determined

and approved by the department, less federal reimbursement,

participant payments, and other state reimbursement. The department

shall determine the statewide average cost ~~shall be determined by~~

~~the department~~ using costs as reported in a manner approved by the

department for the preceding school year.

(4) Notwithstanding section 17b, the department may make

payments under this section ~~may be made~~ pursuant to an agreement

with the department.

(5) In purchasing food for a school breakfast program funded

under this section, a district shall give preference ~~shall be given~~

to food that is grown or produced by Michigan businesses if it is

competitively priced and of comparable quality.

Sec. 31j. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed ~~$575,000.00~~

$2,000,000.00 for ~~2018-2019~~ 2019-2020 for a ~~pilot project~~ program

to support districts and sponsors of child care centers in the

purchase of locally grown fruits and vegetables as described in

this section.

(2) ~~The department shall provide funding in an amount equal to~~

~~$125,000.00 per region to districts in prosperity regions 2, 4, 6,~~

~~and 9 for the pilot project described under this section. In~~

~~addition, the department shall provide funding in an amount equal~~

~~to $75,000.00 to districts in prosperity region 8 for the pilot~~

~~project described under this section. From the funding to districts~~

~~in subsection (1), funding~~ Funding retained by ~~prosperity regions~~

districts or the sponsors of child care centers that administer the

~~project shall~~ program must not exceed 10%, and funding retained by

the department for administration ~~shall~~ must not exceed 6%. A

~~prosperity region~~ district or the sponsor of a child care center

may enter into a memorandum of understanding with the department or

another ~~prosperity region,~~ district or sponsor of a child care

center, or both, to administer the ~~project.~~ program. If the

department administers the ~~project~~ program for a ~~prosperity region,~~

district or the sponsor of a child care center, the department may

retain up to 10% of that ~~prosperity region's~~ district's or

sponsor's funding for administration or may distribute some or all

of that 10% to project partners as appropriate.

(3) The department shall develop and implement a competitive

grant program for districts ~~within the identified prosperity~~

~~regions~~ and sponsors of child care centers to assist in paying for

the costs incurred by the district or the sponsor of the child care

center to purchase or increase purchases of whole or minimally

processed fruits, vegetables, and legumes grown in this state. The

maximum amount that may be drawn down on a grant to a district

~~shall be~~ or the sponsor of a child care center is based on the

number of meals served by the ~~school~~ district during the previous

school year under the Richard B. Russell national school lunch act,

42 USC 1751 to 1769j or meals served by the sponsor of the child

care center in the previous school year. The department shall

collaborate with the Michigan department of agriculture and rural

development to provide training to newly participating schools and

child care centers and electronic information on Michigan

agriculture.

(4) The goals of the ~~pilot project~~ program under this section

include improving daily nutrition and eating habits for children

through the school and child care settings while investing in

Michigan's agricultural and related food business economy.

(5) A district or the sponsor of a child care center that

receives a grant under this section shall use those funds for the

costs incurred by the ~~school~~ district or the sponsor to purchase

whole or minimally processed fruits, vegetables, and legumes that

meet all of the following:

(a) Are purchased on or after the date the district or the

sponsor received notification from the department of the amount to

be distributed to the district or the sponsor under this

subsection, including purchases made to launch meals in September

~~2018~~ 2019 for the ~~2018-2019~~ 2019-2020 fiscal year.

(b) Are grown in this state and, if minimally processed, are

also processed in this state.

States Department of Agriculture's child nutrition programs.

(6) For Michigan-grown fruits, vegetables, and legumes that

satisfy the requirements of subsection (5), the department shall

make matching reimbursements ~~shall be made~~ in an amount not to

exceed 10 cents for every school or child care meal that is served

as part of the United States Department of Agriculture's child

nutrition programs and that uses Michigan-grown fruits, vegetables,

and legumes.

(7) A district or the sponsor of a child care center that

receives a grant for reimbursement under this section shall use the

grant to purchase whole or minimally processed fruits, vegetables,

and legumes that are grown in this state and, if minimally

processed, are also processed in this state.

(8) In awarding grants under this section, the department

shall work in conjunction with ~~prosperity region offices,~~ districts

and sponsors of child care centers, in consultation with Michigan-

based farm to school resource organizations, to develop scoring

criteria that assess an applicant's ability to procure Michigan-

grown products, prepare and menu Michigan-grown products, promote

and market Michigan-grown products, and submit letters of intent

from districts or the sponsors of child care centers on plans for

educational activities that promote the goals of the program.

(9) The department shall give preference to districts or

sponsors of child care centers that propose educational activities

that meet 1 or more of the following: promote healthy food

activities; have clear educational objectives; involve parents or

the community; connect to a school's or child care center's farm-

to-school or farm-to-early-child-care procurement activities; and

market and promote the program, leading to increased pupil

knowledge and consumption of Michigan-grown products. ~~Applications~~

The department shall give stronger weighting and consideration to

applications with robust marketing and promotional activities.

~~shall receive stronger weighting and consideration.~~

(10) In awarding grants, the department shall also consider

all of the following: ~~the~~

(a) The percentage of children who qualify for free or reduced

price school meals under the Richard B. Russell national school

lunch act, 42 USC 1751 to 1769j.~~; the~~

(b) The variety of school or child care center sizes and

geographic locations. ~~within the identified prosperity regions; and~~

~~existing~~

more than 1 district ~~in a prosperity region.~~or child care center.

(11) As a condition of receiving a grant under this section, a

district or the sponsor of a child care center shall provide or

direct its vendors to provide to ~~prosperity region offices~~ the

department copies of monthly receipts that show the quantity of

different Michigan-grown fruits, vegetables, and legumes purchased,

the amount of money spent on each of these products, the name and

Michigan location of the farm that grew the products, and the

methods or plans to market and promote the program. The district

~~shall~~ or the sponsor of a child care center also shall provide to

the ~~prosperity region~~ department monthly lunch numbers and lunch

participation rates, and calendars or monthly menus noting when and

how Michigan-grown products were used in meals. The district or the

sponsor of the child care center and school or child care center

food service director or directors also shall agree to respond to

brief online surveys and to provide a report that shows the

percentage relationship of Michigan spending compared to total food

spending. Not later than March 1, ~~2019,~~ 2020, each ~~prosperity~~

~~region office, either on its own or in conjunction with another~~

~~prosperity region,~~ district or each sponsor of a child care center,

shall submit a report to the department on expected outcomes and

related measurements for economic development and children's

nutrition and readiness to learn based on progress so far. The

report ~~shall~~ must include at least all of the following:

(a) The extent to which farmers and related businesses,

including distributors and processors, see an increase in market

opportunities and income generation through sales of Michigan or

local products to districts and sponsors of child care centers. All

of the following apply for purposes of this subdivision:

(i) The data used to determine the amount of this increase

~~shall be~~ are the total dollar amount of Michigan or local fruits,

vegetables, and legumes purchased by schools and sponsors of child

care centers, along with the number of different types of products

purchased; school and child care center food purchasing trends

identified along with products that are of new and growing interest

among food service directors; the number of businesses impacted;

and the percentage of total food budget spent on Michigan-grown

fruits, vegetables, and legumes.

(ii) The ~~prosperity region office~~ district or the sponsor of a

child care center shall use purchasing data collected for the

~~project~~ program and surveys of school and child care food service

directors on the impact and success of the ~~project~~ program as the

source for the data described in subparagraph (i).

(b) The ability to which pupils can access a variety of

healthy Michigan-grown foods through schools and child care centers

and increase their consumption of those foods. All of the following

apply for purposes of this subdivision:

(i) The data used to determine whether this subparagraph is

met ~~shall be~~ are the number of pupils exposed to Michigan-grown

fruits, vegetables, and legumes at schools and child care centers;

the variety of products served; new items taste-tested or placed on

menus; and the increase in pupil willingness to try new local,

healthy foods.

(ii) The ~~prosperity region office~~ district or the sponsor of a

child care center shall use purchasing data collected for the

project, meal count and enrollment numbers, school menu calendars,

and surveys of school and child care food service directors as the

source for the data described in subparagraph (i).

(12) The department shall compile the reports provided by

~~prosperity region offices~~ districts and sponsors of child care

centers under subsection (11) into 1 legislative report. The

department shall provide this report not later than April 1, ~~2019~~

2020 to the house and senate subcommittees responsible for school

aid, the house and senate fiscal agencies, and the state budget

director.

(13) Notwithstanding section 17b, the department shall make

payments under this section on a schedule determined by the

department.

Sec. 31n. (1) From the ~~school mental health and support~~

~~services fund~~ money appropriated in section 11, there is allocated

for ~~2018-2019~~ 2019-2020 for the purposes of this section an amount

not to exceed $30,000,000.00 and from the general fund money

appropriated in section 11, there is allocated for ~~2018-2019~~ 2019-

2020 for the purposes of this section an amount not to exceed

$1,300,000.00. ~~Not later than February 15, 2019, the~~ The department

and the department of health and human services shall ~~establish~~

continue a program to distribute this funding to add licensed

behavioral health providers for general education pupils, and shall

continue to seek federal Medicaid match funding for all eligible

mental health and support services.

(2) ~~Not later than February 15, 2019, the~~ The department and

the department of health and human services shall ~~create~~ maintain

an advisory council ~~and~~ for programs funded under this section. The

advisory council shall define goals for implementation of programs

funded under this section, and shall provide feedback on that

implementation. At a minimum, the advisory council shall ~~include~~

consist of representatives of state associations representing

school health, school mental health, school counseling, education,

health care, and other organizations, representatives from the

department and the department of health and human services, and a

representative from the school safety task force created under

Executive Order No. 2018-5. The department and department of health

and human services, working with the advisory council, shall

determine an approach to increase capacity for mental health and

support services in schools for general education pupils, and shall

determine where that increase in capacity qualifies for federal

Medicaid match funding.

(3) The advisory council shall develop a fiduciary agent

checklist for intermediate districts to facilitate development of a

plan to submit to the department and to the department of health

and human services. The department and department of health and

human services shall determine the requirements and format for

intermediate districts to submit a plan for possible funding under

subsection (5). ~~Applications~~ The department shall make applications

for funding for this program ~~shall be made~~ available to districts

and intermediate districts not later than ~~March 1, 2019,~~ December

1, 2019, and shall award the funding ~~shall be awarded~~ not later

than ~~April 1, 2019.~~February 1, 2020.

(4) ~~Not later than January 1, 2019, the~~ The department of

health and human services shall seek to amend the state Medicaid

plan or obtain appropriate Medicaid waivers as necessary for the

purpose of generating additional Medicaid match funding for school

mental health and support services for general education pupils. It

~~is the intent of the legislature~~ The intent is that a successful

state plan amendment or other Medicaid match mechanisms will result

in additional federal Medicaid match funding for both the new

funding allocated under this section and for any expenses already

incurred by districts and intermediate districts for mental health

and support services for general education pupils.

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

allocated for 2019-2020 an amount not to exceed $5,000,000.00 to be

distributed to the existing network of child and adolescent health

centers to place a licensed master's level behavioral health

provider in schools that do not currently have services available

to general education students. Existing child and adolescent health

centers receiving funding under this subsection shall provide a

commitment to maintain services and implement all available federal

Medicaid match methodologies. The department of health and human

services shall use all existing or additional federal Medicaid

match opportunities to maximize funding allocated under this

subsection. ~~Funds~~ The department shall provide funds under this

subsection ~~shall be provided~~ to existing child and adolescent

health centers in the same proportion that funding under section

31a(7) is provided to child and adolescent health centers located

and operating in those districts.

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

allocated for 2019-2020 an amount not to exceed ~~$16,500,000.00~~

$24,500,000.00 to be distributed to intermediate districts for the

provision of mental health and support services to general

education students. From the funds allocated under this subsection,

the department shall distribute ~~$294,500.00~~ $437,500.00 to each

intermediate district that submits a plan approved by the

department and the department of health and human services. The

department and department of health and human services shall work

cooperatively in providing oversight and assistance to intermediate

districts during the plan submission process and shall monitor the

program upon implementation. An intermediate district shall use

funds awarded under this subsection to provide funding to its

constituent districts, including public school academies that are

considered to be constituent districts under section 705(7) of the

revised school code, MCL 380.705, for the provision of mental

health and support services to general education students. In

addition to the criteria identified under subsection (7), an

intermediate district shall consider geography, cost, or other

challenges when awarding funding to its constituent districts. If

funding awarded to an intermediate district remains after funds are

provided by the intermediate district to its constituent districts,

the intermediate district may hire or contract for experts to

provide mental health and support services to general education

students residing within the boundaries of the intermediate

district.

(7) A district requesting funds under this section from the

intermediate district in which it is located shall submit an

application for funding for the provision of mental health and

support services to general education pupils. A district receiving

funding from the application process described in this subsection

shall provide services to nonpublic students upon request. An

intermediate district shall not discriminate against an application

submitted by a public school academy simply on the basis of the

applicant being a public school academy. ~~Grant~~ The department shall

approve grant applications ~~shall be approved~~ based on the following

criteria:

(a) The district's commitment to maintain mental health and

support services delivered by licensed providers into future fiscal

years.

(b) The district's commitment to implement all federal

Medicaid match methodologies and provide a local match of at least

20%.

requirements determined by the department and the department of

health and human services.

(d) The extent of the district's existing partnerships with

community health care providers or the ability of the district to

establish such partnerships.

(e) The district's documentation of need, including gaps in

current mental health and support services for the general

education population.

(f) The district's submission of a formal plan of action

identifying the number of schools and students to be served.

(g) Whether the district will participate in ongoing

trainings.

(h) Whether the district will submit an annual report to the

state.

(i) Whether the district demonstrates a willingness to work

with the state to establish program and service delivery

benchmarks.

(j) Whether the district has developed a school safety plan or

is in the process of developing a school safety plan.

(k) Any other requirements determined by the department or the

department of health and human services.

(8) Funding under this section, including any federal Medicaid

funds that are generated, ~~shall~~ must not be used to supplant

existing services.

(9) Both of the following are allocated for ~~2018-2019~~ 2019-

2020 to the department of health and human services from the

general fund money allocated under subsection (1):

(a) An amount not to exceed $1,000,000.00 for the purpose of

upgrading technology and systems infrastructure and other

administrative requirements to support the programs funded under

this section.

(b) An amount not to exceed $300,000.00 for the purpose of

administering the programs under this section and working on

generating additional Medicaid funds as a result of programs funded

under this section.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$500,000.00 to intermediate districts on an equal per intermediate

district basis for the purpose of administering programs funded

under this section.

(11) The department and the department of health and human

services shall work with the advisory council to develop proposed

measurements of outcomes and performance. Those measurements shall

include, at a minimum, the number of pupils served, the number of

schools served, and where those pupils and schools were located.

The department and the department of health and human services

shall compile data necessary to measure outcomes and performance,

and districts and intermediate districts receiving funding under

this section shall provide data requested by the department and

department of health and human services for the measurement of

outcomes and performance. The department and department of health

and human services shall provide a report not later than December

1, 2019 and by December 1 annually thereafter to the house and

senate appropriations subcommittees on school aid and health and

human services, and to the house and senate fiscal agencies. At a

minimum, the report ~~shall~~ must include measurements of outcomes and

performance, proposals to increase efficacy and usefulness,

proposals to increase performance, and proposals to expand

coverage.

~~(12) From the funds allocated in subsection (1), there is~~

~~allocated for 2018-2019 an amount not to exceed $8,000,000.00 for~~

~~the behavioral health team pilot program. The department shall~~

~~award funds under this subsection to intermediate school districts~~

~~to create school-based behavioral health assessment teams utilizing~~

~~a "train the trainer" model of training that focuses on providing~~

~~age-appropriate interventions, identifying behaviors that suggest a~~

~~pupil may be struggling with mental health challenges, providing~~

~~treatment and support of the pupil, and using disciplinary~~

~~interventions and the criminal justice system as methods of last~~

~~resort. The intermediate district may hire or contract with experts~~

~~to provide training to intermediate district staff so that it may~~

~~provide similar training for staff of the constituent districts.~~

~~The department shall award the entire $8,000,000.00 allocated under~~

~~this subsection by allocating an equal dollar amount to each~~

~~intermediate district that has its application approved under~~

~~subsection (13).~~

~~(13) An intermediate district shall apply for funds under~~

~~subsection (12) in a form and manner determined by the department.~~

~~The application shall include, but is not limited to, all of the~~

~~following:~~

~~(a) A detailed plan on how the intermediate district will work~~

~~with constituent districts to identify a behavioral health~~

~~assessment team within each school to be trained under this pilot.~~

~~The plan shall demonstrate that a behavioral health assessment team~~

~~must consist of, but is not limited to, all of the following~~

~~individuals:~~

(i~~) School administrators and teachers.~~

(ii~~) An individual whose primary purpose is ensuring safety in~~

~~a school.~~

(~~iii~~~~) Pathways to potential workers, if the school~~

~~participates in the pathways to potential program.~~

(iv~~) Local mental health agency representatives.~~

(v~~) Local law enforcement agency personnel.~~

(vi~~) If appropriate under the model being used, a pupil.~~

~~(b) Identification of a behavioral health assessment training~~

~~implementation plan that shall include a description of how results~~

~~of the training will be incorporated into administrative policies~~

~~and a comprehensive school safety plan, including into a multi-~~

~~tiered system of support.~~

~~(14) The funds allocated under this section for 2018-2019 are~~

~~a work project appropriation, and any unexpended funds for 2018-~~

~~2019 are carried forward into 2019-2020. The purpose of the work~~

~~project is to continue to provide funding for the expansion of~~

~~mental health and support services for general education students.~~

~~The estimated completion date of the work project is September 30,~~

~~2022.~~

Sec. 32d. (1) From the funds appropriated in section 11, there

is allocated to eligible intermediate districts and consortia of

intermediate districts for great start readiness programs an amount

not to exceed ~~$244,600,000.00~~ $249,600,000.00 for ~~2018-2019. Funds~~

2019-2020. An intermediate district or consortium shall use funds

allocated under this section for great start readiness programs

~~shall be used~~ to provide part-day, school-day, or GSRP/Head Start

blended comprehensive free compensatory classroom programs designed

to improve the readiness and subsequent achievement of

educationally disadvantaged children who meet the participant

eligibility and prioritization guidelines as defined by the

department. For a child to be eligible to participate in a program

under this section, the child ~~shall~~ must be at least 4, but less

than 5, years of age as of September 1 of the school year in which

the program is offered and ~~shall~~ must meet those eligibility and

prioritization guidelines. A child who is not 4 years of age as of

September 1, but who will be 4 years of age not later than December

1, is eligible to participate if the child's parent or legal

guardian seeks a waiver from the September 1 eligibility date by

submitting a request for enrollment in a program to the responsible

intermediate district, if the program has capacity on or after

September 1 of the school year, and if the child meets eligibility

and prioritization guidelines.

(2) From the funds allocated under subsection (1), an amount

not to exceed ~~$242,600,000.00~~ $247,600,000.00 is allocated to

intermediate districts or consortia of intermediate districts based

on the formula in section 39. An intermediate district or

consortium of intermediate districts receiving funding under this

section shall act as the fiduciary for the great start readiness

programs. In order to be eligible to receive funds allocated under

this subsection from an intermediate district or consortium of

intermediate districts, a district, a consortium of districts, or a

public or private for-profit or nonprofit legal entity or agency

shall comply with this section and section 39.

(3) In addition to the allocation under subsection (1), from

the general fund money appropriated under section 11, there is

allocated an amount not to exceed $300,000.00 for ~~2018-2019~~ 2019-

2020 for a competitive grant to continue a longitudinal evaluation

of children who have participated in great start readiness

programs. This evaluation must include a scientific analysis of the

relationship between the early childhood programs and performance

on the kindergarten readiness assessment funded under section 104.

The evaluation must include a control group and a determination of

the specific GSRP program in which the kindergarten students were

enrolled and attended in the previous school year and must analyze

Michigan kindergarten entry observation tool scores for students

taking the Michigan kindergarten entry observation tool in the

pilot year, year 1, and all years going forward.

(4) To be eligible for funding under this section, a program

~~shall~~ must prepare children for success in school through

comprehensive part-day, school-day, or GSRP/Head Start blended

programs that contain all of the following program components, as

determined by the department:

(a) Participation in a collaborative recruitment and

enrollment process to assure that each child is enrolled in the

program most appropriate to his or her needs and to maximize the

use of federal, state, and local funds.

(b) An age-appropriate educational curriculum that is in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board, including, at

least, the Connect4Learning curriculum.

supported by federal, state, and local resources as applicable.

(d) Physical and dental health and developmental screening

services for all program participants.

(e) Referral services for families of program participants to

community social service agencies, including mental health

services, as appropriate.

(f) Active and continuous involvement of the parents or

guardians of the program participants.

(g) A plan to conduct and report annual great start readiness

program evaluations and continuous improvement plans using criteria

approved by the department.

(h) Participation in a school readiness advisory committee

convened as a workgroup of the great start collaborative that

provides for the involvement of classroom teachers, parents or

guardians of program participants, and community, volunteer, and

social service agencies and organizations, as appropriate. The

advisory committee annually shall review and make recommendations

regarding the program components listed in this subsection. The

advisory committee also shall make recommendations to the great

start collaborative regarding other community services designed to

improve all children's school readiness.

(i) The ongoing articulation of the kindergarten and first

grade programs offered by the program provider.

(j) Participation in this state's great start to quality

process with a rating of at least 3 stars.

(5) An application for funding under this section ~~shall~~ must

provide for the following, in a form and manner determined by the

department:

(a) Ensure compliance with all program components described in

subsection (4).

(b) Except as otherwise provided in this subdivision, ensure

that at least 90% of the children participating in an eligible

great start readiness program for whom the intermediate district is

receiving funds under this section are children who live with

families with a household income that is equal to or less than 250%

of the federal poverty ~~level.~~ guidelines. If the intermediate

district determines that all eligible children are being served and

that there are no children on the waiting list who live with

families with a household income that is equal to or less than 250%

of the federal poverty ~~level,~~ guidelines, the intermediate district

may then enroll children who live with families with a household

income that is equal to or less than 300% of the federal poverty

~~level.~~ guidelines. The enrollment process ~~shall~~ must consider

income and risk factors, such that children determined with higher

need are enrolled before children with lesser need. For purposes of

this subdivision, all age-eligible children served in foster care

or who are experiencing homelessness or who have individualized

education plans recommending placement in an inclusive preschool

setting ~~shall be~~ are considered to live with families with

household income equal to or less than 250% of the federal poverty

~~level~~ guidelines regardless of actual family income and ~~shall be~~

are prioritized for enrollment within the lowest quintile.

for this program, as follows:

(i) Teachers possessing proper training. A lead teacher must

have a valid teaching certificate with an early childhood (ZA or

ZS) endorsement or a bachelor's or higher degree in child

development or early childhood education with specialization in

preschool teaching. However, if an applicant demonstrates to the

department that it is unable to fully comply with this subparagraph

after making reasonable efforts to comply, teachers who have

significant but incomplete training in early childhood education or

child development may be used if the applicant provides to the

department, and the department approves, a plan for each teacher to

come into compliance with the standards in this subparagraph. A

teacher's compliance plan must be completed within 2 years of the

date of employment. Progress toward completion of the compliance

plan ~~shall consist~~ consists of at least 2 courses per calendar

year.

(ii) Paraprofessionals possessing proper training in early

childhood education, including an associate's degree in early

childhood education or child development or the equivalent, or a

child development associate (CDA) credential. However, if an

applicant demonstrates to the department that it is unable to fully

comply with this subparagraph after making reasonable efforts to

comply, the applicant may use paraprofessionals who have completed

at least 1 course that earns college credit in early childhood

education or child development if the applicant provides to the

department, and the department approves, a plan for each

paraprofessional to come into compliance with the standards in this

subparagraph. A paraprofessional's compliance plan must be

completed within 2 years of the date of employment. Progress toward

completion of the compliance plan ~~shall consist~~ consists of at

least 2 courses or 60 clock hours of training per calendar year.

(d) Include a program budget that contains only those costs

that are not reimbursed or reimbursable by federal funding, that

are clearly and directly attributable to the great start readiness

program, and that would not be incurred if the program were not

being offered. Eligible costs include transportation costs. The

program budget ~~shall~~ must indicate the extent to which these funds

will supplement other federal, state, local, or private funds.

~~Funds~~ An applicant shall not use funds received under this section

~~shall not be used~~ to supplant any federal funds received by the

applicant to serve children eligible for a federally funded

preschool program that has the capacity to serve those children.

(6) For a grant recipient that enrolls pupils in a school-day

program funded under this section, each child enrolled in the

school-day program ~~shall be~~ is counted as described in section 39

for purposes of determining the amount of the grant award.

(7) For a grant recipient that enrolls pupils in a GSRP/Head

Start blended program, the grant recipient shall ensure that all

Head Start and GSRP policies and regulations are applied to the

blended slots, with adherence to the highest standard from either

program, to the extent allowable under federal law.

(8) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall designate an

early childhood coordinator, and may provide services directly or

may contract with 1 or more districts or public or private for-

profit or nonprofit providers that meet all requirements of

subsections (4) and (5).

(9) An intermediate district or consortium of intermediate

districts may retain for administrative services provided by the

intermediate district or consortium of intermediate districts an

amount not to exceed 4% of the grant amount. Expenses incurred by

subrecipients engaged by the intermediate district or consortium of

intermediate districts for directly running portions of the program

~~shall be~~ are considered program costs or a contracted program fee

for service.

(10) An intermediate district or consortium of intermediate

districts may expend not more than 2% of the total grant amount for

outreach, recruiting, and public awareness of the program.

(11) Each grant recipient shall enroll children identified

under subsection (5)(b) according to how far the child's household

income is below 250% of the federal poverty ~~level~~ guidelines by

ranking each applicant child's household income from lowest to

highest and dividing the applicant children into quintiles based on

how far the child's household income is below 250% of the federal

poverty ~~level,~~ guidelines, and then enrolling children in the

quintile with the lowest household income before enrolling children

in the quintile with the next lowest household income until slots

are completely filled. If the grant recipient determines that all

eligible children are being served and that there are no children

on the waiting list who live with families with a household income

that is equal to or less than 250% of the federal poverty ~~level,~~

guidelines, the grant recipient may then enroll children who live

with families with a household income that is equal to or less than

300% of the federal poverty ~~level.~~ guidelines. The enrollment

process ~~shall~~ must consider income and risk factors, such that

children determined with higher need are enrolled before children

with lesser need. For purposes of this ~~subdivision,~~ subsection, all

age-eligible children served in foster care or who are experiencing

homelessness or who have individualized education ~~plans~~ programs

recommending placement in an inclusive preschool setting ~~shall be~~

are considered to live with families with household income equal to

or less than 250% of the federal poverty ~~level~~ guidelines

regardless of actual family income and ~~shall be~~ are prioritized for

enrollment within the lowest quintile.

(12) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall allow parents

of eligible children who are residents of the intermediate district

or within the consortium to choose a program operated by or

contracted with another intermediate district or consortium of

intermediate districts and shall enter into a written agreement

regarding payment, in a manner prescribed by the department.

(13) An intermediate district or consortium of intermediate

districts receiving a grant under this section shall conduct a

local process to contract with interested and eligible public and

private for-profit and nonprofit community-based providers that

meet all requirements of subsection (4) for at least 30% of its

total allocation. For the purposes of this 30% allocation, an

intermediate district or consortium of intermediate districts may

count children served by a Head Start grantee or delegate in a

blended Head Start and great start readiness school-day program.

Children served in a program funded only through Head Start ~~shall~~

~~not be~~ are not counted toward this 30% allocation. The intermediate

district or consortium shall report to the department, in a manner

prescribed by the department, a detailed list of community-based

providers by provider type, including private for-profit, private

nonprofit, community college or university, Head Start grantee or

delegate, and district or intermediate district, and the number and

proportion of its total allocation allocated to each provider as

subrecipient. If the intermediate district or consortium is not

able to contract for at least 30% of its total allocation, the

grant recipient shall notify the department and, if the department

verifies that the intermediate district or consortium attempted to

contract for at least 30% of its total allocation and was not able

to do so, then the intermediate district or consortium may retain

and use all of its allocation as provided under this section. To be

able to use this exemption, the intermediate district or consortium

shall demonstrate to the department that the intermediate district

or consortium increased the percentage of its total allocation for

which it contracts with a community-based provider and the

intermediate district or consortium shall submit evidence

satisfactory to the department, and the department must be able to

verify this evidence, demonstrating that the intermediate district

or consortium took measures to contract for at least 30% of its

total allocation as required under this subsection, including, but

not limited to, at least all of the following measures:

(a) The intermediate district or consortium notified each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium regarding the

center's eligibility to participate, in a manner prescribed by the

department.

(b) The intermediate district or consortium provided to each

nonparticipating licensed child care center located in the service

area of the intermediate district or consortium information

regarding great start readiness program requirements and a

description of the application and selection process for community-

based providers.

public and to participating families a list of community-based

great start readiness program subrecipients with a great start to

quality rating of at least 3 stars.

(14) If an intermediate district or consortium of intermediate

districts receiving a grant under this section fails to submit

satisfactory evidence to demonstrate its effort to contract for at

least 30% of its total allocation, as required under subsection

(13), the department shall reduce the allocation to the

intermediate district or consortium by a percentage equal to the

difference between the percentage of an intermediate district's or

consortium's total allocation awarded to community-based providers

and 30% of its total allocation.

(15) In order to assist intermediate districts and consortia

in complying with the requirement to contract with community-based

providers for at least 30% of their total allocation, the

department shall do all of the following:

(a) Ensure that a great start resource center or the

department provides each intermediate district or consortium

receiving a grant under this section with the contact information

for each licensed child care center located in the service area of

the intermediate district or consortium by March 1 of each year.

(b) Provide, or ensure that an organization with which the

department contracts provides, a community-based provider with a

validated great start to quality rating within 90 days of the

provider's having submitted a request and self-assessment.

college or university, Head Start grantee or delegate, private for-

profit, and private nonprofit providers are subject to a single

great start to quality rating system. The rating system ~~shall~~ must

ensure that regulators process all prospective providers at the

same pace on a first-come, first-served basis and ~~shall~~ must not

allow 1 type of provider to receive a great start to quality rating

ahead of any other type of provider.

(d) Not later than December 1 of each year, compile the

results of the information reported by each intermediate district

or consortium under subsection (13) and report to the legislature a

list by intermediate district or consortium with the number and

percentage of each intermediate district's or consortium's total

allocation allocated to community-based providers by provider type,

including private for-profit, private nonprofit, community college

or university, Head Start grantee or delegate, and district or

intermediate district.

(16) A recipient of funds under this section shall report to

the center in a form and manner prescribed by the center the

information necessary to derive the number of children

participating in the program who meet the program eligibility

criteria under subsection (5)(b), the number of eligible children

not participating in the program and on a waitlist, and the total

number of children participating in the program by various

demographic groups and eligibility factors necessary to analyze

equitable and priority access to services for the purposes of

subsection (3).

(17) As used in this section:

(a) "GSRP/Head Start blended program" means a part-day program

funded under this section and a Head Start program, which are

combined for a school-day program.

(b) "Federal poverty guidelines" means the guidelines

published annually in the Federal Register by the United States

Department of Health and Human Services under its authority to

revise the poverty line under 42 USC 9902.

least 4 days per week, 30 weeks per year, for at least 3 hours of

teacher-child contact time per day but for fewer hours of teacher-

child contact time per day than a school-day program.

(d) ~~(c)~~ "School-day program" means a program that operates for

at least the same length of day as a district's first grade program

for a minimum of 4 days per week, 30 weeks per year. A classroom

that offers a school-day program must enroll all children for the

school day to be considered a school-day program.

(18) An intermediate district or consortium of intermediate

districts receiving funds under this section shall establish and

charge tuition according to a sliding scale of tuition rates based

upon household income for children participating in an eligible

great start readiness program who live with families with a

household income that is more than 250% of the federal poverty

~~level~~ guidelines to be used by all of its providers, as approved by

the department.

(19) From the amount ~~appropriated~~ allocated in subsection ~~(1),~~

(2), there is allocated for 2019-2020 an amount not to exceed

$10,000,000.00 for reimbursement of transportation costs for

children attending great start readiness programs funded under this

section. To receive reimbursement under this subsection, not later

than November 1, ~~2018,~~ of each year, a program funded under this

section that provides transportation shall submit to the

intermediate district that is the fiscal agent for the program a

projected transportation budget. The amount of the reimbursement

for transportation under this subsection ~~shall be~~ is no more than

the projected transportation budget or $300.00 multiplied by the

number of children funded for the program under this section. If

the amount allocated under this subsection is insufficient to fully

reimburse the transportation costs for all programs that provide

transportation and submit the required information, the department

shall prorate the reimbursement ~~shall be prorated~~ in an equal

amount per child funded. ~~Payments shall be made~~ The department

shall make payments to the intermediate district that is the fiscal

agent for each program, and the intermediate district shall then

reimburse the program provider for transportation costs as

prescribed under this subsection.

(20) Subject to, and from the funds allocated under,

subsection (19), the department shall reimburse a program for

transportation costs related to parent- or guardian-accompanied

transportation provided by transportation service companies, buses,

or other public transportation services. To be eligible for

reimbursement under this subsection, a program must submit to the

intermediate district or consortia of intermediate districts all of

the following:

(a) The names of families provided with transportation support

along with a documented reason for the need for transportation

support and the type of transportation provided.

(b) Financial documentation of actual transportation costs

incurred by the program, including, but not limited to, receipts

and mileage reports, as determined by the department.

necessary by the department.

(21) The department shall implement a process to review and

approve age-appropriate comprehensive classroom level quality

assessments for GSRP grantees that support the early childhood

standards of quality for prekindergarten children adopted by the

state board. The department shall make available to intermediate

districts at least 2 classroom level quality assessments that were

approved in 2018.

(22) An intermediate district that is a GSRP grantee may

approve the use of a supplemental curriculum that aligns with and

enhances the age-appropriate educational curriculum in the

classroom. If the department objects to the use of a supplemental

curriculum approved by an intermediate district, the superintendent

~~of public instruction~~ shall establish a review committee

independent of the department. The review committee shall meet

within 60 days of the department registering its objection in

writing and provide a final determination on the validity of the

objection within 60 days of the review committee's first meeting.

(23) The department shall implement a process to evaluate and

approve age-appropriate educational curricula that are in

compliance with the early childhood standards of quality for

prekindergarten children adopted by the state board.

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

allocated for 2019-2020 an amount not to exceed $2,000,000.00 for

payments to intermediate districts or consortia of intermediate

districts for professional development and training materials for

educators in programs implementing new curricula. ~~in 2019-2020.~~

(25) A great start readiness program or a GSRP/Head Start

blended program funded under this section ~~shall be~~ is permitted to

utilize AmeriCorps Pre-K Reading Corps members in classrooms

implementing research-based early literacy intervention strategies.

Sec. 32p. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $13,400,000.00 to intermediate

districts for ~~2018-2019~~ 2019-2020 for the purpose of providing

early childhood funding to intermediate school districts to support

the activities under subsection (2) and subsection (4), and to

provide early childhood programs for children from birth through

age 8. The funding provided to each intermediate district under

this section ~~shall be~~ is determined by the distribution formula

established by the department's office of great start to provide

equitable funding statewide. In order to receive funding under this

section, each intermediate district shall provide an application to

the office of great start not later than September 15 of the

immediately preceding fiscal year indicating the activities planned

to be provided.

(2) Each intermediate district or consortium of intermediate

districts that receives funding under this section shall convene a

local great start collaborative and a parent coalition. The goal of

each great start collaborative and parent coalition ~~shall be~~ is to

ensure the coordination and expansion of local early childhood

infrastructure and programs that allow every child in the community

to achieve the following outcomes:

(a) Children born healthy.

(b) Children healthy, thriving, and developmentally on track

from birth to third grade.

time of school entry.

(d) Children prepared to succeed in fourth grade and beyond by

reading proficiently by the end of third grade.

(3) Each local great start collaborative and parent coalition

shall convene workgroups to make recommendations about community

services designed to achieve the outcomes described in subsection

(2) and to ensure that its local great start system includes the

following supports for children from birth through age 8:

(a) Physical health.

(b) Social-emotional health.

(d) Parent education.

(e) Early education, including the child's development of

skills linked to success in foundational literacy, and care.

(4) From the funds allocated in subsection (1), at least

$2,500,000.00 ~~shall~~ must be used for the purpose of providing home

visits to at-risk children and their families. The home visits

~~shall~~ must be conducted as part of a locally coordinated, family-

centered, evidence-based, data-driven home visit strategic plan

that is approved by the department. The goals of the home visits

funded under this subsection ~~shall be~~ are to improve school

readiness using evidence-based methods, including a focus on

developmentally appropriate outcomes for early literacy, to reduce

the number of pupils retained in grade level, to reduce the number

of pupils requiring special education services, to improve positive

parenting practices, and to improve family economic self-

sufficiency while reducing the impact of high-risk factors through

community resources and referrals. The department shall coordinate

the goals of the home visit strategic plans approved under this

subsection with other state agency home visit programs in a way

that strengthens Michigan's home visiting infrastructure and

maximizes federal funds available for the purposes of at-risk

family home visits. The coordination among departments and agencies

is intended to avoid duplication of state services and spending,

and should emphasize efficient service delivery of home visiting

programs.

(5) Not later than December 1 of each year, each intermediate

district shall provide a report to the department detailing the

activities actually provided during the immediately preceding

school year and the families and children actually served. At a

minimum, the report ~~shall~~ must include an evaluation of the

services provided with additional funding under subsection (4) for

home visits, using the goals identified in subsection (4) as the

basis for the evaluation, including the degree to which school

readiness was improved, ~~any change in the number of pupils retained~~

~~at grade level, and any change in the number of pupils receiving~~

~~special education services.~~ Positive parenting practices were

improved, there was improved family economic self-sufficiency, and

community resources and referrals were utilized. The department

shall compile and summarize these reports and submit its summary to

the house and senate appropriations subcommittees on school aid and

to the house and senate fiscal agencies not later than February 15

of each year.

(6) An intermediate district or consortium of intermediate

districts that receives funding under this section may carry over

any unexpended funds received under this section into the next

fiscal year and may expend those unused funds through June 30 of

the next fiscal year. A recipient of a grant shall return any

unexpended grant funds to the department in the manner prescribed

by the department not later than September 30 of the next fiscal

year after the fiscal year in which the funds are received.

Sec. 35a. (1) From the appropriations in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 for the purposes of this section

an amount not to exceed ~~$27,900,000.00~~ $41,900,000.00 from the

state school aid fund and an amount not to exceed $3,500,000.00

from the general fund. The superintendent shall designate staff or

contracted employees funded under this section as critical

shortage. Programs funded under this section are intended to ensure

that this state will be ~~in the top 10 most improved states in grade~~

~~4 reading proficiency by the 2019 National Assessment of~~

~~Educational Progress (NAEP) and will be in the~~ a top 10 ~~states~~

~~overall~~ state in grade 4 reading proficiency by 2025 according to

the National Assessment of Educational Progress (NAEP).

(2) A district that receives funds under subsection (5) may

spend up to 5% of those funds for professional development for

educators in a department-approved research-based training program

related to current state literacy standards for pupils in grades K

to 3. The professional development ~~shall~~ must also include training

in the use of screening and diagnostic tools, progress monitoring,

and intervention methods used to address barriers to learning and

delays in learning that are diagnosed through the use of these

tools.

(3) A district that receives funds under subsection (5) may

use up to 5% of those funds to administer department-approved

screening and diagnostic tools to monitor the development of early

literacy and early reading skills of pupils in grades K to 3 and to

support research-based professional development for educators in

administering screening and diagnostic tools and in data

interpretation of the results obtained through the use of those

tools for the purpose of implementing a multi-tiered system of

support to improve reading proficiency among pupils in grades K to

3. A department-approved screening and diagnostic tool administered

by a district using funding under this section must include all of

the following components: phonemic awareness, phonics, fluency, and

comprehension. Further, all of the following sub-skills must be

assessed within each of these components:

(a) Phonemic awareness - segmentation, blending, and sound

manipulation (deletion and substitution).

(b) Phonics - decoding (reading) and encoding (spelling).

(d) Comprehension - making meaning of text.

(4) From the allocations under subsection (1), there is

allocated an amount not to exceed ~~$7,000,000.00~~ $21,000,000.00 for

~~2018-2019~~ 2019-2020 for the purpose of providing early literacy

coaches at intermediate districts to assist teachers in developing

and implementing instructional strategies for pupils in grades K to

3 so that pupils are reading at grade level by the end of grade 3.

All of the following apply to funding under this subsection:

(a) The department shall develop an application process

consistent with the provisions of this subsection. An application

~~shall~~ must provide assurances that literacy coaches funded under

this subsection are knowledgeable about at least the following:

(i) Current state literacy standards for pupils in grades K to

(ii) Implementing an instructional delivery model based on

frequent use of formative, screening, and diagnostic tools, known

as a multi-tiered system of support, to determine individual

progress for pupils in grades K to 3 so that pupils are reading at

grade level by the end of grade 3.

(iii) The use of data from diagnostic tools to determine the

necessary additional supports and interventions needed by

individual pupils in grades K to 3 in order to be reading at grade

level.

(b) From the allocation under this subsection, the department

shall award grants to intermediate districts for the support of

early literacy coaches. An intermediate district must provide

matching funds for at least 50% of the grant amount awarded to

support the cost of the literacy coach. The department shall

provide this funding in the following manner:

(i) ~~Each~~ The department shall award each intermediate district

~~shall be awarded~~ grant funding to support the cost of 1 early

literacy coach in an equal amount per early literacy coach, not to

exceed $75,000.00.

(ii) After distribution of the grant funding under

subparagraph (i), the department shall distribute the remainder of

grant funding for additional early literacy coaches in an amount

not to exceed $75,000.00 per early literacy coach. The number of

funded early literacy coaches for each intermediate district ~~shall~~

be is based on the percentage of the total statewide number of

pupils in grades K to 3 who meet the income eligibility standards

for the federal free and reduced-price lunch programs who are

enrolled in districts in the intermediate district. For each

additional early literacy coach funded under this subparagraph, the

department shall not make an award to an intermediate district

under this subparagraph in an amount that is less than the amount

necessary to pay 1/2 of the total cost of that additional early

literacy coach.

(5) From the allocations under subsection (1), there is

allocated an amount not to exceed $19,900,000.00 for ~~2018-2019~~

2019-2020 to districts that provide additional instructional time

to those pupils in grades K to 3 who have been identified by using

department-approved screening and diagnostic tools as needing

additional supports and interventions in order to be reading at

grade level by the end of grade 3. Additional instructional time

may be provided before, during, and after regular school hours or

as part of a year-round balanced school calendar. All of the

following apply to funding under this subsection:

(a) In order to be eligible to receive funding, a district

shall demonstrate to the satisfaction of the department that the

district has done all of the following:

(i) Implemented a multi-tiered system of support instructional

delivery model that is an evidence-based model that uses data-

driven problem solving to integrate academic and behavioral

instruction and that uses intervention delivered to all pupils in

varying intensities based on pupil needs. The multi-tiered system

of supports must provide at least all of the following essential

components:

(A) Team-based leadership.

(B) A tiered delivery system.

interventions, and supports.

(D) A comprehensive screening and assessment system.

(E) Continuous data-based decision making.

(ii) Used department-approved research-based diagnostic tools

to identify individual pupils in need of additional instructional

time.

(iii) Used a reading instruction method that focuses on the 5

fundamental building blocks of reading: phonics, phonemic

awareness, fluency, vocabulary, and comprehension and content

knowledge.

(iv) Provided teachers of pupils in grades K to 3 with

research-based professional development in diagnostic data

interpretation.

(v) Complied with the requirements under section 1280f of the

revised school code, MCL 380.1280f.

(b) ~~Funding~~ The department shall distribute funding allocated

under this subsection ~~shall be distributed~~ to eligible districts on

an equal per-first-grade-pupil basis.

insufficient to fully fund the payments under this subsection,

payments under this subsection ~~shall be~~ are prorated on an equal

per-pupil basis based on grade 1 pupils.

(6) Not later than September 1, ~~2019,~~ of each year, a district

that receives funding under this section, in conjunction with the

Michigan data hub network, if possible, shall provide to the

department a report that includes at least both of the following,

in a form and manner prescribed by the department:

(a) For pupils in grades K to 3, the pupils, schools, and

grades served with funds under this section and the categories of

services provided.

(b) For pupils in grades K to 3, pupil proficiency and growth

data that allows analysis both in the aggregate and by each of the

following subgroups, as applicable:

(i) School.

(ii) Grade level.

(iii) Gender.

(iv) Race.

(v) Ethnicity.

(vi) Economically disadvantaged status.

(vii) Disability.

(viii) Pupils identified as having reading deficiencies.

(7) From the general fund money allocated in subsection (1),

the department shall allocate the amount of $3,000,000.00 for ~~2018-~~

~~2019~~ 2019-2020 to the Michigan Education Corps for the PreK Reading

Corps, the K3 Reading Corps, and the Math Corps. All of the

following apply to funding under this subsection:

(a) By September 1 of the current fiscal year, the Michigan

Education Corps shall provide a report concerning its use of the

funding to the senate and house appropriations subcommittees on

state school aid, the senate and house fiscal agencies, and the

senate and house caucus policy offices on outcomes and performance

measures of the Michigan Education Corps, including, but not

limited to, the degree to which the Michigan Education Corps's

replication of the Michigan PreK Reading Corps, K3 Reading Corps,

and Math Corps programs is demonstrating sufficient efficacy and

impact. The report must include data pertaining to at least all of

the following:

(i) The current impact of the programs on this state in terms

of numbers of children and schools receiving support. This portion

of the report ~~shall~~ must specify the number of children tutored,

including dosage and completion, and the demographics of those

children.

(ii) Whether the assessments and interventions are implemented

with fidelity. This portion of the report ~~shall~~ must include

details on the total number of assessments and interventions

completed and the range, mean, and standard deviation.

(iii) Whether the literacy or math improvement of children

participating in the programs is consistent with expectations. This

portion of the report ~~shall~~ must detail at least all of the

following:

(A) Growth rate by grade or age level, in comparison to

targeted growth rate.

(B) Average linear growth rates.

(D) Percentage of children who exit who also meet or exceed

spring benchmarks.

(iv) The impact of the programs on organizations and

stakeholders, including, but not limited to, school administrators,

internal coaches, and AmeriCorps members.

(b) If the department determines that the Michigan Education

Corps has misused the funds allocated under this subsection, the

Michigan Education Corps shall reimburse this state for the amount

of state funding misused.

allocation provided under this subsection for an evaluation of the

Michigan Education Corps, the Michigan Education Corps' funding, or

the Michigan Education Corps' programming unless agreed to in

writing by the Michigan Education Corps. The department shall award

the entire $3,000,000.00 allocated under this subsection to the

Michigan Education Corps and shall not condition the awarding of

this funding on the implementation of an independent evaluation.

(8) From the general fund money allocated under subsection

(1), there is allocated an amount not to exceed $500,000.00 for

~~2018-2019~~ 2019-2020 only for a grant to an eligible program that

has a goal to slow or prevent the K to 4 summer reading slide among

all pupils enrolled in grades K to 4, particularly those from

economically disadvantaged households. Funds allocated under this

subsection are grant funds and must be distributed by the

department. A program is eligible if it meets at least all of the

following:

(a) The program's objective is to deliver a bilingual, in-

home, individualized summer reading program consisting of self-

selected, independent reading level books to K to 4 pupils each

week during the summer.

(b) Is evaluated quantitatively and qualitatively using pre-

and post-standardized test score comparison and parent and school

surveys specific to each district.

~~(c) Incorporates at least weekly interactive parental and~~

~~family engagement during the summer.~~

~~(d) Builds on pedagogical and literacy principles to scaffold~~

~~fluency to improve reading comprehension with pupil exercises.~~

parental and family engagement during the summer using the parent's

or guardian's choice of mode and means of contact including at

least text, voice, push app, and electronic mail, and provides

parents and guardians with the ability to reach a bilingual support

line or chat on any day during the summer.

(d) Builds on pedagogical and literacy principles to scaffold

fluency to improve reading comprehension using pupil exercises and

games specific to each title and designed to be done with a parent

or guardian, provides a parent training program guide to all

schools, and provides parents and guardians with access to the app

to view exercises in 100+ languages at no charge.

(e) Provides at least 4, and up to 9, student-selected new

books to read and keep at no cost to the student.

(f) Collects, analyzes, and reports detailed data on parental

engagement, books read, and spring-to-fall reading scores.

(g) ~~Follows the department's top 10 in 10 goals and~~

~~strategies, with an emphasis on goals 4 and 5.~~Does not require

school staff to perform additional keying or entering of student

data.

(h) Focuses on in-home program delivery through weekly

mailings.

(i) Provides summary data to the legislature and to the

department for all pupils served by the program after each summer.

(j) Offers the program to districts and public school

academies.

(k) Does not require students to have internet access to

participate in the program.

(l) Assures school building staff are offered training and

professional development on means and methods to engage children

and parents and guardians to mitigate the summer reading slide.

(9) From the state school aid fund money allocated under

subsection (1), there is allocated an amount not to exceed

$1,000,000.00 for ~~2018-2019~~ 2019-2020 to an intermediate district

in which the combined total number of pupils in membership of all

of its constituent districts is the fewest among all intermediate

districts. All of the following apply to the funding under this

subsection:

(a) Funding under this subsection must be used by the

intermediate district, in partnership with an association that

represents intermediate district administrators in this state, to

implement ~~both~~ all of the following:

(i) Literacy essentials teacher and principal training

modules.

(ii) Face-to-face and online professional learning of literacy

essentials teacher and principal training modules for literacy

coaches, principals, and teachers.

(iii) Adult literacy essentials training, including the

creation of a research-based document that outlines processes and

practices designed to increase this state's capacity to improve

adult literacy and the creation of professional development to

implement these processes and practices.

(iv) In collaboration with the department of talent and

economic development, improved processes that connect state

residents to adult literacy opportunities, including the creation

of a state-sponsored toll-free number to direct residents to adult

literacy education opportunities and the creation of an easy-to-

navigate adult education resource website, with language written at

a grade 3 reading level, connecting residents to the toll-free

number and to adult literacy education programs across this state.

(b) Not later than September 1 of each year, the intermediate

district described in this subsection, in consultation with grant

recipients, shall submit a report to the chairs of the senate and

house appropriations subcommittees on state school aid and the

chairs of the senate and house standing committees responsible for

education legislation. The report described under this subdivision

must include student achievement results in English language arts

and survey results with feedback from parents and teachers

regarding the initiatives implemented under this subsection.

partnership with an association that represents intermediate

district administrators in this state, shall use not more than

$300,000.00 of the funding allocated in subsection (9) for the

purpose of providing literacy training, modeling, coaching, and

feedback for district and public school academy principals. The

training must use the pre-K and K-3 essential instructional

practices in literacy created by the General Education Leadership

Network as the framework for all training. Training must be

provided in 5 regions in the state to provide easy access for all

principals. In addition, training must be competency-based and must

lead to both credit toward required continuing education hours and

a micro-credential in literacy instruction.

(10) If a district or intermediate district expends any

funding received under subsection (4) or (5) for professional

development in research-based effective reading instruction, the

district or intermediate district shall select a professional

development program from the list described under subdivision (a).

All of the following apply to the requirement under this

subsection:

(a) The department shall issue a request for proposals for

professional development programs in research-based effective

reading instruction to develop an initial approved list of

professional development programs in research-based effective

reading instruction. The department shall complete and make the

initial approved list public not later than December 1, 2019. After

December 1, 2019, the department shall determine if it will, on a

rolling basis, approve any new proposals submitted for addition to

its initial approved list.

(b) To be included as an approved professional development

program in research-based effective reading instruction under

subdivision (a), an applicant must demonstrate to the department in

writing the program's competency in all of the following topics:

(i) Understanding of phonemic awareness, phonics, fluency,

vocabulary, and comprehension.

(ii) Appropriate use of assessments and differentiated

instruction.

(iii) Selection of appropriate instructional materials.

(iv) Application of research-based instructional practices.

instruction" means reading instruction scientifically proven to

result in improvement in pupil reading skills.

(11) ~~(10)~~ Notwithstanding section 17b, the department shall

make payments made under ~~subsection (9) shall be made not later~~

~~than March 1, 2019.~~subsections (7), (8), and (9) on a schedule

determined by the department.

Sec. 39. (1) An eligible applicant receiving funds under

section 32d shall submit an application, in a form and manner

prescribed by the department, by a date specified by the department

in the immediately preceding state fiscal year. ~~The application~~

~~shall not require an~~ An eligible applicant is not required to amend

the applicant's current accounting cycle or adopt this state's

fiscal year accounting cycle in accounting for financial

transactions under this section. The application ~~shall~~ must include

all of the following:

(a) For ~~2018-2019 calculations, the~~ The estimated total number

of children in the community who meet the criteria of section 32d,

as provided to the applicant by the department utilizing the most

recent population data available from the American Community Survey

conducted by the United States Census Bureau. ~~Beginning in 2018-~~

~~2019, the~~ The department shall ensure that it provides updated

American Community Survey population data at least once every 3

years.

(b) The estimated number of children in the community who meet

the criteria of section 32d and are being served exclusively by

Head Start programs operating in the community.

to serve who meet the criteria of section 32d including a

verification of physical facility and staff resources capacity.

(2) After notification of funding allocations, an applicant

receiving funds under section 32d shall also submit an

implementation plan for approval, in a form and manner prescribed

by the department, by a date specified by the department, that

details how the applicant complies with the program components

established by the department pursuant to section 32d.

(3) The initial allocation to each eligible applicant under

section 32d ~~shall be~~ is the lesser of the following:

(a) The sum of the number of children served in a school-day

program in the preceding school year multiplied by $7,250.00 and

the number of children served in a GSRP/Head Start blended program

or a part-day program in the preceding school year multiplied by

$3,625.00.

(b) The sum of the number of children the applicant has the

capacity to serve in ~~2018-2019~~ the current school year in a school-

day program multiplied by $7,250.00 and the number of children

served in a GSRP/Head Start blended program or a part-day program

the applicant has the capacity to serve in ~~2018-2019~~ the current

school year multiplied by $3,625.00.

(4) If funds remain after the allocations under subsection

(3), the department shall distribute the remaining funds to each

intermediate district or consortium of intermediate districts that

serves less than the state percentage benchmark determined under

subsection (5). ~~These~~ The department shall distribute these

remaining funds ~~shall be distributed~~ to each eligible applicant

based upon each applicant's proportionate share of the remaining

unserved children necessary to meet the statewide percentage

benchmark in intermediate districts or consortia of intermediate

districts serving less than the statewide percentage benchmark.

When all applicants have been given the opportunity to reach the

statewide percentage benchmark, the statewide percentage benchmark

may be reset, as determined by the department, until greater equity

of opportunity to serve eligible children across all intermediate

school districts has been achieved.

(5) For the purposes of subsection (4), ~~for the 2018-2019~~

~~program year,~~ the department shall calculate a percentage of

children served by each intermediate district or consortium of

intermediate districts by dividing the number of children served in

the immediately preceding year by that intermediate district or

consortium by the total number of children within the intermediate

district or consortium of intermediate districts who meet the

criteria of section 32d as determined by the department utilizing

the most recent population data available from the American

Community Survey conducted by the United States Census Bureau. The

department shall compare the resulting percentage of eligible

children served to a statewide percentage benchmark to determine if

the intermediate district or consortium is eligible for additional

funds under subsection (4). ~~For 2018-2019, the~~ The statewide

percentage benchmark is 60%.

(6) If, taking into account the total amount to be allocated

to the applicant as calculated under this section, an applicant

determines that it is able to include additional eligible children

in the great start readiness program without additional funds under

section 32d, the applicant may include additional eligible children

but ~~shall~~ does not receive additional funding under section 32d for

those children.

(7) The department shall review the program components under

section 32d and under this section at least biennially. The

department also shall convene a committee of internal and external

stakeholders at least once every 5 years to ensure that the funding

structure under this section reflects current system needs under

section 32d.

(8) As used in this section, "school-day program", "GSRP/Head

Start blended program", and "part-day program" mean those terms as

defined in section 32d.

Sec. 39a. (1) From the federal funds appropriated in section

11, there is allocated for ~~2018-2019~~ 2019-2020 to districts,

intermediate districts, and other eligible entities all available

federal funding, estimated at ~~$730,600,000.00~~ $725,600,000.00 for

the federal programs under the no child left behind act of 2001,

Public Law 107-110, or the every student succeeds act, Public Law

114-95. These funds are allocated as follows:

(a) An amount estimated at $1,200,000.00 for ~~2018-2019~~ 2019-

2020 to provide students with drug- and violence-prevention

programs and to implement strategies to improve school safety,

funded from DED-OESE, drug-free schools and communities funds.

(b) An amount estimated at $100,000,000.00 for ~~2018-2019~~ 2019-

2020 for the purpose of preparing, training, and recruiting high-

quality teachers and class size reduction, funded from DED-OESE,

improving teacher quality funds.

2020 for programs to teach English to limited English proficient

(LEP) children, funded from DED-OESE, language acquisition state

grant funds.

(d) An amount estimated at $2,800,000.00 for ~~2018-2019~~ 2019-

2020 for rural and low income schools, funded from DED-OESE, rural

and low income school funds.

(e) An amount estimated at $535,000,000.00 for ~~2018-2019~~ 2019-

2020 to provide supplemental programs to enable educationally

disadvantaged children to meet challenging academic standards,

funded from DED-OESE, title I, disadvantaged children funds.

(f) An amount estimated at $9,200,000.00 for ~~2018-2019~~ 2019-

2020 for the purpose of identifying and serving migrant children,

funded from DED-OESE, title I, migrant education funds.

(g) An amount estimated at $39,000,000.00 for ~~2018-2019~~ 2019-

2020 for the purpose of providing high-quality extended learning

opportunities, after school and during the summer, for children in

low-performing schools, funded from DED-OESE, twenty-first century

community learning center funds.

(h) An amount estimated at $12,000,000.00 for ~~2018-2019~~ 2019-

2020 to help support local school improvement efforts, funded from

DED-OESE, title I, local school improvement grants.

(i) An amount estimated at $15,400,000.00 for ~~2018-2019~~ 2019-

2020 to improve the academic achievement of students, funded from

DED-OESE, title IV, student support and academic enrichment grants.

~~(j) An amount estimated at $5,000,000.00 for 2018-2019 for the~~

~~remaining balance of the amount appropriated under the former~~

~~section 32r, for federal funding awarded to this state under~~

~~sections 14005, 14006, and 14013 of title XIV of the American~~

~~recovery and reinvestment act of 2009, Public Law 111-5, for the~~

~~race to the top early learning challenge grant.~~

(2) From the federal funds appropriated in section 11, there

is allocated for ~~2018-2019~~ 2019-2020 to districts, intermediate

districts, and other eligible entities all available federal

funding, estimated at ~~$51,200,000.00 for 2018-2019~~ $49,100,000.00

for 2019-2020 for the following programs that are funded by federal

grants:

(a) An amount estimated at $100,000.00 for ~~2018-2019~~ 2019-2020

for acquired immunodeficiency syndrome education grants, funded

from HHS � Centers for Disease Control and Prevention, AIDS

funding.

(b) An amount estimated at $1,900,000.00 for ~~2018-2019~~ 2019-

2020 to provide services to homeless children and youth, funded

from DED-OVAE, homeless children and youth funds.

2020 to provide mental health, substance abuse, or violence

prevention services to students, funded from HHS-SAMHSA.

(d) An amount estimated at $24,000,000.00 for ~~2018-2019~~ 2019-

2020 for providing career and technical education services to

pupils, funded from DED-OVAE, basic grants to states.

(e) An amount estimated at $14,000,000.00 for ~~2018-2019~~ 2019-

2020 for the Michigan charter school subgrant program, funded from

DED�OII, public charter schools program funds.

(f) An amount estimated at ~~$7,200,000.00 for 2018-2019~~

$5,100,000.00 for 2019-2020 for the purpose of promoting and

expanding high-quality preschool services, funded from HHS�OCC,

preschool development funds.

(3) ~~All~~ The department shall distribute all federal funds

allocated under this section ~~shall be distributed~~ in accordance

with federal law and with flexibility provisions outlined in Public

Law 107-116, and in the education flexibility partnership act of

1999, Public Law 106-25. Notwithstanding section 17b, the

department shall make 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.

(4) For the purposes of applying for federal grants

appropriated under this article, the department shall allow an

intermediate district to submit a consortium application on behalf

of 2 or more districts with the agreement of those districts as

appropriate according to federal rules and guidelines.

(5) For the purposes of funding federal title I grants under

this article, in addition to any other federal grants for which a

the strict discipline academy is eligible, the department shall

allocate to a strict discipline ~~academies~~ academy out of title I,

part A ~~funds~~ an amount equal to what a the strict discipline

academy would have received if included and calculated under title

I, part D, or what it would receive under the formula allocation

under title I, part A, whichever is greater.

(6) As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Improvement.

(d) "DED-OVAE" means the DED Office of Vocational and Adult

Education.

(e) "HHS" means the United States Department of Health and

Human Services.

(f) "HHS-OCC" means the HHS Office of Child Care.

(g) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

Health Services Administration.

Sec. 41. (1) For a district or public school academy to be

eligible to receive funding under this section, the district or

public school academy must administer to English language learners

the English language proficiency assessment known as the "WIDA

ACCESS for English language learners" or the "WIDA Alternate

ACCESS". From the appropriation in section 11, there is allocated

an amount not to exceed $6,000,000.00 for ~~2018-2019~~ 2019-2020 for

payments to eligible districts and eligible public school academies

for services for English language learners who have been

administered the WIDA ACCESS for English language learners.

(2) ~~Funding~~ The department shall distribute funding allocated

under this section ~~shall be distributed~~ to eligible districts and

eligible public school academies based on the number of full-time

equivalent English language learners as follows:

(a) $620.00 per full-time equivalent English language learner

who has been assessed under the WIDA ACCESS for English language

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

Alternate ACCESS composite score between 1.0 and 1.9, or less, as

applicable to each assessment.

(b) $410.00 per full-time equivalent English language learner

who has been assessed under the WIDA ACCESS for English language

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

Alternate ACCESS composite score between 2.0 and 2.9, or less, as

applicable to each assessment.

(3) If funds allocated under this section are insufficient to

fully fund the payments as prescribed under subsection (2), the

department shall prorate payments ~~shall be prorated~~ on an equal

percentage basis, with the same percentage proration applied to

both funding categories.

(4) Each district or public school academy receiving funds

under this section shall submit to the department by July 15 of

each fiscal year a report, not to exceed 10 pages, on the usage by

the district or public school academy of funds under this section,

in a form and manner determined by the department, ~~which shall~~

~~include~~ including a brief description of each program conducted or

services performed by the district or public school academy using

funds under this section and the amount of funds under this section

allocated to each of those programs or services. If a district or

public school academy does not comply with this section, the

department shall withhold an amount equal to the August payment due

under this section until the district or public school academy

complies with this subsection. If the district or public school

academy does not comply with this section by the end of the state

fiscal year, the withheld funds ~~shall be~~ are forfeited to the

school aid fund.

(5) In order to receive funds under this section, a district

or public school academy shall allow access for the department or

Senate Bill No. 146 as amended May 14, 2019

the department's designee to audit all records related to the

program for which it receives those funds. The district or public

school academy shall reimburse this state for all disallowances

found in the audit.

(6) Beginning July 1, 2020, and every 3 years thereafter, the

department shall review the per-pupil distribution under subsection

(2), to ensure that funding levels are appropriate and make

recommendations for adjustments to the members of the senate and

house subcommittees on K-12 school aid appropriations.

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

allocated an amount not to exceed ~~$960,446,100.00 for 2017-2018~~

$1,009,296,100.00 for 2018-2019 and there is allocated an amount

not to exceed ~~$983,196,100.00 for 2018-2019~~ <<$1,045,496,100.00 >>for

2019-2020 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 each fiscal year for ~~2017-2018~~ 2018-2019 and for

~~2018-2019,~~ 2019-2020, plus any carryover federal funds from

previous year appropriations. In addition, from the general fund

appropriation in section 11, there is allocated to the department

an amount not to exceed $500,000.00 for each fiscal year for ~~2017-~~

~~2018~~ 2018-2019 and for ~~2018-2019~~ 2019-2020 for the purpose of

subsection (16). 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 380.1761; 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~~ under article 3 of

the revised school code, MCL 380.1701 to 380.1761. Notwithstanding

section 17b, the department shall make 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, ~~and~~ estimated at ~~$266,900,000.00~~

~~for 2017-2018~~ $286,800,000.00 for 2018-2019 and estimated at

~~$273,100,000.00 for 2018-2019,~~ $297,800,000.00 for 2019-2020, 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~~ are made as follows:

(a) The department shall calculate 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, ~~plus the amount of~~

~~the district's per-pupil allocation under section 20m,~~ not to

exceed the basic foundation allowance under section 20 for the

~~current~~ 2018-2019 fiscal year and beginning with 2019-2020 not to

exceed the target foundation allowance 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). For an

intermediate district, the amount allocated under this subdivision

toward fulfilling the specified percentages ~~shall be~~ is an amount

per special education membership pupil, excluding pupils described

in subsection (11), and ~~shall be~~ is 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~~ 2018-2019

fiscal year ~~, and that district's per-pupil allocation under~~

~~section 20m.~~and beginning with 2019-2020 not to exceed the target

foundation allowance for the current fiscal year.

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

~~intermediate districts~~ the department shall pay a district or

intermediate district 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 ~~2017-2018~~ 2018-2019 an amount not to exceed

~~$1,300,000.00~~ $1,200,000.00 and there is allocated for 2019-2020 an

amount not to exceed ~~$1,300,000.00 for 2018-2019~~ $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~~ The

department shall make 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 department shall

pay the shortfall ~~shall be paid~~ to the district or intermediate

district during the fiscal year beginning on the October 1

following the determination and shall adjust 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 shall

adjust 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~~ is no deduction under

this subsection.

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

cost basis. Federal funds ~~shall be~~ are allocated under applicable

federal requirements, except that an amount not to exceed

$3,500,000.00 may be allocated by the department each fiscal year

for ~~2017-2018 and for~~ 2018-2019 and for 2019-2020 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 each fiscal year

for ~~2017-2018 and for~~ 2018-2019 and for 2019-2020 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~~ The department shall determine 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~~ are

determined in a manner specified by the department and may include

indirect costs, but ~~shall~~ must 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~~ Social Security and 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~~

are 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.

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 the

department shall calculate 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 department shall prorate calculations and resulting

reimbursement under this subdivision ~~shall be prorated~~ on an equal

percentage basis. Beginning in 2015-2016, the amount of

reimbursement under this subdivision for a fiscal year ~~shall~~ must

not exceed $2,000,000.00 for any district or intermediate district.

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

defined by R 340.1701c of the Michigan Administrative Code, ~~shall~~

~~not be~~ is not 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~~ must not be borne by

the parent. In addition, the filing of claims ~~shall~~ must not delay

the education of a pupil. A district or intermediate district ~~shall~~

be is 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~~ is not included in the membership count of a

district, but ~~shall be~~ is 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~~ are 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~~ The department shall deposit 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 ~~$3,200,000.00 for~~

~~2017-2018,~~ $2,900,000.00 for 2018-2019 and estimated at

~~$3,400,000.00 for 2018-2019,~~ $2,800,000.00 for 2019-2020, to pay

the foundation allowances for pupils described in this subsection.

The department shall calculate 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 sum of the foundation allowance under

section 20 of the pupil's district of residence ~~plus the amount of~~

~~the district's per-pupil allocation under section 20m,~~ not to

exceed the basic foundation allowance under section 20 for the

~~current~~ 2018-2019 fiscal year and beginning with 2019-2020 not to

exceed the target foundation allowance 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

department shall calculate 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~~ 2018-

2019 fiscal year ~~, and that district's per-pupil allocation under~~

~~section 20m.~~ and beginning with 2019-2020 not to exceed the target

foundation allowance 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.

by an intermediate district and provided educational services by

the department of health and human services.

(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 department shall

expend the remaining ~~expenditures~~ funds 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).

(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~~ are allocations to intermediate districts only and ~~shall~~

~~not be~~ are not allocations to districts, but instead ~~shall be~~ are

calculations used only to determine the state payments under

section 22b.

(14) If a public school academy that is not a cyber school, as

defined in section 551 of the revised school code, MCL 380.551,

enrolls under 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 intermediate district in which the public

school academy is located and the public school academy shall enter

into a written agreement with the intermediate district in which

the pupil resides for the purpose of providing the pupil with a

free appropriate public education, and the written agreement ~~shall~~

must include at least an agreement on the responsibility for the

payment of the added costs of special education programs and

services for the pupil. If the public school academy that enrolls

the pupil does not enter into an agreement under this subsection,

the public school academy shall not charge the pupil's resident

intermediate district or the intermediate district in which the

public school academy is located the added costs of special

education programs and services for the pupil, and the public

school academy is not eligible for any payouts based on the funding

formula outlined in the resident or nonresident intermediate

district's plan. If a pupil is not enrolled in a public school

academy under this subsection, the provision of special education

programs and services and the payment of the added costs of special

education programs and services for a pupil described in this

subsection are the responsibility of the district and intermediate

district in which the pupil resides.

(15) For the purpose of receiving its federal allocation under

part B of the individuals with disabilities education act, Public

Law 108-446, a public school academy that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, ~~shall~~ directly ~~receive~~ receives the federal allocation

under part B of the individuals with disabilities education act,

Public Law 108-446, from the intermediate district in which the

cyber school is located, as the subrecipient. If the intermediate

district does not distribute the funds described in this subsection

to the cyber school by the part B application due date of July 1,

the department may distribute the funds described in this

subsection directly to the cyber school according to the formula

prescribed in 34 CFR 300.705 and 34 CFR 300.816.

(16) For a public school academy that is a cyber school, as

defined in section 551 of the revised school code, MCL 380.551, and

is in compliance with section 553a of the revised school code, MCL

380.553a, that enrolls a pupil under this section, the intermediate

district in which the cyber school is located shall ensure that the

cyber school complies with sections 1701a, 1703, 1704, 1751, 1752,

1756, and 1757 of the revised school code, MCL 380.1701a, 380.1703,

380.1704, 380.1751, 380.1752, 380.1756, and 380.1757; applicable

rules; and the individuals with disabilities education act, Public

Law 108-446. From the general fund appropriation under subsection

(1), the department shall provide appropriate administrative

funding to the intermediate district in which that cyber school is

located for the purpose of ensuring that compliance.

(17) For the purposes of this section, the department or the

center shall only require a district or intermediate district to

report information that is not already available from the financial

information database maintained by the center.

(18) In addition to the funds allocated under subsection (1),

from the state school aid fund appropriation under section 11 there

is allocated for 2019-2020 only an amount not to exceed

$30,000,000.00 for 1-time payments to districts and intermediate

districts for capital improvements in support of programming and

instruction for special education pupils. The department shall make

payments under this subsection to districts and intermediate

districts in the same proportion as the district's or intermediate

district's special education costs as reported on the 2018 SE-4096

actual cost report represents compared to the total costs reported

statewide on the 2018 SE-4096 actual cost report. Capital

improvements under this subsection may include any type of non-

ongoing purchase or investment that can be used in support of

programming and instruction for special education pupils.

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

known as Durant v State of Michigan, 456 Mich 175 (1997), from the

allocation under section 51a(1), there is allocated each fiscal

year for ~~2017-2018~~ 2018-2019 and for ~~2018-2019~~ 2019-2020 the amount

necessary, estimated at ~~$636,900,000.00 for 2017-2018 and~~

~~$651,000,000.00 for 2018-2019,~~ $663,500,000.00 for 2018-2019 and

$689,500,000.00 for 2019-2020, 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. 51d. (1) From the federal funds appropriated in section

11, there is allocated for ~~2018-2019~~ 2019-2020 all available

federal funding, estimated at $61,000,000.00, for special education

programs and services that are funded by federal grants. ~~All~~ The

department shall distribute all federal funds allocated under this

section ~~shall be distributed~~ in accordance with federal law.

Notwithstanding section 17b, the department shall make 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 federal funds allocated under subsection (1), the

following amounts are allocated for ~~2018-2019:~~2019-2020:

(a) An amount estimated at $14,000,000.00 for handicapped

infants and toddlers, funded from DED-OSERS, handicapped infants

and toddlers funds.

(b) An amount estimated at $12,000,000.00 for preschool grants

(Public Law 94-142), funded from DED-OSERS, handicapped preschool

incentive funds.

education programs funded by DED-OSERS, handicapped program,

individuals with disabilities act funds.

(3) As used in this section, "DED-OSERS" means the United

States Department of Education Office of Special Education and

Rehabilitative Services.

Sec. 53a. (1) For districts, reimbursement for pupils

described in subsection (2) ~~shall be~~ is 100% of the total approved

costs of operating special education programs and services approved

by the department and included in the intermediate district plan

adopted pursuant to article 3 of the revised school code, MCL

380.1701 to 380.1761, minus the district's foundation allowance

calculated under section 20. ~~and minus the district's per-pupil~~

~~allocation under section 20m.~~ For intermediate districts, the

department shall calculate reimbursement for pupils described in

subsection (2) ~~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~~ target

foundation allowance under section 20 for the current fiscal year.

~~, and that district's per-pupil allocation under section 20m.~~

(2) Reimbursement under subsection (1) is for the following

special education pupils:

(a) Pupils assigned to a district or intermediate district

through the community placement program of the courts or a state

agency, if the pupil was a resident of another intermediate

district at the time the pupil came under the jurisdiction of the

court or a state agency.

(b) Pupils who are residents of institutions operated by the

department of health and human services.

health institutions for the developmentally disabled who are placed

in community settings other than the pupil's home.

(d) Pupils enrolled in a department-approved on-grounds

educational program longer than 180 days, but not longer than 233

days, at a residential child care institution, if the child care

institution offered in 1991-92 an on-grounds educational program

longer than 180 days but not longer than 233 days.

(e) Pupils placed in a district by a parent for the purpose of

seeking a suitable home, if the parent does not reside in the same

intermediate district as the district in which the pupil is placed.

(3) Only those costs that are clearly and directly

attributable to educational programs for pupils described in

subsection (2), and that would not have been incurred if the pupils

were not being educated in a district or intermediate district, are

reimbursable under this section.

(4) The costs of transportation ~~shall be~~ are funded under this

section and ~~shall not be~~ are not reimbursed under section 58.

(5) ~~Not~~ The department shall not allocate more than

$10,500,000.00 of the allocation for ~~2018-2019~~ 2019-2020 in section

51a(1) ~~shall be allocated~~ under this section.

Sec. 54. Each intermediate district ~~shall receive~~ receives an

amount per-pupil for each pupil in attendance at the Michigan

schools for the deaf and blind. The amount ~~shall be~~ is

proportionate to the total instructional cost at each school. ~~Not~~

The department shall not allocate more than $1,688,000.00 of the

allocation for ~~2018-2019~~ 2019-2020 in section 51a(1) ~~shall be~~

~~allocated~~ under this section.

Sec. 54b. (1) From the general fund appropriation in section

11, there is allocated an amount not to exceed $1,600,000.00 for

~~2018-2019~~ 2019-2020 to continue the implementation of the

recommendations of the special education reform task force

published in January 2016.

(2) The department shall use funds allocated under this

section for the purpose of piloting statewide implementation of the

Michigan Integrated Behavior and Learning Support Initiative

(MiBLSI), a nationally recognized program that includes positive

behavioral intervention and supports and provides a statewide

structure to support local initiatives for an integrated behavior

and reading program. With the assistance of the intermediate

districts involved in MiBLSI, the department shall identify a

number of intermediate districts to participate in the pilot that

is sufficient to ensure that MiBLSI can be implemented statewide

with fidelity and sustainability. In addition, the department shall

identify an intermediate district to act as a fiscal agent for

these funds.

Sec. 54d. (1) From the appropriations in section 11, there is

allocated an amount not to exceed ~~$5,000,000.00~~ $7,150,000.00 for

~~2018-2019~~ 2019-2020 to intermediate districts for the purpose of

providing state early on services pilot programs for children from

birth to 3 years of age with a developmental delay or a disability,

or both, and their families, as described in the early on Michigan

state plan, as approved by the department.

(2) To be eligible to receive grant funding under ~~this~~

~~section,~~ subsection (4), each intermediate district shall apply in

a form and manner determined by the department.

(3) The grant funding allocated under ~~this section shall~~

subsection (4) must be used to increase early on services and

resources available to children that demonstrate developmental

delays to help prepare them for success as they enter school. State

early on services include evaluating and providing early

intervention services for eligible infants and toddlers and their

families to address developmental delays, including those affecting

physical, cognitive, communication, adaptive, social, or emotional

development. Grant funds must not be used to supplant existing

services that are currently being provided.

(4) The department shall distribute the funds allocated under

subsection (1) ~~shall be distributed~~ to intermediate districts

according to the department's early on funding formula utilized to

distribute the federal award to Michigan under part C of the

individuals with disabilities education act. Funds received under

this ~~section~~ subsection must not supplant existing funds or

resources allocated for early on early intervention services. An

intermediate district receiving funds under this ~~section~~ subsection

shall maximize the capture of Medicaid funds to support early on

early intervention services to the extent possible.

(5) Each intermediate district that receives funds under ~~this~~

~~section~~ subsection (4) shall report data and other information to

the department in a form, manner, and frequency prescribed by the

department to allow for monitoring and evaluation of the pilot

projects and to ensure that the children described in subsection

(1) received appropriate levels and types of services delivered by

qualified personnel, based on the individual needs of the children

and their families.

(6) In addition to the funds allocated under subsection (1),

from the funds appropriated in section 11, there is allocated for

2019-2020 an amount not to exceed $350,000.00 for a pilot program

to train at least 60 early on providers in the components of

evidence-based parent-implemented models of intervention for the

treatment of autism. To receive funding under this subsection, an

intermediate district must apply for the funding in the form and

manner prescribed by the department and must agree to use the funds

for training in these components for early on providers using an

evidence-based program to conduct the training. The department

shall ensure that intermediate districts in multiple counties are

provided with funding under this subsection and shall distribute

funds based on interest in the program and need for the training.

The department shall conduct an outcome study and report the data

findings to the legislature. The department may use existing

vendors to conduct this data collection. The department may use not

more than 10% of the allocation under this subsection for

administration and management of the pilot program. As used in this

subsection, "parent-implemented model of intervention" means a

model in which parents directly use individualized intervention

practices with their children to increase positive learning

opportunities and the acquisition of important skills, and in which

parents learn to implement these practices in their home or

community, or both, through a structured parent training program.

(7) ~~(6)~~ Notwithstanding section 17b, the department shall make

payments under this section ~~shall be paid~~ on a schedule determined

by the department.

Sec. 55. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed $250,000.00

for ~~2018-2019~~ 2019-2020 to the Conductive Learning Center located

at Aquinas College. This funding must be used to support the

operational costs of the conductive education model taught at the

Conductive Learning Center to maximize the independence and

mobility of children and adults with neuromotor disabilities. The

conductive education model funded under this section must be based

on the concept of neuroplasticity and the ability of people to

learn and improve when they are motivated, regardless of the

severity of their disability.

(2) Notwithstanding section 17b, the department shall

distribute the funding allocated under this section to the

Conductive Learning Center not later than December 1, 2018.

Sec. 56. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district.

(b) "Millage levied" means the millage levied for special

education pursuant to part 30 of the revised school code, MCL

380.1711 to 380.1741, including a levy for debt service

obligations.

districts constituent to an intermediate district, except that if a

district has elected not to come under part 30 of the revised

school code, MCL 380.1711 to 380.1741, membership and taxable value

of the district ~~shall not be~~ are not included in the membership and

taxable value of the intermediate district.

(2) From the allocation under section 51a(1), there is

allocated ~~an amount not to exceed $37,758,100.00 for 2017-2018~~

$40,008,100.00 for 2018-2019 and an amount not to exceed

$40,008,100.00 for ~~2018-2019~~ 2019-2020 to reimburse intermediate

districts levying millages for special education pursuant to part

30 of the revised school code, MCL 380.1711 to 380.1741. The

purpose, use, and expenditure of the reimbursement ~~shall be~~ are

limited as if the funds were generated by these millages and

governed by the intermediate district plan adopted pursuant to

article 3 of the revised school code, MCL 380.1701 to 380.1761. As

a condition of receiving funds under this section, an intermediate

district distributing any portion of special education millage

funds to its constituent districts shall submit for departmental

approval and implement a distribution plan.

~~(3) Reimbursement for those millages levied in 2016-2017 shall~~

~~be made in 2017-2018 at an amount per 2016-2017 membership pupil~~

~~computed by subtracting from $185,000.00 the 2016-2017 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2016-2017 millage levied, and then subtracting~~

~~from that amount the 2016-2017 local community stabilization share~~

~~revenue for special education purposes behind each membership pupil~~

~~for reimbursement of personal property exemption loss under the~~

~~local community stabilization authority act, 2014 PA 86, MCL~~

~~123.1341 to 123.1362.~~

(3) ~~(4)~~ Except as otherwise provided in this subsection,

reimbursement for those millages levied in 2017-2018 ~~shall be~~ is

made in 2018-2019 at an amount per 2017-2018 membership pupil

computed by subtracting from ~~$193,700.00~~ $193,800.00 the 2017-2018

taxable value behind each membership pupil and multiplying the

resulting difference by the 2017-2018 millage levied, and then

subtracting from that amount the 2017-2018 local community

stabilization share revenue for special education purposes behind

each membership pupil for reimbursement of personal property

exemption loss under the local community stabilization authority

act, 2014 PA 86, MCL 123.1341 to 123.1362. Reimbursement in 2018-

2019 for an intermediate district whose 2017-2018 allocation was

affected by the operation of subsection (5) ~~shall be~~ is an amount

equal to 102.5% of the 2017-2018 allocation to that intermediate

district.

(4) Except as otherwise provided in this subsection,

reimbursement for those millages levied in 2018-2019 is made in

2019-2020 at an amount per 2018-2019 membership pupil computed by

subtracting from $197,700.00 the 2018-2019 taxable value behind

each membership pupil and multiplying the resulting difference by

the 2018-2019 millage levied, and then subtracting from that amount

the 2018-2019 local community stabilization share revenue for

special education purposes behind each membership pupil for

reimbursement of personal property exemption loss under the local

community stabilization authority act, 2014 PA 86, MCL 123.1341 to

123.1362. Reimbursement in 2019-2020 for an intermediate district

whose 2017-2018 allocation was affected by the operation of

subsection (5) is an amount equal to 102.5% of the 2017-2018

allocation to that intermediate district.

(5) The department shall ensure that the amount paid to a

single intermediate district under this section ~~shall~~ does not

exceed 62.9% of the total amount allocated under subsection (2).

(6) The department shall ensure that the amount paid to a

single intermediate district under this section ~~shall not be~~ is not

less than 75% of the amount allocated to the intermediate district

under this section for the immediately preceding fiscal year.

Sec. 61a. (1) From the appropriation in section 11, there is

allocated an amount not to exceed ~~$36,611,300.00~~ $38,111,300.00 for

~~2018-2019~~ 2019-2020 to reimburse on an added cost basis districts,

except for a district that served as the fiscal agent for a

vocational education consortium in the 1993-94 school year and that

has a foundation allowance as calculated under section 20 greater

than the minimum foundation allowance under that section, and

secondary area vocational-technical education centers for

secondary-level career and technical education programs according

to rules approved by the superintendent. Applications for

participation in the programs ~~shall~~ must be submitted in the form

prescribed by the department. The department shall determine the

added cost for each career and technical education program area.

The department shall prioritize the allocation of added cost funds

~~shall be prioritized~~ based on the capital and program expenditures

needed to operate the career and technical education programs

provided; the number of pupils enrolled; the advancement of pupils

through the instructional program; the existence of an articulation

agreement with at least 1 postsecondary institution that provides

pupils with opportunities to earn postsecondary credit during the

pupil's participation in the career and technical education program

and transfers those credits to the postsecondary institution upon

completion of the career and technical education program; and the

program rank in student placement, job openings, and wages, and

shall ensure that the allocation does not exceed 75% of the added

cost of any program. Notwithstanding any rule or department

determination to the contrary, when determining a district's

allocation or the formula for making allocations under this

section, the department shall include the participation of pupils

in grade 9 in all of those determinations and in all portions of

the formula. With the approval of the department, the board of a

district maintaining a secondary career and technical education

program may offer the program for the period from the close of the

school year until September 1. The program shall use existing

facilities and ~~shall~~ must be operated as prescribed by rules

promulgated by the superintendent.

(2) Except for a district that served as the fiscal agent for

a vocational education consortium in the 1993-94 school year, the

department shall reimburse districts and intermediate districts

~~shall be reimbursed~~ for local career and technical education

administration, shared time career and technical education

administration, and career education planning district career and

technical education administration. The superintendent shall adopt

guidelines for the definition of what constitutes administration

and shall make reimbursement ~~shall be~~ pursuant to those guidelines.

~~adopted by the superintendent. Not~~ The department shall not

distribute more than $800,000.00 of the allocation in subsection

(1) ~~shall be distributed~~ under this subsection.

(3) A career and technical education program funded under this

section may provide an opportunity for participants who are

eligible to be funded under section 107 to enroll in the career and

technical education program funded under this section if the

participation does not occur during regular school hours.

(4) In addition to the money allocated under subsections (1)

and (5), from the general fund money appropriated in section 11,

there is allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$100,000.00 to an eligible Michigan-approved 501(c)(3) organization

for the purposes of teaching or training restaurant management and

culinary arts for career and professional development. The

department shall oversee funds distributed to an eligible grantee

under this section. As used in this subsection, "eligible Michigan-

approved 501(c)(3) organization" means an organization that is

exempt from taxation under section 501(c)(3) of the internal

revenue code of 1986, 26 USC 501, that provides the ProStart

curriculum and training to state-approved career and technical

education programs with classification of instructional programs

(CIP) codes in the 12.05xx category, and that administers national

certification for the purpose of restaurant management and culinary

arts for career and professional development.

~~(5) In addition to the funds allocated under subsections (1)~~

~~and (4), from the funds appropriated in section 11, there is~~

~~allocated for 2018-2019 an amount not to exceed $1,000,000.00 for~~

~~competitive grants to intermediate districts to hire career and~~

~~technical education counselors. All of the following apply to this~~

~~funding:~~

~~(a) An intermediate district seeking a grant under this~~

~~subsection shall apply to the department in a form and manner~~

~~specified by the department.~~

~~(b) The department shall award grants under this subsection to~~

~~no more than 3 intermediate districts that received funding under~~

~~this subsection in 2017-2018.~~

~~(c) To be eligible for funding under this subsection, an~~

~~intermediate district shall do all of the following:~~

(i~~) Catalog all available K-12 and other workforce development~~

~~programs and services, including job search, job training, pre-~~

~~employment certifications, career awareness programs, career and~~

~~technical education programs, and other related programs and~~

~~services offered by districts or intermediate districts,~~

~~postsecondary institutions, and other private or public service~~

~~organizations.~~

(ii~~) Develop an outreach program that educates students about~~

~~career and technical education options and connects students to the~~

~~services cataloged under subparagraph (~~i).

(~~iii~~~~) Track student placement and report on student placement~~

~~to the house and senate appropriations subcommittees on school aid~~

~~no later than June 30, 2019 in the form and manner prescribed by~~

~~the department.~~

Sec. 61b. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $8,000,000.00 ~~each fiscal year~~

~~for 2017-2018 and for 2018-2019~~ for 2019-2020 for CTE early/middle

college and CTE dual enrollment programs authorized under this

section and for planning grants for the development or expansion of

CTE early/middle college programs. The purpose of these programs is

to increase the number of Michigan residents with high-quality

degrees or credentials, and to increase the number of students who

are college and career ready upon high school graduation.

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

department shall allocate an amount as determined under this

subsection ~~shall be allocated~~ to each intermediate district serving

as a fiscal agent for state-approved CTE early/middle college and

CTE dual enrollment programs in each of the prosperity regions and

subregions identified by the department. An intermediate district

shall not use more than 5% of the funds allocated under this

subsection for administrative costs for serving as the fiscal

agent.

(3) To be an eligible fiscal agent, an intermediate district

must agree to do all of the following in a form and manner

determined by the department:

(a) Distribute funds to eligible CTE early/middle college and

CTE dual enrollment programs in a prosperity region or subregion as

described in this section.

(b) Collaborate with the career and educational advisory

council that is located in the prosperity region or subregion to

develop a regional strategic plan under subsection (4) that aligns

CTE programs and services into an efficient and effective delivery

system for high school students.

the prosperity region or subregion as described under subsection

(4). Regional processes ~~shall~~ must be approved by the department

before the ranking of career clusters.

(d) Report CTE early/middle college and CTE dual enrollment

program and student data and information as prescribed by the

department and the center.

(4) A regional strategic plan must be approved by the career

and educational advisory council before submission to the

department. A regional strategic plan ~~shall~~ must include, but is

not be limited to, the following:

(a) An identification of regional employer need based on a

ranking of all career clusters in the prosperity region or

subregion ranked by 10-year job openings projections and median

wage for each standard occupational code in each career cluster as

obtained from the United States Bureau of Labor Statistics.

Standard occupational codes within high-ranking clusters also may

be further ranked by median wage. The ~~rankings shall be reviewed by~~

~~the~~ career and educational advisory council located in the

prosperity region or subregion shall review the rankings and

~~modified~~ modify them if necessary to accurately reflect employer

demand for talent in the prosperity region or subregion. A career

and educational advisory council shall document that it has

conducted this review and certify that it is accurate. These career

cluster rankings ~~shall~~ must be determined and updated once every 4

years.

(b) An identification of educational entities in the

prosperity region or subregion that will provide eligible CTE

early/middle college and CTE dual enrollment programs including

districts, intermediate districts, postsecondary institutions, and

noncredit occupational training programs leading to an industry-

recognized credential.

early/middle college and CTE dual enrollment programs in the

prosperity region or subregion.

(d) Any other requirements as defined by the department.

(5) An eligible CTE program is a program that meets all of the

following:

(a) Has been identified in the highest 5 career cluster

rankings in any of the 10 regional strategic plans jointly approved

by the Michigan talent investment agency in the department of

talent and economic development and the department.

(b) Has a coherent sequence of courses that will allow a

student to earn a high school diploma and achieve at least 1 of the

following in a specific career cluster:

(i) An associate degree.

(ii) An industry-recognized technical certification approved

by the Michigan talent investment agency in the department of

talent and economic development.

(iii) Up to 60 transferable college credits.

(iv) Participation in a registered apprenticeship, pre-

apprenticeship, or apprentice readiness program.

(d) Has an articulation agreement with at least 1

postsecondary institution that provides students with opportunities

to receive postsecondary credits during the student's participation

in the CTE early/middle college or CTE dual enrollment program and

transfers those credits to the postsecondary institution upon

completion of the CTE early/middle college or CTE dual enrollment

program.

(e) Provides instruction that is supervised, directed, or

coordinated by an appropriately certificated CTE teacher or, for

concurrent enrollment courses, a postsecondary faculty member.

(f) Provides for highly integrated student support services

that include at least the following:

(i) Teachers as academic advisors.

(ii) Supervised course selection.

(iii) Monitoring of student progress and completion.

(iv) Career planning services provided by a local one-stop

service center as described in the Michigan Works! one-stop service

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

high school counselor or advisor.

(g) Has courses that are taught on a college campus, are

college courses offered at the high school and taught by college

faculty, or are courses taught in combination with online

instruction.

(6) ~~Funds~~ The department shall distribute funds to eligible

CTE early/middle college and CTE dual enrollment programs ~~shall be~~

~~distributed~~ as follows:

(a) The department shall determine statewide average CTE costs

per pupil for each CIP code program by calculating statewide

average costs for each CIP code program for the 3 most recent

fiscal years.

(b) ~~Distribution~~ The distribution to each eligible CTE

early/middle college or CTE dual enrollment program ~~shall be~~ is the

product of 50% of CTE costs per pupil times the current year pupil

enrollment of each eligible CTE early/middle college or CTE dual

enrollment program.

(7) In order to receive funds under this section, a CTE

early/middle college or CTE dual enrollment program shall furnish

to the intermediate district that is the fiscal agent identified in

subsection (2), in a form and manner determined by the department,

all information needed to administer this program and meet federal

reporting requirements; shall allow the department or the

department's designee to review all records related to the program

for which it receives funds; and shall reimburse the state for all

disallowances found in the review, as determined by the department.

(8) There is allocated from the funds under subsection (1) an

amount not to exceed $500,000.00 ~~each fiscal year for 2017-2018 and~~

~~for 2018-2019~~ for 2019-2020 for grants to intermediate districts or

consortia of intermediate districts for the purpose of planning for

new or expanded early middle college programs. Applications for

grants ~~shall~~ must be submitted in a form and manner determined by

the department. The amount of a grant under this subsection ~~shall~~

must not exceed $50,000.00. To be eligible for a grant under this

subsection, an intermediate district or consortia of intermediate

districts must provide matching funds equal to the grant received

under this subsection. Notwithstanding section 17b, the department

shall make payments under this subsection ~~may be made as~~ in the

manner determined by the department.

(9) Funds distributed under this section may be used to fund

program expenditures that would otherwise be paid from foundation

allowances. A program receiving funding under section 61a may

receive funding under this section for allowable costs that exceed

the reimbursement the program received under section 61a. The

combined payments received by a program under section 61a and this

section ~~shall~~ must not exceed the total allowable costs of the

program. A program provider shall not use more than 5% of the funds

allocated under this section to the program for administrative

costs.

(10) If the allocation under subsection (1) is insufficient to

fully fund payments as otherwise calculated under this section, the

department shall prorate payments under this section on an equal

percentage basis.

(11) If pupils enrolled in a career cluster in an eligible CTE

early/middle college or CTE dual enrollment program qualify to be

reimbursed under this section, those pupils continue to qualify for

reimbursement until graduation, even if the career cluster is no

longer identified as being in the highest 5 career cluster

rankings.

(12) As used in this section:

(a) "Allowable costs" means those costs directly attributable

to the program as jointly determined by the Michigan talent

investment agency and the department.

(b) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(d) "CTE" means career and technical education programs.

(e) "CTE dual enrollment program" means a 4-year high school

program of postsecondary courses offered by eligible postsecondary

educational institutions that leads to an industry-recognized

certification or degree.

(f) "Early/middle college program" means a 5-year high school

program.

(g) "Eligible postsecondary educational institution" means

that term as defined in section 3 of the career and technical

preparation act, 2000 PA 258, MCL 388.1903.

Sec. 61c. (1) From the general fund appropriation in section

11, there is allocated for ~~2018-2019~~ 2019-2020 an amount not to

exceed $2,500,000.00 to eligible career education planning

districts for the CTE skilled trades initiative described in

subsections (2) to (5). To be eligible to receive funding under

this section, at least 50% of the area served by a CEPD must be

located in an intermediate district that did not levy ~~a vocational~~

~~education~~ an area career and technical education millage in

~~2018.~~2019.

(2) To receive funding under subsection (1), each eligible

CEPD shall apply in a form and manner determined by the department.

Funding to each eligible CEPD ~~shall be~~ is an amount equal to the

quotient of the allocation under subsection (1) and the sum of the

number of career education planning districts applying for funding

under subsection (1) that are located in an intermediate district

that did not levy ~~a vocational education~~ an area career and

technical education millage in ~~2018.~~2019.

(3) At least 50% of the funding allocated to each eligible

CEPD ~~shall~~ must be used to update equipment in current CTE programs

that have been identified in the highest 5 career cluster rankings

in any of the 10 regional strategic plans jointly approved by the

Michigan talent investment agency in the department of talent and

economic development and the department, for training on new

equipment, for professional development relating to computer

science or coding, or for new and emerging certified CTE programs

to allow CEPD administrators to provide programming in communities

that will enhance economic development. The funding for equipment

should be used to support and enhance community areas that have

sustained job growth, and act as a commitment to build a more

qualified and skilled workforce. In addition, each CEPD is

encouraged to explore the option of leasing equipment from local

private industry to encourage the use of the most advanced

equipment.

(4) ~~The~~ A CEPD administrator shall determine the allocation of

funds at the local level ~~shall be determined by CEPD administrators~~

using data from the state, region, and local sources to make well-

informed decisions on program equipment improvements. Grants

awarded by CEPD administrators for capital infrastructure ~~shall~~

must be used to ensure that CTE programs can deliver educational

programs in high-wage, high-skill, and high-demand occupations.

Each CEPD shall continue to ensure that program advisory boards

make recommendations on needed improvements for equipment that

support job growth and job skill development and retention for both

the present and the future.

(5) Not later than September 15 of each fiscal year, each CEPD

receiving funding under this section shall annually report to the

department, the senate and house appropriations subcommittees on

state school aid, and the senate and house fiscal agencies and

legislature on equipment purchased under subsection (1). In

addition, the report ~~shall~~ must identify growth data on program

involvement, retention, and development of student skills.

(6) As used in this section:

(a) "CEPD" means a career education planning district

described in this section.

(b) "CTE" means career and technical education.

Sec. 61d. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $5,000,000.00 for ~~2018-2019~~ 2019-

2020 for additional payments to districts for career and technical

education programs for the purpose of increasing the number of

Michigan residents with high-quality degrees or credentials, and to

increase the number of pupils who are college- and career-ready

upon high school graduation.

(2) ~~Payments~~ The department shall calculate payments to

districts under this section ~~must be calculated~~ in the following

manner:

(a) A payment of $25.00 multiplied by the number of pupils in

grades 9 to 12 who are counted in membership in the district and

are enrolled in at least 1 career and technical education program.

(b) An additional payment of $25.00 multiplied by the number

of pupils in grades 9 to 12 who are counted in membership in the

district and are enrolled in at least 1 career and technical

education program that provides instruction in critical skills and

high-demand career fields.

(3) If the allocation under subsection (1) is insufficient to

fully fund payments under subsection (2), the department shall

prorate payments under this section on an equal per-pupil basis.

(4) As used in this section:

(a) "Career and technical education program" means a state-

approved career and technical education program, as determined by

the department.

(b) "Career and technical education program that provides

instruction in critical skills and high-demand career field" means

a career and technical education program classified under any of

the following 2-digit classification of instructional programs

(CIP) codes:

(i) 01, which refers to "agriculture, agriculture operations,

and related sciences".

(ii) 03, which refers to "natural resources and conservation".

(iii) 10 through 11, which refers to "communications

technologies/technicians and support services" and "computer and

information sciences and support services".

(iv) 14 through 15, which refers to "engineering" and

"engineering technologies and engineering-related fields".

(v) 26, which refers to "biological and biomedical sciences".

(vi) 46 through 48, which refers to "construction trades",

"mechanic and repair technologies/technicians", and "precision

production".

(vii) 51, which refers to "health professions and related

programs".

Sec. 61f. (1) From the funds appropriated under section 11,

there is allocated an amount not to exceed $200,000.00 for ~~2018-~~

~~2019~~ 2019-2020 only for a grant to support a program that is an

innovative retention and completion program designed to create a

seamless educational and career pathway support structure and that

does at least all of the following:

(a) Creates a pipeline from kindergarten to a college

credential.

(b) Provides coaching at all levels of K-12 education to

foster an environment that educates pupils on the availability and

positive outcomes from postsecondary education.

career pathways to middle school pupils, and develops pupil success

plans for high school pupils.

(d) Provides family literacy sessions.

(e) Provides a summer bridge program to ensure seamless

transition from high school to postsecondary educational

opportunities.

(f) Introduces K-12 pupils to college and career opportunities

at postsecondary campuses and bridges those pupils into the

respective postsecondary institutions for coursework.

(g) Creates a partnership between area districts, a community

college, and a public university to serve pupils in the program.

(h) Synchronizes families and pupils to assess and understand

their knowledge of how to be successful in school and work.

(2) The department shall distribute the funds awarded under

subsection (1) not later than ~~February~~ November 15, 2019 to Mott

Community College to implement the program under this section.

Funds allocated under this section may be used for salaries and

benefits, supply and programming costs, and gap scholarships.

Sec. 62. (1) For the purposes of this section:

(a) "Membership" means for a particular fiscal year the total

membership for the immediately preceding fiscal year of the

intermediate district and the districts constituent to the

intermediate district or the total membership for the immediately

preceding fiscal year of the area vocational-technical program.

(b) "Millage levied" means the millage levied for area

vocational-technical education pursuant to sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690, including a levy

for debt service obligations incurred as the result of borrowing

for capital outlay projects and in meeting capital projects fund

requirements of area vocational-technical education.

districts constituent to an intermediate district or area

vocational-technical education program, except that if a district

has elected not to come under sections 681 to 690 of the revised

school code, MCL 380.681 to 380.690, the membership and taxable

value of that district ~~shall not be~~ are not included in the

membership and taxable value of the intermediate district. However,

the membership and taxable value of a district that has elected not

to come under sections 681 to 690 of the revised school code, MCL

380.681 to 380.690, ~~shall be~~ are included in the membership and

taxable value of the intermediate district if the district meets

both of the following:

(i) The district operates the area vocational-technical

education program pursuant to a contract with the intermediate

district.

(ii) The district contributes an annual amount to the

operation of the program that is commensurate with the revenue that

would have been raised for operation of the program if millage were

levied in the district for the program under sections 681 to 690 of

the revised school code, MCL 380.681 to 380.690.

(2) From the appropriation in section 11, there is allocated

an amount not to exceed $9,190,000.00 each fiscal year for ~~2017-~~

~~2018 and for~~ 2018-2019 and for 2019-2020 to reimburse intermediate

districts and area vocational-technical education programs

established under section 690(3) of the revised school code, MCL

380.690, levying millages for area vocational-technical education

pursuant to sections 681 to 690 of the revised school code, MCL

380.681 to 380.690. The purpose, use, and expenditure of the

reimbursement ~~shall be~~ are limited as if the funds were generated

by those millages.

~~(3) Reimbursement for those millages levied in 2016-2017 shall~~

~~be made in 2017-2018 at an amount per 2016-2017 membership pupil~~

~~computed by subtracting from $200,800.00 the 2016-2017 taxable~~

~~value behind each membership pupil and multiplying the resulting~~

~~difference by the 2016-2017 millage levied, and then subtracting~~

~~from that amount the 2016-2017 local community stabilization share~~

~~revenue for area vocational technical education behind each~~

~~membership pupil for reimbursement of personal property exemption~~

~~loss under the local community stabilization authority act, 2014 PA~~

~~86, MCL 123.1341 to 123.1362.~~

(3) ~~(4)~~ Reimbursement for those millages levied in 2017-2018

~~shall be~~ is made in 2018-2019 at an amount per 2017-2018 membership

pupil computed by subtracting from ~~$205,700.00~~ $205,600.00 the

2017-2018 taxable value behind each membership pupil and

multiplying the resulting difference by the 2017-2018 millage

levied, and then subtracting from that amount the 2017-2018 local

community stabilization share revenue for area vocational technical

education behind each membership pupil for reimbursement of

personal property exemption loss under the local community

stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362.

(4) Reimbursement for those millages levied in 2018-2019 is

made in 2019-2020 at an amount per 2018-2019 membership pupil

computed by subtracting from $210,600.00 the 2018-2019 taxable

value behind each membership pupil and multiplying the resulting

difference by the 2018-2019 millage levied, and then subtracting

from that amount the 2018-2019 local community stabilization share

revenue for area vocational technical education behind each

membership pupil for reimbursement of personal property exemption

loss under the local community stabilization authority act, 2014 PA

86, MCL 123.1341 to 123.1362.

(5) The department shall ensure that the amount paid to a

single intermediate district under this section ~~shall not~~ does not

exceed 38.4% of the total amount allocated under subsection (2).

(6) The department shall ensure that the amount paid to a

single intermediate district under this section ~~shall not be~~ is not

less than 75% of the amount allocated to the intermediate district

under this section for the immediately preceding fiscal year.

Sec. 65. (1) From the appropriation under section 11, there is

allocated an amount not to exceed $400,000.00 for ~~2018-2019~~ 2019-

2020 for a pre-college engineering K-12 educational program that is

focused on the development of a diverse future Michigan workforce,

that serves multiple communities within southeast Michigan, that

enrolls pupils from multiple districts, and that received funds

appropriated for this purpose in the appropriations act that

provided the Michigan strategic fund budget for 2014-2015.

(2) To be eligible for funding under this section, a program

must have the ability to expose pupils to, and motivate and prepare

pupils for, science, technology, engineering, and mathematics

careers and postsecondary education with special attention given to

groups of pupils who are at-risk and underrepresented in technical

professions and careers.

Sec. 67. (1) From the general fund amount appropriated in

section 11, there is allocated an amount not to exceed

$3,000,000.00 for ~~2018-2019~~ 2019-2020 for college access programs.

The programs funded under this section are intended to inform

students of college and career options and to provide resources

intended to increase the number of pupils who are adequately

prepared with the information needed to make informed decisions on

college and career. The funds appropriated under this section are

intended to be used to increase the number of Michigan residents

with high-quality degrees or credentials. Funds appropriated under

this section ~~shall~~ must not be used to supplant funding for

counselors already funded by districts.

(2) The talent investment agency of the department of talent

and economic development shall administer funds allocated under

this section in collaboration with the Michigan college access

network. These funds may be used for any of the following purposes:

(a) Michigan college access network operations, programming,

and services to local college access networks.

(b) Local college access networks, which are community-based

college access/success partnerships committed to increasing the

college participation and completion rates within geographically

defined communities through a coordinated strategy.

to place trained, recently graduated college advisors in high

schools that serve significant numbers of low-income and first-

generation college-going pupils. State funds used for this purpose

may not exceed 33% of the total funds available under this

subsection.

(d) Subgrants of up to $5,000.00 to districts with

comprehensive high schools that establish a college access team and

implement specific strategies to create a college-going culture in

a high school in a form and manner approved by the Michigan college

access network and the Michigan talent investment agency.

(e) The Michigan college access portal, an online one-stop

portal to help pupils and families plan and apply for college.

(f) Public awareness and outreach campaigns to encourage low-

income and first-generation college-going pupils to take necessary

steps toward college and to assist pupils and families in

completing a timely and accurate free application for federal

student aid.

(g) Subgrants to postsecondary institutions to recruit, hire,

and train college student mentors and college advisors to assist

high school pupils in navigating the postsecondary planning and

enrollment process.

(3) In addition to the funds allocated under subsection (1),

from the general fund money allocated under section 11, there is

allocated for 2019-2020 an amount not to exceed $80,000.00 for the

college board career finder district pilot. The Michigan college

access network shall implement this pilot project in collaboration

with the college board.

(4) ~~(3)~~ For the purposes of this section, "college" means any

postsecondary educational opportunity that leads to a career,

including, but not limited to, a postsecondary degree, industry-

recognized technical certification, or registered apprenticeship.

Sec. 67a. (1) From the general fund money appropriated in

section 11, there is allocated to the department for 2018-2019 an

amount not to exceed $500,000.00 and for 2019-2020 an amount not to

exceed $1,500,000.00 to expand an eligible web-based career

preparation and readiness platform to prosperity regions beyond

where the platform is currently being utilized. Funding under this

section will not be allocated after 2019-2020.

(2) In order to be eligible for funding under this section, a

career preparation and readiness platform chosen by the department

must meet all of the following:

(a) Has a partnership with intermediate districts, community

colleges, workforce development agencies, and community employers.

(b) Assesses student skills, abilities, and preferences to

match them with careers of interest.

than 600 career profiles, including, but not limited to, career

descriptions, education and training requirements, and earning

information.

(d) Connects with local companies through company profiles

that include, but are not limited to, description, location, career

opportunities, and work-based learning activities.

(e) Allows students to experience careers firsthand by

searching for job shadowing, mock interviews, company tours,

company events, and internship opportunities offered by employers

in a student's area.

(f) Provides students with step-by-step help to develop a job

search plan, write a resume and cover letter, and prepare for job

interviews.

(g) Provides students with an understanding of the education

and training required for a particular career, a comparison of

school data and profiles, and access to college preparation,

scholarship, and financial aid information.

(3) Notwithstanding section 17b, the department shall make

payments under this section on a schedule determined by the

department.

Sec. 74. (1) From the amount appropriated in section 11, there

is allocated an amount not to exceed ~~$3,754,900.00 for 2018-2019~~

$3,772,900.00 for 2019-2020 for the purposes of this section.

(2) From the allocation in subsection (1), there is allocated

for each fiscal year the amount necessary for payments to state

supported colleges or universities and intermediate districts

providing school bus driver safety instruction ~~pursuant to~~ under

section 51 of the pupil transportation act, 1990 PA 187, MCL

257.1851. The department shall make payments ~~shall be~~ in an amount

determined by the department not to exceed the actual cost of

instruction and driver compensation for each public or nonpublic

school bus driver attending a course of instruction. For the

purpose of computing compensation, the hourly rate allowed each

school bus driver ~~shall~~ must not exceed the hourly rate received

for driving a school bus. ~~Reimbursement~~ The department shall make

reimbursement compensating the driver during the course of

instruction ~~shall be made by the department~~ to the college or

university or intermediate district providing the course of

instruction.

(3) From the allocation in subsection (1), there is allocated

for ~~2018-2019~~ 2019-2020 the amount necessary to pay the reasonable

costs of nonspecial education auxiliary services transportation

provided ~~pursuant to~~ under section 1323 of the revised school code,

MCL 380.1323. Districts funded under this subsection ~~shall not~~ do

not receive funding under any other section of this article for

nonspecial education auxiliary services transportation.

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

allocated an amount not to exceed ~~$1,729,900.00 for 2018-2019~~

$1,747,900.00 for 2019-2020 for reimbursement to districts and

intermediate districts for costs associated with the inspection of

school buses and pupil transportation vehicles by the department of

state police as required under section 715a of the Michigan vehicle

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

transportation act, 1990 PA 187, MCL 257.1839. The department of

state police shall prepare a statement of costs attributable to

each district for which bus inspections are provided and submit it

to the department and to an intermediate district serving as

fiduciary in a time and manner determined jointly by the department

and the department of state police. Upon review and approval of the

statement of cost, the department shall forward to the designated

intermediate district serving as fiduciary the amount of the

reimbursement on behalf of each district and intermediate district

for costs detailed on the statement within 45 days after receipt of

the statement. The designated intermediate district shall make

payment in the amount specified on the statement to the department

of state police within 45 days after receipt of the statement. The

total reimbursement of costs under this subsection ~~shall~~ must not

exceed the amount allocated under this subsection. Notwithstanding

section 17b, the department shall make payments to eligible

entities under this subsection ~~shall be paid~~ on a schedule

prescribed by the department.

Sec. 74a. (1) From the funds appropriated in section 11, there

is allocated an amount not to exceed $810,000.00 for 2018-2019 to

an eligible intermediate district to implement a statewide school

bus driver safety program.

(2) An intermediate district is eligible to receive funds

under this section if the intermediate district meets all of the

following:

(a) The total combined membership of its constituent districts

is at least 7,000 and not more than 8,000.

(b) The intermediate district is located in prosperity region

independent intermediate districts that consolidated into 1

intermediate district.

(3) A statewide school bus driver safety program funded under

this section must provide transportation staff training on how to

respond to acts of violence by using the model known as ~~Alert,~~

~~Lockdown, Inform, Counter, Evacuate (A.L.I.C.E.) for school~~

~~buses.~~proactive response training for school bus drivers.

(4) Notwithstanding section 17b, the department shall make

payments ~~made~~ under this section ~~shall be provided~~ to an eligible

intermediate district not later than March 1, 2019.

Sec. 81. (1) From the appropriation in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 to the intermediate districts the

sum necessary, but not to exceed ~~$68,453,000.00~~ $69,138,000.00, to

provide state aid to intermediate districts under this section.

(2) The amount allocated under this section to each

intermediate district is an amount equal to ~~102%~~ 101% of the amount

allocated to the intermediate district under this section for ~~2017-~~

~~2018. Funding~~ 2018-2019. An intermediate district shall use funding

provided under this section ~~shall be used~~ to comply with

requirements of this article and the revised school code that are

applicable to intermediate districts, and for which funding is not

provided elsewhere in this article, and to provide technical

assistance to districts as authorized by the intermediate school

board.

(3) Intermediate districts receiving funds under this section

, shall collaborate with the department to develop expanded

professional development opportunities for teachers to update and

expand their knowledge and skills needed to support the Michigan

merit curriculum.

(4) From the allocation in subsection (1), there is allocated

to an intermediate district, formed by the consolidation or

annexation of 2 or more intermediate districts or the attachment of

a total intermediate district to another intermediate school

district or the annexation of all of the constituent K-12 districts

of a previously existing intermediate school district which has

disorganized, an additional allotment of $3,500.00 each fiscal year

for each intermediate district included in the new intermediate

district for 3 years following consolidation, annexation, or

attachment.

(5) In order to receive funding under this section, an

intermediate district shall do all of the following:

(a) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

pupil accounting and auditing procedures, rules, and regulations.

(b) Demonstrate to the satisfaction of the department that the

intermediate district employs at least 1 person who is trained in

rules, regulations, and district reporting procedures for the

individual-level student data that serves as the basis for the

calculation of the district and high school graduation and dropout

rates.

code, MCL 380.1278a and 380.1278b.

(d) 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.

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

380.1230g.

Sec. 94. (1) From the general fund appropriation in section

11, there is allocated to the department for ~~2017-2018 an amount~~

~~not to exceed $750,000.00 and there is allocated to the department~~

~~for 2018-2019~~ 2019-2020 an amount not to exceed $1,000,000.00 for

efforts to increase the number of pupils who participate and

succeed in advanced placement and international baccalaureate

programs, and ~~, beginning in 2018-2019,~~ to support the college-

level examination program (CLEP).

(2) From the funds allocated under this section, the

department shall award funds to cover all or part of the costs of

advanced placement test fees or international baccalaureate test

fees and international baccalaureate registration fees for low-

income pupils who take an advanced placement or an international

baccalaureate test ~~, and, beginning in 2018-2019,~~ and CLEP fees for

low-income pupils who take a CLEP test.

(3) The department shall only award funds under this section

if the department determines that all of the following criteria are

met:

(a) Each pupil for whom payment is made meets eligibility

requirements of the federal advanced placement test fee program

under section 1701 of the no child left behind act of 2001, Public

Law 107-110, or under a corresponding provision of the every

student succeeds act, Public Law 114-95.

(b) The tests are administered by the college board, the

international baccalaureate organization, or another test provider

approved by the department.

toward the cost of each test for which payment is made.

(4) The department shall establish procedures for awarding

funds under this section.

(5) Notwithstanding section 17b, the department shall make

payments under this section ~~shall be made~~ on a schedule determined

by the department.

Sec. 94a. (1) There is created within the state budget office

in the department of technology, management, and budget the center

for educational performance and information. The center shall do

all of the following:

(a) Coordinate the collection of all data required by state

and federal law from districts, intermediate districts, and

postsecondary institutions.

(b) Create, maintain, and enhance this state's P-20

longitudinal data system and ensure that it meets the requirements

of subsection (4).

order to reduce the administrative burden on reporting entities,

including, but not limited to, electronic transcript services.

(d) Create, maintain, and enhance this state's web-based

educational portal to provide information to school leaders,

teachers, researchers, and the public in compliance with all

federal and state privacy laws. Data ~~shall~~ must include, but are

not limited to, all of the following:

(i) Data sets that link teachers to student information,

allowing districts to assess individual teacher impact on student

performance and consider student growth factors in teacher and

principal evaluation systems.

(ii) Data access or, if practical, data sets, provided for

regional data hubs that, in combination with local data, can

improve teaching and learning in the classroom.

(iii) Research-ready data sets for researchers to perform

research that advances this state's educational performance.

(e) Provide data in a useful manner to allow state and local

policymakers to make informed policy decisions.

(f) Provide public reports to the ~~citizens~~ residents of this

state to allow them to assess allocation of resources and the

return on their investment in the education system of this state.

(g) Other functions as assigned by the state budget director.

(2) Each state department, officer, or agency that collects

information from districts, intermediate districts, or

postsecondary institutions as required under state or federal law

shall make arrangements with the center to ensure that the state

department, officer, or agency is in compliance with subsection

(1). This subsection does not apply to information collected by the

department of treasury under the uniform budgeting and accounting

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

388.1939; or section 1351a of the revised school code, MCL

380.1351a.

(3) The center may enter into any interlocal agreements

necessary to fulfill its functions.

(4) The center shall ensure that the P-20 longitudinal data

system required under subsection (1)(b) meets all of the following:

(a) Includes data at the individual student level from

preschool through postsecondary education and into the workforce.

(b) Supports interoperability by using standard data

structures, data formats, and data definitions to ensure linkage

and connectivity in a manner that facilitates the exchange of data

among agencies and institutions within the state and between

states.

records so that an individual student may be matched with those

teachers providing instruction to that student.

(d) Enables the matching of individual teachers with

information about their certification and the institutions that

prepared and recommended those teachers for state certification.

(e) Enables data to be easily generated for continuous

improvement and decision-making, including timely reporting to

parents, teachers, and school leaders on student achievement.

(f) Ensures the reasonable quality, validity, and reliability

of data contained in the system.

(g) Provides this state with the ability to meet federal and

state reporting requirements.

(h) For data elements related to preschool through grade 12

and postsecondary, meets all of the following:

(i) Contains a unique statewide student identifier that does

not permit a student to be individually identified by users of the

system, except as allowed by federal and state law.

(ii) Contains student-level enrollment, demographic, and

program participation information.

(iii) Contains student-level information about the points at

which students exit, transfer in, transfer out, drop out, or

complete education programs.

(iv) Has the capacity to communicate with higher education

data systems.

(i) For data elements related to preschool through grade 12

only, meets all of the following:

(i) Contains yearly test records of individual students for

assessments approved by DED-OESE for accountability purposes under

section 1111(b) of the elementary and secondary education act of

1965, 20 USC 6311, including information on individual students not

tested, by grade and subject.

(ii) Contains student-level transcript information, including

information on courses completed and grades earned.

(iii) Contains student-level college readiness test scores.

(j) For data elements related to postsecondary education only:

(i) Contains data that provide information regarding the

extent to which individual students transition successfully from

secondary school to postsecondary education, including, but not

limited to, all of the following:

(A) Enrollment in remedial coursework.

(B) Completion of 1 year's worth of college credit applicable

to a degree within 2 years of enrollment.

(ii) Contains data that provide other information determined

necessary to address alignment and adequate preparation for success

in postsecondary education.

(5) From the general fund appropriation in section 11, there

is allocated an amount not to exceed ~~$16,356,700.00 for 2018-2019~~

$16,457,200.00 for 2019-2020 to the department of technology,

management, and budget to support the operations of the center. In

addition, from the federal funds appropriated in section 11, there

is allocated for ~~2018-2019~~ 2019-2020 the amount necessary,

estimated at $193,500.00, to support the operations of the center

and to establish a P-20 longitudinal data system necessary for

state and federal reporting purposes. The center shall cooperate

with the department to ensure that this state is in compliance with

federal law and is maximizing opportunities for increased federal

funding to improve education in this state.

(6) From the funds allocated in subsection (5), the center may

use an amount determined by the center for competitive grants for

~~2018-2019~~ 2019-2020 to support collaborative efforts on the P-20

longitudinal data system. All of the following apply to grants

awarded under this subsection:

(a) The center shall award competitive grants to eligible

intermediate districts or a consortium of intermediate districts

based on criteria established by the center.

(b) Activities funded under the grant ~~shall~~ must support the

P-20 longitudinal data system portal and may include portal

hosting, hardware and software acquisition, maintenance,

enhancements, user support and related materials, and professional

learning tools and activities aimed at improving the utility of the

P-20 longitudinal data system.

for the immediately preceding fiscal year ~~shall receive~~ has

priority for funding under this section. However, after 3 fiscal

years of continuous funding, an applicant is required to compete

openly with new applicants.

(7) Funds allocated under this section that are not expended

in the fiscal year in which they were allocated may be carried

forward to a subsequent fiscal year and are appropriated for the

purposes for which the funds were originally allocated.

(8) The center may bill departments as necessary in order to

fulfill reporting requirements of state and federal law. The center

may also enter into agreements to supply custom data, analysis, and

reporting to other principal executive departments, state agencies,

local units of government, and other individuals and organizations.

The center may receive and expend funds in addition to those

authorized in subsection (5) to cover the costs associated with

salaries, benefits, supplies, materials, and equipment necessary to

provide such data, analysis, and reporting services.

(9) As used in this section:

(a) "DED-OESE" means the United States Department of Education

Office of Elementary and Secondary Education.

(b) "State education agency" means the department.

Sec. 95a. (1) The educator evaluation reserve fund is created

as a separate account within the state school aid fund.

(2) The state treasurer may receive money or other assets from

any source for deposit into the educator evaluation reserve fund.

The state treasurer shall direct the investment of the educator

evaluation reserve fund. The state treasurer shall credit to the

educator evaluation reserve fund interest and earnings from the

educator evaluation reserve fund.

(3) Money in the educator evaluation reserve fund at the close

of the fiscal year ~~shall remain in the educator evaluation reserve~~

~~fund and shall not lapse~~ lapses to the state school aid fund. ~~or to~~

~~the general fund.~~ The department of treasury ~~shall be~~ is the

administrator of the educator evaluation reserve fund for auditing

purposes.

(4) From the appropriations in section 11, there is allocated

to the educator evaluation reserve fund for 2014-2015 an amount not

to exceed $12,100,000.00 from the state school aid fund and an

amount not to exceed $2,700,000.00 from the general fund. Subject

to ~~subsections (5) and (6),~~ subsection (5), the department shall

expend the money in the educator evaluation reserve fund for

implementing evaluation systems for public school teachers and

school administrators.

(5) ~~Funds~~ The department shall not expend funds in the

educator evaluation reserve fund ~~shall not be expended~~ unless the

state budget office has approved the department's spending plan.

Sec. 97. (1) From the general fund appropriation in section

11, there is allocated to the department an amount not to exceed

$5,000,000.00 for 2019-2020 only to expand an existing advanced 911

state contract for the sole purpose of implementing a statewide

pilot Secure Schools Program and Panic Button App phone application

system in public and nonpublic schools that operate any of grades K

to 12.

(2) The Panic Button App phone application system funded under

this section must be able to do all of the following

simultaneously:

(a) Allow authorized users to place a voice call to 911.

(b) Provide intelligent notifications via text and electronic

mail.

regarding the identity and location of the reporting party,

response type required based on incident type, and additional

location details to relevant communities to which users belong

including, but not limited to, both of the following, as applicable

based on the location and category of the emergency event:

(i) Key stakeholders.

(ii) Authorized users, including, but not limited to, all of

the following:

(A) School staff.

(B) School resource officers.

(D) First responder agencies.

(d) Allow 911, school officials, and first responder agencies

to send messages to Panic Button App users both during and after

emergency events in order to facilitate ongoing communications and

coordination.

(3) The Secure Schools Program funded under this section must

integrate with this state's current supplemental 911 database to

maintain information voluntarily provided by individuals and

facility managers via a secure web application. Any information

submitted by a district under the Secure Schools Program,

including, but not limited to, floorplans, automated external

defibrillator information, school safety plans, reunification

plans, and entry or exit points must automatically appear to 911

whenever the Panic Button App is activated.

(4) Funds allocated under this section may be used to defray

the initial costs associated with the implementation of the Secure

Schools Program, including installation, training, and maintenance

costs. A grant recipient may carry a portion of a grant payment

under this section into 2020-2021 to support ongoing costs. After

2020-2021, any ongoing costs must be supported solely by the grant

recipient.

(5) The department shall distribute funds under this section

in 2 payments. The first payment must be made by October 1, 2019

and the second payment must be made by December 30, 2019.

Sec. 98. (1) From the general fund money appropriated in

section 11, there is allocated an amount not to exceed

$7,387,500.00 for ~~2018-2019~~ 2019-2020 for the purposes described in

this section. The Michigan Virtual University shall provide a

report to the legislature not later than November 1 of each year

that includes its mission, its plans, and proposed benchmarks it

must meet, ~~which shall include~~ including a plan to achieve the

organizational priorities identified in this section, in order to

receive full funding for ~~2019-2020.~~ 2020-2021. Not later than March

1 of each year, the Michigan Virtual University shall provide an

update to the house and senate appropriations subcommittees on

school aid to show the progress being made to meet the benchmarks

identified.

(2) The Michigan Virtual University shall operate the Michigan

Virtual Learning Research Institute. The Michigan Virtual Learning

Research Institute shall do all of the following:

(a) Support and accelerate innovation in education through the

following activities:

(i) Test, evaluate, and recommend as appropriate new

technology-based instructional tools and resources.

(ii) Research, design, and recommend virtual education

delivery models for use by pupils and teachers that include age-

appropriate multimedia instructional content.

(iii) Research, develop, and recommend annually to the

department criteria by which cyber schools and virtual course

providers should be monitored and evaluated to ensure a quality

education for their pupils.

(iv) Based on pupil completion and performance data reported

to the department or the center ~~for educational performance and~~

~~information~~ from cyber schools and other virtual course providers

operating in this state, analyze the effectiveness of virtual

learning delivery models in preparing pupils to be college- and

career-ready and publish a report that highlights enrollment

totals, completion rates, and the overall impact on pupils. The

~~report shall be submitted~~ Michigan Virtual Learning Research

Institute shall submit the report to the house and senate

appropriations subcommittees on state school aid, the state budget

director, the house and senate fiscal agencies, the department,

districts, and intermediate districts not later than March 31 of

each year.

(v) Provide an extensive professional development program to

at least 30,000 educational personnel, including teachers, school

administrators, and school board members, that focuses on the

effective integration of virtual learning into curricula and

instruction. The Michigan Virtual Learning Research Institute is

encouraged to work with the MiSTEM advisory council created under

section 99s to coordinate professional development of teachers in

applicable fields. In addition, the Michigan Virtual Learning

Research Institute and external stakeholders are encouraged to

coordinate with the department for professional development in this

state. Not later than December 1 of each year, the Michigan Virtual

Learning Research Institute shall submit a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department on the number of teachers, school administrators, and

school board members who have received professional development

services from the Michigan Virtual University. The report ~~shall~~

must also identify barriers and other opportunities to encourage

the adoption of virtual learning in the public education system.

(vi) Identify and share best practices for planning,

implementing, and evaluating virtual and blended education delivery

models with intermediate districts, districts, and public school

academies to accelerate the adoption of innovative education

delivery models statewide.

(b) Provide leadership for this state's system of virtual

learning education by doing the following activities:

(i) Develop and report policy recommendations to the governor

and the legislature that accelerate the expansion of effective

virtual learning in this state's schools.

(ii) Provide a clearinghouse for research reports, academic

studies, evaluations, and other information related to virtual

learning.

(iii) Promote and distribute the most current instructional

design standards and guidelines for virtual teaching.

(iv) In collaboration with the department and interested

colleges and universities in this state, support implementation and

improvements related to effective virtual learning instruction.

(v) Pursue public/private partnerships that include districts

to study and implement competency-based technology-rich virtual

learning models.

(vi) Create a statewide network of school-based mentors

serving as liaisons between pupils, virtual instructors, parents,

and school staff, as provided by the department or the center, and

provide mentors with research-based training and technical

assistance designed to help more pupils be successful virtual

learners.

(vii) Convene focus groups and conduct annual surveys of

teachers, administrators, pupils, parents, and others to identify

barriers and opportunities related to virtual learning.

(viii) Produce an annual consumer awareness report for schools

and parents about effective virtual education providers and

education delivery models, performance data, cost structures, and

research trends.

(ix) Provide an internet-based platform that educators can use

to create student-centric learning tools and resources for sharing

in the state's open educational resource repository and facilitate

a user network that assists educators in using the content creation

platform and state repository for open educational resources. As

part of this initiative, the Michigan Virtual University shall work

collaboratively with districts and intermediate districts to

establish a plan to make available virtual resources that align to

Michigan's K-12 curriculum standards for use by students,

educators, and parents.

(x) Create and maintain a public statewide catalog of virtual

learning courses being offered by all public schools and community

colleges in this state. The Michigan Virtual Learning Research

Institute shall identify and develop a list of nationally

recognized best practices for virtual learning and use this list to

support reviews of virtual course vendors, courses, and

instructional practices. The Michigan Virtual Learning Research

Institute shall also provide a mechanism for intermediate districts

to use the identified best practices to review content offered by

constituent districts. The Michigan Virtual Learning Research

Institute shall review the virtual course offerings of the Michigan

Virtual University, and make the results from these reviews

available to the public as part of the statewide catalog. The

Michigan Virtual Learning Research Institute shall ensure that the

statewide catalog is made available to the public on the Michigan

Virtual University website and shall allow the ability to link it

to each district's website as provided for in section 21f. The

statewide catalog ~~shall~~ must also contain all of the following:

(A) The number of enrollments in each virtual course in the

immediately preceding school year.

(B) The number of enrollments that earned 60% or more of the

total course points for each virtual course in the immediately

preceding school year.

(xi) Support registration, payment services, and transcript

functionality for the statewide catalog and train key stakeholders

on how to use new features.

(xii) Collaborate with key stakeholders to examine district

level accountability and teacher effectiveness issues related to

virtual learning under section 21f and make findings and

recommendations publicly available.

(xiii) Provide a report on the activities of the Michigan

Virtual Learning Research Institute.

(3) To further enhance its expertise and leadership in virtual

learning, the Michigan Virtual University shall continue to operate

the Michigan Virtual School as a statewide laboratory and quality

model of instruction by implementing virtual and blended learning

solutions for Michigan schools in accordance with the following

parameters:

(a) The Michigan Virtual School must maintain its

accreditation status from recognized national and international

accrediting entities.

(b) The Michigan Virtual University shall use no more than

$1,000,000.00 of the amount allocated under this section to

subsidize the cost paid by districts for virtual courses.

virtual courses as provided for in this section, the Michigan

Virtual School shall follow the requirements to request and assess,

and the department of state police shall provide, a criminal

history check and criminal records check under sections 1230 and

1230a of the revised school code, MCL 380.1230 and 380.1230a, in

the same manner as if the Michigan Virtual School were a school

district under those sections.

(4) From the funds allocated under subsection (1), the

Michigan Virtual University shall allocate up to $500,000.00 to

support the expansion of new online and blended educator

professional development programs.

(5) If the course offerings are included in the statewide

catalog of virtual courses under subsection (2)(b)(x), the Michigan

Virtual School operated by the Michigan Virtual University may

offer virtual course offerings, including, but not limited to, all

of the following:

(a) Information technology courses.

(b) College level equivalent courses, as defined in section

1471 of the revised school code, MCL 380.1471.

(d) Programs and services for at-risk pupils.

(e) High school equivalency test preparation courses for

adjudicated youth.

(f) Special interest courses.

(g) Professional development programs for teachers, school

administrators, other school employees, and school board members.

(6) If a home-schooled or nonpublic school student is a

resident of a district that subscribes to services provided by the

Michigan Virtual School, the student may use the services provided

by the Michigan Virtual School to the district without charge to

the student beyond what is charged to a district pupil using the

same services.

(7) Not later than December 1 of each fiscal year, the

Michigan Virtual University shall provide a report to the house and

senate appropriations subcommittees on state school aid, the state

budget director, the house and senate fiscal agencies, and the

department that includes at least all of the following information

related to the Michigan Virtual School for the preceding state

fiscal year:

(a) A list of the districts served by the Michigan Virtual

School.

(b) A list of virtual course titles available to districts.

information on registrations and completions by course.

(d) The overall course completion rate percentage.

(8) In addition to the information listed in subsection (7),

the report under subsection (7) ~~shall~~ must also include a plan to

serve at least 600 schools with courses from the Michigan Virtual

School or with content available through the internet-based

platform identified in subsection (2)(b)(ix).

(9) The governor may appoint an advisory group for the

Michigan Virtual Learning Research Institute established under

subsection (2). The members of the advisory group ~~shall~~ serve at

the pleasure of the governor and ~~shall serve~~ without compensation.

The purpose of the advisory group is to make recommendations to the

governor, the legislature, and the president and board of the

Michigan Virtual University that will accelerate innovation in this

state's education system in a manner that will prepare elementary

and secondary students to be career and college ready and that will

promote the goal of increasing the percentage of ~~citizens~~ residents

of this state with high-quality degrees and credentials to at least

60% by ~~2025.~~2030.

(10) Not later than November 1 of each year, the Michigan

Virtual University 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 detailed

budget for that fiscal year that includes a breakdown on its

projected costs to deliver virtual educational services to

districts and a summary of the anticipated fees to be paid by

districts for those services. Not later than March 1 each year, the

Michigan Virtual University 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 breakdown on

its actual costs to deliver virtual educational services to

districts and a summary of the actual fees paid by districts for

those services based on audited financial statements for the

immediately preceding fiscal year.

(11) As used in this section:

(a) "Blended learning" means a hybrid instructional delivery

model where pupils are provided content, instruction, and

assessment, in part at a supervised educational facility away from

home where the pupil and a teacher with a valid Michigan teaching

certificate are in the same physical location and in part through

internet-connected learning environments with some degree of pupil

control over time, location, and pace of instruction.

(b) "Cyber school" means a full-time instructional program of

virtual courses for pupils that may or may not require attendance

at a physical school location.

Senate Bill No. 146 as amended May 14, 2019

of generating a credit or a grade and that is provided in an

interactive learning environment in which the majority of the

curriculum is delivered using the internet and in which pupils are

separated from their instructor or teacher of record by time or

location, or both.

Sec. 99h. (1) From the state school aid fund appropriation in

section 11, there is allocated ~~an amount not to exceed~~

~~$3,000,000.00 for 2017-2018 and~~ an amount not to exceed

~~$4,500,000.00~~ <<$4,700,000.00>> for ~~2018-2019~~ 2019-2020

for competitive

grants to districts and intermediate districts, and from the

general fund appropriation in section 11, there is allocated an

amount not to exceed $300,000.00 ~~each fiscal year for 2017-2018 and~~

~~for 2018-2019~~ for 2019-2020 for competitive grants to nonpublic

schools that provide pupils in grades K to 12 with expanded

opportunities to improve mathematics, science, and technology

skills by participating in events hosted by a science and

technology development program known as FIRST (for inspiration and

recognition of science and technology) Robotics, including JR FIRST

Lego League, FIRST Lego League, FIRST Tech challenge, and FIRST

Robotics competition, or ~~, beginning in 2018-2019,~~ other

competitive robotics programs, including VEX and those hosted by

the Robotics Education and Competition (REC) Foundation. Programs

funded under this section are intended to increase the number of

pupils demonstrating proficiency in science and mathematics on the

state assessments and to increase the number of pupils who are

college- and career-ready upon high school graduation.

Notwithstanding section 17b, the department shall make grant

payments to districts, nonpublic schools, and intermediate

districts under this section ~~shall be paid~~ on a schedule determined

by the department. The department shall set maximum grant awards

for each different level of competition in a manner that both

maximizes the number of teams that will be able to receive funds

and expands the geographical distribution of teams.

(2) A district, nonpublic school, or intermediate district

applying for a grant under this section shall submit an application

in a form and manner determined by the department. To be eligible

for a grant, a district, nonpublic school, or intermediate district

shall demonstrate in its application that the district, nonpublic

school, or intermediate district has established a partnership for

the purposes of the robotics program with at least 1 sponsor,

business entity, higher education institution, or technical school,

shall submit a spending plan, and shall pay at least 25% of the

cost of the robotics program.

(3) The department shall distribute the grant funding under

this section for the following purposes:

(a) Grants to districts, nonpublic schools, or intermediate

districts to pay for stipends not to exceed $1,500.00 for 1 coach

per team.

(b) Grants to districts, nonpublic schools, or intermediate

districts for event registrations, materials, travel costs, and

other expenses associated with the preparation for and attendance

at robotics events and competitions. Each grant recipient shall

provide a local match from other private or local funds for the

funds received under this subdivision equal to at least 50% of the

costs of participating in an event.

districts for awards to teams that advance to the state and world

championship competitions. The department shall determine an equal

amount per team for those teams that advance to the state

championship and a second equal award amount to those teams that

advance to the world championship.

(4) A nonpublic school that receives a grant under this

section may use the funds for either robotics or Science Olympiad

programs.

(5) To be eligible to receive funds under this section, a

nonpublic school must be a nonpublic school registered with the

department and must meet all applicable state reporting

requirements for nonpublic schools.

~~(6) The funds allocated under this section for 2017-2018 are a~~

~~work project appropriation, and any unexpended funds for 2017-2018~~

~~are carried forward into 2018-2019. The purpose of the work project~~

~~is to continue support of FIRST Robotics and must not be used to~~

~~support other robotics competitions. The estimated completion date~~

~~of the work project is September 30, 2020.~~

Sec. 99s. (1) From the funds appropriated under section 11,

there is allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$7,634,300.00 from the state school aid fund appropriation and an

amount not to exceed $300,000.00 from the general fund

appropriation for Michigan science, technology, engineering, and

mathematics (MiSTEM) programs. In addition, from the federal funds

appropriated in section 11, there is allocated for ~~2018-2019~~ 2019-

2020 an amount estimated at ~~$3,500,000.00~~ $235,000.00 from DED-

OESE, title II, mathematics and science partnership grants. The

MiSTEM network may receive funds from private sources. If the

MiSTEM network receives funds from private sources, the MiSTEM

network shall expend those funds in alignment with the statewide

STEM strategy. Programs funded under this section are intended to

increase the number of pupils demonstrating proficiency in science

and mathematics on the state assessments and to increase the number

of pupils who are college- and career-ready upon high school

graduation. Notwithstanding section 17b, the department shall make

payments under this section ~~shall be paid~~ on a schedule determined

by the department.

(2) All of the following apply to the MiSTEM advisory council:

(a) The MiSTEM advisory council is created. The MiSTEM

advisory council shall provide to the governor, legislature,

department of talent and economic development, and department

recommendations designed to improve and promote innovation in STEM

education and to prepare students for careers in science,

technology, engineering, and mathematics.

(b) The MiSTEM advisory council created under subdivision (a)

~~shall consist~~ consists of the following members:

(i) The governor shall appoint 11 voting members who are

representative of business sectors that are important to Michigan's

economy and rely on a STEM-educated workforce, nonprofit

organizations and associations that promote STEM education, K-12

and postsecondary education entities involved in STEM-related

career education, or other sectors as considered appropriate by the

governor. Each of these members ~~shall serve~~ serves at the pleasure

of the governor and for a term determined by the governor.

(ii) The senate majority leader shall appoint 2 members of the

senate to serve as nonvoting, ex-officio members of the MiSTEM

advisory council, including 1 majority party member and 1 minority

party member.

(iii) The speaker of the house of representatives shall

appoint 2 members of the house of representatives to serve as

nonvoting, ex-officio members of the MiSTEM advisory council,

including 1 majority party member and 1 minority party member.

(iv) The governor shall appoint 1 state officer or employee to

serve as a nonvoting, ex-officio member of the MiSTEM advisory

council.

serves without compensation.

(d) The MiSTEM advisory council annually shall review and make

recommendations to the governor, the legislature, and the

department concerning changes to the statewide strategy adopted by

the council for delivering STEM education-related opportunities to

pupils. The MiSTEM advisory council shall use funds received under

this subsection to ensure that its members or their designees are

trained in the Change the Equation STEMworks rating system program

for the purpose of rating STEM programs.

(e) The MiSTEM advisory council shall make specific funding

recommendations for the funds allocated under subsection (3) by

December 15 of each fiscal year. Each specific funding

recommendation ~~shall~~ must be for a program approved by the MiSTEM

advisory council. To be eligible for MiSTEM advisory council

approval, a program must satisfy all of the following:

(i) Align with this state's academic standards.

(ii) Have STEMworks certification.

(iii) Provide project-based experiential learning, student

programming, or educator professional learning experiences.

(iv) Focus predominantly on classroom-based STEM experiences

or professional learning experiences.

(f) The MiSTEM advisory council shall approve programs that

represent all network regions and include a diverse array of

options for students and educators and at least 1 program in each

of the following areas:

(i) Robotics.

(ii) Computer science or coding.

(iii) Engineering or bioscience.

(g) The MiSTEM advisory council is encouraged to work with the

MiSTEM network to develop locally and regionally developed programs

and professional ~~development~~ learning experiences for the programs

on the list of approved programs.

(h) If the MiSTEM advisory council is unable to make specific

funding recommendations by December 15 of a fiscal year, the

department shall award and distribute the funds allocated under

subsection (3) on a competitive grant basis that at least follows

the statewide STEM strategy plan and rating system recommended by

the MiSTEM advisory council. Each grant must provide STEM

education-related opportunities for pupils.

(i) The MiSTEM advisory council shall work with the executive

director of the MiSTEM network to implement the statewide STEM

strategy adopted by the MiSTEM advisory council.

(3) From the state school aid fund money allocated under

subsection (1), there is allocated for ~~2018-2019~~ 2019-2020 an

amount not to exceed $3,050,000.00 for the purpose of funding

programs under this section for ~~2018-2019,~~ 2019-2020, as

recommended by the MiSTEM advisory council.

(4) From the school aid fund allocation under subsection (1),

there is allocated an amount not to exceed $3,834,300.00 for ~~2018-~~

~~2019~~ 2019-2020 to support the activities and programs of the MiSTEM

network regions. In addition, from the federal funds allocated

under subsection (1), there is allocated for ~~2018-2019~~ 2019-2020 an

amount estimated at ~~$3,500,000.00~~ $235,000.00 from DED-OESE, title

II, mathematics and science partnership grants, for the purposes of

this subsection. ~~Beginning in 2018-2019, the~~ From the money

allocated under this subsection, the department shall award the

fiscal agent for each MiSTEM network region ~~shall receive~~

$200,000.00 for the base operations of each region. The department

shall distribute the remaining funds ~~will be distributed~~ to each

fiscal agent in an equal amount per pupil, based on the number of K

to 12 pupils enrolled in districts within each region in the ~~prior~~

immediately preceding fiscal year.

(5) A MiSTEM network region shall do all of the following:

(a) Collaborate with the career and educational advisory

council that is located in the MiSTEM region to develop a regional

strategic plan for STEM education that creates a robust regional

STEM culture, that empowers STEM teachers, that integrates business

and education into the STEM network, and that ensures high-quality

STEM experiences for pupils. At a minimum, a regional STEM

strategic plan should do all of the following:

(i) Identify regional employer need for STEM.

(ii) Identify processes for regional employers and educators

to create guided pathways for STEM careers that include internships

or externships, apprenticeships, and other experiential engagements

for pupils.

(iii) Identify educator professional development

opportunities, including internships or externships and

apprenticeships, that integrate this state's science standards into

high-quality STEM experiences that engage pupils.

(b) Facilitate regional STEM events such as educator and

employer networking and STEM career fairs to raise STEM awareness.

MiSTEM network functions to further the mission of STEM in this

state in coordination with the MiSTEM advisory council and its

executive director.

(d) Facilitate application and implementation of state and

federal funds under this subsection and any other grants or funds

for the MiSTEM network region.

(e) Work with districts to provide STEM programming and

professional ~~development.~~learning.

(f) Coordinate recurring discussions and work with the career

and educational advisory council to ensure that feedback and best

practices are being shared, including funding, program,

professional learning opportunities, and regional strategic plans.

(6) From the school aid funds allocated under subsection (1),

the department shall distribute for ~~2018-2019~~ 2019-2020 an amount

not to exceed $750,000.00, in a form and manner determined by the

department, to those network regions able to provide curriculum and

professional development support to assist districts in

implementing the Michigan merit curriculum components for

mathematics and science.

(7) In order to receive state or federal funds under

subsection (4) or (6), or to receive funds from private sources as

authorized under subsection (1), a grant recipient ~~shall~~ must allow

access for the department or the department's designee to audit all

records related to the program for which it receives those funds.

The grant recipient shall reimburse the state for all disallowances

found in the audit.

(8) In order to receive state funds under subsection (4) or

(6), a grant recipient ~~shall~~ must provide at least a 10% local

match from local public or private resources for the funds received

under this subsection.

(9) Not later than July 1, 2019 and July 1 of each year

thereafter, a MiSTEM network region that receives funds under

subsection (4) shall report to the executive director of the MiSTEM

network in a form and manner prescribed by the executive director

on performance measures developed by the MiSTEM network regions and

approved by the executive director. The performance measures ~~shall~~

must be designed to ensure that the activities of the MiSTEM

network are improving student academic outcomes.

(10) Not more than 5% of a MiSTEM network region grant under

subsection (4) or (6) may be retained by a fiscal agent for serving

as the fiscal agent of a MiSTEM network region.

(11) From the general fund allocation under subsection (1),

there is allocated an amount not to exceed $300,000.00 to the

department of ~~technology, management, and budget~~ talent and

economic development to support the functions of the executive

director and executive assistant for the MiSTEM network, and for

administrative, training, and travel costs related to the MiSTEM

advisory council. The executive director and executive assistant

for the MiSTEM network shall do all of the following:

(a) Serve as a liaison among and between the department, the

department of ~~technology, management, and budget,~~ talent and

economic development, the MiSTEM advisory council, ~~the Michigan~~

~~mathematics and science centers network,~~ the governor's future

talent ~~investment board, the general education leadership network,~~

~~and~~ council, the MiSTEM regions, and any other relevant

organization or entity in a manner that creates a robust statewide

STEM culture, that empowers STEM teachers, that integrates business

and education into the STEM network, and that ensures high-quality

STEM experiences for pupils.

(b) Coordinate the implementation of a marketing campaign,

including, but not limited to, a website that includes dashboards

of outcomes, to build STEM awareness and communicate STEM needs and

opportunities to pupils, parents, educators, and the business

community.

to coordinate, award, and monitor MiSTEM state and federal grants

to the MiSTEM network regions and conduct reviews of grant

recipients, including, but not limited to, pupil experience and

feedback.

(d) Report to the governor, the legislature, the department,

and the MiSTEM advisory council annually on the activities and

performance of the MiSTEM network regions.

(e) Coordinate recurring discussions and work with regional

staff to ensure that a network or loop of feedback and best

practices are shared, including funding, programming, professional

learning opportunities, discussion of MiSTEM strategic vision, and

regional objectives.

(f) Coordinate major grant application efforts with the MiSTEM

advisory council to assist regional staff with grant applications

on a local level. The MiSTEM advisory council shall leverage

private and nonprofit relationships to coordinate and align private

funds in addition to funds appropriated under this section.

(g) Train state and regional staff in the STEMworks rating

system, in collaboration with the MiSTEM advisory council and the

department.

(h) ~~Collaborate with the MiSTEM network to hire~~ Hire MiSTEM

network region staff in collaboration with the network region

fiscal agent.

(12) As used in this section:

(a) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(b) "DED" means the United States Department of Education.

Secondary Education.

(d) "STEM" means science, technology, engineering, and

mathematics delivered in an integrated fashion using cross-

disciplinary learning experiences that can include language arts,

performing and fine arts, and career and technical education.

Sec. 99t. (1) From the general fund appropriation under

section 11, there is allocated an amount not to exceed

$1,500,000.00 for ~~2018-2019~~ 2019-2020 only to purchase statewide

access to an online algebra tool that meets all of the following:

(a) Provides students statewide with complete access to videos

aligned with state standards including study guides and workbooks

that are aligned with the videos.

(b) Provides students statewide with access to a personalized

online algebra learning tool including adaptive diagnostics.

assessments that emulate the state assessment with immediate

feedback and help solving problems.

(d) Provides students statewide with online access to algebra

help 24 hours a day and 7 days a week from study experts, teachers,

and peers on a moderated social networking platform.

(e) Provides an online algebra professional development

network for teachers.

(f) Is already provided under a statewide contract in at least

1 other state that has a population of at least 18,000,000 but not

more than 19,000,000 according to the most recent decennial census

and is offered in that state in partnership with a public

university.

(2) The department shall purchase the online algebra tool that

was chosen under this section in 2016-2017.

(3) A grantee receiving funding under this section shall

comply with the requirements of section 19b.

Sec. 99u. (1) From the general fund appropriation under

section 11, there is allocated for ~~2018-2019~~ 2019-2020 an amount

not to exceed $1,500,000.00 to purchase statewide access to an

online mathematics tool that meets all of the following:

(a) Provides students statewide with complete access to

mathematics support aligned with state standards through a program

that has all of the following elements:

(i) Student motivation.

(ii) Valid and reliable assessments.

(iii) Personalized learning pathways.

(iv) Highly qualified, live teachers available all day and all

year.

(v) Twenty-four-hour reporting.

(vi) Content built for rigorous mathematics.

(b) Has a record of improving student mathematics scores in at

least 5 other states.

(2) A grantee that receives funding under this section shall

comply with the requirements of section 19b.

(3) In addition to the funds allocated under subsection (1),

from the general fund appropriation in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$500,000.00 for a software-based solution designed to teach Spanish

language literacy to students in pre-kindergarten through first

grade. A program funded under this subsection ~~shall~~ must be a grant

to the eligible provider that promotes bilingualism and biliteracy,

and is based on research that shows how students who become

proficient readers in their first language have an easier time

making the transition to reading proficiency in a second language.

A provider of programming under subsection (1) is the eligible

provider of programming under this subsection.

(4) In addition to the funds allocated under subsection (1),

from the general fund money appropriated in section 11, there is

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$1,000,000.00 for a ~~pilot~~ program to provide explicit, targeted

literacy instruction within an individualized learning path that

continually adjusts to a pupil's needs. A program funded under this

subsection ~~shall~~ must be a grant to the eligible provider that

promotes literacy by teaching critical language and literacy

concepts such as reading and listening comprehension, basic

vocabulary, academic language, grammar, phonological awareness,

phonics, and fluency. A ~~pilot~~ program funded under this subsection

~~shall~~ must cover both the remainder of ~~2018-2019~~ 2019-2020 and also

the entire ~~2019-2020~~ 2020-2021 school year. A provider of

programming under subsection (1) is the eligible provider of

programming under this subsection.

(5) Notwithstanding section 17b, the department shall make

payments ~~made~~ under this section ~~shall be made~~ not later than March

1, 2019.

Sec. 99v. From the general fund appropriation in section 11,

there is allocated an amount not to exceed $25,000.00 for ~~2018-2019~~

2019-2020 only for a grant to be distributed by the department to a

provider that develops and scales effective innovations to support

educators, administrators, and policymakers in creating seamless

transitions throughout the K-14 system for all students, especially

the underserved. A grantee must have expertise in K-12 services,

online course programs, digital platform services, leadership

networks, and higher education, and work to develop a mathematics

pathways alignment. A grantee that receives a grant under this

section shall facilitate a 2-day math workshop with high school and

college faculty focused on sharing information about high-impact

practices, defining the problem or problems, and using data and

planning strategies to address those problems. In addition, the

grantee shall use funds to conduct 3 virtual check-ins during which

the working groups will report on progress and identify challenges

and questions, with the grantee providing guidance and resources as

appropriate.

Sec. 99x. (1) From the general fund money appropriated under

section 11, there is allocated for ~~2018-2019~~ 2019-2020 only an

amount not to exceed $300,000.00 for Teach for America to host a

summer training institute in the city of Detroit, recruit teachers

into a master teacher fellowship, and retain a committed alumni

community. A program funded under this section must provide

coaching and professional development, with the goal to produce

highly effective teachers that move pupils beyond their growth

benchmarks.

(2) Notwithstanding section 17b, the department shall make

payments made under this section ~~shall be made~~ not later than ~~March~~

1, November 15, 2019.

Sec. 99z. (1) From the general fund money appropriated under

section 11, there is allocated to the department an amount not to

exceed $300,000.00 for 2019-2020 only for funding a program that

provides teacher STEM professional development and workshops, and

enables high school students to incorporate innovation and

engineering into the design of a wide variety of complex vehicles.

To be eligible for funding under this section, a program must

provide an underwater innovative vehicle design challenge, an

autonomous innovative vehicle design challenge, a mini innovative

vehicle design challenge, and a full-scale innovative vehicle

design challenge.

(2) Notwithstanding section 17b, the department shall make

payments under this section not later than November 15, 2019.

Sec. 101. (1) To be eligible to receive state aid under this

article, not later than the fifth Wednesday after the pupil

membership count day and not later than the fifth Wednesday after

the supplemental count day, each district superintendent shall

submit and certify to the center and the intermediate

superintendent, in the form and manner prescribed by the center,

the number of pupils enrolled and in regular daily attendance in

the district as of the pupil membership count day and as of the

supplemental count day, as applicable, for the current school year.

In addition, a district maintaining school during the entire year ,

~~as provided under section 1561 of the revised school code, MCL~~

~~380.1561,~~ shall submit and certify to the center and the

intermediate superintendent, in the form and manner prescribed by

the center, the number of pupils enrolled and in regular daily

attendance in the district for the current school year pursuant to

rules promulgated by the superintendent. Not later than the sixth

Wednesday after the pupil membership count day and not later than

the sixth Wednesday after the supplemental count day, the district

shall ~~certify~~ resolve any pupil membership conflicts with another

district, correct any data issues, and recertify the data in a form

and manner prescribed by the center and file the certified data

with the intermediate superintendent. If a district fails to submit

and certify the attendance data, as required under this subsection,

the center shall notify the department and the department shall

withhold state aid due to be distributed under this article ~~shall~~

~~be withheld~~ from the defaulting district immediately, beginning

with the next payment after the failure and continuing with each

payment until the district complies with this subsection. If a

district does not comply with this subsection by the end of the

fiscal year, the district forfeits the amount withheld. A person

who willfully falsifies a figure or statement in the certified and

sworn copy of enrollment ~~shall be punished in the manner~~ is subject

to penalty as prescribed by section 161.

(2) To be eligible to receive state aid under this article,

not later than the twenty-fourth Wednesday after the pupil

membership count day and not later than the twenty-fourth Wednesday

after the supplemental count day, an intermediate district shall

submit to the center, in a form and manner prescribed by the

center, the audited enrollment and attendance data for the pupils

of its constituent districts and of the intermediate district. If

an intermediate district fails to submit the audited data as

required under this subsection, the department shall withhold state

aid due to be distributed under this article ~~shall be withheld~~ from

the defaulting intermediate district immediately, beginning with

the next payment after the failure and continuing with each payment

until the intermediate district complies with this subsection. If

an intermediate district does not comply with this subsection by

the end of the fiscal year, the intermediate district forfeits the

amount withheld.

(3) Except as otherwise provided in subsections (11) and (12),

all of the following apply to the provision of pupil instruction:

(a) Except as otherwise provided in this section, each

district shall provide at least 1,098 hours and ~~, beginning in~~

~~2010-2011, the required minimum number of~~ 180 days of pupil

instruction. ~~Beginning in 2014-2015, the required minimum number of~~

~~days of pupil instruction is 175. However, all of the following~~

~~apply to these requirements:~~

(i~~) If a collective bargaining agreement that provides a~~

~~complete school calendar was in effect for employees of a district~~

~~as of July 1, 2013, and if that school calendar is not in~~

~~compliance with this subsection, then this subsection does not~~

~~apply to that district until after the expiration of that~~

~~collective bargaining agreement. If a district entered into a~~

~~collective bargaining agreement on or after July 1, 2013 and if~~

~~that collective bargaining agreement did not provide for at least~~

~~175 days of pupil instruction beginning in 2014-2015, then the~~

~~department shall withhold from the district's total state school~~

~~aid an amount equal to 5% of the funding the district receives in~~

~~2014-2015 under sections 22a and 22b.~~

(ii~~) A district may apply for a waiver under subsection (9)~~

~~from the requirements of this subdivision.~~

~~(b) Beginning in 2016-2017, the required minimum number of~~

~~days of pupil instruction is 180.~~ If a collective bargaining

agreement that provides a complete school calendar was in effect

for employees of a district as of ~~the effective date of the~~

~~amendatory act that added this subdivision,~~ June 24, 2014, and if

that school calendar is not in compliance with this subdivision,

then this subdivision does not apply to that district until after

the expiration of that collective bargaining agreement. A district

may apply for a waiver under subsection (9) from the requirements

of this subdivision.

(b) ~~(c)~~ Except as otherwise provided in this article, a

district failing to comply with the required minimum hours and days

of pupil instruction under this subsection ~~shall forfeit~~ forfeits

from its total state aid allocation an amount determined by

applying a ratio of the number of hours or days the district was in

noncompliance in relation to the required minimum number of hours

and days under this subsection. Not later than August 1, the board

of each district shall either certify to the department that the

district was in full compliance with this section regarding the

number of hours and days of pupil instruction in the previous

school year, or report to the department, in a form and manner

prescribed by the center, each instance of noncompliance. If the

district did not provide at least the required minimum number of

hours and days of pupil instruction under this subsection, the

department shall make the deduction of state aid ~~shall be made~~ in

the following fiscal year from the first payment of state school

aid. A district is not subject to forfeiture of funds under this

subsection for a fiscal year in which a forfeiture was already

imposed under subsection (6).

conferences ~~shall not be~~ are not counted as hours or days of pupil

instruction.

~~(e) If a collective bargaining agreement that provides a~~

~~complete school calendar is in effect for employees of a district~~

~~as of October 19, 2009, and if that school calendar is not in~~

~~compliance with this subsection, then this subsection does not~~

~~apply to that district until after the expiration of that~~

~~collective bargaining agreement.~~

(d) ~~(f)~~ Except as otherwise provided in subdivisions ~~(g) and~~

~~(h),~~ (e) and (f), if a district ~~not having~~ does not have at least

75% of the district's membership in attendance on any day of pupil

instruction, ~~shall receive~~ the department shall pay the district

state aid in that proportion of 1/180 that the actual percent of

attendance bears to ~~the specified percentage.~~75%.

(e) ~~(g)~~ If a district adds 1 or more days of pupil instruction

to the end of its instructional calendar for a school year to

comply with subdivision (a) because the district otherwise would

fail to provide the required minimum number of days of pupil

instruction even after the operation of subsection (4) due to

conditions not within the control of school authorities, then

subdivision ~~(f)~~ (d) does not apply for any day of pupil instruction

that is added to the end of the instructional calendar. Instead,

for any of those days, if the district does not have at least 60%

of the district's membership in attendance on that day, the

department shall pay the district ~~shall receive~~ state aid in that

proportion of 1/180 that the actual percentage of attendance bears

to ~~the specified percentage.~~ 60%. For any day of pupil instruction

added to the instructional calendar as described in this

subdivision, the district shall report to the department the

percentage of the district's membership that is in attendance, in

the form and manner prescribed by the department.

(f) ~~(h)~~ At the request of a district that operates a

department-approved alternative education program and that does not

provide instruction for pupils in all of grades K to 12, the

superintendent shall grant a waiver from the requirements of

subdivision ~~(f).~~ (d). The waiver ~~shall indicate~~ must provide that

an eligible district is subject to the proration provisions of

subdivision ~~(f)~~ (d) only if the district does not have at least 50%

of the district's membership in attendance on any day of pupil

instruction. In order to be eligible for this waiver, a district

must maintain records to substantiate its compliance with the

following requirements:

(i) The district offers the minimum hours of pupil instruction

as required under this section.

(ii) For each enrolled pupil, the district uses appropriate

academic assessments to develop an individual education plan that

leads to a high school diploma.

(iii) The district tests each pupil to determine academic

progress at regular intervals and records the results of those

tests in that pupil's individual education plan.

(g) ~~(i)~~ All of the following apply to a waiver granted under

subdivision ~~(h):~~(f):

(i) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(ii) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil

participates in the educational program for at least 1,098 hours

during a school year, a waiver that is granted for the 2011-2012

fiscal year or a subsequent fiscal year remains in effect unless it

is revoked by the superintendent.

(iii) A waiver that is not a waiver described in subparagraph

(i) or (ii) is valid for 1 fiscal year and must be renewed annually

to remain in effect.

(h) ~~(j)~~ The superintendent shall promulgate rules for the

implementation of this subsection.

(4) Except as otherwise provided in this subsection, the first

6 days or the equivalent number of hours for which pupil

instruction is not provided because of conditions not within the

control of school authorities, such as severe storms, fires,

epidemics, utility power unavailability, water or sewer failure, or

health conditions as defined by the city, county, or state health

authorities, ~~shall be~~ are counted as hours and days of pupil

instruction. With the approval of the superintendent of public

instruction, the department shall count as hours and days of pupil

instruction for a fiscal year not more than 3 additional days or

the equivalent number of additional hours for which pupil

instruction is not provided in a district due to unusual and

extenuating occurrences resulting from conditions not within the

control of school authorities such as those conditions described in

this subsection. Subsequent such hours or days ~~shall not be~~ are not

counted as hours or days of pupil instruction.

(5) A district ~~shall~~ does not forfeit part of its state aid

appropriation because it adopts or has in existence an alternative

scheduling program for pupils in kindergarten if the program

provides at least the number of hours required under subsection (3)

for a full-time equated membership for a pupil in kindergarten as

provided under section 6(4).

(6) In addition to any other penalty or forfeiture under this

section, if at any time the department determines that 1 or more of

the following have occurred in a district, the district ~~shall~~

~~forfeit~~ forfeits in the current fiscal year beginning in the next

payment to be calculated by the department a proportion of the

funds due to the district under this article that is equal to the

proportion below the required minimum number of hours and days of

pupil instruction under subsection (3), as specified in the

following:

(a) The district fails to operate its schools for at least the

required minimum number of hours and days of pupil instruction

under subsection (3) in a school year, including hours and days

counted under subsection (4).

(b) The board of the district takes formal action not to

operate its schools for at least the required minimum number of

hours and days of pupil instruction under subsection (3) in a

school year, including hours and days counted under subsection (4).

(7) In providing the minimum number of hours and days of pupil

instruction required under subsection (3), a district shall use the

following guidelines, and a district shall maintain records to

substantiate its compliance with the following guidelines:

(a) Except as otherwise provided in this subsection, a pupil

must be scheduled for at least the required minimum number of hours

of instruction, excluding study halls, or at least the sum of 90

hours plus the required minimum number of hours of instruction,

including up to 2 study halls.

(b) The time a pupil is assigned to any tutorial activity in a

block schedule may be considered instructional time, unless that

time is determined in an audit to be a study hall period.

in grades 9 to 12 for whom a reduced schedule is determined to be

in the individual pupil's best educational interest must be

scheduled for a number of hours equal to at least 80% of the

required minimum number of hours of pupil instruction to be

considered a full-time equivalent pupil. A pupil in grades 9 to 12

who is scheduled in a 4-block schedule may receive a reduced

schedule under this subsection if the pupil is scheduled for a

number of hours equal to at least 75% of the required minimum

number of hours of pupil instruction to be considered a full-time

equivalent pupil.

(d) If a pupil in grades 9 to 12 who is enrolled in a

cooperative education program or a special education pupil cannot

receive the required minimum number of hours of pupil instruction

solely because of travel time between instructional sites during

the school day, that travel time, up to a maximum of 3 hours per

school week, ~~shall be~~ is considered to be pupil instruction time

for the purpose of determining whether the pupil is receiving the

required minimum number of hours of pupil instruction. However, if

a district demonstrates to the satisfaction of the department that

the travel time limitation under this subdivision would create

undue costs or hardship to the district, the department may

consider more travel time to be pupil instruction time for this

purpose.

(e) In grades 7 through 12, instructional time that is part of

a ~~junior reserve officer training corps~~ Junior Reserve Officer

Training Corps (JROTC) program ~~shall be~~ is considered to be pupil

instruction time regardless of whether the instructor is a

certificated teacher if all of the following are met:

(i) The instructor has met all of the requirements established

by the United States Department of Defense and the applicable

branch of the armed services for serving as an instructor in the

~~junior reserve officer training corps~~ Junior Reserve Officer

Training Corps program.

(ii) The board of the district or intermediate district

employing or assigning the instructor complies with the

requirements of sections 1230 and 1230a of the revised school code,

MCL 380.1230 and 380.1230a, with respect to the instructor to the

same extent as if employing the instructor as a regular classroom

teacher.

(8) Except as otherwise provided in subsections (11) and (12),

the department shall apply the guidelines under subsection (7) in

calculating the full-time equivalency of pupils.

(9) Upon application by the district for a particular fiscal

year, the superintendent shall waive for a district the minimum

number of hours and days of pupil instruction requirement of

subsection (3) for a department-approved alternative education

program or another innovative program approved by the department,

including a 4-day school week. If a district applies for and

receives a waiver under this subsection and complies with the terms

of the waiver, the district is not subject to forfeiture under this

section for the specific program covered by the waiver. If the

district does not comply with the terms of the waiver, the amount

of the forfeiture ~~shall be~~ is calculated based upon a comparison of

the number of hours and days of pupil instruction actually provided

to the minimum number of hours and days of pupil instruction

required under subsection (3). ~~Pupils~~ A district shall report

pupils enrolled in a department-approved alternative education

program under this subsection ~~shall be reported~~ to the center in a

form and manner determined by the center. All of the following

apply to a waiver granted under this subsection:

(a) If the waiver is for a blended model of delivery, a waiver

that is granted for the 2011-2012 fiscal year or a subsequent

fiscal year remains in effect unless it is revoked by the

superintendent.

(b) If the waiver is for a 100% online model of delivery and

the educational program for which the waiver is granted makes

educational services available to pupils for a minimum of at least

1,098 hours during a school year and ensures that each pupil is on

track for course completion at proficiency level, a waiver that is

granted for the 2011-2012 fiscal year or a subsequent fiscal year

remains in effect unless it is revoked by the superintendent.

or (b) is valid for 1 fiscal year and must be renewed annually to

remain in effect.

~~(d) For 2018-2019 only, the department shall grant a waiver to~~

~~a district that applies for a waiver for a blended model of~~

~~delivery after the department's application deadline if the~~

~~district meets the other requirements for a waiver under this~~

~~subsection.~~

(10) ~~Until 2014-2015, a~~ A district may count up to 38 hours of

qualifying professional development for teachers as hours of pupil

instruction. ~~However, if a collective bargaining agreement that~~

~~provides for the counting of up to 38 hours of qualifying~~

~~professional development for teachers as pupil instruction is in~~

~~effect for employees of a district as of July 1, 2013, then until~~

~~the school year that begins after the expiration of that collective~~

~~bargaining agreement a district may count up to the contractually~~

~~specified number of hours of qualifying professional development~~

~~for teachers as hours of pupil instruction. Professional~~

~~development provided online is allowable and encouraged, as long as~~

~~the instruction has been approved by the district. The department~~

~~shall issue a list of approved online professional development~~

~~providers, which shall include the Michigan Virtual School. As used~~

~~in this subsection, "qualifying professional development" means~~

~~professional development that is focused on 1 or more of the~~

~~following:~~

~~(a) Achieving or improving adequate yearly progress as defined~~

~~under the no child left behind act of 2001, Public Law 107-110.~~

~~(b) Achieving accreditation or improving a school's~~

~~accreditation status under section 1280 of the revised school code,~~

~~MCL 380.1280.~~

~~(c) Achieving highly qualified teacher status as defined under~~

~~the no child left behind act of 2001, Public Law 107-110.~~

~~(d) Integrating technology into classroom instruction.~~

~~(e) Maintaining teacher certification.~~All of the following

apply to the counting of qualifying professional development as

pupil instruction under this subsection:

(a) If qualifying professional development exceeds 5 hours in

a single day, that day may be counted as a day of pupil

instruction.

(b) At least 8 hours of the qualifying professional

development counted as hours of pupil instruction under this

subsection must be recommended by a districtwide professional

development advisory committee appointed by the district board. The

advisory committee must be composed of teachers employed by the

district who represent a variety of grades and subject matter

specializations, including special education; nonteaching staff;

parents; and administrators. The majority membership of the

committee shall be composed of teaching staff.

encouraged, as long as the instruction has been approved by the

district. The department shall issue a list of approved online

professional development providers, which must include the Michigan

Virtual School.

(d) Qualifying professional development may only be counted as

hours of pupil instruction for the pupils of those teachers

scheduled to participate in the qualifying professional

development.

(e) For professional development to be considered qualifying

professional development under this subsection, the professional

development must meet all of the following:

(i) Is aligned to the school or district improvement plan for

the school or district in which the professional development is

being provided.

(ii) Is linked to 1 or more criteria in the evaluation tool

developed or adopted by the district or intermediate district under

section 1249 of the revised school code, MCL 380.1249.

(iii) Has been approved by the department as counting for

state continuing education clock hours. The number of hours of

professional development counted as hours of pupil instruction may

not exceed the number of state continuing education clock hours for

which the qualifying professional development was approved.

(iv) Takes place after the first scheduled day of school for

the school year ending in the fiscal year and before the last

scheduled day of school for that school year. No more than 10 hours

of qualifying professional development may be delivered in a single

month.

(v) At least 75% of teachers scheduled to participate in the

professional development are in attendance.

(11) Subsections (3) and (8) do not apply to a school of

excellence that is a cyber school, as defined in section 551 of the

revised school code, MCL 380.551, and is in compliance with section

553a of the revised school code, MCL 380.553a.

(12) Subsections (3) and (8) do not apply to eligible pupils

enrolled in a dropout recovery program that meets the requirements

of section 23a. As used in this subsection, "eligible pupil" means

that term as defined in section 23a.

(13) ~~Beginning in 2013, at~~ At least every 2 years the

superintendent shall review the waiver standards set forth in the

pupil accounting and auditing manuals to ensure that the waiver

standards and waiver process continue to be appropriate and

responsive to changing trends in online learning. The

superintendent shall solicit and consider input from stakeholders

as part of this review.

Sec. 102d. (1) From the funds appropriated in section 11,

there is allocated an amount not to exceed $1,500,000.00 for ~~2018-~~

~~2019~~ 2019-2020 for reimbursements to districts, intermediate

districts, and authorizing bodies of public school academies for

the licensing of school data analytical tools as described under

this section. The reimbursement is for districts, intermediate

districts, and authorizing bodies of public school academies that

choose to use a school data analytical tool to assist the district,

intermediate district, or authorizing body of a public school

academy and that enter into a licensing agreement for a school data

analytical tool with 1 of the vendors approved by the department of

technology, management, and budget under subsection (2). Funds

allocated under this section are intended to provide districts,

intermediate districts, and authorizing bodies of public school

academies with financial forecasting and transparency reporting

tools to help improve the financial health of districts and to

improve communication with the public.~~, resulting in increased fund~~

~~balances for districts and intermediate districts.~~

(2) A vendor approved under this section for ~~2017-2018~~ 2018-

2019 is approved for use by a district, intermediate district, or

authorizing body of a public school academy and for reimbursement

for ~~2018-2019.~~ 2019-2020.

(3) ~~Funds~~ The department shall pay funds allocated under this

section ~~shall be paid~~ to districts, intermediate districts, and

authorizing bodies of public school academies as a reimbursement

for already having a licensing agreement or for entering into a

licensing agreement not later than December 1, ~~2018~~ 2019 with a

vendor approved under subsection (2) to implement a school data

analytical tool. Reimbursement will be prorated for the portion of

Senate Bill No. 146 as amended May 14, 2019

the state fiscal year not covered by the licensing agreement.

However, a licensing agreement that takes effect after October 1,

~~2018~~ 2019 and before December 1, ~~2018~~ 2019 will not be prorated if

the term of the agreement is at least 1 year. Reimbursement under

this section ~~shall~~ must be made as follows:

(a) All districts, intermediate districts, and authorizing

bodies of public school academies seeking reimbursement shall

submit requests not later than December 1, ~~2018~~ 2019 indicating the

cost paid for the school data analytical tool.

(b) <<~~The~~EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION,

THE>> department shall determine the sum of the funding

requests under subdivision (a) and, if there are sufficient funds,

shall pay << >>1/2 of the costs submitted

under subdivision (a). <<HOWEVER, SUBJECT TO SUBDIVISION (D), FOR A

DISTRICT WITH FEWER THAN 1,000 PUPILS, THE DEPARTMENT SHALL PAY THE GREATER OF THE COSTS SUBMITTED UNDER SUBDIVISION (A) NOT TO EXCEED $1,000.00, OR, IF THE COSTS EXCEED $1,000.00, 1/2 OF THE COSTS SUBMITTED UNDER SUBDIVISION (A).>> If there are insufficient funds to pay<<

~~1/2 of the costs submitted under (a),~~>> the amounts as calculated

under this subdivision, then the department shall make

reimbursement ~~shall be made~~ on an equal percentage basis.

subdivision (b) ~~shall~~ must be distributed on an equal per-pupil

basis, with an intermediate district's pupils considered to be the

sum of the pupil memberships of the constituent districts for which

the intermediate district is purchasing the school data analytical

tool, and with an authorizing body's pupils considered to be the

sum of the pupil memberships of the public school academies

authorized by the authorizing body for which the authorizing body

is purchasing the school data analytical tool.

(d) The reimbursement to a district, intermediate district, or

authorizing body of a public school academy ~~shall~~ must not be

Senate Bill No. 146 as amended May 14, 2019

greater than the amount paid for a data analytics application.

(e) A Subject to subsection (4), the department shall not

reimburse a district, intermediate district, or authorizing body of

a public school academy ~~shall not be reimbursed~~ for the purchase of

more than 1 software application.

(4) If an intermediate district purchases both a school data

analytical tool specifically for intermediate district finances and

a school data analytical tool for those constituent districts that

opt in, the intermediate district ~~shall~~ may be reimbursed for both

purchases under this section.

(5) If an intermediate district makes available to 1 or more

of its constituent districts a school data analytical tool funded

under this section, the department shall not reimburse that

constituent district ~~shall not be reimbursed~~ under this section for

the purchase of that school data analytical tool if the constituent

district has opted in for that tool.<< THE DEPARTMENT SHALL NOT REIMBURSE

A CONSTITUENT DISTRICT FOR THE PURCHASE OF A SEPARATE SCHOOL DATA ANALYTICAL TOOL IF THAT CONSTITUENT DISTRICT IS LOCATED IN AN INTERMEDIATE DISTRICT THAT MAKES A SCHOOL DATA ANALYTICAL TOOL AVAILABLE FOR THAT CONSTITUENT DISTRICT AND THAT CONSTITUENT DISTRICT USES THAT ISD-OFFERED TOOL.>>

(6) If an authorizing body of a public school academy makes

available to 1 or more public school academies a school data

analytical tool funded under this section, the department shall not

reimburse the public school academy ~~shall not be reimbursed~~ under

this section for the purchase of a school data analytical tool if

the public school academy opted in for that tool.<< THE DEPARTMENT SHALL

NOT REIMBURSE A PUBLIC SCHOOL ACADEMY FOR THE PURCHASE OF A SEPARATE SCHOOL DATA ANALYTICAL TOOL IF ITS AUTHORIZING BODY MAKES A SCHOOL DATA ANALYTICAL TOOL AVAILABLE TO THAT PUBLIC SCHOOL ACADEMY AND THAT PUBLIC SCHOOL ACADEMY USES THE TOOL OFFERED BY ITS AUTHORIZER.>>

(7) Notwithstanding section 17b, the department shall make

payments under this section ~~shall be made~~ on a schedule determined

by the department.

Sec. 104. (1) In order to receive state aid under this

article, a district shall comply with sections 1249, 1278a, 1278b,

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2017-2018 an amount not to exceed $29,709,400.00~~

~~and there is allocated for 2018-2019~~ 2019-2020 an amount not to

exceed ~~$32,509,400.00~~ $31,009,400.00 for payments on behalf of

districts for costs associated with complying with those provisions

of law. In addition, from the federal funds appropriated in section

11, there is allocated ~~each fiscal year for 2017-2018 and for 2018-~~

~~2019~~ for 2019-2020 an amount estimated at $6,250,000.00, funded

from DED-OESE, title VI, state assessment funds, and from DED-

OSERS, section 504 of part B of the individuals with disabilities

education act, Public Law 94-142, plus any carryover federal funds

from previous year appropriations, for the purposes of complying

with the ~~federal no child left behind act of 2001, Public Law 107-~~

~~110, or the~~ every student succeeds act, Public Law 114-95.

(2) The results of each test administered as part of the

Michigan student test of educational progress (M-STEP), including

tests administered to high school students, ~~shall~~ must include an

item analysis that lists all items that are counted for individual

pupil scores and the percentage of pupils choosing each possible

response. The department shall work with the center to identify the

number of students enrolled at the time assessments are given by

each district. In calculating the percentage of pupils assessed for

a district's scorecard, the department shall use only the number of

pupils enrolled in the district at the time the district

administers the assessments and shall exclude pupils who enroll in

the district after the district administers the assessments.

(3) ~~All~~ The department shall distribute federal funds

allocated under this section ~~shall be distributed~~ in accordance

with federal law and with flexibility provisions outlined in Public

Law 107-116, and in the education flexibility partnership act of

1999, Public Law 106-25.

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

~~allocated an amount not to exceed $1,000,000.00 for 2017-2018 and~~

~~an amount not to exceed $1,500,000.00 for 2018-2019 to an~~

~~intermediate district described in this subsection to implement a~~

~~Michigan kindergarten entry observation tool in 2017�2018 and 2018-~~

~~2019. The funding under this subsection is allocated to an~~

~~intermediate district in prosperity region 9 with at least 3,000~~

~~kindergarten pupils enrolled in its constituent districts to~~

~~continue participation in the Maryland-Ohio pilot and cover the~~

~~costs of implementing the observation tool, including a contract~~

~~with a university for implementation of the observation tool also~~

~~referred to as the kindergarten readiness assessment. The~~

~~intermediate district shall continue implementation of the Michigan~~

~~kindergarten entry observation (MKEO) and the kindergarten~~

~~readiness assessment shall be conducted in all kindergarten~~

~~classrooms in districts located in prosperity regions 4, 5, and 9~~

~~beginning in August 2018 and, beginning August 1, 2019, in~~

~~districts located in prosperity regions 2, 3, 4, 5, 6, 7, 8, and 9.~~

~~A constituent district of an intermediate district located within~~

~~these prosperity regions shall administer the Maryland-Ohio tool~~

~~within each kindergarten classroom to either the full census of~~

~~kindergarten pupils or a representative sample of not less than 35%~~

~~of the enrolled kindergarten pupils in each classroom. The~~

~~intermediate district receiving the funding allocated under this~~

~~subsection shall work with other intermediate districts to~~

~~implement the Michigan kindergarten entry observation, engage with~~

~~the office of great start and the department, and provide a report~~

~~to the legislature on the demonstrated readiness of kindergarten~~

~~pupils within the participating intermediate districts. That~~

~~intermediate district may share this funding with the other~~

~~affected intermediate districts and districts. Allowable costs~~

~~under this subsection include those incurred in July, August, and~~

~~September 2017 as well as those incurred in 2017-2018. As used in~~

~~this subsection, "kindergarten" may include a classroom for young~~

~~5-year-olds, commonly referred to as "young 5s" or "developmental~~

~~kindergarten". The department shall approve the language and~~

~~literacy domain within the Maryland-Ohio tool, also referred to as~~

~~the "Kindergarten Readiness Assessment", for use by districts as an~~

~~initial assessment that may be delivered to all kindergarten~~

~~students to assist with identifying any possible area of concern~~

~~for a student in English language arts.~~From the funds allocated in

subsection (1), there is allocated an amount not to exceed

$2,500,000.00 to an intermediate district described in this

subsection for statewide implementation of the Michigan

kindergarten entry observation tool (MKEO) beginning in the fall of

2019, utilizing the Maryland-Ohio observational tool, also referred

to as the Kindergarten Readiness Assessment, as piloted under this

subsection in 2017-2018 and implemented in 2018-2019. The funding

in this subsection is allocated to an intermediate district in

prosperity region 9 with at least 3,000 kindergarten pupils

enrolled in its constituent districts. All of the following apply

to the implementation of the kindergarten entry observation tool

under this subsection:

(a) The department, in collaboration with all intermediate

districts and the center, shall ensure that the Michigan

kindergarten entry observation tool is administered in each

kindergarten classroom to either the full census of kindergarten

pupils enrolled in the classroom or to a representative sample of

not less than 35% of the total kindergarten pupils enrolled in each

classroom. If a district elects to administer the Michigan

kindergarten entry observation tool to a random sample of pupils

within each classroom, the intermediate district shall select the

pupils who will receive the assessment. Beginning in 2019-2020, the

observation tool must be administered no later than November 1 of

each year.

(b) The intermediate district that receives funding under this

subsection, in collaboration with all other intermediate districts,

shall implement a "train the trainer" professional development

model on the usage of the Michigan kindergarten entry observation

tool. This training model must provide training to intermediate

district staff so that they may provide similar training for staff

of their constituent districts. This training model must also

ensure that the tool produces reliable data and that there are a

sufficient number of trainers to train all kindergarten teachers

statewide.

intermediate district that receives funding under this subsection

shall report to the house and senate appropriations subcommittees

on school aid, the house and senate fiscal agencies, and the state

budget director on the results of the statewide implementation,

including, but not limited to, an evaluation of the demonstrated

readiness of kindergarten pupils statewide and the effectiveness of

other state and federal early childhood programs, including the

great start readiness program and head start. by September 1 each

year, the department and the center shall provide districts and

public school academies with enrollment data for pupils who were

enrolled in a publicly funded early childhood program in the year

before kindergarten, including the individual great start readiness

program, the individual head start program, the individual early

childhood special education program, or the individual program for

young 5-year-olds in which each tested child was enrolled.

Participating districts shall analyze the data to determine whether

high-performing children were enrolled in any specific early

childhood program and, if so, report that finding to the department

and to the intermediate district that receives funding under this

subsection.

(d) The department shall approve the language and literacy

domain within the Kindergarten Readiness Assessment for use by

districts as an initial assessment that may be delivered to all

kindergarten pupils to assist with identifying any possible area of

concern for a pupil in English language arts.

(e) As used in this subsection:

(i) "Kindergarten" includes a classroom for young 5-year-olds,

commonly referred to as "young 5s" or "developmental kindergarten".

(ii) "Representative sample" means a sample capable of

producing valid and reliable assessment information on all or major

subgroups of kindergarten pupils in a district.

~~(5) The department shall continue to make the kindergarten~~

~~entry assessment developed by the department and field tested in~~

~~2015-2016 available to districts in 2017-2018.~~

(5) ~~(6)~~ The department may recommend, but may not require,

districts to allow pupils to use an external keyboard with tablet

devices for online M-STEP testing, including, but not limited to,

open-ended test items such as constructed response or equation

builder items.

(6) ~~(7)~~ Notwithstanding section 17b, the department shall make

payments on behalf of districts, intermediate districts, and other

eligible entities under this section ~~shall be paid~~

on a schedule determined by the department.

(7) ~~(8)~~ From the allocation in subsection (1), there is

allocated ~~an amount not to exceed $3,200,000.00 for 2017-2018 and~~

an amount not to exceed $500,000.00 for ~~2018-2019~~ 2019-2020 for the

~~development or selection~~ operation of an online reporting tool to

provide student-level assessment data in a secure environment to

educators, parents, and pupils immediately after assessments are

scored. The department and the center shall ensure that any data

collected by the online reporting tool do not provide individually

identifiable student data to the federal government.

(8) ~~(9)~~ As used in this section:

(a) "DED" means the United States Department of Education.

(b) "DED-OESE" means the DED Office of Elementary and

Secondary Education.

Rehabilitative Services.

Sec. 104d. (1) From the state school aid fund money

appropriated in section 11, there is allocated for ~~2018-2019~~ 2019-

2020 an amount not to exceed $9,200,000.00 for providing

reimbursement to districts that purchase a computer-adaptive test,

or that purchase 1 or more diagnostic tools or screening tools for

pupils in grades K to 3 that are intended to increase reading

proficiency by grade 4, or that purchase benchmark assessments for

pupils in grades K to 8.

(2) In order to receive reimbursement under this section for

the purchase of a computer-adaptive test, the computer-adaptive

test must provide for at least all of the following:

(a) Internet-delivered, standards-based assessment using a

computer-adaptive model to target the instructional level of each

pupil.

(b) Unlimited testing opportunities throughout the 2018-2019

school year.

(d) Adjustment of testing difficulty based on previous answers

to test questions.

(e) Immediate feedback to pupils and teachers.

(3) In order to receive reimbursement under this section for

the purchase of 1 or more diagnostic tools or screening tools for

pupils in grades K to 3, each of the tools must meet all of the

following:

(a) Be reliable.

(b) Be valid.

that a tool is easy to administer and requires a short time to

complete and that results are linked to intervention.

(4) In order to receive funding under this section for the

purchase of benchmark assessments for pupils in grades K to 8, the

benchmark assessments must meet all of the following:

(a) Be aligned to the state standards of this state.

(b) Complement this state's summative assessment system.

administration of any summative assessment to monitor pupil

progress.

(d) Provide information on pupil achievement with regard to

learning the content required in a given year or grade span.

(5) ~~Reimbursement~~ The department shall make reimbursement

under this section ~~shall be made~~ to eligible districts that

purchase a computer-adaptive test or 1 or more diagnostic tools,

screening tools, or benchmark assessments described in this section

by October 15, ~~2018 and shall~~ 2019. The reimbursement must be made

on an equal per-pupil basis according to the available funding,

based on the number of pupils for whom assessments were purchased.

(6) In order to receive reimbursement under this section, a

district ~~shall~~ must demonstrate to the satisfaction of the

department that each qualifying computer-adaptive test, diagnostic

tool, screening tool, or benchmark assessment was purchased by the

district by December 1, ~~2018~~ 2019 and ~~shall~~ must report to the

department which tests, tools, and assessments the district

purchased.

(7) Not later than February 1, ~~2019,~~ 2020, the department

shall compile the data provided by districts under subsection (6)

and report to the house and senate appropriations subcommittees on

school aid and the house and senate fiscal agencies the number of

districts that purchased each test, tool, and assessment.

(8) ~~Districts~~ A district seeking reimbursement under this

section for a benchmark assessment shall commit to using the same

benchmark assessment for no less than 3 years without switching to

another benchmark assessment.

Sec. 107. (1) From the appropriation in section 11, there is

allocated an amount not to exceed $30,000,000.00 for ~~2018-2019~~

2019-2020 for adult education programs authorized under this

section. Except as otherwise provided under subsections (14) and

(15), funds allocated under this section are restricted for adult

education programs as authorized under this section only. A

recipient of funds under this section shall not use those funds for

any other purpose.

(2) To be eligible for funding under this section, an eligible

adult education provider shall employ certificated teachers and

qualified administrative staff and shall offer continuing education

opportunities for teachers to allow them to maintain certification.

(3) To be eligible to be a participant funded under this

section, an individual ~~shall~~ must be enrolled in an adult basic

education program, an adult secondary education program, an adult

English as a second language program, a high school equivalency

test preparation program, or a high school completion program, that

meets the requirements of this section, and for which instruction

is provided, and the individual ~~shall~~ must be at least 18 years of

age and the individual's graduating class ~~shall~~ must have

graduated.

(4) By April 1 of each fiscal year, the intermediate districts

within a prosperity region or subregion shall determine which

intermediate district will serve as the prosperity region's or

subregion's fiscal agent for the next fiscal year and shall notify

the department in a form and manner determined by the department.

The department shall approve or disapprove of the prosperity

region's or subregion's selected fiscal agent. From the funds

allocated under subsection (1), an amount as determined under this

subsection ~~shall be~~ is allocated to each intermediate district

serving as a fiscal agent for adult education programs in each of

the prosperity regions or subregions identified by the department.

An intermediate district shall not use more than 5% of the funds

allocated under this subsection for administration costs for

serving as the fiscal agent. ~~Beginning in 2014-2015, 67% of the~~

~~allocation provided to each intermediate district serving as a~~

~~fiscal agent shall be based on the proportion of total funding~~

~~formerly received by the adult education providers in that~~

~~prosperity region or subregion in 2013-2014, and 33% shall be~~

~~allocated based on the factors in subdivisions (a), (b), and (c).~~

~~For 2018-2019, 33% of the allocation provided to each intermediate~~

~~district serving as a fiscal agent shall be based upon the~~

~~proportion of total funding formerly received by the adult~~

~~education providers in that prosperity region in 2013-2014 and 67%~~

~~of the allocation shall be based upon the factors in subdivisions~~

~~(a), (b), and (c). However, if the allocation to an intermediate~~

~~district as calculated under the preceding sentence is less than~~

~~the amount received by the intermediate district under this~~

~~subsection for 2017-2018, the intermediate district shall instead~~

~~receive in 2018-2019 an amount equal to what the intermediate~~

~~district received in 2017-2018.~~ Beginning in 2019-2020, the

allocation provided to each intermediate district serving as a

fiscal agent ~~shall be~~ is an amount equal to what the intermediate

district received in 2018-2019. The funding factors for this

section are as follows:

(a) Sixty percent of this portion of the funding ~~shall be~~ is

distributed based upon the proportion of the state population of

individuals between the ages of 18 and 24 that are not high school

graduates that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American Community Survey (ACS) from the United States Census

Bureau.

(b) Thirty-five percent of this portion of the funding ~~shall~~

be is distributed based upon the proportion of the state population

of individuals age 25 or older who are not high school graduates

that resides in each of the prosperity regions or subregions, as

reported by the most recent 5-year estimates from the American

Community Survey (ACS) from the United States Census Bureau.

distributed based upon the proportion of the state population of

individuals age 18 or older who lack basic English language

proficiency that resides in each of the prosperity regions or

subregions, as reported by the most recent 5-year estimates from

the American Community Survey (ACS) from the United States Census

Bureau.

(5) To be an eligible fiscal agent, an intermediate district

must agree to do the following in a form and manner determined by

the department:

(a) Distribute funds to adult education programs in a

prosperity region or subregion as described in this section.

(b) Collaborate with the career and educational advisory

council, which is an advisory council of the workforce development

boards located in the prosperity region or subregion, or its

successor, to develop a regional strategy that aligns adult

education programs and services into an efficient and effective

delivery system for adult education learners, with special

consideration for providing contextualized learning and career

pathways and addressing barriers to education and employment.

council, which is an advisory council of the workforce development

boards located in the prosperity region or subregion, or its

successor, to create a local process and criteria that will

identify eligible adult education providers to receive funds

allocated under this section based on location, demand for

services, past performance, quality indicators as identified by the

department, and cost to provide instructional services. The fiscal

agent shall determine all local processes, criteria, and provider

determinations. However, the local processes, criteria, and

provider services must be approved by the department before funds

may be distributed to the fiscal agent.

(d) Provide oversight to its adult education providers

throughout the program year to ensure compliance with the

requirements of this section.

(e) Report adult education program and participant data and

information as prescribed by the department.

(6) An adult basic education program, an adult secondary

education program, or an adult English as a second language program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who are determined by a

department-approved assessment, in a form and manner prescribed by

the department, to be below twelfth grade level in reading or

mathematics, or both, or to lack basic English proficiency.

(b) The program tests individuals for eligibility under

subdivision (a) before enrollment and upon completion of the

program in compliance with the state-approved assessment policy.

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed at or above the ninth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having completed at least 450 hours of

instruction.

(d) A participant in an adult secondary education program is

eligible for reimbursement until 1 of the following occurs:

(i) The participant's reading and mathematics proficiency are

assessed above the twelfth grade level.

(ii) The participant fails to show progress on 2 successive

assessments after having at least 450 hours of instruction.

(e) A funding recipient enrolling a participant in an English

as a second language program is eligible for funding according to

subsection (9) until the participant meets 1 of the following:

(i) The participant is assessed as having attained basic

English proficiency as determined by a department-approved

assessment.

(ii) The participant fails to show progress on 2 successive

department-approved assessments after having completed at least 450

hours of instruction. The department shall provide information to a

funding recipient regarding appropriate assessment instruments for

this program.

(7) A high school equivalency test preparation program

operated on a year-round or school year basis may be funded under

this section, subject to all of the following:

(a) The program enrolls adults who do not have a high school

diploma or a high school equivalency certificate.

(b) The program ~~shall administer~~ administers a pre-test

approved by the department before enrolling an individual to

determine the individual's literacy levels, ~~shall administer~~

administers a high school equivalency practice test to determine

the individual's potential for success on the high school

equivalency test, and ~~shall administer~~ administers a post-test upon

completion of the program in compliance with the state-approved

assessment policy.

according to subsection (9) for a participant, and a participant

may be enrolled in the program until 1 of the following occurs:

(i) The participant achieves a high school equivalency

certificate.

(ii) The participant fails to show progress on 2 successive

department-approved assessments used to determine readiness to take

a high school equivalency test after having completed at least 450

hours of instruction.

(8) A high school completion program operated on a year-round

or school year basis may be funded under this section, subject to

all of the following:

(a) The program enrolls adults who do not have a high school

diploma.

(b) The program tests participants described in subdivision

(a) before enrollment and upon completion of the program in

compliance with the state-approved assessment policy.

according to subsection (9) for a participant in a course offered

under this subsection until 1 of the following occurs:

(i) The participant passes the course and earns a high school

diploma.

(ii) The participant fails to earn credit in 2 successive

semesters or terms in which the participant is enrolled after

having completed at least 900 hours of instruction.

(9) A The department shall make payments to a funding

recipient ~~shall receive payments~~ under this section in accordance

with all of the following:

(a) Statewide allocation criteria, including 3-year average

enrollments, census data, and local needs.

(b) Participant completion of the adult basic education

objectives by achieving an educational gain as determined by the

national reporting system levels; for achieving basic English

proficiency, as determined by the department; for achieving a high

school equivalency certificate or passage of 1 or more individual

high school equivalency tests; for attainment of a high school

diploma or passage of a course required for a participant to attain

a high school diploma; for enrollment in a postsecondary

institution, or for entry into or retention of employment, as

applicable.

the innovation and opportunity act.

(d) Allowable expenditures.

(10) A person who is not eligible to be a participant funded

under this section may receive adult education services upon the

payment of tuition. In addition, a person who is not eligible to be

served in a program under this section due to the program

limitations specified in subsection (6), (7), or (8) may continue

to receive adult education services in that program upon the

payment of tuition. The ~~tuition level shall be determined by the~~

local or intermediate district conducting the program shall

determine the tuition amount.

(11) An individual who is an inmate in a state correctional

facility ~~shall not be~~ is not counted as a participant under this

section.

(12) A funding recipient shall not commingle money received

under this section or from another source for adult education

purposes with any other funds and shall establish a separate ledger

account for funds received under this section. This subsection does

not prohibit a district from using general funds of the district to

support an adult education or community education program.

(13) A funding recipient receiving funds under this section

may establish a sliding scale of tuition rates based upon a

participant's family income. A funding recipient may charge a

participant tuition to receive adult education services under this

section from that sliding scale of tuition rates on a uniform

basis. The amount of tuition charged per participant ~~shall~~ must not

exceed the actual operating cost per participant minus any funds

received under this section per participant. A funding recipient

may not charge a participant tuition under this section if the

participant's income is at or below 200% of the federal poverty

guidelines published by the United States Department of Health and

Human Services.

(14) In order to receive funds under this section, a funding

recipient shall furnish to the department, in a form and manner

determined by the department, all information needed to administer

this program and meet federal reporting requirements; shall allow

the department or the department's designee to review all records

related to the program for which it receives funds; and shall

reimburse the state for all disallowances found in the review, as

determined by the department. In addition, a funding recipient

shall agree to pay to a career and technical education program

under section 61a the amount of funding received under this section

in the proportion of career and technical education coursework used

to satisfy adult basic education programming, as billed to the

funding recipient by programs operating under section 61a. In

addition to the funding allocated under subsection (1), there is

allocated for 2019-2020 an amount not to exceed $500,000.00 to

reimburse funding recipients for administrative and instructional

expenses associated with commingling programming under this section

and section 61a. ~~Payments made~~ The department shall make payments

under this subsection to each funding recipient ~~shall be~~ in the

same proportion as funding calculated and allocated under

subsection (4).

(15) From the amount appropriated in subsection (1), an amount

not to exceed $4,000,000.00 ~~shall be~~ is allocated for ~~2018-2019~~

2019-2020 for grants to adult education or career technical center

programs that connect adult education participants with employers

as provided under this subsection. The department shall determine

the amount of the grant to each program ~~shall be up to~~ under this

subsection, not to exceed $350,000.00. To be eligible for funding

under this subsection, a program must provide a collaboration

linking adult education programs within the county, the area career

technical center, and local employers. To receive funding under

this subsection, an eligible program ~~shall~~ must satisfy all of the

following:

(a) ~~Shall connect~~ Connect adult education participants who are

actively working toward earning a high school diploma or a high

school equivalency certificate directly with employers by linking

adult education, career and technical skills, and workforce

development.

(b) ~~Shall require~~ Require adult education staff to work with

Michigan Works! agency to identify a cohort of participants who are

most prepared to successfully enter the workforce. Participants

identified under this subsection ~~shall~~ must be dually enrolled in

adult education programming, actively working toward earning a high

school diploma or a high school equivalency certificate, and in at

least 1 technical course at the area career and technical center.

education navigator who will serve as a caseworker for each

participant identified under subdivision (b). The navigator shall

work with adult education staff and potential employers to design

an educational program best suited to the personal and employment

needs of the participant and shall work with human service agencies

or other entities to address any barrier in the way of participant

access.

(16) A program that was a pilot program in 2017-2018 and that

was funded under this section in 2017-2018 ~~shall be~~ is funded in

~~2018-2019~~ 2019-2020 unless the program ceases operation. The

intermediate district in which that pilot program was funded ~~shall~~

be is the fiscal agent for that program and shall apply for that

program's funding under subsection (15).

(17) Each program funded under subsection (15) will receive

funding for 3 years. After 3 years of operations and funding, a

program must reapply for funding.

(18) Not later than December 1, ~~2019,~~ 2020, a program funded

under subsection (15) shall provide a report to the senate and

house appropriations subcommittees on school aid, to the senate and

house fiscal agencies, and to the state budget director identifying

the number of participants, graduation rates, and a measure of

transition to employment.

(19) The department shall approve at least 3 high school

equivalency tests and determine whether a high school equivalency

certificate meets the requisite standards for high school

equivalency in this state.

(20) As used in this section:

(a) "Career and educational advisory council" means an

advisory council to the local workforce development boards located

in a prosperity region consisting of educational, employer, labor,

and parent representatives.

(b) "Career pathway" means a combination of rigorous and high-

quality education, training, and other services that comply with

all of the following:

(i) Aligns with the skill needs of industries in the economy

of this state or in the regional economy involved.

(ii) Prepares an individual to be successful in any of a full

range of secondary or postsecondary education options, including

apprenticeships registered under the act of August 16, 1937

(commonly known as the "national apprenticeship act"), 29 USC 50 et

seq.

(iii) Includes counseling to support an individual in

achieving the individual's education and career goals.

(iv) Includes, as appropriate, education offered concurrently

with and in the same context as workforce preparation activities

and training for a specific occupation or occupational cluster.

(v) Organizes education, training, and other services to meet

the particular needs of an individual in a manner that accelerates

the educational and career advancement of the individual to the

extent practicable.

(vi) Enables an individual to attain a secondary school

diploma or its recognized equivalent, and at least 1 recognized

postsecondary credential.

(vii) Helps an individual enter or advance within a specific

occupation or occupational cluster.

development.

(d) "Eligible adult education provider" means a district,

intermediate district, a consortium of districts, a consortium of

intermediate districts, or a consortium of districts and

intermediate districts that is identified as part of the local

process described in subsection (5)(c) and approved by the

department.

Sec. 147. (1) The allocation for ~~2018-2019~~ 2019-2020 for the

public school employees' retirement system pursuant to the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1437, ~~shall be~~ is made using the individual projected benefit

entry age normal cost method of valuation and risk assumptions

adopted by the public school employees retirement board and the

department of technology, management, and budget.

(2) The annual level percentage of payroll contribution rates

for the ~~2018-2019~~ 2019-2020 fiscal year, as determined by the

retirement system, are estimated as follows:

(a) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who are enrolled in

the health premium subsidy, the annual level percentage of payroll

contribution rate is estimated at ~~38.39%,~~ 39.91%, with ~~26.18%~~

27.50% paid directly by the employer.

(b) For public school employees who first worked for a public

school reporting unit on or after July 1, 2010 and who are enrolled

in the health premium subsidy, the annual level percentage of

payroll contribution rate is estimated at ~~36.60%,~~ 36.96%, with

~~24.39%~~ 24.55% paid directly by the employer.

school reporting unit on or after July 1, 2010 and who participate

in the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~36.24%,~~ 36.44%, with

24.03% paid directly by the employer.

(d) For public school employees who first worked for a public

school reporting unit on or after September 4, 2012, who elect

defined contribution, and who participate in the personal

healthcare fund, the annual level percentage of payroll

contribution rate is estimated at ~~33.17%,~~ 33.37% with 20.96% paid

directly by the employer.

(e) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who are enrolled in the health premium subsidy,

the annual level percentage of payroll contribution rate is

estimated at ~~33.53%,~~ 33.89% with ~~21.32%~~ 21.48% paid directly by the

employer.

(f) For public school employees who first worked for a public

school reporting unit before July 1, 2010, who elect defined

contribution, and who participate in the personal healthcare fund,

the annual level percentage of payroll contribution rate is

estimated at ~~33.17%,~~ 33.37%, with 20.96% paid directly by the

employer.

(g) For public school employees who first worked for a public

school reporting unit before July 1, 2010 and who participate in

the personal healthcare fund, the annual level percentage of

payroll contribution rate is estimated at ~~38.03%,~~ 39.39%, with

~~25.82%~~ 26.98% paid directly by the employer.

(h) For public school employees who first worked for a public

school reporting unit after January 31, 2018 and who elect to

become members of the MPSERS plan, the annual level percentage of

payroll contribution rate is estimated at ~~39.37%,~~ 39.57% with

27.16% paid directly by the employer.

(3) In addition to the employer payments described in

subsection (2), the employer shall pay the applicable contributions

to the Tier 2 plan, as determined by the public school employees

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

(4) The contribution rates in subsection (2) reflect an

amortization period of 20 19 years for ~~2018-2019.~~ 2019-2020. The

public school employees' retirement system board shall notify each

district and intermediate district by February 28 of each fiscal

year of the estimated contribution rate for the next fiscal year.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$100,000,000.00 for payments to participating districts. A

participating district that receives money under this subsection

shall use that money solely for the purpose of offsetting a portion

of the retirement contributions owed by the district for the fiscal

year in which it is received. The amount allocated to each

participating district under this subsection ~~shall be~~ is based on

each participating district's percentage of the total statewide

payroll for all participating districts for the immediately

preceding fiscal year. As used in this subsection, "participating

district" means a district 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.

(2) In addition to the allocation under subsection (1), from

the state school aid fund money appropriated under section 11,

there is allocated an amount not to exceed ~~$88,091,000.00 for 2018-~~

~~2019~~ $171,986,000.00 for 2019-2020 for payments to participating

districts and intermediate districts and from the general fund

money appropriated under section 11, there is allocated an amount

not to exceed ~~$48,000.00 for 2018-2019~~ $83,000.00 for 2019-2020 for

payments to participating district libraries. The amount allocated

to each participating entity under this subsection ~~shall be~~ is

based on each participating entity's percentage of the total

statewide payroll for that type of participating entity for the

immediately preceding fiscal year. A participating entity that

receives money under this subsection shall use that money solely

for the purpose of offsetting a portion of the normal cost

contribution rate. As used in this subsection:

(a) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

(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.

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

allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

~~$1,032,000,000.00~~ $1,030,400,000.00 from the state school aid 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 ~~2018-2019~~ 2019-

2020 an amount not to exceed ~~$700,000.00~~ $500,000.00 for payments

to district libraries that are participating entities of the

Michigan public school employees' retirement system. All of the

following apply to funding under this subsection:

(a) For ~~2018-2019,~~ 2019-2020, the amounts allocated under this

subsection are estimated to provide an average MPSERS rate cap per

pupil amount of ~~$690.00~~ $693.00 and are estimated to provide a rate

cap per pupil for districts ranging between $4.00 and

~~$3,000.00.~~$4,000.00.

(b) Payments made under this subsection ~~shall be~~ are 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.

this subsection ~~shall be~~ is 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 subsection

shall use the funds solely for the purpose of retirement

contributions as specified in subdivision (d).

(d) Each participating entity receiving funds under this

subsection shall forward an amount equal to the amount allocated

under subdivision (c) to the retirement system in a form, manner,

and time frame determined by the retirement system.

(e) Funds allocated under this subsection should be considered

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

1 fiscal year to the next.

(f) Not later than December 20, ~~2018,~~ 2019, the department

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

per pupil for each district.

(g) ~~It is the intent of the legislature that any~~ The office of

retirement service shall first apply funds allocated under this

subsection ~~are first applied~~ to pension contributions , and, if any

funds remain after that payment, shall apply those remaining funds

~~shall be applied~~ to other postemployment benefit contributions.

(h) As used in this subsection:

(i) "District library" means a district library established

under the district library establishment act, 1989 PA 24, MCL

397.171 to 397.196.

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

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

the district's pupils in membership.

(iii) "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.

(iv) "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.

(v) "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. 147e. (1) From the appropriation in section 11, there is

allocated for 2018-2019 an amount not to exceed ~~$31,900,000.00~~

$30,000,000.00 from the MPSERS retirement obligation reform reserve

fund, and there is allocated for 2019-2020 an amount not to exceed

$1,900,000.00 from the MPSERS retirement obligation reform reserve

fund and ~~$5,700,000.00~~ $40,671,000.00 from the state school aid

fund for payments to participating entities.

(2) The payment to each participating entity under this

section ~~shall be~~ is the sum of the amounts under this subsection as

follows:

(a) An amount equal to the contributions made by a

participating entity for the additional contribution made to a

qualified participant's Tier 2 account in an amount equal to the

contribution made by the qualified participant not to exceed 3% of

the qualified participant's compensation as provided for under

section 131(6) of the public school employees retirement act of

1979, 1980 PA 300, MCL 38.1431.

(b) Beginning October 1, 2017, an amount equal to the

contributions made by a participating entity for a qualified

participant who is only a Tier 2 qualified participant under

section 81d of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning

February 1, 2018, not to exceed 1%, of the qualified participant's

compensation.

contributions under section 41b(2) of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member

that was hired after February 1, 2018 and chose to participate in

Tier 1, compared to the employer normal cost contribution for a

member under section 41b(1) of the public school employees

retirement act of 1979, 1980 PA 300, MCL 38.1341b.

(3) As used in this section:

(a) "Member" means that term as defined under the public

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

to 38.1437.

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

district, or community college 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.

section 124 of the public school employees retirement act of 1979,

1980 PA 300, MCL 38.1424.

Sec. 152a. (1) As required by the court in the consolidated

cases known as Adair v State of Michigan, 486 Mich 468 (2010), from

the state school aid fund money appropriated in section 11, there

is allocated for ~~2018-2019~~ 2019-2020 an amount not to exceed

$38,000,500.00 to be used solely for the purpose of paying

necessary costs related to the state-mandated collection,

maintenance, and reporting of data to this state.

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

shall make payments to districts and intermediate districts in an

equal amount per-pupil based on the total number of pupils in

membership in each district and intermediate district. The

department shall not make any adjustment to these payments after

the final installment payment under section 17b is made.

Sec. 152b. (1) From the general fund money appropriated under

section 11, there is allocated ~~an amount not to exceed~~

~~$2,500,000.00 for 2017-2018 and~~ an amount not to exceed $250,000.00

each fiscal year for 2018-2019 and for 2019-2020 to reimburse

actual costs incurred by nonpublic schools in complying with a

health, safety, or welfare requirement mandated by a law or

administrative rule of this state.

(2) By January 1 of each applicable fiscal year, the

department shall publish a form for reporting actual costs incurred

by a nonpublic school in complying with a health, safety, or

welfare requirement mandated under state law containing each

health, safety, or welfare requirement mandated by a law or

administrative rule of this state applicable to a nonpublic school

and with a reference to each relevant provision of law or

administrative rule for the requirement. The department shall post

the form ~~shall be posted~~ on the department's website in electronic

form.

(3) By June 30 of each applicable fiscal year, a nonpublic

school seeking reimbursement for actual costs incurred in complying

with a health, safety, or welfare requirement under a law or

administrative rule of this state during each applicable school

year shall submit a completed form described in subsection (2) to

the department. This section does not require a nonpublic school to

submit a form described in subsection (2). A nonpublic school is

not eligible for reimbursement under this section if the nonpublic

school does not submit the form described in subsection (2) in a

timely manner.

(4) By August 15 of each applicable fiscal year, the

department shall distribute funds to each nonpublic school that

submits a completed form described under subsection (2) in a timely

manner. The superintendent shall determine the amount of funds to

be paid to each nonpublic school in an amount that does not exceed

the nonpublic school's actual costs in complying with a health,

safety, or welfare requirement under a law or administrative rule

of this state. The superintendent shall calculate a nonpublic

school's actual cost in accordance with this section.

(5) If the funds allocated under this section are insufficient

to fully fund payments as otherwise calculated under this section,

the department shall distribute funds under this section on a

prorated or other equitable basis as determined by the

superintendent.

(6) The department may review the records of a nonpublic

school submitting a form described in subsection (2) only for the

limited purpose of verifying the nonpublic school's compliance with

this section. If a nonpublic school does not allow the department

to review records under this subsection, the nonpublic school is

not eligible for reimbursement under this section.

(7) The funds appropriated under this section are for purposes

related to education, are considered to be incidental to the

operation of a nonpublic school, are noninstructional in character,

and are intended for the public purpose of ensuring the health,

safety, and welfare of the children in nonpublic schools and to

reimburse nonpublic schools for costs described in this section.

(8) Funds allocated under this section are not intended to aid

or maintain any nonpublic school, support the attendance of any

student at a nonpublic school, employ any person at a nonpublic

school, support the attendance of any student at any location where

instruction is offered to a nonpublic school student, or support

the employment of any person at any location where instruction is

offered to a nonpublic school student.

(9) For purposes of this section, "actual cost" means the

hourly wage for the employee or employees performing a task or

tasks required to comply with a health, safety, or welfare

requirement under a law or administrative rule of this state

identified by the department under subsection (2) and is to be

calculated in accordance with the form published by the department

under subsection (2), which shall include a detailed itemization of

costs. The nonpublic school shall not charge more than the hourly

wage of its lowest-paid employee capable of performing a specific

task regardless of whether that individual is available and

regardless of who actually performs a specific task. Labor costs

under this subsection ~~shall~~ must be estimated and charged in

increments of 15 minutes or more, with all partial time increments

rounded down. When calculating costs under subsection (4), fee

components ~~shall~~ must be itemized in a manner that expresses both

the hourly wage and the number of hours charged. The nonpublic

school may not charge any applicable labor charge amount to cover

or partially cover the cost of health or fringe benefits. A

nonpublic school shall not charge any overtime wages in the

calculation of labor costs.

(10) For the purposes of this section, the actual cost

incurred by a nonpublic school for taking daily student attendance

~~shall be~~ is considered an actual cost in complying with a health,

safety, or welfare requirement under a law or administrative rule

of this state. Training fees, inspection fees, and criminal

background check fees are considered actual costs in complying with

a health, safety, or welfare requirement under a law or

administrative rule of this state.

(11) The funds allocated under this section for 2017-2018 are

a work project appropriation, and any unexpended funds for 2017-

2018 are carried forward into 2018-2019. The purpose of the work

project is to continue to reimburse nonpublic schools for actual

costs incurred in complying with a health, safety, or welfare

requirement mandated by a law or administrative rule of this state.

The estimated completion date of the work project is September 30,

~~2020.~~2021.

(12) The funds allocated under this section for 2018-2019 are

a work project appropriation, and any unexpended funds for 2018-

2019 are carried forward into 2019-2020. The purpose of the work

project is to continue to reimburse nonpublic schools for actual

costs incurred in complying with a health, safety, or welfare

requirement mandated by a law or administrative rule of this state.

The estimated completion date of the work project is September 30,

~~2020.~~2021.

(13) The funds allocated under this section for 2019-2020 are

a work project appropriation, and any unexpended funds for 2019-

2020 are carried forward into 2020-2021. The purpose of the work

project is to continue to reimburse nonpublic schools for actual

costs incurred in complying with a health, safety, or welfare

requirement mandated by a law or administrative rule of this state.

The estimated completion date of the work project is September 30,

2021.

Enacting section 1. In accordance with section 30 of article

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

school aid under article I of the state school aid act of 1979,

1979 PA 94, MCL 388.1601 to 388.1772, as amended by 2018 PA 265,

2018 PA 586, and this amendatory act, from state sources for fiscal

year 2018-2019 is estimated at $13,048,345,300.00 and state

appropriations for school aid to be paid to local units of

government for fiscal year 2018-2019 are estimated at

$12,831,100,000.00. In accordance with section 30 of article IX of

the state constitution of 1963, total state spending on school aid

under article I of the state school aid act of 1979, 1979 PA 94,

MCL 388.1601 to 388.1772, as amended by this amendatory act, from

state sources for fiscal year 2019-2020 is estimated at

$13,490,579,400.00 and state appropriations for school aid to be

paid to local units of government for fiscal year 2019-2020 are

estimated at $13,261,779,600.00.

Enacting section 2. Sections 20m, 22n, 24c, 25h, 32q, 35b,

61g, 61h, 64b, 64d, 74a, 95b, 99w, 99y, 104f, 153, and 166 of the

state school aid act of 1979, 1979 PA 94, MCL 388.1620m, 388.1622n,

388.1624c, 388.1625h, 388.1632q, 388.1635b, 388.1661g, 388.1661h,

388.1664b, 388.1664d, 388.1674a, 388.1695b, 388.1699w, 388.1704f,

388.1753, and 388.1766, are repealed effective October 1, 2019.

Enacting section 3. (1) Except as otherwise provided in

subsection (2), this amendatory act takes effect October 1, 2019.

(2) Sections 11, 11m, 22a, 22b, 26a, 26c, 51a, 51c, 56, 62,

67a, 74a, 95a, 147e, and 152b of the state school aid act of 1979,

MCL 388.1611, 388.1611m, 388.1622a, 388.1622b, 388.1626a,

388.1626c, 388.1651a, 388.1651c, 388.1656, 388.1662, 388.1667a,

388.1674a, 388.1695a, 388.1747e, and 388.1652b, as amended by this

amendatory act, take effect upon enactment of this amendatory act.

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Bill Text: MI SB0146 | 2019-2020 | 100th Legislature | Engrossed

Michigan Senate Bill 146 (Prior Session Legislation)

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