Bill Text: MI SB0819 | 2015-2016 | 98th Legislature | Engrossed

Michigan Senate Bill 819 (Prior Session Legislation)

Bill Title: School aid; membership; per-pupil allocation for community districts; provide for. Amends secs. 3, 6, 20 & 31a of 1979 PA 94 (MCL 388.1603 et seq.). TIE BAR WITH: SB 0710'16

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2016-03-23 - Referred To Committee On Appropriations [SB0819 Detail]

Download: Michigan-2015-SB0819-Engrossed.html

SB-0819, As Passed Senate, March 22, 2016

SUBSTITUTE FOR

SENATE BILL NO. 819

A bill to amend 1979 PA 94, entitled

"The state school aid act of 1979,"

by amending sections 3, 6, 18, 20, 31a, and 166e (MCL 388.1603,

388.1606, 388.1618, 388.1620, 388.1631a, and 388.1766e), section 3

as amended by 2012 PA 201, section 6 as amended by 2015 PA 223,

section 18 as amended by 2015 PA 114, section 20 as amended by 2015

PA 85, section 31a as amended by 2015 PA 139, and section 166e as

amended by 2008 PA 268.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3. (1) "Achievement authority" means the education

achievement authority, the public body corporate and special

authority initially created under section 5 of article III and

section 28 of article VII of the state constitution of 1963 and the

urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

124.512, by an interlocal agreement effective August 11, 2011,

between the school district of the city of Detroit and the board of

regents of ~~eastern Michigan university,~~ Eastern Michigan

University, a state public university.

(2) "Achievement school" means a public school within the

education achievement system operated, managed, authorized,

established, or overseen by the achievement authority.

(3) "Average daily attendance", for the purposes of complying

with federal law, means 92% of the pupils counted in membership on

the pupil membership count day, as defined in section 6(7).

(4) "Board" means the governing body of a district or public

school academy.

(5) "Center" means the center for educational performance and

information created in section 94a.

(6) "Community district" means a school district organized

under part 5b of the revised school code.

(7) ~~(6)~~ "Cooperative education program" means a written

voluntary agreement between and among districts to provide certain

educational programs for pupils in certain groups of districts. The

written agreement shall be approved by all affected districts at

least annually and shall specify the educational programs to be

provided and the estimated number of pupils from each district who

will participate in the educational programs.

(8) ~~(7)~~ "Department", except in section 107, means the

department of education.

(9) ~~(8)~~ "District" means a local school district established

under the revised school code or, except in sections 6(4), 6(6),

13, 20, 22a, 31a, 51a(14), 105, 105c, and 166b, a public school

academy. Except in sections 6(4), 6(6), 6(8), 13, 20, 22a, 31a,

105, 105c, and 166b, district also includes the education

achievement system. Except in section 20, district also includes a

community district.

(10) ~~(9)~~ "District of residence", except as otherwise provided

in this subsection, means the district in which a pupil's custodial

parent or parents or legal guardian resides. For a pupil described

in section 24b, the pupil's district of residence is the district

in which the pupil enrolls under that section. For a pupil

described in section 6(4)(d), the pupil's district of residence

shall be considered to be the district or intermediate district in

which the pupil is counted in membership under that section. For a

pupil under court jurisdiction who is placed outside the district

in which the pupil's custodial parent or parents or legal guardian

resides, the pupil's district of residence shall be considered to

be the educating district or educating intermediate district.

(11) ~~(10)~~ "District superintendent" means the superintendent

of a district, the chief administrator of a public school academy,

or the chancellor of the achievement authority.

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 all constituent districts within an intermediate

district or shall serve 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 612 of part B 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, the

education achievement system, 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 adjusted as provided under section 25e for

pupils who enroll in the district, public school academy, or

intermediate district after the pupil membership count day. 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. For the purposes of

this section and section 6a, for 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, a pupil's participation in the cyber

school's educational program is considered regular daily

attendance; for the education achievement system, a pupil's

participation in an online educational program of the education

achievement system or of an achievement school is considered

regular daily attendance; and for a district a pupil's

participation in an online course as defined in section 21f is

considered regular daily attendance. 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, the education achievement system, or an

intermediate district:

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

pursuant to subsection (6), a pupil shall be 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 counted in membership in any

district.

district shall be 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 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 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 section 690 of the revised school

code, MCL 380.690, shall be counted only in the pupil's district of

residence.

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

counted in membership in the public school academy.

(h) A pupil enrolled in an achievement school shall be counted

in membership in the education achievement system.

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

operation after December 31, 1994, or for the education achievement

system or an achievement school, membership for the first 2 full or

partial fiscal years of operation shall be 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 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) In a district, a public school academy, the education

achievement system, or an intermediate district operating 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 counted.

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

minimum age requirement to be eligible to attend school under

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

enrolled under subsection (3) of that section, and shall 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 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 homeless pupils.

(B) Had dropped out of school for more than 1 year and has re-

entered school.

current school year.

(D) Is considered to be homeless under 42 USC 11302, or was

counted in membership under this subparagraph in 2014-2015.

(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 obtained a high school diploma shall

not be counted in membership. An individual who has obtained a

general educational development (G.E.D.) certificate shall not be

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 Michigan strategic fund, or

participating in any successor of either of those 2 programs, shall

not be counted in membership.

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

academy or the education achievement system is also educated by a

district or intermediate district as part of a cooperative

education program, the pupil shall be counted in membership only in

the public school academy or the education achievement system

unless a written agreement signed by all parties designates the

party or parties in which the pupil shall be counted in membership,

and the instructional time scheduled for the pupil in the district

or intermediate district shall be 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 or the education achievement system 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 or the education achievement

system provides instruction for at least 1/2 of the class hours

required under section 101, the public school academy or the

education achievement system shall receive 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 or the education achievement system 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 allocated to the district or intermediate

district providing the remainder of the hours of instruction.

(ii) If the public school academy or the education achievement

system 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

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 allocated to the public school

academy or the education achievement system.

(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 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 be consistent with section 101. In

determining full-time equated memberships for pupils who are

enrolled in a postsecondary institution, a pupil shall not be

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

of the effect of his or her postsecondary enrollment, 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 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 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, a public school academy, or the education

achievement system that has pupils enrolled in a grade level that

was not offered by the district, the public school academy, or the

education achievement system 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

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 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

or the education achievement system within 45 days after the pupil

membership count day, the department shall adjust the district's or

the education achievement system'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 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 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 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 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 excluded from

the district's immediately preceding supplemental count for the

purposes of determining the district's membership.

(bb) A district, a public school academy, or the education

achievement system 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 section 1148(2) of the revised

school code, MCL 380.1148, shall be counted in the educating

district or the education achievement system.

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

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

tenth day of the next 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 an online course under section

21f shall be 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 the education

achievement system in which a former pupil of the public school

academy enrolls and is in regular daily attendance for the next

school year to ensure that the district or the education

achievement system receives the same amount of membership aid for

the pupil as if the pupil were counted in the district or the

education achievement system on the supplemental count day of the

preceding school year.

(gg) A pupil enrolled in a community district shall be counted

in membership in the community district.

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

section 5 of the revised school code, MCL 380.5.

(6) "Pupil" means a person 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.

education achievement system.

(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.

However, 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 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 counted as 1.0 full-time

equated membership. In addition, a pupil who was enrolled and in

attendance in a district, an intermediate district, a public school

academy, or the education achievement system 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 only be counted as 1.0 full-time

equated membership if the pupil resumed attendance in the district,

intermediate district, public school academy, or education

achievement system within 45 days after the pupil membership count

day or supplemental count day of that particular year. Pupils not

counted as 1.0 full-time equated membership due to an absence from

a class shall be 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 or

legally qualified substitute teacher 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 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 and only until the end of the 2015-2016 fiscal

year, a district that had at least 40,000 pupils in membership for

the immediately preceding fiscal year. Beginning with the 2016-2017

fiscal year, those terms mean a first class school district as

described in section 402 of the revised school code, MCL 380.402.

(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 or, for an

achievement school, by the chancellor of the achievement authority

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 all of the provisions of this

article.

Sec. 18. (1) Except as provided in another section of this

article, each district or other entity shall apply the money

received by the district or entity under this article to salaries

and other compensation of teachers and other employees, tuition,

transportation, lighting, heating, ventilation, water service, the

purchase of textbooks, other supplies, and any other school

operating expenditures defined in section 7. However, not more than

20% of the total amount received by a district under sections 22a

and 22b or received by an intermediate district under section 81

may be transferred by the board to either the capital projects fund

or to the debt retirement fund for debt service. The money shall

not be applied or taken for a purpose other than as provided in

this section. The department shall determine the reasonableness of

expenditures and may withhold from a recipient of funds under this

article the apportionment otherwise due upon a violation by the

recipient.

(2) 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 pie charts:

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

following subcategories:

(A) Salaries and wages.

(B) Employee benefit costs, including, but not limited to,

medical, dental, vision, life, disability, and long-term care

benefits.

(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 benefits act, 2007 PA 106, MCL 124.75.

(v) The district's written policy governing procurement of

supplies, materials, and equipment.

(vi) The district's written policy establishing specific

categories of reimbursable expenses, as described in section

1254(2) of the revised school code, MCL 380.1254.

(vii) Either the district's accounts payable check register

for the most recent school fiscal year or a statement of the total

amount of expenses incurred by board members or employees of the

district that were reimbursed by the district for the most recent

school fiscal year.

(d) The total salary and a description and cost of each fringe

benefit included in the compensation package for the superintendent

of the district and for each employee of the district whose salary

exceeds $100,000.00.

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

(f) The annual amount spent on lobbying or lobbying services.

As used in this subdivision, "lobbying" means that term as defined

in section 5 of 1978 PA 472, MCL 4.415.

(g) Any deficit elimination plan or enhanced deficit

elimination plan the district was required to submit under 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 or a community district, by a

certified public accountant, the intermediate superintendent, or

the auditor general of the city in which it is located. 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 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 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 accounting manuals and charts of accounts approved

and published by the department. For an intermediate district, the

report shall also contain the website address where the department

can access the report required under section 620 of the revised

school code, MCL 380.620. The department shall ensure that the

prescribed Michigan public school accounting manual chart of

accounts includes standard conventions to distinguish expenditures

by allowable fund function and object. The functions shall include

at minimum categories for instruction, pupil support, instructional

staff support, general administration, school administration,

business administration, transportation, facilities operation and

maintenance, facilities acquisition, and debt service; and shall

include object classifications of salary, benefits, including

categories for active employee health expenditures, purchased

services, supplies, capital outlay, and other. Districts shall

report the required level of detail consistent with the manual as

part of the comprehensive annual financial report.

(6) By September 30 of each year, each district and

intermediate district shall file with the department the special

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

the manner prescribed by the department.

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

district shall file with the center the transportation expenditure

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

by the center.

(8) The department shall review its pupil accounting and pupil

auditing manuals at least annually and shall periodically update

those manuals to reflect changes in this article.

(9) If a district that is a public school academy purchases

property using money received under this article, the public school

academy shall retain ownership of the property unless the public

school academy sells the property at fair market value.

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

with subsections (4), (5), (6), and (7), the department shall

withhold all state school aid due to the district or intermediate

district under this article, beginning with the next payment due to

the district or intermediate district, until the district or

intermediate district complies with subsections (4), (5), (6), and

(7). If the district or intermediate district does not comply with

subsections (4), (5), (6), and (7) by the end of the fiscal year,

the district or intermediate district forfeits the amount withheld.

(11) 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) Not later than November 1, 2015, if a district or

intermediate district offers online learning under section 21f, the

district or intermediate district shall submit to the department a

report that details the per-pupil costs of operating the online

learning by vendor type. The report shall include at least all of

the following information concerning the operation of online

learning for the school fiscal year ending June 30, 2015:

(a) The name of the district operating the online learning and

of each district that enrolled students in the online learning.

(b) The total number of students enrolled in the online

learning and the total number of membership pupils enrolled in the

online learning.

the district offering online learning, the name of that district.

(d) The district in which the pupil was enrolled before

enrolling in the district offering online learning.

(e) The number of participating students who had previously

dropped out of school.

(f) The number of participating students who had previously

been expelled from school.

(g) The total cost to enroll a student in the program. This

cost shall be reported on a per-pupil, per-course, per-semester or

trimester basis by vendor type. The total shall include costs

broken down by cost for content development, content licensing,

training, online instruction and instructional support, personnel,

hardware and software, payment to each online learning provider,

and other costs associated with operating online learning.

(h) The name of each online education provider contracted by

the district and the state in which each online education provider

is headquartered.

(13) Not later than March 31, 2016, the department shall

submit to the house and senate appropriations subcommittees on

state school aid, the state budget director, and the house and

senate fiscal agencies a report summarizing the per-pupil costs by

vendor type of online courses available under section 21f.

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

the following:

(a) Online courses provided by the Michigan Virtual

University.

(b) Online courses provided by a school of excellence that is

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

code, MCL 380.551.

affiliated with a Michigan public school.

(d) Online 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.

Sec. 20. (1) For 2015-2016, both of the following apply:

(a) The basic foundation allowance is $8,169.00.

(b) The minimum foundation allowance is $7,391.00.

(2) The amount of each district's foundation allowance shall

be calculated as provided in this section, using a basic foundation

allowance in the amount specified in subsection (1).

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

of a district's foundation allowance shall be calculated as

follows, using in all calculations the total amount of the

district's foundation allowance as calculated before any proration:

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

district that had a foundation allowance for the immediately

preceding state fiscal year that was equal to the minimum

foundation allowance for the immediately preceding state fiscal

year, but less than the basic foundation allowance for the

immediately preceding state fiscal year, the district shall receive

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

district's foundation allowance for the immediately preceding state

fiscal year plus the difference between twice the dollar amount of

the adjustment from the immediately preceding state fiscal year to

the current state fiscal year made in the basic foundation

allowance and [(the difference between the basic foundation

allowance for the current state fiscal year and basic foundation

allowance for the immediately preceding state fiscal year minus

$23.00) times (the difference between the district's foundation

allowance for the immediately preceding state fiscal year and the

minimum foundation allowance for the immediately preceding state

fiscal year) divided by the difference between the basic foundation

allowance for the current state fiscal year and the minimum

foundation allowance for the immediately preceding state fiscal

year]. However, the foundation allowance for a district that had

less than the basic foundation allowance for the immediately

preceding state fiscal year shall not exceed the basic foundation

allowance for the current state fiscal year. For the purposes of

this subdivision, for 2015-2016, the minimum foundation allowance

for the immediately preceding state fiscal year shall be considered

to be $7,251.00.

(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

foundation allowance for the immediately preceding state fiscal

year, the district shall receive a foundation allowance for 2015-

2016 in an amount equal to the basic foundation allowance for 2015-

2016.

immediately preceding state fiscal year that was greater than the

basic foundation allowance for the immediately preceding state

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

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

immediately preceding state fiscal year plus the lesser of the

increase in the basic foundation allowance for the current state

fiscal year, as compared to the immediately preceding state fiscal

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

immediately preceding state fiscal year times the percentage

increase in the United States consumer price index in the calendar

year ending in the immediately preceding fiscal year as reported by

the May revenue estimating conference conducted under section 367b

of the management and budget act, 1984 PA 431, MCL 18.1367b.

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

a whole dollar amount, the district's foundation allowance shall be

rounded up to the nearest whole dollar.

(e) For a district that received a payment under section 22c

as that section was in effect for 2014-2015, the district's 2014-

2015 foundation allowance shall be considered to have been an

amount equal to the sum of the district's actual 2014-2015

foundation allowance as otherwise calculated under this section

plus the per-pupil amount of the district's equity payment for

2014-2015 under section 22c as that section was in effect for 2014-

2015.

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

portion of a district's foundation allowance is an amount equal to

the district's foundation allowance or the basic foundation

allowance for the current state fiscal year, whichever is less,

minus the local portion of the district's foundation allowance

divided by the district's membership excluding special education

pupils. For a district described in subsection (3)(c), the state

portion of the district's foundation allowance is an amount equal

to $6,962.00 plus the difference between the district's foundation

allowance for the current state fiscal year and the district's

foundation allowance for 1998-99, minus the local portion of the

district's foundation allowance divided by the district's

membership excluding special education pupils. For a district that

has a millage reduction required under section 31 of article IX of

the state constitution of 1963, the state portion of the district's

foundation allowance shall be calculated as if that reduction did

not occur. For a receiving district, if school operating taxes

continue to be levied on behalf of a dissolved district that has

been attached in whole or in part to the receiving district to

satisfy debt obligations of the dissolved district under section 12

of the revised school code, MCL 380.12, the taxable value per

membership pupil of property in the receiving district used for the

purposes of this subsection does not include the taxable value of

property within the geographic area of the dissolved district. 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 based on the foundation allowance of the pupil's district

of residence. For a pupil enrolled pursuant to section 105 or 105c

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

allocation calculated under this section shall be based on the

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

residence or the foundation allowance of the educating district.

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

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

district of residence, the allocation calculated under this section

shall be based on the foundation allowance of the educating

district if the educating district's foundation allowance is

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

residence.

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

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

public school academy, the allocation calculated under this section

is an amount per membership pupil other than special education

pupils in the public school academy equal to the foundation

allowance of the district in which the public school academy is

located or the state maximum public school academy allocation,

whichever is less. 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, a public school academy

that had an allocation under this subsection before 2009-2010 that

was equal to the sum of the local school operating revenue per

membership pupil other than special education pupils for the

district in which the public school academy is located and the

state portion of that district's foundation allowance shall not

have that allocation reduced as a result of the 2010 amendment to

this subsection. Notwithstanding section 101, for a public school

academy that begins operations after the pupil membership count

day, the amount per membership pupil calculated under this

subsection shall be adjusted by multiplying that amount per

membership pupil by the number of hours of pupil instruction

provided by the public school academy after it begins operations,

as determined by the department, divided by the minimum number of

hours of pupil instruction required under section 101(3). The

result of this calculation shall not exceed the amount per

membership pupil otherwise calculated under this subsection.

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

pupils attending an achievement school and in membership in the

education achievement system, other than special education pupils,

the allocation calculated under this section is an amount per

membership pupil other than special education pupils equal to the

foundation allowance of the district in which the achievement

school is located, not to exceed the basic foundation allowance.

Notwithstanding section 101, for an achievement school that begins

operation after the pupil membership count day, the amount per

membership pupil calculated under this subsection shall be adjusted

by multiplying that amount per membership pupil by the number of

hours of pupil instruction provided by the achievement school after

it begins operations, as determined by the department, divided by

the minimum number of hours of pupil instruction required under

section 101(3). The result of this calculation shall not exceed the

amount per membership pupil otherwise calculated under this

subsection. For the purposes of this subsection, if a public school

is transferred from a district to the state school reform/redesign

district or the achievement authority under section 1280c of the

revised school code, MCL 380.1280c, that public school is

considered to be an achievement school within the education

achievement system and not a school that is part of a district, and

a pupil attending that public school is considered to be in

membership in the education achievement system and not in

membership in the district that operated the school before the

transfer.

(8) 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.

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

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

more districts or by annexation, the resulting district's

foundation allowance under this section beginning after the

effective date of the consolidation or annexation shall be the

lesser of the sum of the average of the foundation allowances of

each of the original or affected districts, calculated as provided

in this section, weighted as to the percentage of pupils in total

membership in the resulting district who reside in the geographic

area of each of the original or affected districts plus $100.00 or

the highest foundation allowance among the original or affected

districts. This subsection does not apply to a receiving district

unless there is a subsequent consolidation or annexation that

affects the district.

(10) ~~(9)~~ Each fraction used in making calculations under this

section shall be rounded to the fourth decimal place and the dollar

amount of an increase in the basic foundation allowance shall be

rounded to the nearest whole dollar.

(11) ~~(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.

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

foundation allowance for the subsequent state fiscal year, each

revenue estimating conference conducted under section 367b of the

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

calculate a pupil membership factor, a revenue adjustment factor,

and an index as follows:

(a) The pupil membership factor shall be computed by dividing

the estimated membership in the school year ending in the current

state fiscal year, excluding intermediate district membership, by

the estimated membership for the school year ending in the

subsequent state fiscal year, excluding intermediate district

membership. If a consensus membership factor is not determined at

the revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

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

(b) The revenue adjustment factor shall be computed by

dividing the sum of the estimated total state school aid fund

revenue for the subsequent state fiscal year plus the estimated

total state school aid fund revenue for the current state fiscal

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

proceeds of which are deposited in that fund and excluding money

transferred into that fund from the countercyclical budget and

economic stabilization fund under the management and budget act,

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

total school aid fund revenue for the current state fiscal year

plus the estimated total state school aid fund revenue for the

immediately preceding state fiscal year, adjusted for any change in

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

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

revenue estimating conference, the principals of the revenue

estimating conference shall report their estimates to the house and

senate subcommittees responsible for school aid appropriations not

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

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.

(13) ~~(12)~~ Payments to districts, public school academies, or

the education achievement system shall not be made under this

section. Rather, the calculations under this section shall be used

to determine the amount of state payments under section 22b.

(14) ~~(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.

(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 foundation allowance for the

current state fiscal year and the basic foundation allowance for

the immediately preceding state fiscal year and [(the amount of the

difference between the basic foundation allowance for the current

state fiscal year and the basic foundation allowance for the

immediately preceding state fiscal year minus $23.00) times (the

difference between the highest per-pupil allocation among all

public school academies for the immediately preceding state fiscal

year and the minimum foundation allowance for the immediately

preceding state fiscal year) divided by the difference between the

basic foundation allowance for the current state fiscal year and

the minimum foundation allowance for the immediately preceding

state fiscal year]. For the purposes of this subdivision, for 2015-

2016, the maximum public school academy allocation is $7,391.00.

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

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

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

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

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

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

125.2871 to 125.2899.

(r) "Taxable value per membership pupil" means taxable value,

as certified by the county treasurer and reported to the

department, for the calendar year ending in the current state

fiscal year divided by the district's membership excluding special

education pupils for the school year ending in the current state

fiscal year.

Sec. 31a. (1) From the state school aid fund money

appropriated in section 11, there is allocated for 2015-2016 an

amount not to exceed $389,695,500.00 for payments to eligible

districts, eligible public school academies, and the education

achievement system for the purposes of ensuring that pupils are

proficient in reading by the end of grade 3 and that high school

graduates are career and college ready and for the purposes under

subsections (7) and (8).

(2) For a district or public school academy, or the education

achievement system, to be eligible to receive funding under this

section, other than funding under subsection (7) or (8), the sum of

the district's or public school academy's or the education

achievement system's combined state and local revenue per

membership pupil in the current state fiscal year, as calculated

under section 20, must be less than or equal to the basic

foundation allowance under section 20 for the current state fiscal

year.

(3) For a district or public school academy that operates

grades K to 3, or the education achievement system, to be eligible

to receive funding under this section, other than funding under

subsection (7) or (8), the district or public school academy, or

the education achievement system, must implement, for at least

grades K to 3, a multi-tiered system of supports 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. This multi-tiered system of supports must provide

at least all of the following essential elements:

(a) Implements effective instruction for all learners.

(b) Intervenes early.

intervention that provides the following:

(i) A core curriculum and classroom interventions available to

all pupils that meet the needs of most pupils.

(ii) Targeted group interventions.

(iii) Intense individual interventions.

(d) Monitors pupil progress to inform instruction.

(e) Uses data to make instructional decisions.

(f) Uses assessments including universal screening,

diagnostics, and progress monitoring.

(g) Engages families and the community.

(h) Implements evidence-based, scientifically validated,

instruction and intervention.

(i) Implements instruction and intervention practices with

fidelity.

(j) Uses a collaborative problem-solving model.

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

eligible district or eligible public school academy or the

education achievement system shall receive under this section for

each membership pupil in the district or public school academy or

the education achievement system who met the income eligibility

criteria for free breakfast, lunch, or milk, as determined under

the Richard B. Russell national school lunch act, 42 USC 1751 to

1769, and as reported to the department in the form and manner

prescribed by the department not later than the fifth Wednesday

after the pupil membership count day of the immediately preceding

fiscal year and adjusted not later than December 31 of the

immediately preceding fiscal year, an amount per pupil equal to

11.5% of the sum of the district's foundation allowance or the

public school academy's or the education achievement system's per

pupil amount calculated under section 20, not to exceed the basic

foundation allowance under section 20 for the current state fiscal

year, or of the public school academy's or the education

achievement system's per membership pupil amount calculated under

section 20 for the current state fiscal year. However, a public

school academy that began operations as a public school academy, a

district that is a community district and that first enrolled

pupils, or an achievement school that began operations as an

achievement school, after the pupil membership count day of the

immediately preceding school year shall receive under this section

for each membership pupil in the public school academy, in the

district that is a community district, or in the education

achievement system who met the income eligibility criteria for free

breakfast, lunch, or milk, as determined under the Richard B.

Russell national school lunch act and as reported to the department

not later than the fifth Wednesday after the pupil membership count

day of the current fiscal year and adjusted not later than December

31 of the current fiscal year, an amount per pupil equal to 11.5%

of the public school academy's, the district that is a community

district's, or the education achievement system's per membership

pupil amount calculated under section 20 for the current state

fiscal year.

(5) Except as otherwise provided in this section, a district

or public school academy, or the education achievement system,

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), (8), or (11). In

addition, a district that is a community district or school

district of the first class or a district or public school academy

in which at least 50% of the pupils in membership met the income

eligibility criteria for free breakfast, lunch, or milk in the

immediately preceding state fiscal year, as determined and reported

as described in subsection (4), or the education achievement system

if it meets this requirement, may use not more than 20% of the

funds it receives under this section for school security. A

district, the public school academy, or the education achievement

system 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.

(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, or

the education achievement system if it operates a school breakfast

program, 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 or the education achievement system 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 2015-2016 an amount not to exceed $3,557,300.00 to

support child and adolescent health centers. These grants shall be

awarded for 5 consecutive years beginning with 2003-2004 in a form

and manner approved jointly by the department and the department of

health and human services. Each grant recipient shall remain in

compliance with the terms of the grant award or shall forfeit the

grant award for the duration of the 5-year period after the

noncompliance. To continue to receive funding for a child and

adolescent health center under this section a grant recipient shall

ensure that the child and adolescent health center has an advisory

committee and that at least one-third of the members of the

advisory committee are parents or legal guardians of school-aged

children. A child and adolescent health center program shall

recognize the role of a child's parents or legal guardian in the

physical and emotional well-being of the child. Funding under this

subsection shall be used to support child and adolescent health

center services provided to children up to age 21. 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 be used that fiscal year to avoid or

minimize any proration that would otherwise be required under

subsection (12) for that fiscal year. In addition to the funds

otherwise allocated under this subsection, from the money allocated

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

$2,000,000.00 for 2015-2016 only for child and adolescent health

centers to increase access to nurses and behavioral health services

in schools, using 3 existing school clinics as hubs for services

and using mobile teams to serve satellite school sites.

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

allocated for 2015-2016 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 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 be awarded in a form and manner approved jointly by the

department and the department of health and human services.

Notwithstanding section 17b, 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 and the education achievement system 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 or the education achievement system of funds under

this section, which report shall include a brief description of

each program conducted or services performed by the district or

public school academy or the education achievement system 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. If a district or public

school academy or the education achievement system 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 or the education achievement system complies

with this subsection. If the district or public school academy or

the education achievement system does not comply with this

subsection by the end of the state fiscal year, the withheld funds

shall be forfeited to the school aid fund.

(10) In order to receive funds under this section, a district

or public school academy or the education achievement system 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 or the education

achievement system shall reimburse the state for all disallowances

found in the audit.

(11) Subject to subsections (6), (7), and (8), a district may

use up to 100% of the funds it receives under this section to

implement schoolwide reform in schools with 40% or more of their

pupils identified as at-risk pupils by providing supplemental

instructional or noninstructional services consistent with the

school improvement plan.

(12) If necessary, and before any proration required under

section 296, the department shall prorate payments under this

section by reducing the amount of the per pupil payment under this

section by a dollar amount calculated by determining the amount by

which the amount necessary to fully fund the requirements of this

section exceeds the maximum amount allocated under this section and

then dividing that amount by the total statewide number of pupils

who met the income eligibility criteria for free breakfast, lunch,

or milk in the immediately preceding fiscal year, as described in

subsection (4).

(13) If a district is formed by consolidation after June 1,

1995, and if 1 or more of the original districts were not eligible

before the consolidation for an additional allowance under this

section, the amount of the additional allowance under this section

for the consolidated district shall be based on the number of

pupils described in subsection (1) enrolled in the consolidated

district who reside in the territory of an original district that

was eligible before the consolidation for an additional allowance

under this section. In addition, 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

meet the income eligibility criteria for free breakfast, lunch, or

milk, as described under subsection (4), 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.

(14) As used in this section, "at-risk pupil" means a pupil

for whom the district has documentation that the pupil meets any of

the following criteria:

(a) Is a victim of child abuse or neglect.

(b) Is a pregnant teenager or teenage parent.

substance abuse.

(d) 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.

(e) Is a pupil who is at risk of not meeting the district's

core academic curricular objectives in English language arts or

mathematics, as demonstrated on local assessments.

(f) The pupil is enrolled in a priority or priority-successor

school, as defined in the elementary and secondary education act of

2001 flexibility waiver approved by the United States Department of

Education.

(g) In the absence of state or local assessment data, the

pupil meets at least 2 of the following criteria, as documented in

a form and manner approved by the department:

(i) The pupil is eligible for free or reduced price breakfast,

lunch, or milk.

(ii) The pupil is absent more than 10% of enrolled days or 10

school days during the school year.

(iii) The pupil is homeless.

(iv) The pupil is a migrant.

(v) The pupil is an English language learner.

(vi) The pupil is an immigrant who has immigrated within the

immediately preceding 3 years.

(vii) 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.

(15) Beginning in 2018-2019, if a district, public school

academy, or the education achievement system does not demonstrate

to the satisfaction of the department that at least 50% of at-risk

pupils are reading at grade level by the end of grade 3 as measured

by the state 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, public school academy, or

education achievement system shall ensure all of the following:

(a) The district, public school academy, or the education

achievement system shall determine the proportion of total at-risk

pupils that represents the number of pupils in grade 3 that are not

reading at grade level by the end of grade 3, and the district,

public school academy, or the education achievement system shall

expend that same proportion multiplied by 1/2 of its total at-risk

funds under this section on tutoring and other methods of improving

grade 3 reading levels.

(b) The district, public school academy, or the education

achievement system shall determine the proportion of total at-risk

pupils that represent the number of 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, public school academy, or the education achievement

system shall expend that same proportion multiplied by 1/2 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.

(16) As used in subsection (15), "total at-risk pupils" means

the sum of the number of pupils in grade 3 that are not reading at

grade level by the end of third grade as measured on the state

assessment and the number of 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.

(17) A district or public school academy that receives funds

under this section or the education achievement system may use

funds received under this section to provide an anti-bullying or

crisis intervention program.

(18) 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 reading at grade

level.

Sec. 166e. Before entering into a contract in an amount in

excess of $15,000.00 for any materials, supplies, or equipment or a

contract in an amount in excess of $15,000.00 for construction of a

new building, or addition to or repair or renovation of an existing

building, the board of a district of the first class or community

district, or any other purchasing authority within a district of

the first class or community district, shall obtain sealed

competitive bids, and the district shall award such a contract

using this competitive bid process. This section does not prohibit

a district from making a public request for proposals before

requesting bids and does not prohibit a district from awarding a

contract based on a combination of price, quality, and service

factors. A school official or member of a school board or other

person who neglects or refuses to do or perform an act required by

this section, or who violates or knowingly permits or consents to a

violation of this section, is guilty of a misdemeanor punishable by

a fine of not more than $500.00, or imprisonment for not more than

3 months, or both.

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 710 of the 98th Legislature is enacted into

law.

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Bill Text: MI SB0819 | 2015-2016 | 98th Legislature | Engrossed

Michigan Senate Bill 819 (Prior Session Legislation)

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