Bill Text: MI SB0863 | 2017-2018 | 99th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Appropriations; zero budget; school aid appropriations; provide for fiscal year 2018-2019. Amends secs. 11 & 17b of 1979 PA 94 (MCL 388.1611 & 388.1617b).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2018-06-12 - For Final Disposition Of Budget, See Hb 5579 [SB0863 Detail]

Download: Michigan-2017-SB0863-Engrossed.html

SB-0863, As Passed Senate, May 3, 2018

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 863

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1979 PA 94, entitled

 

"The state school aid act of 1979,"

 

by amending sections 6, 11, 11a, 11j, 11k, 11m, 11s, 18, 19, 20,

 

20d, 20f, 21h, 22a, 22b, 22d, 22m, 22n, 24, 24a, 24c, 25f, 25g,

 

26a, 26b, 26c, 31a, 31d, 31f, 31j, 32d, 32p, 32q, 35a, 39, 39a, 41,

 

51a, 51c, 51d, 53a, 54, 54b, 55, 56, 61a, 61b, 61c, 62, 64b, 65,

 

67, 74, 81, 94, 94a, 95b, 98, 99h, 99r, 99s, 99t, 99u, 102d, 104,

 

104c, 107, 147, 147a, 147b, 147c, 147e, 152a, 152b, 163, 166b, and

 

169a (MCL 388.1606, 388.1611, 388.1611a, 388.1611j, 388.1611k,

 

388.1611m, 388.1611s, 388.1618, 388.1619, 388.1620, 388.1620d,

 

388.1620f, 388.1621h, 388.1622a, 388.1622b, 388.1622d, 388.1622m,

 

388.1622n, 388.1624, 388.1624a, 388.1624c, 388.1625f, 388.1625g,

 

388.1626a, 388.1626b, 388.1626c, 388.1631a, 388.1631d, 388.1631f,

 

388.1631j, 388.1632d, 388.1632p, 388.1632q, 388.1635a, 388.1639,


388.1639a, 388.1641, 388.1651a, 388.1651c, 388.1651d, 388.1653a,

 

388.1654, 388.1654b, 388.1655, 388.1656, 388.1661a, 388.1661b,

 

388.1661c, 388.1662, 388.1664b, 388.1665, 388.1667, 388.1674,

 

388.1681, 388.1694, 388.1694a, 388.1695b, 388.1698, 388.1699h,

 

388.1699r, 388.1699s, 388.1699t, 388.1699u, 388.1702d, 388.1704,

 

388.1704c, 388.1707, 388.1747, 388.1747a, 388.1747b, 388.1747c,

 

388.1747e, 388.1752a, 388.1752b, 388.1763, 388.1766b, and

 

388.1769a), sections 6, 11a, 11j, 11k, 11m, 11s, 18, 20, 20d, 20f,

 

22a, 22b, 22d, 24, 24a, 24c, 25f, 25g, 26a, 26b, 26c, 31d, 31f,

 

32p, 32q, 39, 39a, 41, 51a, 51c, 51d, 53a, 54, 54b, 55, 56, 61a,

 

61b, 62, 64b, 65, 67, 74, 81, 94, 94a, 98, 99s, 104, 147, 147b,

 

147c, 152a, and 152b as amended and sections 21h, 22m, 22n, and

 

147e as added by 2017 PA 108, sections 11, 31a, 31j, 32d, 35a, 61c,

 

95b, 99h, 99r, 99t, 102d, 104c, 107, 147a, and 166b as amended and

 

section 99u as added by 2017 PA 143, section 19 as amended by 2016

 

PA 533, section 163 as amended by 2015 PA 85, and section 169a as

 

amended by 1997 PA 93, and by adding sections 22p, 54c, 54d, 95c,

 

and 99v; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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, 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 after the pupil

 

membership count day in a strict discipline academy operating under

 

sections 1311b to 1311m of the revised school code, MCL 380.1311b

 

to 380.1311m. However, for a district that is a community district,

 

"membership" means the sum of the product of .90 times the number

 

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

 

in regular daily attendance in the community district on the pupil

 

membership count day for the current school year, plus the product

 

of .10 times the sum of the final audited count from the

 

supplemental count day of pupils in grades K to 12 actually

 

enrolled and in regular daily attendance in the community district

 

for the immediately preceding school year plus the final audited

 

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

 

actually enrolled and in regular daily attendance in the education

 

achievement system for the immediately preceding school year. All

 

pupil counts used in this subsection are as determined by the

 

department and calculated by adding the number of pupils registered

 

for attendance plus pupils received by transfer and minus pupils

 

lost as defined by rules promulgated by the superintendent, and as

 

corrected by a subsequent department audit. The amount of the

 

foundation allowance for a pupil in membership is determined under

 

section 20. In making the calculation of membership, all of the

 

following, as applicable, apply to determining the membership of a

 

district, a public school academy, or an intermediate district:

 

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


pursuant to subsection (6), a pupil shall be 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.

 

     (c) A special education pupil educated by the intermediate

 

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

 

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

 

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

 

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

 

school's educational program is considered regular daily

 

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

 

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

 

considered regular daily attendance.

 

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

 

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

 

or partial fiscal years of operation shall be 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) For an extended school year program approved by the

 

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

 

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

 

counted in membership.

 

     (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 pupils with extreme barriers to education, such as being

 

homeless as defined under 42 USC 11302.

 

     (B) Had dropped out of school.

 

     (C) Is less than 22 years of age as of September 1 of the

 

current school year.

 

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

 

be eligible to attend school for that school year under section

 

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

 

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

 

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

 

parent or legal guardian has notified the district in writing that

 

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

 

school year.

 

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

 

not be counted in membership. An individual who has achieved a high

 

school equivalency 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 department of talent and economic development,

 

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 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 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 and in a district or intermediate district but not as a

 

part of a cooperative education program, the following apply:

 

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

 

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

 

school academy shall receive as its prorated share of the full-time

 

equated membership for each of those pupils an amount equal to 1

 

times the product of the hours of instruction the public school

 

academy provides divided by the number of hours required under

 

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

 

full-time membership for each of those pupils shall be allocated to


the district or intermediate district providing the remainder of

 

the hours of instruction.

 

     (ii) If the public school academy provides instruction for

 

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

 

district or intermediate district providing the remainder of the

 

hours of instruction shall receive 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.

 

     (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 or a public school academy that has pupils

 

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

 

public school academy in the immediately preceding school year, the

 

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

 

membership is the average of the number of those pupils enrolled

 

and in regular daily attendance on the pupil membership count day

 

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

 

determined by the department. Membership shall be 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

 

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

 

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

 

count day to include the pupil in the count.

 

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

 

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

 

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

 

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

 

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

 

the first pupil membership count day or supplemental count day,

 

whichever is first, occurring after operations resume, plus the

 

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

 

pupil membership count day or supplemental count day that occurred

 

before suspending operations, as determined by the superintendent.

 

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

 

as otherwise calculated under this subsection, would be less than

 

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

 

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

 

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

 

shall be 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 or public school academy that educates a pupil

 

who attends a United States Olympic Education Center may count the

 

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

 

resident of this state.

 

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

 

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

 

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

 

district.

 

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

 

meets the requirements of section 23a, the pupil shall be 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 30

 

days after the end of the month. A district shall not report a

 

pupil as being in full attendance for a month unless both of the

 

following are met:

 

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

 

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

 

participates in the program.

 

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

 

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

 

pupil does not meet that definition of satisfactory monthly

 

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

 

satisfactory monthly progress in the immediately preceding month

 

and appropriate interventions are implemented within 10 school days

 

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

 

of satisfactory monthly progress.

 

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

 

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

 

pupil.

 

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


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

 

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

 

adjust the membership count of the district or other public school

 

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

 

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

 

to ensure that the district or other public school academy receives

 

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

 

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

 

supplemental count day of the preceding school year.

 

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

 

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

 

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

 

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

 

the district and resumes regular daily attendance during that

 

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

 

the pupil in membership as if he or she had been in attendance on

 

the pupil membership count day.

 

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

 

in membership in the community district.

 

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

 

grades K 1 to 12 in accordance with section 166b shall not be

 

counted as more than 0.75 0.67 of a full-time equated membership.

 

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

 

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

 

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

 

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

 

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


with this state if all of the following are met:

 

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

 

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

 

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

 

that act.

 

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

 

definition of an eligible course under the postsecondary enrollment

 

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

 

were provided by an eligible postsecondary institution under that

 

act.

 

     (iii) The department determines that the college or university

 

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

 

comparable to a state university or community college, as those

 

terms are defined in section 3 of the postsecondary enrollment

 

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

 

nonprofit degree-granting college or university.

 

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

 

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

 

equal to the eligible charges that the district or public school

 

academy would pay to an eligible postsecondary institution under

 

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

 

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

 

act.

 

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

 

credit to a pupil who successfully completes a course as described

 

in this subdivision.

 

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


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

 

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

 

instructional days and hours required under section 101 and the

 

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

 

school diploma and at least 60 transferable college credits or is

 

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

 

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

 

as otherwise calculated under this subsection, includes pupils

 

counted in membership who are enrolled under section 166b, growth

 

in the district's membership for pupils counted under section 166b

 

from 1 fiscal year to the next shall not exceed 10%. However, if a

 

district is in its first 3 years of counting pupils in membership

 

under section 166b, the district's membership for pupils counted

 

under section 166b shall not exceed 5% of the district's membership

 

for pupils not counted under section 166b.

 

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

 

section 5 of the revised school code, MCL 380.5.

 

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

 

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

 

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

 

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

 

following:

 

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

 

accordance with section 166b.

 

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

 

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

 

     (c) A pupil enrolled in a public school academy.


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

 

district of residence under an intermediate district schools of

 

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

 

91 if the intermediate district and its constituent districts have

 

been exempted from section 105.

 

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

 

district of residence if the pupil is enrolled in accordance with

 

section 105 or 105c.

 

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

 

whose parent or legal guardian has made an official written

 

complaint to law enforcement officials and to school officials of

 

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

 

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

 

the official complaint either indicates that the assault occurred

 

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

 

pupils enrolled in the school the pupil would otherwise attend in

 

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

 

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

 

crime to law enforcement officials for the purposes of this

 

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

 

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

 

that conduct. As used in this subdivision:

 

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

 

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

 

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

 

school premises.

 

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


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

 

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

 

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

 

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

 

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

 

pupil membership count day and before the supplemental count day

 

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

 

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

 

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

 

     (h) A pupil enrolled in an alternative education program

 

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

 

who meets 1 or more of the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

pupil's enrollment in the Michigan Virtual School.

 

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

 

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

 

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

 

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

 

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

 

or legal ward.


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

 

expelling district and is reinstated by another school board under

 

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

 

380.1311a.

 

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

 

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

 

district of residence and the enrolling district are both

 

constituent districts of the same intermediate district.

 

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

 

district of residence who attends a United States Olympic Education

 

Center.

 

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

 

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

 

school code, MCL 380.1148.

 

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

 

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

 

adequate yearly progress under the no child left behind act of

 

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

 

Law 114-95.

 

     However, except for pupils enrolled in the youth challenge

 

program at the site at which the youth challenge program operated

 

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

 

district and if the primary instructional site for those pupils is

 

established by the educating district after 2009-2010 and is

 

located within the boundaries of that other district, the educating

 

district must have the approval of that other district to count

 

those pupils in membership.


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

 

district means:

 

     (a) Except as provided in subdivision (b), subdivisions (b)

 

and (c), 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.

 

     (c) For pupils enrolled in a youth challenge program

 

maintaining a residential 11-month program, the fourth Wednesday in

 

August.

 

     (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, intermediate district, or public school

 

academy before the pupil membership count day or supplemental count

 

day of a particular year but was expelled or suspended on the pupil

 

membership count day or supplemental count day shall only be

 

counted as 1.0 full-time equated membership if the pupil resumed

 

attendance in the district, intermediate district, or public school

 

academy within 45 days after the pupil membership count day or

 

supplemental count day of that particular year. Pupils 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 an individual working under a valid substitute teacher

 

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

 

together and instruction is taking place.

 

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

 

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

 

24.328.

 

     (10) "The revised school code" means 1976 PA 451, MCL 380.1 to


380.1852.

 

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

 

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

 

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

 

membership for the immediately preceding fiscal year.

 

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

 

July 1 and continues through June 30.

 

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

 

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

 

district or intermediate district superintendent, means the

 

superintendent of public instruction described in section 3 of

 

article VIII of the state constitution of 1963.

 

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

 

supplemental pupil count is conducted under section 6a.

 

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

 

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

 

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

 

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

 

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

 

whose parent or guardian voluntarily enrolls the pupil in a

 

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

 

district of residence shall not require a high school tuition

 

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

 

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

 

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

 

established in section 11 of article IX of the state constitution

 

of 1963.


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

 

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

 

PA 206, MCL 211.27a.

 

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

 

instructional print or electronic resource that is selected and

 

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

 

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

 

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

 

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

 

basis of classroom instruction.

 

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

 

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

 

district, or other entity under this article.

 

     Sec. 11. (1) For the fiscal year ending September 30, 2017,

 

there is appropriated for the public schools of this state and

 

certain other state purposes relating to education the sum of

 

$12,069,644,300.00 from the state school aid fund, the sum of

 

$179,100,000.00 from the general fund, an amount not to exceed

 

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

 

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

 

489, MCL 12.262, and an amount not to exceed $100.00 from the water

 

emergency reserve fund. For the fiscal year ending September 30,

 

2018, there is appropriated for the public schools of this state

 

and certain other state purposes relating to education the sum of

 

$12,547,270,300.00 $12,673,077,200.00 from the state school aid

 

fund, the sum of $215,000,000.00 $78,000,000.00 from the general

 

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


district education trust fund created under section 12 of the

 

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

 

exceed $23,100,000.00 from the MPSERS retirement obligation reform

 

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

 

emergency reserve fund. For the fiscal year ending September 30,

 

2019, there is appropriated for the public schools of this state

 

and certain other state purposes relating to education the sum of

 

$12,753,706,700.00 from the state school aid fund, the sum of

 

$150,500,000.00 from the general fund, an amount not to exceed

 

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

 

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

 

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

 

MPSERS retirement obligation reform reserve fund, and an amount not

 

to exceed $100.00 from the water emergency reserve fund. In

 

addition, all available federal funds are appropriated each fiscal

 

year for the fiscal years ending September 30, 2017 2018 and

 

September 30, 2018.2019.

 

     (2) The appropriations under this section shall be allocated

 

as provided in this article. Money appropriated under this section

 

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

 

this article before the expenditure of money appropriated under

 

this section from the state school aid fund.

 

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

 

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

 

the school aid stabilization fund created under section 11a.

 

     Sec. 11a. (1) The school aid stabilization fund is created as

 

a separate account within the state school aid fund established by


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

 

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

 

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

 

state treasurer shall deposit into the school aid stabilization

 

fund all of the following:

 

     (a) Unexpended and unencumbered state school aid fund revenue

 

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

 

the bookclosing for that fiscal year.

 

     (b) Money statutorily dedicated to the school aid

 

stabilization fund.

 

     (c) Money appropriated to the school aid stabilization fund.

 

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

 

not be expended without a specific appropriation from the school

 

aid stabilization fund. Money in the school aid stabilization fund

 

shall be expended only for purposes for which state school aid fund

 

money may be expended.

 

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

 

school aid stabilization fund. The state treasurer shall credit to

 

the school aid stabilization fund interest and earnings from fund

 

investments.

 

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

 

a fiscal year shall remain in the school aid stabilization fund and

 

shall not lapse to the unreserved school aid fund balance or the

 

general fund.

 

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

 

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

 

available for expenditure from the state school aid fund for that


fiscal year, there is appropriated from the school aid

 

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

 

the projected shortfall as determined by the department of

 

treasury, but not to exceed available money in the school aid

 

stabilization fund. If the money in the school aid stabilization

 

fund is insufficient to fully fund an amount equal to the projected

 

shortfall, the state budget director shall notify the legislature

 

as required under section 296(2) and state payments in an amount

 

equal to the remainder of the projected shortfall shall be prorated

 

in the manner provided under section 296(3).

 

     (7) For 2016-2017 and for 2017-2018, 2018-2019, in addition to

 

the appropriations in section 11, there is appropriated from the

 

school aid stabilization fund to the state school aid fund the

 

amount necessary to fully fund the allocations under this article.

 

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

 

allocated an amount not to exceed $125,500,000.00 for 2017-2018

 

2018-2019 for payments to the school loan bond redemption fund in

 

the department of treasury on behalf of districts and intermediate

 

districts. Notwithstanding section 296 or any other provision of

 

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

 

proration and shall be paid in full.

 

     Sec. 11k. For 2017-2018, 2018-2019, there is appropriated from

 

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

 

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

 

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

 

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

 

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


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

 

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

 

allocated for 2016-2017 an amount not to exceed $5,500,000.00 and

 

there is allocated for 2017-2018 an amount not to exceed

 

$6,500,000.00 $18,000,000.00 and there is allocated for 2018-2019

 

an amount not to exceed $24,000,000.00 for fiscal year cash-flow

 

borrowing costs solely related to the state school aid fund

 

established by section 11 of article IX of the state constitution

 

of 1963.

 

     Sec. 11s. (1) From the general fund appropriation in section

 

11, there is allocated $10,142,500.00 for 2016-2017 and there is

 

allocated $8,730,000.00 for 2017-2018 $3,230,000.00 for 2018-2019

 

for the purpose of providing services and programs to children who

 

reside within the boundaries of a district with the majority of its

 

territory located within the boundaries of a city for which an

 

executive proclamation of emergency is issued in the current or

 

immediately preceding 2 3 fiscal years under the emergency

 

management act, 1976 PA 390, MCL 30.401 to 30.421, and for the

 

department to implement and administer grants awarded for, or to

 

provide services for, those children. From the funding appropriated

 

in section 11, there is allocated for each fiscal year for 2016-

 

2017 and for 2017-2018 2018-2019 $100.00 from the water emergency

 

reserve fund for the purposes of this section.

 

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

 

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

 

boundaries of a city in which an executive proclamation of

 

emergency is issued in the current or immediately preceding 2 3


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

 

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

 

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

 

exceed $1,292,500.00 for 2016-2017 and an amount not to exceed

 

$2,625,000.00 for 2017-2018 $2,375,000.00 for 2018-2019 for the

 

purpose of employing school nurses, classroom aides, and school

 

social workers. The district shall provide a report to the

 

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

 

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

 

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

 

house and senate fiscal agencies, and the state budget director

 

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

 

following information:

 

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

 

under this subsection.

 

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

 

personnel.

 

     (c) How many pupils received each type of service identified

 

in subdivision (b).

 

     (d) Any other information the department considers necessary

 

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

 

appropriate levels and types of services.

 

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

 

to an intermediate district that has a constituent district

 

described in subsection (2) an amount not to exceed $1,195,000.00

 

for 2016-2017 and an amount not to exceed $2,500,000.00 for 2017-

 

2018 to augment staff for the purpose of providing additional early


childhood services and for nutritional services to children

 

described in subsection (1), regardless of location of school of

 

attendance. For 2016-2017, the early childhood services to be

 

provided under this subsection are state early intervention

 

services as described in subsection (4) and early literacy

 

services. Beginning with 2017-2018, the early childhood services to

 

be provided under this subsection are state early intervention

 

services that are similar to the services described in the early on

 

Michigan state plan, including ensuring that all children described

 

in subsection (1) who are less than 4 years of age as of September

 

1, 2016 are assessed and evaluated at least twice annually. In

 

addition, funds allocated under this subsection may also be

 

expended to provide informational resources to parents, educators,

 

and the community, and to coordinate services with other local

 

agencies. The intermediate district shall provide a report to the

 

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

 

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

 

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

 

house and senate fiscal agencies, and the state budget director

 

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

 

following information:

 

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

 

in this subsection.

 

     (b) A description of the services provided to children by

 

those personnel.

 

     (c) What types of additional nutritional services were

 

provided.


     (d) How many children received each type of service identified

 

in subdivisions (b) and (c).

 

     (e) What types of informational resources and coordination

 

efforts were provided.

 

     (f) Any other information the department considers necessary

 

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

 

appropriate levels and types of services.

 

     (4) For 2016-2017 only, from the allocation in subsection (1),

 

there is allocated an amount not to exceed $6,155,000.00 to

 

intermediate districts described in subsection (3) to provide state

 

early intervention services for children described in subsection

 

(1) who are less than 4 years of age as of September 1, 2016. The

 

intermediate district shall use these funds to provide state early

 

intervention services that are similar to the services described in

 

the early on Michigan state plan, including ensuring that all

 

children described in subsection (1) who are less than 4 years of

 

age as of September 1, 2016 are assessed and evaluated at least

 

twice annually.

 

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

 

an amount not to exceed $1,500,000.00 for 2016-2017 and an amount

 

not to exceed $3,000,000.00 for 2017-2018 to intermediate districts

 

described in subsection (3) to enroll children described in

 

subsection (1) in school-day great start readiness programs,

 

regardless of household income eligibility requirements contained

 

in section 39. The department shall administer this funding

 

consistent with all other provisions of the great start readiness

 

programs contained in section 32d and section 39.


     (3) (6) For 2017-2018, 2018-2019, from the allocation in

 

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

 

$605,000.00 for nutritional services to children described in

 

subsection (1).

 

     (4) (7) In addition to other funding allocated and

 

appropriated in this section, there is appropriated an amount not

 

to exceed $15,000,000.00 each fiscal year for 2016-2017 and 2017-

 

2018 for fiscal year 2018-2019 for state restricted contingency

 

funds. These contingency funds are not available for expenditure

 

until they have been transferred to a section within this article

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     (5) (8) Notwithstanding section 17b, payments under this

 

section shall be paid on a schedule determined by the department.

 

     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:visual displays:

 

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

 

following subcategories:

 

     (A) Salaries and wages.

 

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

 

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

 

benefits.

 

     (C) Retirement benefit costs.

 

     (D) All other personnel costs.


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

 

following subcategories:

 

     (A) Instruction.

 

     (B) Support services.

 

     (C) Business and administration.

 

     (D) Operations and maintenance.

 

     (c) Links to all of the following:

 

     (i) The current collective bargaining agreement for each

 

bargaining unit.

 

     (ii) Each health care benefits plan, including, but not

 

limited to, medical, dental, vision, disability, long-term care, or

 

any other type of benefits that would constitute health care

 

services, offered to any bargaining unit or employee in the

 

district.

 

     (iii) The audit report of the audit conducted under subsection

 

(4) for the most recent fiscal year for which it is available.

 

     (iv) The bids required under section 5 of the public employees

 

health benefits benefit act, 2007 PA 106, MCL 124.75.

 

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

 

supplies, materials, and equipment.

 

     (vi) The district's written policy establishing specific

 

categories of reimbursable expenses, as described in section

 

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

 

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

 

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

 

amount of expenses incurred by board members or employees of the

 

district that were reimbursed by the district for the most recent


school fiscal year.

 

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

 

benefit included in the compensation package for the superintendent

 

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

 

exceeds $100,000.00.

 

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

 

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

 

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

 

in section 5 of 1978 PA 472, MCL 4.415.

 

     (g) Any deficit elimination plan or enhanced deficit

 

elimination plan the district was required to submit under the

 

revised school code.

 

     (h) Identification of all credit cards maintained by the

 

district as district credit cards, the identity of all individuals

 

authorized to use each of those credit cards, the credit limit on

 

each credit card, and the dollar limit, if any, for each

 

individual's authorized use of the credit card.

 

     (i) Costs incurred for each instance of out-of-state travel by

 

the school administrator of the district that is fully or partially

 

paid for by the district and the details of each of those instances

 

of out-of-state travel, including at least identification of each

 

individual on the trip, destination, and purpose.

 

     (3) For the information required under subsection (2)(a),

 

(2)(b)(i), and (2)(c), an intermediate district shall provide the

 

same information in the same manner as required for a district

 

under subsection (2).

 

     (4) For the purposes of determining the reasonableness of


expenditures, whether a district or intermediate district has

 

received the proper amount of funds under this article, and whether

 

a violation of this article has occurred, all of the following

 

apply:

 

     (a) The department shall require that each district and

 

intermediate district have an audit of the district's or

 

intermediate district's financial and pupil accounting records

 

conducted at least annually, and at such other times as determined

 

by the department, at the expense of the district or intermediate

 

district, as applicable. The audits must be performed by a

 

certified public accountant or by the intermediate district

 

superintendent, as may be required by the department, or in the

 

case of a district of the first class by a certified public

 

accountant, the intermediate superintendent, or the auditor general

 

of the city. A district or intermediate district shall retain these

 

records for the current fiscal year and from at least the 3

 

immediately preceding fiscal years.

 

     (b) If a district operates in a single building with fewer

 

than 700 full-time equated pupils, if the district has stable

 

membership, and if the error rate of the immediately preceding 2

 

pupil accounting field audits of the district is less than 2%, the

 

district may have a pupil accounting field audit conducted

 

biennially but must continue to have desk audits for each pupil

 

count. The auditor must document compliance with the audit cycle in

 

the pupil auditing manual. As used in this subdivision, "stable

 

membership" means that the district's membership for the current

 

fiscal year varies from the district's membership for the


immediately preceding fiscal year by less than 5%.

 

     (c) A district's or intermediate district's annual financial

 

audit shall include an analysis of the financial and pupil

 

accounting data used as the basis for distribution of state school

 

aid.

 

     (d) The pupil and financial accounting records and reports,

 

audits, and management letters are subject to requirements

 

established in the auditing and accounting manuals approved and

 

published by the department.

 

     (e) All of the following shall be done not later than November

 

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 the district's or intermediate district's audited

 

financial statements and consistent with accounting manuals and

 

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

 

intermediate district, the report shall 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 center the


audited special education actual cost report, known as "SE-4096",

 

on a form and in the manner prescribed by the department.center. An

 

intermediate district shall perform the audit of a district's

 

report.

 

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

 

district shall file with the center the audited transportation

 

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

 

prescribed by the center. An intermediate district shall perform

 

the audit of a district's report.

 

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

 

auditing manuals at least annually and shall periodically update

 

those manuals to reflect changes in this article.

 

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

 

property using money received under this article, the public school

 

academy shall retain ownership of the property unless the public

 

school academy sells the property at fair market value.

 

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

 

with subsections (4), (5), (6), and (7), and (12), or if the

 

department determines that the financial data required under

 

subsection (5) are not consistent with audited financial

 

statements, the department shall withhold all state school aid due

 

to the district or intermediate district under this article,

 

beginning with the next payment due to the district or intermediate

 

district, until the district or intermediate district complies with

 

subsections (4), (5), (6), and (7), and (12). If the district or

 

intermediate district does not comply with subsections (4), (5),

 

(6), and (7), and (12) by the end of the fiscal year, the district


or intermediate district forfeits the amount withheld.

 

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

 

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

 

total state school aid due to the district or intermediate district

 

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

 

district or intermediate district, until the district or

 

intermediate district complies with subsection (2). If the district

 

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

 

end of the fiscal year, the district or intermediate district

 

forfeits the amount withheld.

 

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

 

district offers virtual learning under section 21f, the district or

 

intermediate district shall submit to the department a report that

 

details the per-pupil costs of operating the virtual learning by

 

vendor type. The report shall include at least all of the following

 

information concerning the operation of virtual learning for the

 

immediately preceding school fiscal year:

 

     (a) The name of the district operating the virtual learning

 

and of each district that enrolled students in the virtual

 

learning.

 

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

 

learning and the total number of membership pupils enrolled in the

 

virtual learning.

 

     (c) For each pupil who is enrolled in a district other than

 

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

 

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

 

enrolling in the district offering virtual 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, virtual instruction and instructional support, personnel,

 

hardware and software, payment to each virtual learning provider,

 

and other costs associated with operating virtual learning.

 

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

 

the district and the state in which each virtual education provider

 

is headquartered.

 

     (13) By March 31 of each year, the department shall submit to

 

the house and senate appropriations subcommittees on state school

 

aid, the state budget director, and the house and senate fiscal

 

agencies a report summarizing the per-pupil costs by vendor type of

 

virtual courses available under section 21f.

 

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

 

the following:

 

     (a) Virtual courses provided by the Michigan Virtual

 

University.

 

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

 

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

 

code, MCL 380.551.

 

     (c) Virtual courses provided by third party vendors not


affiliated with a Michigan public school.

 

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

 

intermediate district.

 

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

 

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

 

with this section.

 

     (16) Beginning October 1, 2017, and not less than once every 3

 

months after that date, the The department shall submit to the

 

senate and house subcommittees on school aid and to the senate and

 

house standing committees on education an itemized list of

 

allocations under this article to any association or consortium

 

consisting of associations. The report shall detail the recipient

 

or recipients, the amount allocated, and the purpose for which the

 

funds were distributed.

 

     Sec. 19. (1) A district or intermediate district shall comply

 

with all applicable reporting requirements specified in state and

 

federal law. Data provided to the center, in a form and manner

 

prescribed by the center, shall be aggregated and disaggregated as

 

required by state and federal law. In addition, a district or

 

intermediate district shall cooperate with all measures taken by

 

the center to establish and maintain a statewide P-20 longitudinal

 

data system.

 

     (2) Each district shall furnish to the center not later than 5

 

weeks after the pupil membership count day and by June 30 the last

 

business day in June of the school fiscal year ending in the fiscal

 

year, in a manner prescribed by the center, the information

 

necessary for the preparation of the district and high school


graduation report and for the preparation of the state and federal

 

accountability reports. This information shall meet requirements

 

established in the pupil auditing manual approved and published by

 

the department. The center shall calculate an annual graduation and

 

pupil dropout rate for each high school, each district, and this

 

state, in compliance with nationally recognized standards for these

 

calculations. The center shall report all graduation and dropout

 

rates to the senate and house education committees and

 

appropriations committees, the state budget director, and the

 

department not later than 30 days after the publication of the list

 

described in subsection (5). Before reporting these graduation and

 

dropout rates, the department shall allow a school or district to

 

appeal the calculations. The department shall consider and act upon

 

the appeal within 30 days after it is submitted and shall not

 

report these graduation and dropout rates until after all appeals

 

have been considered and decided.

 

     (3) By the first business day in December and by June 30 the

 

last business day in June of each year, a district shall furnish to

 

the center, in a manner prescribed by the center, information

 

related to educational personnel as necessary for reporting

 

required by state and federal law. For the purposes of this

 

subsection, the center shall only require districts and

 

intermediate districts to report information that is not already

 

available from the office of retirement services in the department

 

of technology, management, and budget.

 

     (4) If a district or intermediate district fails to meet the

 

requirements of this section, the department shall withhold 5% of


the total funds for which the district or intermediate district

 

qualifies under this article until the district or intermediate

 

district complies with all of those subsections. If the district or

 

intermediate district does not comply with all of those subsections

 

by the end of the fiscal year, the department shall place the

 

amount withheld in an escrow account until the district or

 

intermediate district complies with all of those subsections.

 

     (5) Before publishing a list of school or district

 

accountability designations as required by the no child left behind

 

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

 

Public Law 114-95, and utilizing data that were certified as

 

accurate and complete after districts and intermediate districts

 

adhered to deadlines, data quality reviews, and correction

 

processes leading to local certification of final student data in

 

subsection (2), the department shall allow a school or district to

 

appeal that determination. any calculation errors used in the

 

preparation of accountability metrics. The department shall

 

consider and act upon the appeal within 30 days after it is

 

submitted and shall not publish the list until after all appeals

 

have been considered and decided.

 

     (6) Beginning in 2016-2017, the department shall implement

 

statewide standard reporting requirements for education data

 

approved by the department in conjunction with the center. The

 

department shall work with the center, intermediate districts,

 

districts, and other interested stakeholders to implement this

 

policy change. A district or intermediate district shall implement

 

the statewide standard reporting requirements not later than 2017-


2018 or when a district or intermediate district updates its

 

education data reporting system, whichever is later.

 

     Sec. 20. (1) For 2017-2018, 2018-2019, both of the following

 

apply:

 

     (a) The basic foundation allowance is $8,289.00.$8,404.00.

 

     (b) The minimum foundation allowance is $7,631.00.$7,861.00.

 

     (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 at least 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


$20.00) $38.00) 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.

 

     (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 2017-

 

2018 2018-2019 in an amount equal to the basic foundation allowance

 

for 2017-2018.2018-2019.

 

     (c) For a district that had a foundation allowance for the

 

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 foundation allowance

 

supplemental payment calculated under section 20m and paid under

 

section 22b for 2016-2017, 2017-2018, the district's 2016-2017

 

2017-2018 foundation allowance is considered to have been an amount

 

equal to the sum of the district's actual 2016-2017 2017-2018

 

foundation allowance as otherwise calculated under this section

 

plus the lesser of the per pupil amount of the district's

 

supplemental payment for 2016-2017 2017-2018 as calculated under

 

section 20m or the product of the district's foundation allowance

 

for the immediately preceding state fiscal year times the

 

percentage increase in the United States consumer price index in

 

the calendar year ending in the immediately preceding fiscal year

 

as reported by the May revenue estimating conference conducted

 

under section 367b of the management and budget act, 1984 PA 431,

 

MCL 18.1367b.

 

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

 

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

 

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

 

or the basic foundation allowance for the current state fiscal

 

year, whichever is less, minus the local portion of the district's


foundation allowance. For a district described in subsection

 

(3)(c), beginning in 2014-2015, the state portion of the district's

 

foundation allowance is an amount equal to $6,962.00 plus the

 

difference between the district's foundation allowance for the

 

current state fiscal year and the district's foundation allowance

 

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

 

allowance. For a district that has a millage reduction required

 

under section 31 of article IX of the state constitution of 1963,

 

the 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. The calculation under this subsection shall take into

 

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

 

pupil enrolled under section 166b, the allocation calculated under

 

this section shall be based on the minimum foundation allowance.

 

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

 

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

 

public school academy, the allocation calculated under this section

 

is an amount per membership pupil other than special education

 

pupils in the public school academy equal to the foundation

 

allowance of the district in which the public school academy is

 

located or the state maximum public school academy allocation,

 

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

 

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

 

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

 

school district, the allocation calculated under this section is an

 

amount per membership pupil other than special education pupils in


the public school academy equal to the foundation allowance of the

 

district that authorized the public school academy or the state

 

maximum public school academy allocation, whichever is less.

 

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

 

community district, the allocation calculated under this section is

 

an amount per membership pupil other than special education pupils

 

in the community district equal to the foundation allowance of the

 

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

 

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

 

geographic area as the community district.


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

 

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

 

districts or by annexation, the resulting district's foundation

 

allowance under this section beginning after the effective date of

 

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

 

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

 

affected districts, calculated as provided in this section,

 

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

 

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

 

original or affected districts plus $100.00 or the highest

 

foundation allowance among the original or affected districts. This

 

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

 

subsequent consolidation or annexation that affects the district.

 

The calculation under this subsection shall take into account a

 

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

 

     (9) Each 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.

 

     (10) State payments related to payment of the foundation

 

allowance for a special education pupil are not calculated under

 

this section but are instead calculated under section 51a.

 

     (11) To assist the legislature in determining the basic

 

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.

 

     (c) The index shall be calculated by multiplying the pupil

 

membership factor by the revenue adjustment factor. If a consensus

 

index is not determined at the revenue estimating conference, the

 

principals of the revenue estimating conference shall report their

 

estimates to the house and senate subcommittees responsible for

 

school aid appropriations not later than 7 days after the

 

conclusion of the revenue conference.

 

     (12) Payments to districts and public school academies shall

 

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

 

section shall be used to determine the amount of state payments

 

under section 22b.

 

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

 

constitution of 1963 allowing state aid to some or all nonpublic

 

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

 

allowance or per-pupil payment calculation under this section may

 

be reduced.

 

     (14) 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.

 

     (c) "Combined state and local revenue per membership pupil"


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 $20.00) $38.00) 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 2017-

 

2018, 2018-2019, the maximum public school academy allocation is

 

$7,631.00.$7,861.00.

 

     (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,


125.2670, 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. 20d. In making the final determination required under

 

former section 20a of a district's combined state and local revenue

 

per membership pupil in 1993-94 and in making calculations under

 

section 20 for 2017-2018, 2018-2019, the department and the

 

department of treasury shall comply with all of the following:

 

     (a) For a district that had combined state and local revenue

 

per membership pupil in the 1994-95 state fiscal year of $6,500.00

 

or more and served as a fiscal agent for a state board designated

 

area vocational education center in the 1993-94 school year, total

 

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

 

pursuant to this act in 1993-94 shall exclude payments made under

 

former section 146 and under section 147 on behalf of the

 

district's employees who provided direct services to the area

 

vocational education center. Not later than June 30, 1996, the

 

department shall make an adjustment under this subdivision to the

 

district's combined state and local revenue per membership pupil in

 

the 1994-95 state fiscal year and the department of treasury shall

 

make a final certification of the number of mills that may be

 

levied by the district under section 1211 of the revised school


code, MCL 380.1211, as a result of the adjustment under this

 

subdivision.

 

     (b) If a district had an adjustment made to its 1993-94 total

 

state school aid that excluded payments made under former section

 

146 and under section 147 on behalf of the district's employees who

 

provided direct services for intermediate district center programs

 

operated by the district under sections 51 to 56, if nonresident

 

pupils attending the center programs were included in the

 

district's membership for purposes of calculating the combined

 

state and local revenue per membership pupil for 1993-94, and if

 

there is a signed agreement by all constituent districts of the

 

intermediate district that an adjustment under this subdivision

 

shall be made, the foundation allowances for 1995-96 and 1996-97 of

 

all districts that had pupils attending the intermediate district

 

center program operated by the district that had the adjustment

 

shall be calculated as if their combined state and local revenue

 

per membership pupil for 1993-94 included resident pupils attending

 

the center program and excluded nonresident pupils attending the

 

center program.

 

     Sec. 20f. (1) From the funds appropriated in section 11, there

 

is allocated an amount not to exceed $18,000,000.00 for 2017-2018

 

2018-2019 for payments to eligible districts under this section.

 

     (2) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection if the district received a payment under this section as

 

it was in effect for 2013-2014. A district was eligible for funding

 

in 2013-2014 if the sum of the following was less than $5.00:


     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2012-2013 to

 

2013-2014.

 

     (b) The district's equity payment per membership pupil under

 

former section 22c for 2013-2014.

 

     (c) The quotient of the district's allocation under section

 

147a for 2012-2013 divided by the district's membership pupils for

 

2012-2013 minus the quotient of the district's allocation under

 

section 147a for 2013-2014 divided by the district's membership

 

pupils for 2013-2014.

 

     (3) The amount allocated to each eligible district under

 

subsection (2) is an amount per membership pupil equal to the

 

amount per membership pupil the district received under this

 

section in 2013-2014.

 

     (4) The funding under this subsection is from the allocation

 

under subsection (1). A district is eligible for funding under this

 

subsection if the sum of the following is less than $25.00:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under


section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (5) The amount allocated to each eligible district under

 

subsection (4) is an amount per membership pupil equal to $25.00

 

minus the sum of the following:

 

     (a) The increase in the district's foundation allowance or

 

per-pupil payment as calculated under section 20 from 2014-2015 to

 

2015-2016.

 

     (b) The decrease in the district's best practices per-pupil

 

funding under former section 22f from 2014-2015 to 2015-2016.

 

     (c) The decrease in the district's pupil performance per-pupil

 

funding under former section 22j from 2014-2015 to 2015-2016.

 

     (d) The quotient of the district's allocation under section

 

31a for 2015-2016 divided by the district's membership pupils for

 

2015-2016 minus the quotient of the district's allocation under

 

section 31a for 2014-2015 divided by the district's membership

 

pupils for 2014-2015.

 

     (6) If the allocation under subsection (1) is insufficient to

 

fully fund payments under subsections (3) and (5) as otherwise

 

calculated under this section, the department shall prorate

 

payments under this section on an equal per-pupil basis.

 

     Sec. 21h. (1) From the appropriation in section 11, there is

 

allocated $6,000,000.00 for 2017-2018 2018-2019 for assisting

 

districts assigned by the superintendent to participate in a

 

partnership to improve student achievement. The purpose of the

 

partnership is to identify district needs, develop intervention

 

plans, and partner with public, private, and nonprofit


organizations to coordinate resources and improve student

 

achievement. Assignment of a district to a partnership is at the

 

sole discretion of the superintendent.

 

     (2) A district assigned to a partnership by the superintendent

 

is eligible for funding under this section if the district includes

 

at least 1 school that has been rated with a grade of "F", or

 

comparable performance rating, in the most recent state

 

accountability system rating, that is not under the supervision of

 

the state school reform/redesign office, and that does all of the

 

following:

 

     (a) Completes a comprehensive needs evaluation in

 

collaboration with an intermediate school district, community

 

members, education organizations, and postsecondary institutions,

 

as applicable and approved by the superintendent, within 90 days of

 

assignment to the partnership described in this section. The

 

comprehensive needs evaluation shall include at least all of the

 

following:

 

     (i) A review of the district's implementation and utilization

 

of a multi-tiered system of supports to ensure that it is used to

 

appropriately inform instruction.

 

     (ii) A review of the district and school building leadership

 

and educator capacity to substantially improve student outcomes.

 

     (iii) A review of classroom, instructional, and operational

 

practices and curriculum to ensure alignment with research-based

 

instructional practices and state curriculum standards.

 

     (b) Develops an intervention plan that has been approved by

 

the superintendent and that addresses the needs identified in the


comprehensive needs evaluation completed under subdivision (a). The

 

intervention plan shall include at least all of the following:

 

     (i) Specific actions that will be taken by the district and

 

each of its partners to improve student achievement.

 

     (ii) Specific measurable benchmarks that will be met within 18

 

months to improve student achievement and identification of

 

expected student achievement outcomes to be attained within 3 years

 

after assignment to the partnership.

 

     (c) Crafts academic goals that put pupils on track to meet or

 

exceed grade level proficiency.

 

     (3) Upon approval of the intervention plan developed under

 

subsection (2), the department shall assign a team of individuals

 

with expertise in comprehensive school and district reform to

 

partner with the district, the intermediate district, community

 

organizations, education organizations, and postsecondary

 

institutions identified in the intervention plan to review the

 

district's use of existing financial resources to ensure that those

 

resources are being used as efficiently and effectively as possible

 

to improve student academic achievement. The superintendent of

 

public instruction may waive burdensome administrative rules for a

 

partnership district for the duration of the partnership agreement.

 

     (4) Funds allocated under this section may be used to pay for

 

district expenditures approved by the superintendent to improve

 

student achievement. Funds may be used for professional development

 

for teachers or district or school leadership, increased

 

instructional time, teacher mentors, or other expenditures that

 

directly impact student achievement and cannot be paid from


existing district financial resources. An eligible district shall

 

not receive funds under this section for more than 3 years.

 

Notwithstanding section 17b, payments to eligible districts under

 

this section shall be paid on a schedule determined by the

 

department.

 

     (5) The department shall annually report in person to the

 

legislature on the activities funded under this section and how

 

those activities impacted student achievement in eligible districts

 

that received funds under this section. To the extent possible,

 

participating districts receiving funding under this section shall

 

participate in the report.

 

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

 

allocated an amount not to exceed $5,207,000,000.00 for 2016-2017

 

and there is allocated an amount not to exceed $5,181,800,000.00

 

$5,176,000,000.00 for 2017-2018 and there is allocated an amount

 

not to exceed $5,115,000,000.00 for 2018-2019 for payments to

 

districts and qualifying public school academies to guarantee each

 

district and qualifying public school academy an amount equal to

 

its 1994-95 total state and local per pupil revenue for school

 

operating purposes under section 11 of article IX of the state

 

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

 

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

 

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

 

school district operating purposes less than it levied in 1994.

 

However, subsection (2) applies to calculating the payments under

 

this section. Funds allocated under this section that are not

 

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


determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

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

 

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

 

school operating purposes, there is allocated to each district a

 

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

 

amount calculated as follows:

 

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

 

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

 

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

 

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

 

product of the taxable value per membership pupil of all property

 

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

 

certified mills and, for a district with certified mills exceeding

 

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

 

property in the district that is commercial personal property times

 

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

 

valorem property tax revenue of the district captured under tax

 

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

 

a district that has a millage reduction required under section 31

 

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

 

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

 

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

 

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

 

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

 

district to satisfy debt obligations of the dissolved district


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

 

value per membership pupil of all property in the receiving

 

district that is nonexempt property and taxable value per

 

membership pupil of property in the receiving district that is

 

commercial personal property do not include property within the

 

geographic area of the dissolved district; ad valorem property tax

 

revenue of the receiving district captured under tax increment

 

financing acts does not include ad valorem property tax revenue

 

captured within the geographic boundaries of the dissolved district

 

under tax increment financing acts; and certified mills do not

 

include the certified mills of the dissolved district. For a

 

community district, the allocation as otherwise calculated under

 

this section shall be reduced by an amount equal to the amount of

 

local school operating tax revenue that would otherwise be due to

 

the community district if not for the operation of section 386 of

 

the revised school code, MCL 380.386, and the amount of this

 

reduction shall be offset by the increase in funding under section

 

22b(2).

 

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

 

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

 

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

 

plus the amount calculated under this subdivision. The amount

 

calculated under this subdivision shall be equal to the difference

 

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

 

and the current year hold harmless school operating taxes per

 

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

 

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


payment calculated under this subdivision. If the result of a

 

calculation under this subdivision is negative, there shall not be

 

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

 

values per membership pupil used in the calculations under this

 

subdivision are as adjusted by ad valorem property tax revenue

 

captured under tax increment financing acts divided by the

 

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

 

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

 

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

 

district to satisfy debt obligations of the dissolved district

 

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

 

property tax revenue captured under tax increment financing acts do

 

not include ad valorem property tax revenue captured within the

 

geographic boundaries of the dissolved district under tax increment

 

financing acts.

 

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

 

qualifying public school academy, there is allocated under this

 

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

 

qualifying public school academy for forwarding to the qualifying

 

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

 

payment to the qualifying public school academy under section 20.

 

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

 

funds allocated under this section in conjunction with any federal

 

funds for which the district or qualifying public school academy

 

otherwise would be eligible.

 

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

 

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


consolidation of 2 or more districts or by annexation, the

 

resulting district's 1994-95 foundation allowance under this

 

section beginning after the effective date of the consolidation or

 

annexation shall be the average of the 1994-95 foundation

 

allowances of each of the original or affected districts,

 

calculated as provided in this section, weighted as to the

 

percentage of pupils in total membership in the resulting district

 

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

 

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

 

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

 

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

 

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

 

purpose of calculations under this subsection to be equal to the

 

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

 

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

 

consolidation or annexation that affects the district.

 

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

 

     (7) As used in this section:

 

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

 

foundation allowance calculated and certified by the department of

 

treasury or the superintendent under former section 20a as enacted

 

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

 

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

 

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

 

1993-94.

 

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

 

for which a particular calculation is made.


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

 

pupil" means the per pupil revenue generated by multiplying a

 

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

 

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

 

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

 

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

 

receiving district to satisfy debt obligations of the dissolved

 

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

 

taxable value per membership pupil does not include the taxable

 

value of property within the geographic area of the dissolved

 

district.

 

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

 

organization, has its territory attached to 1 or more other

 

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

 

revised school code, MCL 380.12.

 

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

 

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

 

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

 

homestead, qualified agricultural property, qualified forest

 

property, supportive housing property, industrial personal

 

property, commercial personal property, and property occupied by a

 

public school academy could be reduced as provided in section 1211

 

of the revised school code, MCL 380.1211, and the number of mills

 

of school operating taxes that could be levied on all property as

 

provided in section 1211(2) of the revised school code, MCL

 

380.1211, as certified by the department of treasury for the 1994

 

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


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

 

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

 

debt obligations of the dissolved district under section 12 of the

 

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

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

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

 

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

 

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

 

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

 

380.1211.

 

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

 

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

 

particular calculation is made.

 

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

 

principal residence, qualified agricultural property, qualified

 

forest property, supportive housing property, industrial personal

 

property, commercial personal property, or property occupied by a

 

public school academy.

 

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

 

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

 

operation in the current state fiscal year.

 

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

 

of the territory of a dissolved district is attached under section

 

12 of the revised school code, MCL 380.12.

 

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

 

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


380.1211, and retained for school operating purposes as defined in

 

section 20.

 

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

 

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

 

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

 

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

 

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

 

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

 

125.2871 to 125.2899.

 

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

 

following divided by the district's membership:

 

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

 

levy of school operating taxes on a homestead, qualified

 

agricultural property, qualified forest property, supportive

 

housing property, industrial personal property, commercial personal

 

property, and property occupied by a public school academy may be

 

reduced as provided in section 1211 of the revised school code, MCL

 

380.1211, the taxable value of homestead, qualified agricultural

 

property, qualified forest property, supportive housing property,

 

industrial personal property, commercial personal property, and

 

property occupied by a public school academy for the calendar year

 

ending in the current state fiscal year. For a receiving district,

 

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

 

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

 

receiving district to satisfy debt obligations of the dissolved

 

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

 

mills do not include mills within the geographic area of the


dissolved district.

 

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

 

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

 

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

 

property for the calendar year ending in the current state fiscal

 

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

 

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

 

whole or in part to the receiving district to satisfy debt

 

obligations of the dissolved district under section 12 of the

 

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

 

include school operating taxes levied within the geographic area of

 

the dissolved district.

 

     Sec. 22b. (1) For discretionary nonmandated payments to

 

districts under this section, there is allocated for 2016-2017 an

 

amount not to exceed $3,841,000,000.00 from the state school aid

 

fund and general fund appropriations in section 11 and an amount

 

not to exceed $72,000,000.00 from the community district education

 

trust fund appropriation in section 11, and there is allocated for

 

2017-2018 an amount not to exceed $3,965,500,000.00

 

$3,947,000,000.00 from the state school aid fund and general fund

 

appropriations in section 11 and an amount not to exceed

 

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

 

appropriation in section 11, and there is allocated for 2018-2019

 

an amount not to exceed $3,818,000,000.00 from the state school aid

 

fund and general fund appropriations in section 11 and an amount

 

not to exceed $72,000,000.00 from the community district education

 

trust fund appropriation in section 11. Except for money allocated


from the community district trust fund, money allocated under this

 

section that is not expended in the state fiscal year for which it

 

was allocated, as determined by the department, may be used to

 

supplement the allocations under sections 22a, 22p, and 51c in

 

order to fully fund those calculated allocations for the same

 

fiscal year.

 

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

 

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

 

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

 

51a(3), and 51a(11), minus the sum of the allocations to the

 

district under sections 22a and 51c. For a community district, the

 

allocation as otherwise calculated under this section shall be

 

increased by an amount equal to the amount of local school

 

operating tax revenue that would otherwise be due to the community

 

district if not for the operation of section 386 of the revised

 

school code, MCL 380.386, and this increase shall be paid from the

 

community district education trust fund allocation in subsection

 

(1) in order to offset the absence of local school operating

 

revenue in a community district in the funding of the state portion

 

of the foundation allowance under section 20(4).

 

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

 

each district shall do all of the following:

 

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

 

380.1280b.

 

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

 

code, MCL 380.1278a and 380.1278b.

 

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


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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (e) Comply with section 21f.

 

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

 

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

 

and other business function software that is compatible with that

 

of the intermediate district in which the district is located and

 

with other districts located within that intermediate district.

 

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

 

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

 

state related to commercial or industrial property tax appeals,

 

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

 

impact revenues dedicated to the state school aid fund.

 

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

 

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

 

state associated with lawsuits filed by 1 or more districts or

 

intermediate districts against this state. If the allocation under

 

this section is insufficient to fully fund all payments required

 

under this section, the payments under this subsection shall be

 

made in full before any proration of remaining payments under this

 

section.

 

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

 

constitutional obligations of this state have been fully funded

 

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

 

an entity receiving funds under this article that challenges the


legislative determination of the adequacy of this funding or

 

alleges that there exists an unfunded constitutional requirement,

 

the state budget director may escrow or allocate from the

 

discretionary funds for nonmandated payments under this section the

 

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

 

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

 

the escrowed funds are a work project appropriation and the funds

 

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

 

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

 

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

 

completed upon resolution of the litigation.

 

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

 

jurisdiction makes a final determination that this state is in

 

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

 

1963 regarding state payments to districts, the state budget

 

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

 

allocate from the discretionary funds for nonmandated payments

 

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

 

amount owed to districts before making any payments to districts

 

under subsection (2).

 

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

 

legislative determination of the adequacy of funding for this

 

state's constitutional obligations or alleges that there exists an

 

unfunded constitutional requirement, any interested party may seek

 

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

 

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

 

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


and shall exercise jurisdiction over the claim.

 

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

 

local claims review board or a court of competent jurisdiction that

 

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

 

constitution of 1963 exceed the amount allocated for discretionary

 

nonmandated payments under this section, the legislature shall

 

provide for adequate funding for this state's constitutional

 

obligations at its next legislative session.

 

     (11) If a lawsuit challenging payments made to districts

 

related to costs reimbursed by federal title XIX Medicaid funds is

 

filed against this state, then, for the purpose of addressing

 

potential liability under such a lawsuit, the state budget director

 

may place funds allocated under this section in escrow or allocate

 

money from the funds otherwise allocated under this section, up to

 

a maximum of 50% of the amount allocated in subsection (1). If

 

funds are placed in escrow under this subsection, those funds are a

 

work project appropriation and the funds are carried forward into

 

the following fiscal year. The purpose of the work project is to

 

provide for any payments that may be awarded to districts as a

 

result of the litigation. The work project shall be completed upon

 

resolution of the litigation. In addition, this state reserves the

 

right to terminate future federal title XIX Medicaid reimbursement

 

payments to districts if the amount or allocation of reimbursed

 

funds is challenged in the lawsuit. As used in this subsection,

 

"title XIX" means title XIX of the social security act, 42 USC 1396

 

to 1396v.1396w-5.

 

     (12) Payments to districts or public school academies must not


be made under this section for pupils enrolled and counted in

 

membership in those districts or public school academies that have

 

entered into a partnership agreement with the department. Payments

 

for those pupils must be made under section 22p.

 

     Sec. 22d. (1) From the appropriation in section 11, an amount

 

not to exceed $5,000,000.00 $6,000,000.00 is allocated for 2017-

 

2018 2018-2019 for supplemental payments to rural districts under

 

this section.

 

     (2) From the allocation under subsection (1), there is

 

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

 

$957,300.00 for payments under this subsection to districts that

 

meet all of the following:

 

     (a) Operates grades K to 12.

 

     (b) Has fewer than 250 pupils in membership.

 

     (c) Each school building operated by the district meets at

 

least 1 of the following:

 

     (i) Is located in the Upper Peninsula at least 30 miles from

 

any other public school building.

 

     (ii) Is located on an island that is not accessible by bridge.

 

     (3) The amount of the additional funding to each eligible

 

district under subsection (2) shall be determined under a spending

 

plan developed as provided in this subsection and approved by the

 

superintendent of public instruction. The spending plan shall be

 

developed cooperatively by the intermediate superintendents of each

 

intermediate district in which an eligible district is located. The

 

intermediate superintendents shall review the financial situation

 

of each eligible district, determine the minimum essential


financial needs of each eligible district, and develop and agree on

 

a spending plan that distributes the available funding under

 

subsection (2) to the eligible districts based on those financial

 

needs. The intermediate superintendents shall submit the spending

 

plan to the superintendent of public instruction for approval. Upon

 

approval by the superintendent of public instruction, the amounts

 

specified for each eligible district under the spending plan are

 

allocated under subsection (2) and shall be paid to the eligible

 

districts in the same manner as payments under section 22b.

 

     (4) Subject to subsection (6), from the allocation in

 

subsection (1), there is allocated for 2017-2018 2018-2019 an

 

amount not to exceed $4,042,700.00 $5,042,700.00 for payments under

 

this subsection to districts that have 7.3 7.7 or fewer pupils per

 

square mile as determined by the department.

 

     (5) The funds allocated under subsection (4) shall be

 

allocated on an equal per-pupil basis.

 

     (6) A district receiving funds allocated under subsection (2)

 

is not eligible for funding allocated under subsection (4).

 

     Sec. 22m. (1) From the appropriations in section 11, there is

 

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

 

$2,200,000.00 for supporting the integration of local data systems

 

into the Michigan data hub network based on common standards and

 

applications that are in compliance with section 19(6).

 

     (2) An entity that is the fiscal agent for no more than 5

 

consortia of intermediate districts that previously received

 

funding from the technology readiness infrastructure grant under

 

former section 22i for the purpose of establishing regional data


hubs that are part of the Michigan data hub network is eligible for

 

funding under this section.

 

     (3) The center shall work with an advisory committee composed

 

of representatives from intermediate districts within each of the

 

data hub regions to coordinate the activities of the Michigan data

 

hub network.

 

     (4) The center, in collaboration with the Michigan data hub

 

network, shall determine the amount of funds distributed under this

 

section to each participating regional data hub within the network,

 

based upon a competitive grant process. Entities receiving funding

 

under this section shall represent geographically diverse areas in

 

this state.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the center.

 

     (6) To receive funding under this section, a regional data hub

 

must have a governance model that ensures local control of data,

 

data security, and student privacy issues. The integration of data

 

within each of the regional data hubs shall provide for the

 

actionable use of data by districts and intermediate districts

 

through common reports and dashboards and for efficiently providing

 

information to meet state and federal reporting purposes.

 

     (7) Participation in a data hub region in the Michigan data

 

hub network under this section is voluntary and is not required.

 

     (8) Entities receiving funding under this section shall use

 

the funds for all of the following:

 

     (a) Creating an infrastructure that effectively manages the

 

movement of data between data systems used by intermediate


districts, districts, and other educational organizations in

 

Michigan based on common data standards to improve student

 

achievement.

 

     (b) Utilizing the infrastructure to put in place commonly

 

needed integrations, reducing cost and effort to do that work while

 

increasing data accuracy and usability.

 

     (c) Promoting the use of a more common set of applications by

 

promoting systems that integrate with the Michigan data hub

 

network.

 

     (d) Promoting 100% district adoption of the Michigan data hub

 

network by September 30, 2018.2020.

 

     (e) Ensuring local control of data, data security, and student

 

data privacy.

 

     (f) Utilizing the infrastructure to promote the actionable use

 

of data through common reports and dashboards that are consistent

 

statewide.

 

     (g) Creating a governance model to facilitate sustainable

 

operations of the infrastructure in the future, including

 

administration, legal agreements, documentation, staffing, hosting,

 

and funding.

 

     (h) Evaluating future data initiatives at all levels to

 

determine whether the initiatives can be enhanced by using the

 

standardized environment in the Michigan data hub network.

 

     (9) Not later than January 1 , 2018, of each fiscal year, the

 

center shall prepare a summary report of information provided by

 

each entity that received funds under this section that includes

 

measurable outcomes based on the objectives described under this


section. The report shall include a summary of compiled data from

 

each entity to provide a means to evaluate the effectiveness of the

 

project. The center shall submit the report to the house and senate

 

appropriations subcommittees on state school aid and to the house

 

and senate fiscal agencies.

 

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

 

allocated an amount not to exceed $11,000,000.00 for 2017 2018

 

2018-2019 for additional payments to districts for the higher

 

instructional costs of educating high school pupils.

 

     (2) A district is eligible for a payment under this section if

 

it educates pupils in 1 or more of grades 9 to 12.

 

     (3) The payment to each eligible district under this section

 

shall be an amount equal to $25.00 multiplied by the district's

 

total pupil membership in grades 9 to 12 as calculated under

 

section 6 for the current fiscal year. If the allocation under

 

subsection (1) is insufficient to fully fund payments under this

 

subsection, the department shall prorate payments under this

 

section on an equal per-pupil basis.

 

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

 

allocated for 2018-2019 an amount not to exceed $400,000,000.00 for

 

payments to eligible districts and eligible public school academies

 

under this section. To be eligible for payments under this section,

 

a district or public school academy must meet all of the following:

 

     (a) Has a signed partnership agreement with the department.

 

     (b) Is not eligible to receive funding under section 22b.

 

     (c) Amends the partnership agreement to include measurable

 

academic outcomes that will be achieved after 18 months and after


36 months from the date the agreement was originally signed.

 

Measurable academic outcomes under this subdivision must include

 

outcomes that put pupils on track to meet or exceed grade level

 

proficiency.

 

     (d) Amends the partnership agreement to include accountability

 

measures to be imposed if the district or public school academy

 

does not achieve the measurable academic outcomes under subdivision

 

(c) for a school subject to a partnership agreement. Accountability

 

measures under this subdivision may include either the closure of

 

the school at the end of the current school year or the

 

reconstitution of the school in a final attempt to improve student

 

educational performance or to avoid interruption of the educational

 

process. For a public school academy that amends a partnership

 

agreement under this subdivision, the amended agreement must

 

include a requirement that if reconstitution is imposed on a school

 

that is operated by the public school academy and that is subject

 

to the partnership agreement, the school shall be reconstituted as

 

described in section 507 of the revised school code, MCL 380.507.

 

For a district that amends a partnership agreement under this

 

subdivision, the amended agreement must include a requirement that

 

if reconstitution is imposed on a school that is operated by the

 

district and that is subject to the partnership agreement, all of

 

the following apply:

 

     (i) The board of the district operating the school shall

 

appoint a local building governing board for the school. All of the

 

following apply to the local building governing board:

 

     (A) The local building governing board shall be composed of 5


people from the local community who are not members of the board of

 

the district and who are appointed by the board of the district.

 

     (B) One member appointed by the board of the district under

 

sub-subparagraph (A) shall be chosen from a list submitted to the

 

board by the superintendent of public instruction.

 

     (C) One member appointed by the board of the district under

 

sub-subparagraph (A) shall be chosen from a list submitted to the

 

board by the intermediate district that signed the partnership

 

agreement.

 

     (D) The local building governing board shall possess all of

 

the powers of the board of the district for the academic affairs

 

and daily operations of the school, but the district shall retain

 

responsibility for administering lunch programs, special education,

 

payroll, and other primary functions.

 

     (E) The local building governing board shall develop and

 

approve a building-level budget that shall be remitted to the

 

district for approval in the district's general budgeting process.

 

     (F) The local building governing board shall hire or enter

 

into a contract with a school leader.

 

     (G) The local building governing board shall employ or

 

contract with personnel as necessary for the operation of the

 

school, prescribe their duties, and fix their compensation.

 

     (ii) Upon appointment of a local building governing board

 

under subparagraph (i), all provisions of a collective bargaining

 

agreement as they apply to teachers at the school shall be

 

canceled.

 

     (iii) The reconstitution plan for the school shall require the


adoption of goals similar to the goals included in a partnership

 

agreement, with a limit of 5 years to achieve the goals. If the

 

goals are not achieved within 5 years, the superintendent of public

 

instruction shall either impose a second reconstitution plan on the

 

school or close the school.

 

     (2) For an eligible district or eligible public school

 

academy, the amount of funding paid to the eligible district or

 

eligible public school academy under this section shall be

 

calculated and paid in the same manner as if the eligible district

 

or eligible public school academy received the funding under

 

section 22b.

 

     (3) Funds allocated under this section that are not expended

 

in the fiscal year for which they are allocated, as determined by

 

the department, may be used to supplement the allocations in

 

section 22b.

 

     Sec. 24. (1) From the appropriation in section 11, there is

 

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

 

$8,000,000.00 $7,150,000.00 for payments to the educating district

 

or intermediate district for educating pupils assigned by a court

 

or the department of health and human services to reside in or to

 

attend a juvenile detention facility or child caring institution

 

licensed by the department of health and human services and

 

approved by the department to provide an on-grounds education

 

program. The amount of the payment under this section to a district

 

or intermediate district shall be calculated as prescribed under

 

subsection (2).

 

     (2) The total amount allocated under this section shall be


allocated by paying to the educating district or intermediate

 

district an amount equal to the lesser of the district's or

 

intermediate district's added cost or the department's approved

 

per-pupil allocation for the district or intermediate district. For

 

the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils assigned by a court or the department of

 

health and human services to reside in or to attend a juvenile

 

detention facility or child caring institution licensed by the

 

department of health and human services or the department of

 

licensing and regulatory affairs and approved by the department to

 

provide an on-grounds education program. Added cost shall be

 

computed by deducting all other revenue received under this article

 

for pupils described in this section from total costs, as approved

 

by the department, in whole or in part, for educating those pupils

 

in the on-grounds education program or in a program approved by the

 

department that is located on property adjacent to a juvenile

 

detention facility or child caring institution. Costs reimbursed by

 

federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a

 

district or intermediate district shall be determined by dividing

 

the total amount allocated under this section for a fiscal year by

 

the full-time equated membership total for all pupils approved by

 

the department to be funded under this section for that fiscal year

 

for the district or intermediate district.

 

     (3) A district or intermediate district educating pupils

 

described in this section at a residential child caring institution


may operate, and receive funding under this section for, a

 

department-approved on-grounds educational program for those pupils

 

that is longer than 181 days, but not longer than 233 days, if the

 

child caring institution was licensed as a child caring institution

 

and offered in 1991-92 an on-grounds educational program that was

 

longer than 181 days but not longer than 233 days and that was

 

operated by a district or intermediate district.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     Sec. 24a. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,339,000.00 for 2017-2018

 

$1,355,700.00 for 2018-2019 for payments to intermediate districts

 

for pupils who are placed in juvenile justice service facilities

 

operated by the department of health and human services. Each

 

intermediate district shall receive an amount equal to the state

 

share of those costs that are clearly and directly attributable to

 

the educational programs for pupils placed in facilities described

 

in this section that are located within the intermediate district's

 

boundaries. The intermediate districts receiving payments under

 

this section shall cooperate with the department of health and

 

human services to ensure that all funding allocated under this

 

section is utilized by the intermediate district and department of

 

health and human services for educational programs for pupils

 

described in this section. Pupils described in this section are not

 

eligible to be funded under section 24. However, a program

 

responsibility or other fiscal responsibility associated with these

 

pupils shall not be transferred from the department of health and


human services to a district or intermediate district unless the

 

district or intermediate district consents to the transfer.

 

     Sec. 24c. From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,528,400.00 for 2017-2018

 

$1,545,400.00 for 2018-2019 for payments to districts for pupils

 

who are enrolled in a nationally administered community-based

 

education and youth mentoring program, known as the youth challenge

 

program, that is administered by the department of military and

 

veterans affairs. Both of the following apply to a district

 

receiving payments under this section:

 

     (a) The district shall contract with the department of

 

military and veterans affairs to ensure that all funding allocated

 

under this section is utilized by the district and the department

 

of military and veterans affairs for the youth challenge program.

 

     (b) The district may retain for its administrative expenses an

 

amount not to exceed 3% of the amount of the payment the district

 

receives under this section.

 

     Sec. 25f. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $750,000.00 $1,600,000.00 for 2017-2018 and for 2018-2019

 

for payments to strict discipline academies established under

 

sections 1311b to 1311m of the revised school code, MCL 380.1311b

 

to 380.1311m, as provided under this section.

 

     (2) In order to receive funding under this section, a strict

 

discipline academy shall first comply with section 25e and use the

 

pupil transfer process under that section for changes in enrollment

 

as prescribed under that section.


     (3) The total amount allocated to a strict discipline academy

 

under this section is an amount equal to shall first be distributed

 

as the lesser of the strict discipline academy's added cost or the

 

department's approved per-pupil allocation for the strict

 

discipline academy. Any funds remaining after the first

 

distribution shall be distributed by prorating on an equal per-

 

pupil membership basis, not to exceed a strict discipline academy's

 

added cost. However, the sum of the amounts received by a strict

 

discipline academy under this section and under section 24 shall

 

not exceed the product of the strict discipline academy's per-pupil

 

allocation calculated under section 20 multiplied by the strict

 

discipline academy's full-time equated membership. The department

 

shall allocate funds to strict discipline academies under this

 

section on a monthly basis. For the purposes of this subsection:

 

     (a) "Added cost" means 100% of the added cost each fiscal year

 

for educating all pupils enrolled and in regular daily attendance

 

at a strict discipline academy. Added cost shall be computed by

 

deducting all other revenue received under this article for pupils

 

described in this subsection from total costs, as approved by the

 

department, in whole or in part, for educating those pupils in a

 

strict discipline academy. The department shall include all costs

 

including, but not limited to, educational costs, insurance,

 

management fees, technology costs, legal fees, auditing fees,

 

interest, pupil accounting costs, and any other administrative

 

costs necessary to operate the program or to comply with statutory

 

requirements. Costs reimbursed by federal funds are not included.

 

     (b) "Department's approved per-pupil allocation" for a strict


discipline academy shall be determined by dividing the total amount

 

allocated under this subsection for a fiscal year by the full-time

 

equated membership total for all pupils approved by the department

 

to be funded under this subsection for that fiscal year for the

 

strict discipline academy.

 

     (4) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund the adjustments under subsection (3), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (6) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 25g. (1) From the state school aid fund money

 

appropriated in section 11, there is allocated an amount not to

 

exceed $750,000.00 for 2017-2018 2018-2019 for the purposes of this

 

section. If the operation of the special membership counting

 

provisions under section 6(4)(dd) and the other membership counting

 

provisions under section 6(4) result in a pupil being counted as

 

more than 1.0 FTE in a fiscal year, then the payment made for the

 

pupil under sections 22a and 22b shall not be based on more than

 

1.0 FTE for that pupil, and that portion of the FTE that exceeds

 

1.0 shall be paid under this section in an amount equal to that

 

portion multiplied by the educating district's foundation allowance

 

or per-pupil payment calculated under section 20.

 

     (2) Special education pupils funded under section 53a shall

 

not be funded under this section.

 

     (3) If the funds allocated under this section are insufficient


to fully fund the adjustments under subsection (1), payments under

 

this section shall be prorated on an equal per-pupil basis.

 

     (4) Payments to districts under this section shall be made

 

according to the payment schedule under section 17b.

 

     Sec. 26a. From the funds appropriated in section 11, there is

 

allocated an amount not to exceed $17,000,000.00 each fiscal year

 

for 2016-2017 and $15,000,000.00 for 2017-2018 and there is

 

allocated an amount not to exceed $15,000,000.00 for 2018-2019 to

 

reimburse districts and intermediate districts pursuant to section

 

12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692,

 

for taxes levied in 2016 and 2017 2017 and 2018, as applicable. The

 

allocations shall be made not later than 60 days after the

 

department of treasury certifies to the department and to the state

 

budget director that the department of treasury has received all

 

necessary information to properly determine the amounts due to each

 

eligible recipient.

 

     Sec. 26b. (1) From the appropriation in section 11, there is

 

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

 

$4,405,100.00 for payments to districts, intermediate districts,

 

and community college districts for the portion of the payment in

 

lieu of taxes obligation that is attributable to districts,

 

intermediate districts, and community college districts pursuant to

 

under section 2154 of the natural resources and environmental

 

protection act, 1994 PA 451, MCL 324.2154.

 

     (2) If the amount appropriated under this section is not

 

sufficient to fully pay obligations under this section, payments

 

shall be prorated on an equal basis among all eligible districts,


intermediate districts, and community college districts.

 

     Sec. 26c. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,500,000.00 $1,600,000.00 for

 

2017-2018 and there is allocated an amount not to exceed

 

$3,000,000.00 for 2018-2019 to the promise zone fund created in

 

subsection (3). The funds allocated under this section reflect the

 

amount of revenue from the collection of the state education tax

 

captured under section 17(2) of the Michigan promise zone authority

 

act, 2008 PA 549, MCL 390.1677.

 

     (2) Funds allocated to the promise zone fund under this

 

section shall be used solely for payments to eligible districts and

 

intermediate districts, in accordance with section 17(3) of the

 

Michigan promise zone authority act, 2008 PA 549, MCL 390.1677,

 

that have a promise zone development plan approved by the

 

department of treasury under section 7 of the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1667. Eligible districts and

 

intermediate districts shall use payments made under this section

 

for reimbursement for qualified educational expenses as defined in

 

section 3 of the Michigan promise zone authority act, 2008 PA 549,

 

MCL 390.1663.

 

     (3) The promise zone fund is created as a separate account

 

within the state school aid fund to be used solely for the purposes

 

of the Michigan promise zone authority act, 2008 PA 549, MCL

 

390.1661 to 390.1679. All of the following apply to the promise

 

zone fund:

 

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

 

promise zone fund. The state treasurer shall credit to the promise


zone fund interest and earnings from fund investments.

 

     (b) Money in the promise zone fund at the close of a fiscal

 

year shall remain in the promise zone fund and shall not lapse to

 

the general fund.

 

     (4) Subject to subsection (2), the state treasurer may make

 

payments from the promise zone fund to eligible districts and

 

intermediate districts pursuant to the Michigan promise zone

 

authority act, 2008 PA 549, MCL 390.1661 to 390.1679, to be used

 

for the purposes of a promise zone authority created under that

 

act.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be paid on a schedule determined by the department.

 

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

 

appropriated in section 11, there is allocated for 2017-2018 2018-

 

2019 an amount not to exceed $510,207,300.00 for payments to

 

eligible districts and eligible public school academies for the

 

purposes of ensuring that pupils are proficient in English language

 

arts by the end of grade 3, that pupils are proficient in

 

mathematics by the end of grade 8, that pupils are attending school

 

regularly, that high school graduates are career and college ready,

 

and for the purposes under subsections (7) and (8).

 

     (2) For a district that has combined state and local revenue

 

per membership pupil under sections 20 and 20m that is greater than

 

the basic foundation allowance under section 20 for the current

 

fiscal year, the allocation under this section shall be an amount

 

equal to 30% of the allocation for which it would otherwise be

 

eligible under this section before any proration under subsection


(14).

 

     (3) For a district or public school academy to be eligible to

 

receive funding under this section, other than funding under

 

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

 

grades K to 3, shall comply with the requirements under section

 

1280f of the revised school code, MCL 380.1280f, and use resources

 

to address early literacy, and for at least grades 4 to 8 or, if

 

the district or public school academy does not operate all of

 

grades 4 to 8, for all of the grades it operates, must implement 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.

 

     (c) Provides a multi-tiered model of instruction and

 

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 shall receive

 

under this section for each membership pupil in the district or

 

public school academy who is determined to be economically

 

disadvantaged, as reported to the center in the form and manner

 

prescribed by the center not later than the fifth Wednesday after

 

the pupil membership count day of the immediately preceding fiscal

 

year, an amount per pupil equal to 11.5% of the statewide weighted

 

average foundation allowance. However, a public school academy that

 

began operations as a public school academy after the pupil

 

membership count day of the immediately preceding school year shall

 

receive under this section for each membership pupil in the public

 

school academy, who is determined to be economically disadvantaged,

 

as reported to the center in the form and manner prescribed by the

 

center not later than the fifth Wednesday after the pupil

 

membership count day of the current fiscal year, an amount per

 

pupil equal to 11.5% of the statewide weighted average foundation

 

allowance.

 

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

 

or public school academy receiving funding under this section shall

 

use that money only to provide instructional programs and direct


noninstructional services, including, but not limited to, medical,

 

mental health, or counseling services, for at-risk pupils; for

 

school health clinics; and for the purposes of subsection (6), (7),

 

or (8). In addition, a district that is a school district of the

 

first class or a district or public school academy in which at

 

least 50% of the pupils in membership were determined to be

 

economically disadvantaged in the immediately preceding state

 

fiscal year, as determined and reported as described in subsection

 

(4), may use not more than 20% of the funds it receives under this

 

section for school security. A district or public school academy

 

shall not use any of that money for administrative costs. The

 

instruction or direct noninstructional services provided under this

 

section may be conducted before or after regular school hours or by

 

adding extra school days to the school year. Funds spent on school

 

security under this subsection shall be counted toward required

 

spending under subsection (16)(b).

 

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

 

under this section and that operates a school breakfast program

 

under section 1272a of the revised school code, MCL 380.1272a,

 

shall use from the funds received under this section an amount, not

 

to exceed $10.00 per pupil for whom the district or public school

 

academy receives funds under this section, necessary to pay for

 

costs associated with the operation of the school breakfast

 

program.

 

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

 

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

 

$6,057,300.00 to support primary health care services provided to


children and adolescents up to age 21. These funds shall be

 

expended in a form and manner determined jointly by the department

 

and the department of health and human services. If any funds

 

allocated under this subsection are not used for the purposes of

 

this subsection for the fiscal year in which they are allocated,

 

those unused funds shall be used that fiscal year to avoid or

 

minimize any proration that would otherwise be required under

 

subsection (14) for that fiscal year.

 

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

 

allocated for 2017-2018 2018-2019 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 shall submit to the department by July 15 of

 

each fiscal year a report, in the form and manner prescribed by the

 

department, that includes a brief description of each program

 

conducted or services performed by the district or public school

 

academy using funds under this section, the amount of funds under


this section allocated to each of those programs or services, the

 

total number of at-risk pupils served by each of those programs or

 

services, and the data necessary for the department and the

 

department of health and human services to verify matching funds

 

for the temporary assistance for needy families program. In

 

prescribing the form and manner of the report, the department shall

 

ensure that districts are allowed to expend funds received under

 

this section on any activities that are permissible under this

 

section. If a district or public school academy does not comply

 

with this subsection, the department shall withhold an amount equal

 

to the August payment due under this section until the district or

 

public school academy complies with this subsection. If the

 

district or public school academy does not comply with this

 

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

 

shall be forfeited to the school aid fund.

 

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

 

or public school academy shall allow access for the department or

 

the department's designee to audit all records related to the

 

program for which it receives those funds. The district or public

 

school academy shall reimburse the state for all disallowances

 

found in the audit.

 

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

 

public school academy 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 instructional or noninstructional services consistent

 

with the school improvement plan.


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

 

under this section may use up to 3% of those funds to provide

 

research-based professional development to district and school

 

leadership and teachers that is aligned to professional learning

 

standards; is integrated into district, school building, and

 

classroom practices; and is solely related to the following:

 

     (a) Implementing the multi-tiered system of supports required

 

in subsection (3) with fidelity and utilizing the data from that

 

system to inform curriculum and instruction.

 

     (b) Implementing section 1280f of the revised school code, MCL

 

380.1280f, as required under subsection (3), with fidelity.

 

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

 

under this section may use funds received under this section to

 

support instructional or behavioral coaches. Funds used for this

 

purpose are not subject to the cap under subsection (12).

 

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

 

section 296, the department shall prorate payments under this

 

section by reducing the amount of the allocation as otherwise

 

calculated under this section by an equal percentage per district.

 

     (15) If a district is dissolved pursuant to section 12 of the

 

revised school code, MCL 380.12, the intermediate district to which

 

the dissolved school district was constituent shall determine the

 

estimated number of pupils that are economically disadvantaged and

 

that are enrolled in each of the other districts within the

 

intermediate district and provide that estimate to the department

 

for the purposes of distributing funds under this section within 60

 

days after the school district is declared dissolved.


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

 

academy does not demonstrate to the satisfaction of the department

 

that at least 50% of at-risk pupils are proficient in English

 

language arts by the end of grade 3 as measured by the state

 

assessment for the immediately preceding school year and

 

demonstrate to the satisfaction of the department improvement over

 

each of the 3 immediately preceding school years in the percentage

 

of at-risk pupils that are career- and college-ready as determined

 

by proficiency on the English language arts, mathematics, and

 

science content area assessments on the grade 11 summative

 

assessment under section 1279g(2)(a) of the revised school code,

 

MCL 380.1279g, the district or public school academy shall ensure

 

all of the following:

 

     (a) The district or public school academy shall determine the

 

proportion of total at-risk pupils that represents the number of

 

pupils in grade 3 that are not proficient in English language arts

 

by the end of grade 3, and the district or public school academy

 

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 English language arts proficiency.

 

     (b) The district or public school academy 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 or public school


academy 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.

 

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

 

the sum of the number of pupils in grade 3 that are not proficient

 

in English language arts by the end of third grade as measured on

 

the state assessment at risk 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.at

 

risk.

 

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

 

under this section may use funds received under this section to

 

provide an anti-bullying or crisis intervention program.

 

     (19) The department shall collaborate with the department of

 

health and human services to prioritize assigning Pathways to

 

Potential Success coaches to elementary schools that have a high

 

percentage of pupils in grades K to 3 who are not proficient in

 

English language arts, based upon state assessments for pupils in

 

those grades.

 

     (20) For the purpose of determining the number of economically

 

disadvantaged pupils enrolled in a community district for 2017-

 

2018, disadvantaged pupils who were enrolled in the education

 

achievement system for 2016-2017 shall be considered to have been

 

enrolled in the community district for 2016-2017.


     (20) (21) As used in this section:

 

     (a) "At-risk pupil" means a pupil for whom the district has

 

documentation that the pupil meets any of the following criteria:

 

     (i) The pupil is economically disadvantaged.

 

     (ii) The pupil is an English language learner.

 

     (iii) The pupil is chronically absent as defined by and

 

reported to the center.

 

     (iv) The pupil is a victim of child abuse or neglect.

 

     (v) The pupil is a pregnant teenager or teenage parent.

 

     (vi) The pupil has a family history of school failure,

 

incarceration, or substance abuse.

 

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

 

immediately preceding 3 years.

 

     (viii) The pupil did not complete high school in 4 years and

 

is still continuing in school as identified in the Michigan cohort

 

graduation and dropout report.

 

     (ix) For pupils for whom the results of the state summative

 

assessment have been received, is a pupil who did not achieve

 

proficiency on the English language arts, mathematics, science, or

 

social studies content area assessment.

 

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

 

public school academy's core academic curricular objectives in

 

English language arts or mathematics, as demonstrated on local

 

assessments.

 

     (b) "Economically disadvantaged" means a pupil who has been

 

determined eligible for free or reduced-price meals as determined

 

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


to 1769j; who is in a household receiving supplemental nutrition

 

assistance program or temporary assistance for needy families

 

assistance; or who is homeless, migrant, or in foster care, as

 

reported to the center.

 

     (c) "English language learner" means limited English

 

proficient pupils who speak a language other than English as their

 

primary language and have difficulty speaking, reading, writing, or

 

understanding English as reported to the center.

 

     (d) "Statewide weighted average foundation allowance" means

 

the number that is calculated by adding together the result of each

 

district's or public school academy's foundation allowance or per

 

pupil payment calculated under section 20 multiplied by the number

 

of pupils in membership in that district or public school academy,

 

and then dividing that total by the statewide number of pupils in

 

membership. For the purposes of this calculation, a district's

 

foundation allowance shall not exceed the basic foundation

 

allowance under section 20 for the current state fiscal year.

 

     Sec. 31d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $22,495,100.00 $22,802,000.00 for

 

2017-2018 and there is allocated an amount not to exceed

 

$23,144,000.00 for 2018-2019 for the purpose of making payments to

 

districts and other eligible entities under this section.

 

     (2) The amounts allocated from state sources under this

 

section shall be used to pay the amount necessary to reimburse

 

districts for 6.0127% of the necessary costs of the state mandated

 

portion of the school lunch programs provided by those districts.

 

The amount due to each district under this section shall be


computed by the department using the methods of calculation adopted

 

by the Michigan supreme court in the consolidated cases known as

 

Durant v State of Michigan, Durant v State of Michigan, 456 Mich

 

175 (1997).

 

     (3) The payments made under this section include all state

 

payments made to districts so that each district receives at least

 

6.0127% of the necessary costs of operating the state mandated

 

portion of the school lunch program in a fiscal year.

 

     (4) The payments made under this section to districts and

 

other eligible entities that are not required under section 1272a

 

of the revised school code, MCL 380.1272a, to provide a school

 

lunch program shall be in an amount not to exceed $10.00 per

 

eligible pupil plus 5 cents for each free lunch and 2 cents for

 

each reduced price lunch provided, as determined by the department.

 

     (5) From the federal funds appropriated in section 11, there

 

is allocated for 2017-2018 2018-2019 all available federal funding,

 

estimated at $520,000,000.00 for the national school lunch program

 

and all available federal funding, estimated at $3,200,000.00 for

 

the emergency food assistance program.

 

     (6) Notwithstanding section 17b, payments to eligible entities

 

other than districts under this section shall be paid on a schedule

 

determined by the department.

 

     (7) In purchasing food for a school lunch program funded under

 

this section, preference shall be given to food that is grown or

 

produced by Michigan businesses if it is competitively priced and

 

of comparable quality.

 

     Sec. 31f. (1) From the appropriations in section 11, there is


allocated an amount not to exceed $4,500,000.00 each fiscal year

 

for 2016-2017 and for 2017-2018 for 2018-2019 for the purpose of

 

making payments to districts to reimburse for the cost of providing

 

breakfast.

 

     (2) The funds allocated under this section for school

 

breakfast programs shall be made available to all eligible

 

applicant districts that meet all of the following criteria:

 

     (a) The district participates in the federal school breakfast

 

program and meets all standards as prescribed by 7 CFR parts 220

 

and 245.

 

     (b) Each breakfast eligible for payment meets the federal

 

standards described in subdivision (a).

 

     (3) The payment for a district under this section is at a per

 

meal rate equal to the lesser of the district's actual cost or 100%

 

of the statewide average cost of a breakfast served, as determined

 

and approved by the department, less federal reimbursement,

 

participant payments, and other state reimbursement. The statewide

 

average cost shall be determined by the department using costs as

 

reported in a manner approved by the department for the preceding

 

school year.

 

     (4) Notwithstanding section 17b, payments under this section

 

may be made pursuant to an agreement with the department.

 

     (5) In purchasing food for a school breakfast program funded

 

under this section, preference shall be given to food that is grown

 

or produced by Michigan businesses if it is competitively priced

 

and of comparable quality.

 

     Sec. 31j. (1) From the general fund money appropriated in


section 11, there is allocated an amount not to exceed $375,000.00

 

$700,000.00 for 2017-2018 2018-2019 for a pilot project to support

 

districts in the purchase of locally grown fruits and vegetables as

 

described in this section.

 

     (2) The department shall provide funding to districts in

 

prosperity regions 2, 4, 6, 8, and 9 for the pilot project

 

described under this section. From the funding to districts in

 

subsection (1), funding retained by prosperity regions that

 

administer the project shall not exceed 10%, and funding retained

 

by the department for administration shall not exceed 6%. A

 

prosperity region may enter into a memorandum of understanding with

 

the department or another prosperity region, or both, to administer

 

the project. If the department administers the project for a

 

prosperity region, the department may retain up to 10% of that

 

prosperity region's funding for administration.

 

     (3) The department shall develop and implement a competitive

 

grant program for districts within the identified prosperity

 

regions to assist in paying for the costs incurred by the district

 

to purchase or increase purchases of whole or minimally processed

 

fruits, vegetables, and legumes grown in this state. The maximum

 

amount that may be drawn down on a grant to a district shall be

 

based on the number of meals served by the school district during

 

the previous school year under the Richard B. Russell national

 

school lunch act, 42 USC 1751 to 1769j. The department shall

 

collaborate with the Michigan department of agriculture and rural

 

development to provide training to newly participating schools and

 

electronic information on Michigan agriculture.


     (4) The goals of the pilot project include improving daily

 

nutrition and eating habits for children through the school

 

settings while investing in Michigan's agricultural and related

 

food business economy.

 

     (5) A district that receives a grant under this section shall

 

use those funds for the costs incurred by the school district to

 

purchase whole or minimally processed fruits, vegetables, and

 

legumes that meet all of the following:

 

     (a) Are purchased on or after the date the district received

 

notification from the department of the amount to be distributed to

 

the district under this subsection, including purchases made to

 

launch meals in September 2017 2018 for the 2017-2018 2018-2019

 

school year.

 

     (b) Are grown in this state and, if minimally processed, are

 

also processed in this state.

 

     (c) Are used for meals that are served as part of the United

 

States Department of Agriculture's child nutrition programs.

 

     (6) For Michigan-grown fruits, vegetables, and legumes that

 

satisfy the requirements of subsection (5), matching reimbursements

 

shall be made in an amount not to exceed 10 cents for every school

 

meal that is served as part of the United States Department of

 

Agriculture's child nutrition programs and that uses Michigan-grown

 

fruits, vegetables, and legumes.

 

     (7) A district that receives a grant for reimbursement under

 

this section shall use the grant to purchase whole or minimally

 

processed fruits, vegetables, and legumes that are grown in this

 

state and, if minimally processed, are also processed in this


state.

 

     (8) In awarding grants under this section, the department

 

shall work in conjunction with prosperity region offices, in

 

consultation with Michigan-based farm to school resource

 

organizations, to develop scoring criteria that assess an

 

applicant's ability to procure Michigan-grown products, prepare and

 

menu Michigan-grown products, promote and market Michigan-grown

 

products, and submit letters of intent from districts on plans for

 

educational activities that promote the goals of the program.

 

     (9) The department shall give preference to districts that

 

propose educational activities that meet 1 or more of the

 

following: promote healthy food activities; have clear educational

 

objectives; involve parents or the community; and connect to a

 

school's farm-to-school procurement activities; and market and

 

promote the program, leading to increased pupil knowledge and

 

consumption of Michigan—grown products. Applications with robust

 

marketing and promotional activities shall receive stronger

 

weighting and consideration.

 

     (10) In awarding grants, the department shall also consider

 

all of the following: the percentage of children who qualify for

 

free or reduced price school meals under the Richard B. Russell

 

national school lunch act, 42 USC 1751 to 1769j; the variety of

 

school sizes and geographic locations within the identified

 

prosperity regions; and existing or future collaboration

 

opportunities between more than 1 district in a prosperity region.

 

     (11) As a condition of receiving a grant under this section, a

 

district shall provide or direct its vendors to provide to


prosperity region offices copies of monthly receipts that show the

 

quantity of different Michigan-grown fruits, vegetables, and

 

legumes purchased, the amount of money spent on each of these

 

products, and the name and Michigan location of the farm that grew

 

the products, and the methods or plans to market and promote the

 

program. The district shall also provide to the prosperity region

 

monthly lunch numbers and lunch participation rates, and calendars

 

or monthly menus noting when and how Michigan-grown products were

 

used in meals. The district and school food service director or

 

directors also shall agree to respond to brief online surveys and

 

to provide a report that shows the percentage relationship of

 

Michigan spending compared to total food spending. Not later than

 

March 1, 2018, 2019, each prosperity region office, either on its

 

own or in conjunction with another prosperity region, shall submit

 

a report to the department on expected outcomes and related

 

measurements for economic development and children's nutrition and

 

readiness to learn based on progress so far. The report shall

 

include at least all of the following:

 

     (a) The extent to which farmers and related businesses,

 

including distributors and processors, see an increase in market

 

opportunities and income generation through sales of Michigan or

 

local products to districts. All of the following apply for

 

purposes of this subdivision:

 

     (i) The data used to determine the amount of this increase

 

shall be the total dollar amount of Michigan or local fruits,

 

vegetables, and legumes purchased by schools, along with the number

 

of different types of products purchased; school food purchasing


trends identified along with products that are of new and growing

 

interest among food service directors; the number of businesses

 

impacted; and the percentage of total food budget spent on

 

Michigan-grown fruits, vegetables, and legumes.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project and surveys of school food service

 

directors on the impact and success of the project as the source

 

for the data described in subparagraph (i).

 

     (b) The ability to which pupils can access a variety of

 

healthy Michigan-grown foods through schools and increase their

 

consumption of those foods. All of the following apply for purposes

 

of this subdivision:

 

     (i) The data used to determine whether this subparagraph is

 

met shall be the number of pupils exposed to Michigan-grown fruits,

 

vegetables, and legumes at schools; the variety of products served;

 

new items taste-tested or placed on menus; and the increase in

 

pupil willingness to try new local, healthy foods; and an

 

assessment of consumption and plate waste.

 

     (ii) The prosperity region office shall use purchasing data

 

collected for the project, meal count and enrollment numbers,

 

school menu calendars, and surveys of school food service directors

 

as the source for the data described in subparagraph (i).

 

     (12) The department shall compile the reports provided by

 

prosperity region offices under subsection (11) into 1 legislative

 

report. The department shall provide this report not later than

 

April 1, 2018 2019 to the house and senate subcommittees

 

responsible for school aid, the house and senate fiscal agencies,


and the state budget director.

 

     Sec. 32d. (1) From the funds appropriated in section 11, there

 

is allocated to eligible intermediate districts and consortia of

 

intermediate districts for great start readiness programs an amount

 

not to exceed $243,600,000.00 for 2017-2018. 2018-2019. Funds

 

allocated under this section for great start readiness programs

 

shall be used to provide part-day, school-day, or GSRP/Head Start

 

blended comprehensive free compensatory classroom programs designed

 

to improve the readiness and subsequent achievement of

 

educationally disadvantaged children who meet the participant

 

eligibility and prioritization guidelines as defined by the

 

department. For a child to be eligible to participate in a program

 

under this section, the child shall be at least 4, but less than 5,

 

years of age as of September 1 of the school year in which the

 

program is offered and shall meet those eligibility and

 

prioritization guidelines. A child who is not 4 years of age as of

 

September 1, but who will be 4 years of age not later than December

 

1, is eligible to participate if the child's parent or legal

 

guardian seeks a waiver from the September 1 eligibility date by

 

submitting a request for enrollment in a program to the responsible

 

intermediate district, if the program has capacity on or after

 

September 1 of the school year, and if the child meets eligibility

 

and prioritization guidelines.

 

     (2) Funds allocated under subsection (1) shall be allocated to

 

intermediate districts or consortia of intermediate districts based

 

on the formula in section 39. An intermediate district or

 

consortium of intermediate districts receiving funding under this


section shall act as the fiduciary for the great start readiness

 

programs. In order to be eligible to receive funds allocated under

 

this subsection from an intermediate district or consortium of

 

intermediate districts, a district, a consortium of districts, or a

 

public or private for-profit or nonprofit legal entity or agency

 

shall comply with this section and section 39.

 

     (3) In addition to the allocation under subsection (1), from

 

the general fund money appropriated under section 11, there is

 

allocated an amount not to exceed $300,000.00 for 2017-2018 2018-

 

2019 for a competitive grant to continue a longitudinal evaluation

 

of children who have participated in great start readiness

 

programs.

 

     (4) To be eligible for funding under this section, a program

 

shall prepare children for success in school through comprehensive

 

part-day, school-day, or GSRP/Head Start blended programs that

 

contain all of the following program components, as determined by

 

the department:

 

     (a) Participation in a collaborative recruitment and

 

enrollment process to assure that each child is enrolled in the

 

program most appropriate to his or her needs and to maximize the

 

use of federal, state, and local funds.

 

     (b) An age-appropriate educational curriculum that is in

 

compliance with the early childhood standards of quality for

 

prekindergarten children adopted by the state board, including, at

 

least, the Connect4Learning curriculum.

 

     (c) Nutritional services for all program participants

 

supported by federal, state, and local resources as applicable.


     (d) Physical and dental health and developmental screening

 

services for all program participants.

 

     (e) Referral services for families of program participants to

 

community social service agencies, including mental health

 

services, as appropriate.

 

     (f) Active and continuous involvement of the parents or

 

guardians of the program participants.

 

     (g) A plan to conduct and report annual great start readiness

 

program evaluations and continuous improvement plans using criteria

 

approved by the department.

 

     (h) Participation in a school readiness advisory committee

 

convened as a workgroup of the great start collaborative that

 

provides for the involvement of classroom teachers, parents or

 

guardians of program participants, and community, volunteer, and

 

social service agencies and organizations, as appropriate. The

 

advisory committee annually shall review and make recommendations

 

regarding the program components listed in this subsection. The

 

advisory committee also shall make recommendations to the great

 

start collaborative regarding other community services designed to

 

improve all children's school readiness.

 

     (i) The ongoing articulation of the kindergarten and first

 

grade programs offered by the program provider.

 

     (j) Participation in this state's great start to quality

 

process with a rating of at least 3 stars.

 

     (5) An application for funding under this section shall

 

provide for the following, in a form and manner determined by the

 

department:


     (a) Ensure compliance with all program components described in

 

subsection (4).

 

     (b) Except as otherwise provided in this subdivision, ensure

 

that at least 90% of the children participating in an eligible

 

great start readiness program for whom the intermediate district is

 

receiving funds under this section are children who live with

 

families with a household income that is equal to or less than 250%

 

of the federal poverty level. If the intermediate district

 

determines that all eligible children are being served and that

 

there are no children on the waiting list who live with families

 

with a household income that is equal to or less than 250% of the

 

federal poverty level, the intermediate district may then enroll

 

children who live with families with a household income that is

 

equal to or less than 300% of the federal poverty level. The

 

enrollment process shall consider income and risk factors, such

 

that children determined with higher need are enrolled before

 

children with lesser need. For purposes of this subdivision, all

 

age-eligible children served in foster care or who are experiencing

 

homelessness or who have individualized education plans

 

recommending placement in an inclusive preschool setting shall be

 

considered to live with families with household income equal to or

 

less than 250% of the federal poverty level regardless of actual

 

family income and shall be prioritized for enrollment within the

 

lowest quintile.

 

     (c) Ensure that the applicant only uses qualified personnel

 

for this program, as follows:

 

     (i) Teachers possessing proper training. A lead teacher must


have a valid teaching certificate with an early childhood (ZA or

 

ZS) endorsement or a bachelor's or higher degree in child

 

development or early childhood education with specialization in

 

preschool teaching. However, if an applicant demonstrates to the

 

department that it is unable to fully comply with this subparagraph

 

after making reasonable efforts to comply, teachers who have

 

significant but incomplete training in early childhood education or

 

child development may be used if the applicant provides to the

 

department, and the department approves, a plan for each teacher to

 

come into compliance with the standards in this subparagraph. A

 

teacher's compliance plan must be completed within 2 years of the

 

date of employment. Progress toward completion of the compliance

 

plan shall consist of at least 2 courses per calendar year.

 

     (ii) Paraprofessionals possessing proper training in early

 

childhood education, including an associate's degree in early

 

childhood education or child development or the equivalent, or a

 

child development associate (CDA) credential. However, if an

 

applicant demonstrates to the department that it is unable to fully

 

comply with this subparagraph after making reasonable efforts to

 

comply, the applicant may use paraprofessionals who have completed

 

at least 1 course that earns college credit in early childhood

 

education or child development if the applicant provides to the

 

department, and the department approves, a plan for each

 

paraprofessional to come into compliance with the standards in this

 

subparagraph. A paraprofessional's compliance plan must be

 

completed within 2 years of the date of employment. Progress toward

 

completion of the compliance plan shall consist of at least 2


courses or 60 clock hours of training per calendar year.

 

     (d) Include a program budget that contains only those costs

 

that are not reimbursed or reimbursable by federal funding, that

 

are clearly and directly attributable to the great start readiness

 

program, and that would not be incurred if the program were not

 

being offered. Eligible costs include transportation costs. The

 

program budget shall indicate the extent to which these funds will

 

supplement other federal, state, local, or private funds. Funds

 

received under this section shall not be used to supplant any

 

federal funds received by the applicant to serve children eligible

 

for a federally funded preschool program that has the capacity to

 

serve those children.

 

     (6) For a grant recipient that enrolls pupils in a school-day

 

program funded under this section, each child enrolled in the

 

school-day program shall be counted as described in section 39 for

 

purposes of determining the amount of the grant award.

 

     (7) For a grant recipient that enrolls pupils in a GSRP/Head

 

Start blended program, the grant recipient shall ensure that all

 

Head Start and GSRP policies and regulations are applied to the

 

blended slots, with adherence to the highest standard from either

 

program, to the extent allowable under federal law.

 

     (8) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall designate an

 

early childhood coordinator, and may provide services directly or

 

may contract with 1 or more districts or public or private for-

 

profit or nonprofit providers that meet all requirements of

 

subsections (4) and (5).


     (9) An intermediate district or consortium of intermediate

 

districts may retain for administrative services provided by the

 

intermediate district or consortium of intermediate districts an

 

amount not to exceed 4% of the grant amount. Expenses incurred by

 

subrecipients engaged by the intermediate district or consortium of

 

intermediate districts for directly running portions of the program

 

shall be considered program costs or a contracted program fee for

 

service.

 

     (10) An intermediate district or consortium of intermediate

 

districts may expend not more than 2% of the total grant amount for

 

outreach, recruiting, and public awareness of the program.

 

     (11) Each grant recipient shall enroll children identified

 

under subsection (5)(b) according to how far the child's household

 

income is below 250% of the federal poverty level by ranking each

 

applicant child's household income from lowest to highest and

 

dividing the applicant children into quintiles based on how far the

 

child's household income is below 250% of the federal poverty

 

level, and then enrolling children in the quintile with the lowest

 

household income before enrolling children in the quintile with the

 

next lowest household income until slots are completely filled. If

 

the grant recipient determines that all eligible children are being

 

served and that there are no children on the waiting list who live

 

with families with a household income that is equal to or less than

 

250% of the federal poverty level, the grant recipient may then

 

enroll children who live with families with a household income that

 

is equal to or less than 300% of the federal poverty level. The

 

enrollment process shall consider income and risk factors, such


that children determined with higher need are enrolled before

 

children with lesser need. For purposes of this subdivision, all

 

age-eligible children served in foster care or who are experiencing

 

homelessness or who have individualized education plans

 

recommending placement in an inclusive preschool setting shall be

 

considered to live with families with household income equal to or

 

less than 250% of the federal poverty level regardless of actual

 

family income and shall be prioritized for enrollment within the

 

lowest quintile.

 

     (12) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall allow parents

 

of eligible children who are residents of the intermediate district

 

or within the consortium to choose a program operated by or

 

contracted with another intermediate district or consortium of

 

intermediate districts and shall enter into a written agreement

 

regarding payment, in a manner prescribed by the department.

 

     (13) An intermediate district or consortium of intermediate

 

districts receiving a grant under this section shall conduct a

 

local process to contract with interested and eligible public and

 

private for-profit and nonprofit community-based providers that

 

meet all requirements of subsection (4) for at least 30% of its

 

total allocation. For the purposes of this 30% allocation, an

 

intermediate district or consortium of intermediate districts may

 

count children served by a Head Start grantee or delegate in a

 

blended Head Start and great start readiness school-day program.

 

Children served in a program funded only through Head Start shall

 

not be counted toward this 30% allocation. The intermediate


district or consortium shall report to the department, in a manner

 

prescribed by the department, a detailed list of community-based

 

providers by provider type, including private for-profit, private

 

nonprofit, community college or university, Head Start grantee or

 

delegate, and district or intermediate district, and the number and

 

proportion of its total allocation allocated to each provider as

 

subrecipient. If the intermediate district or consortium is not

 

able to contract for at least 30% of its total allocation, the

 

grant recipient shall notify the department and, if the department

 

verifies that the intermediate district or consortium attempted to

 

contract for at least 30% of its total allocation and was not able

 

to do so, then the intermediate district or consortium may retain

 

and use all of its allocation as provided under this section. To be

 

able to use this exemption, the intermediate district or consortium

 

shall demonstrate to the department that the intermediate district

 

or consortium increased the percentage of its total allocation for

 

which it contracts with a community-based provider and the

 

intermediate district or consortium shall submit evidence

 

satisfactory to the department, and the department must be able to

 

verify this evidence, demonstrating that the intermediate district

 

or consortium took measures to contract for at least 30% of its

 

total allocation as required under this subsection, including, but

 

not limited to, at least all of the following measures:

 

     (a) The intermediate district or consortium notified each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium regarding the

 

center's eligibility to participate, in a manner prescribed by the


department.

 

     (b) The intermediate district or consortium provided to each

 

nonparticipating licensed child care center located in the service

 

area of the intermediate district or consortium information

 

regarding great start readiness program requirements and a

 

description of the application and selection process for community-

 

based providers.

 

     (c) The intermediate district or consortium provided to the

 

public and to participating families a list of community-based

 

great start readiness program subrecipients with a great start to

 

quality rating of at least 3 stars.

 

     (14) If an intermediate district or consortium of intermediate

 

districts receiving a grant under this section fails to submit

 

satisfactory evidence to demonstrate its effort to contract for at

 

least 30% of its total allocation, as required under subsection

 

(13), the department shall reduce the allocation to the

 

intermediate district or consortium by a percentage equal to the

 

difference between the percentage of an intermediate district's or

 

consortium's total allocation awarded to community-based providers

 

and 30% of its total allocation.

 

     (15) In order to assist intermediate districts and consortia

 

in complying with the requirement to contract with community-based

 

providers for at least 30% of their total allocation, the

 

department shall do all of the following:

 

     (a) Ensure that a great start resource center or the

 

department provides each intermediate district or consortium

 

receiving a grant under this section with the contact information


for each licensed child care center located in the service area of

 

the intermediate district or consortium by March 1 of each year.

 

     (b) Provide, or ensure that an organization with which the

 

department contracts provides, a community-based provider with a

 

validated great start to quality rating within 90 days of the

 

provider's having submitted a request and self-assessment.

 

     (c) Ensure that all intermediate district, district, community

 

college or university, Head Start grantee or delegate, private for-

 

profit, and private nonprofit providers are subject to a single

 

great start to quality rating system. The rating system shall

 

ensure that regulators process all prospective providers at the

 

same pace on a first-come, first-served basis and shall not allow 1

 

type of provider to receive a great start to quality rating ahead

 

of any other type of provider.

 

     (d) Not later than December 1 of each year, compile the

 

results of the information reported by each intermediate district

 

or consortium under subsection (13) and report to the legislature a

 

list by intermediate district or consortium with the number and

 

percentage of each intermediate district's or consortium's total

 

allocation allocated to community-based providers by provider type,

 

including private for-profit, private nonprofit, community college

 

or university, Head Start grantee or delegate, and district or

 

intermediate district.

 

     (16) A recipient of funds under this section shall report to

 

the department center in a form and manner prescribed by the

 

department center the number of children participating in the

 

program who meet the income eligibility criteria under subsection


(5)(b) and the total number of children participating in the

 

program. For children participating in the program who meet the

 

income eligibility criteria specified under subsection (5)(b), a

 

recipient shall also report whether or not a parent is available to

 

provide care based on employment status. For the purposes of this

 

subsection, "employment status" shall be defined by the department

 

of health and human services in a manner consistent with maximizing

 

the amount of spending that may be claimed for temporary assistance

 

for needy families maintenance of effort purposes.

 

     (17) As used in this section:

 

     (a) "GSRP/Head Start blended program" means a part-day program

 

funded under this section and a Head Start program, which are

 

combined for a school-day program.

 

     (b) "Part-day program" means a program that operates at least

 

4 days per week, 30 weeks per year, for at least 3 hours of

 

teacher-child contact time per day but for fewer hours of teacher-

 

child contact time per day than a school-day program.

 

     (c) "School-day program" means a program that operates for at

 

least the same length of day as a district's first grade program

 

for a minimum of 4 days per week, 30 weeks per year. A classroom

 

that offers a school-day program must enroll all children for the

 

school day to be considered a school-day program.

 

     (18) An intermediate district or consortium of intermediate

 

districts receiving funds under this section shall establish and

 

charge tuition according to a sliding scale of tuition rates based

 

upon household income for children participating in an eligible

 

great start readiness program who live with families with a


household income that is more than 250% of the federal poverty

 

level to be used by all of its providers, as approved by the

 

department.

 

     (19) From the amount appropriated in subsection (1), there is

 

allocated an amount not to exceed $10,000,000.00 for reimbursement

 

of transportation costs for children attending great start

 

readiness programs funded under this section. To receive

 

reimbursement under this subsection, not later than November 1,

 

2017, 2018, a program funded under this section that provides

 

transportation shall submit to the intermediate district that is

 

the fiscal agent for the program a projected transportation budget.

 

The amount of the reimbursement for transportation under this

 

subsection shall be no more than the projected transportation

 

budget or $300.00 multiplied by the number of children funded for

 

the program under this section. If the amount allocated under this

 

subsection is insufficient to fully reimburse the transportation

 

costs for all programs that provide transportation and submit the

 

required information, the reimbursement shall be prorated in an

 

equal amount per child funded. Payments shall be made to the

 

intermediate district that is the fiscal agent for each program,

 

and the intermediate district shall then reimburse the program

 

provider for transportation costs as prescribed under this

 

subsection.

 

     (20) The department shall implement a process to review and

 

approve age-appropriate comprehensive classroom level quality

 

assessments for GSRP grantees that support the early childhood

 

standards of quality for prekindergarten children adopted by the


state board. The department shall complete the approval process and

 

make available to intermediate districts at least 2 approved

 

classroom level quality assessments no later than April 1,

 

2018.that were approved in 2018.

 

     (21) An intermediate district that is a GSRP grantee may

 

approve the use of a supplemental curriculum that aligns with and

 

enhances the age-appropriate educational curriculum in the

 

classroom. If the department objects to the use of a supplemental

 

curriculum approved by an intermediate district, the superintendent

 

of public instruction shall establish a review committee

 

independent of the department. The review committee shall meet

 

within 60 days of the department registering its objection in

 

writing and provide a final determination on the validity of the

 

objection within 60 days of the review committee's first meeting.

 

     (22) A great start readiness program or a GSRP/Head Start

 

blended program funded under this section shall be permitted to

 

utilize AmeriCorps Pre-K Reading Corps members in classrooms

 

implementing research-based early literacy intervention strategies.

 

     Sec. 32p. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $13,400,000.00 to intermediate

 

districts for 2017-2018 2018-2019 for the purpose of providing

 

early childhood funding to intermediate school districts to support

 

the activities under subsection (2) and subsection (4), and to

 

provide early childhood programs for children from birth through

 

age 8. The funding provided to each intermediate district under

 

this section shall be determined by the distribution formula

 

established by the department's office of great start to provide


equitable funding statewide. In order to receive funding under this

 

section, each intermediate district shall provide an application to

 

the office of great start not later than September 15 of the

 

immediately preceding fiscal year indicating the activities planned

 

to be provided.

 

     (2) Each intermediate district or consortium of intermediate

 

districts that receives funding under this section shall convene a

 

local great start collaborative and a parent coalition. The goal of

 

each great start collaborative and parent coalition shall be to

 

ensure the coordination and expansion of local early childhood

 

infrastructure and programs that allow every child in the community

 

to achieve the following outcomes:

 

     (a) Children born healthy.

 

     (b) Children healthy, thriving, and developmentally on track

 

from birth to third grade.

 

     (c) Children developmentally ready to succeed in school at the

 

time of school entry.

 

     (d) Children prepared to succeed in fourth grade and beyond by

 

reading proficiently by the end of third grade.

 

     (3) Each local great start collaborative and parent coalition

 

shall convene workgroups to make recommendations about community

 

services designed to achieve the outcomes described in subsection

 

(2) and to ensure that its local great start system includes the

 

following supports for children from birth through age 8:

 

     (a) Physical health.

 

     (b) Social-emotional health.

 

     (c) Family supports and basic needs.


     (d) Parent education.

 

     (e) Early education, including the child's development of

 

skills linked to success in foundational literacy, and care.

 

     (4) From the funds allocated in subsection (1), at least

 

$2,500,000.00 shall be used for the purpose of providing home

 

visits to at-risk children and their families. The home visits

 

shall be conducted as part of a locally coordinated, family-

 

centered, evidence-based, data-driven home visit strategic plan

 

that is approved by the department. The goals of the home visits

 

funded under this subsection shall be to improve school readiness

 

using evidence-based methods, including a focus on developmentally

 

appropriate outcomes for early literacy, to reduce the number of

 

pupils retained in grade level, and to reduce the number of pupils

 

requiring special education services. improve positive parenting

 

practices, and to improve family economic self-sufficiency while

 

reducing the impact of high-risk factors through community

 

resources and referrals. The department shall coordinate the goals

 

of the home visit strategic plans approved under this subsection

 

with other state agency home visit programs in a way that

 

strengthens Michigan's home visiting infrastructure and maximizes

 

federal funds available for the purposes of at-risk family home

 

visits. The coordination among departments and agencies is intended

 

to avoid duplication of state services and spending, and should

 

emphasize efficient service delivery of home visiting programs.

 

     (5) Not later than December 1 of each year, each intermediate

 

district shall provide a report to the department detailing the

 

activities actually provided during the immediately preceding


school year and the families and children actually served. At a

 

minimum, the report shall include an evaluation of the services

 

provided with additional funding under subsection (4) for home

 

visits, using the goals identified in subsection (4) as the basis

 

for the evaluation, including the degree to which school readiness

 

was improved, any change in the number of pupils retained at grade

 

level, and any change in the number of pupils receiving special

 

education services. The department shall compile and summarize

 

these reports and submit its summary to the house and senate

 

appropriations subcommittees on school aid and to the house and

 

senate fiscal agencies not later than February 15 of each year.

 

     (6) An intermediate district or consortium of intermediate

 

districts that receives funding under this section may carry over

 

any unexpended funds received under this section into the next

 

fiscal year and may expend those unused funds through June 30 of

 

the next fiscal year. A recipient of a grant shall return any

 

unexpended grant funds to the department in the manner prescribed

 

by the department not later than September 30 of the next fiscal

 

year after the fiscal year in which the funds are received.

 

     Sec. 32q. From the state school aid fund allocation under

 

section 11, there is allocated to an eligible intermediate district

 

an amount equal to $175,000.00 in 2017-2018 for 2018-2019 for the

 

purpose of this section. An intermediate district receiving a grant

 

under this section shall partner with an early childhood

 

collaborative to conduct a pilot program as provided under this

 

section. It is the intent of the legislature that this is the

 

second third of 3 years of funding, and that funding for the pilot


program shall not continue in 2018-2019. 2019-2020. Funding

 

allocated to an intermediate district shall be used in partnership

 

with a collaborative to conduct a pilot program to evaluate the

 

relative impact on vulnerable children of 1 versus 2 years of

 

preschool education. All of the following apply to the pilot

 

program funded under this section:

 

     (a) An eligible intermediate district is an intermediate

 

district that is located in a county with a population as of the

 

most recent federal decennial census that was greater than 500,000

 

but fewer than 800,000 and that has an early learning collaborative

 

located within its boundaries.

 

     (b) The funds shall be used for research, family coaching

 

support, administration, information systems, and evaluation.

 

     (c) In order to be eligible to receive the allocated funds,

 

the early learning collaborative, in partnership with the

 

intermediate district, shall provide the funding for all eligible

 

children included in the pilot program.

 

     (d) The early learning collaborative, in partnership with the

 

intermediate district, shall develop a 3-year pilot program under

 

the supervision of the office of great start in the department.

 

     (e) For a child to be eligible for participation in the pilot

 

program under this section, the child shall be 3 years of age as of

 

the date specified for determining a child's eligibility to attend

 

school under section 1147 of the revised school code, MCL 380.1147.

 

     (f) A child participating in the pilot program shall meet the

 

participant eligibility and prioritization guidelines as defined by

 

the department.


     (g) Notwithstanding section 17b, the department shall

 

distribute funds under this section not later than November 15 of

 

the fiscal year.

 

     (h) The early learning collaborative, in partnership with the

 

intermediate district, shall provide annual progress evaluations to

 

the office of great start.

 

     (i) By December 1, 2019, the early learning collaborative, in

 

partnership with the intermediate district, shall provide a pilot

 

program report and evaluation to the office of great start. The

 

office of great start shall review the pilot program report and

 

evaluation and, by February 15, 2020, provide a report to the

 

senate and house appropriations subcommittees on state school aid

 

and to the senate and house fiscal agencies of its evaluation of

 

the pilot program.

 

     Sec. 35a. (1) From the appropriations in section 11, there is

 

allocated for 2017-2018 2018-2019 for the purposes of this section

 

an amount not to exceed $26,900,000.00 from the state school aid

 

fund and an amount not to exceed $2,500,000.00 $3,500,000.00 from

 

the general fund. The superintendent shall designate staff or

 

contracted employees funded under this section as critical

 

shortage. Programs funded under this section are intended to ensure

 

that this state will be in the top 10 most improved states in grade

 

4 reading proficiency by the 2019 National Assessment of

 

Educational Progress (NAEP) and will be in the top 10 states

 

overall in grade 4 reading proficiency by 2025.

 

     (2) A district that receives funds under subsection (5) may

 

spend up to 5% of those funds for professional development for


educators in a department-approved research-based training program

 

related to current state literacy standards for pupils in grades K

 

to 3. The professional development shall also include training in

 

the use of screening and diagnostic tools, progress monitoring, and

 

intervention methods used to address barriers to learning and

 

delays in learning that are diagnosed through the use of these

 

tools.

 

     (3) A district that receives funds under subsection (5) may

 

use up to 5% of those funds to administer department-approved

 

screening and diagnostic tools to monitor the development of early

 

literacy and early reading skills of pupils in grades K to 3 and to

 

support research-based professional development for educators in

 

administering screening and diagnostic tools and in data

 

interpretation of the results obtained through the use of those

 

tools for the purpose of implementing a multi-tiered system of

 

support to improve reading proficiency among pupils in grades K to

 

3. A department-approved screening and diagnostic tool administered

 

by a district using funding under this section must include all of

 

the following components: phonemic awareness, phonics, fluency, and

 

comprehension. Further, all of the following sub-skills must be

 

assessed within each of these components:

 

     (a) Phonemic awareness - segmentation, blending, and sound

 

manipulation (deletion and substitution).

 

     (b) Phonics - decoding (reading) and encoding (spelling).

 

     (c) Fluency - reading rate, accuracy, and expression.

 

     (d) Comprehension - making meaning of text.

 

     (4) From the allocations under subsection (1), there is


allocated an amount not to exceed $6,000,000.00 $7,000,000.00 for

 

2017-2018 2018-2019 for the purpose of providing early literacy

 

coaches at intermediate districts to assist teachers in developing

 

and implementing instructional strategies for pupils in grades K to

 

3 so that pupils are reading at grade level by the end of grade 3.

 

All of the following apply to funding under this subsection:

 

     (a) The department shall develop an application process

 

consistent with the provisions of this subsection. An application

 

shall provide assurances that literacy coaches funded under this

 

subsection are knowledgeable about at least the following:

 

     (i) Current state literacy standards for pupils in grades K to

 

3.

 

     (ii) Implementing an instructional delivery model based on

 

frequent use of formative, screening, and diagnostic tools, known

 

as a multi-tiered system of support, to determine individual

 

progress for pupils in grades K to 3 so that pupils are reading at

 

grade level by the end of grade 3.

 

     (iii) The use of data from diagnostic tools to determine the

 

necessary additional supports and interventions needed by

 

individual pupils in grades K to 3 in order to be reading at grade

 

level.

 

     (b) From the allocation under this subsection, the department

 

shall award grants to intermediate districts for the support of

 

early literacy coaches. An intermediate district must provide

 

matching funds for at least 50% of the grant amount awarded to

 

support the cost of the literacy coach. The department shall

 

provide this funding in the following manner:


     (i) Each intermediate district shall be awarded grant funding

 

to support the cost of 1 early literacy coach in an equal amount

 

per early literacy coach, not to exceed $75,000.00.

 

     (ii) After distribution of the grant funding under

 

subparagraph (i), the department shall distribute the remainder of

 

grant funding for additional early literacy coaches in an amount

 

not to exceed $75,000.00 per early literacy coach. The number of

 

funded early literacy coaches for each intermediate district shall

 

be based on the percentage of the total statewide number of pupils

 

in grades K to 3 who meet the income eligibility standards for the

 

federal free and reduced-price lunch programs who are enrolled in

 

districts in the intermediate district. For each additional early

 

literacy coach funded under this subparagraph, the department shall

 

not make an award to an intermediate district under this

 

subparagraph in an amount that is less than the amount necessary to

 

pay 1/2 of the total cost of that additional early literacy coach.

 

     (5) From the allocations under subsection (1), there is

 

allocated an amount not to exceed $20,900,000.00 $19,900,000.00 for

 

2017-2018 2018-2019 to districts that provide additional

 

instructional time to those pupils in grades K to 3 who have been

 

identified by using department-approved screening and diagnostic

 

tools as needing additional supports and interventions in order to

 

be reading at grade level by the end of grade 3. Additional

 

instructional time may be provided before, during, and after

 

regular school hours or as part of a year-round balanced school

 

calendar. All of the following apply to funding under this

 

subsection:


     (a) In order to be eligible to receive funding, a district

 

shall demonstrate to the satisfaction of the department that the

 

district has done all of the following:

 

     (i) Implemented a multi-tiered system of support instructional

 

delivery model that is an evidence-based model that uses data-

 

driven problem solving to integrate academic and behavioral

 

instruction and that uses intervention delivered to all pupils in

 

varying intensities based on pupil needs. The multi-tiered system

 

of supports must provide at least all of the following essential

 

elements:

 

     (A) Implements effective instruction for all learners.

 

     (B) Intervenes early.

 

     (C) Provides a multi-tiered model of instruction and

 

intervention that provides the following: a core curriculum and

 

classroom interventions available to all pupils that meet the needs

 

of most pupils; targeted group interventions; and 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.


     (ii) Used department-approved research-based diagnostic tools

 

to identify individual pupils in need of additional instructional

 

time.

 

     (iii) Used a reading instruction method that focuses on the 5

 

fundamental building blocks of reading: phonics, phonemic

 

awareness, fluency, vocabulary, and comprehension and content

 

knowledge.

 

     (iv) Provided teachers of pupils in grades K to 3 with

 

research-based professional development in diagnostic data

 

interpretation.

 

     (v) Complied with the requirements under section 1280f of the

 

revised school code, MCL 380.1280f.

 

     (b) Funding allocated under this subsection shall be

 

distributed to eligible districts by multiplying the number of

 

full-time-equivalent pupils in grade 1 in the district by

 

$210.00.on an equal per-first-grade-pupil basis.

 

     (c) If the funds allocated under this subsection are

 

insufficient to fully fund the payments under this subsection,

 

payments under this subsection shall be prorated on an equal per-

 

pupil basis based on grade 1 pupils.

 

     (6) From the general fund money allocated in subsection (1),

 

the department shall allocate the amount of $2,500,000.00 for 2017-

 

2018 $3,000,000.00 for 2018-2019 to the Michigan Education Corps.

 

All of the following apply to funding under this subsection:

 

     (a) By August 1 of the current fiscal year, the Michigan

 

Education Corps shall provide a report concerning its use of the

 

funding to the senate and house appropriations subcommittees on


state school aid, the senate and house fiscal agencies, and the

 

senate and house caucus policy offices on outcomes and performance

 

measures of the Michigan Education Corps, including, but not

 

limited to, the degree to which the Michigan Education Corps's

 

replication of the Michigan Reading Corps program is demonstrating

 

sufficient efficacy and impact. The report must include data

 

pertaining to at least all of the following:

 

     (i) The current impact of the Michigan Reading Corps on this

 

state in terms of numbers of children and programs receiving

 

support. This portion of the report shall specify the number of

 

children tutored, including dosage and completion, and the

 

demographics of those children.

 

     (ii) Whether the assessments and interventions are implemented

 

with fidelity. This portion of the report shall include details on

 

the total number of assessments and interventions completed and the

 

range, median, mean, and standard deviation for all assessments.

 

     (iii) Whether the literacy improvement of children

 

participating in the Michigan Reading Corps is consistent with

 

expectations. This portion of the report shall detail at least all

 

of the following:

 

     (A) Growth rate by grade level, in comparison to targeted

 

growth rate.

 

     (B) Average linear growth rates.

 

     (C) Exit rates.

 

     (D) Percentage of children who exit who also meet or exceed

 

spring benchmarks.

 

     (iv) The impact of the Michigan Reading Corps on organizations


and stakeholders, including, but not limited to, school

 

administrators, internal coaches, and AmeriCorps members.

 

     (b) If the department determines that the Michigan Education

 

Corps has misused the funds allocated under this subsection, the

 

Michigan Education Corps shall reimburse this state for the amount

 

of state funding misused.

 

     (c) The department may not reserve any portion of the

 

allocation provided under this subsection for an evaluation of the

 

Michigan Education Corps, the Michigan Education Corps' funding, or

 

the Michigan Education Corps' programming. The department shall

 

award the entire $2,500,000.00 allocated under this subsection to

 

the Michigan Education Corps and shall not condition the awarding

 

of this funding on the implementation of an independent evaluation.

 

     (7) From the general fund money allocated under subsection

 

(1), there is allocated an amount not to exceed $550,000.00 for

 

2018-2019 for a grant to an eligible program that has a goal to

 

slow or prevent the K to 4 summer reading slide among all pupils

 

enrolled in grades K to 4, particularly those from economically

 

disadvantaged households. Funds allocated under this subsection are

 

grant funds and must be distributed by the department. A program is

 

eligible if it meets at least all of the following:

 

     (a) The program's objective is to deliver a bilingual, in-

 

home, individualized summer reading program consisting of self-

 

selected, independent reading level books to K to 4 pupils each

 

week during the summer.

 

     (b) Is evaluated quantitatively and qualitatively using pre-

 

and post-standardized test score comparison and parent and school


surveys specific to each district.

 

     (c) Incorporates at least weekly interactive parental and

 

family engagement during the summer.

 

     (d) Builds on pedagogical and literacy principles to scaffold

 

fluency to improve reading comprehension with pupil exercises.

 

     (e) Provides at least 4, and up to 9, student-selected new

 

books to read and keep.

 

     (f) Collects, analyzes, and reports detailed data on parental

 

engagement, books read, and spring-to-fall reading scores.

 

     (g) Follows the department's top 10 in 10 goals and

 

strategies, with an emphasis on goals 4 and 5.

 

     (h) Focuses on in-home program delivery through weekly

 

mailings.

 

     (i) Provides summary data to the legislature and to the

 

department for all pupils served by the program after each summer.

 

     Sec. 39. (1) An eligible applicant receiving funds under

 

section 32d shall submit an application, in a form and manner

 

prescribed by the department, by a date specified by the department

 

in the immediately preceding state fiscal year. The application

 

shall not require an eligible applicant to amend the applicant's

 

current accounting cycle or adopt this state's fiscal year

 

accounting cycle in accounting for financial transactions under

 

this section. The application shall include all of the following:

 

     (a) For 2017-2018 2018-2019 calculations, the estimated total

 

number of children in the community who meet the criteria of

 

section 32d, as provided to the applicant by the department

 

utilizing the most recent population data available from the


American community survey Community Survey conducted by the United

 

States Census Bureau. Beginning in 2018-2019, the department shall

 

ensure that it provides updated American community survey Community

 

Survey population data at least once every 3 years.

 

     (b) The estimated number of children in the community who meet

 

the criteria of section 32d and are being served exclusively by

 

Head Start programs operating in the community.

 

     (c) The number of children whom the applicant has the capacity

 

to serve who meet the criteria of section 32d including a

 

verification of physical facility and staff resources capacity.

 

     (2) After notification of funding allocations, an applicant

 

receiving funds under section 32d shall also submit an

 

implementation plan for approval, in a form and manner prescribed

 

by the department, by a date specified by the department, that

 

details how the applicant complies with the program components

 

established by the department pursuant to section 32d.

 

     (3) The initial allocation to each eligible applicant under

 

section 32d shall be the lesser of the following:

 

     (a) The sum of the number of children served in a school-day

 

program in the preceding school year multiplied by $7,250.00 and

 

the number of children served in a GSRP/Head Start blended program

 

or a part-day program in the preceding school year multiplied by

 

$3,625.00.

 

     (b) The sum of the number of children the applicant has the

 

capacity to serve in 2017-2018 2018-2019 in a school-day program

 

multiplied by $7,250.00 and the number of children served in a

 

GSRP/Head Start blended program or a part-day program the applicant


has the capacity to serve in 2017-2018 2018-2019 multiplied by

 

$3,625.00.

 

     (4) If funds remain after the allocations under subsection

 

(3), the department shall distribute the remaining funds to each

 

intermediate district or consortium of intermediate districts that

 

serves less than the state percentage benchmark determined under

 

subsection (5). These remaining funds shall be distributed to each

 

eligible applicant based upon each applicant's proportionate share

 

of the remaining unserved children necessary to meet the statewide

 

percentage benchmark in intermediate districts or consortia of

 

intermediate districts serving less than the statewide percentage

 

benchmark. When all applicants have been given the opportunity to

 

reach the statewide percentage benchmark, the statewide percentage

 

benchmark may be reset, as determined by the department, until

 

greater equity of opportunity to serve eligible children across all

 

intermediate school districts has been achieved.

 

     (5) For the purposes of subsection (4), for the 2017-2018

 

2018-2019 program year, the department shall calculate a percentage

 

of children served by each intermediate district or consortium of

 

intermediate districts by dividing the number of children served in

 

the immediately preceding year by that intermediate district or

 

consortium by the total number of children within the intermediate

 

district or consortium of intermediate districts who meet the

 

criteria of section 32d as determined by the department utilizing

 

the most recent population data available from the American

 

community survey Community Survey conducted by the United States

 

Census Bureau. The department shall compare the resulting


percentage of eligible children served to a statewide percentage

 

benchmark to determine if the intermediate district or consortium

 

is eligible for additional funds under subsection (4). For 2017-

 

2018, 2018-2019, the statewide percentage benchmark is 60%.

 

     (6) If, taking into account the total amount to be allocated

 

to the applicant as calculated under this section, an applicant

 

determines that it is able to include additional eligible children

 

in the great start readiness program without additional funds under

 

section 32d, the applicant may include additional eligible children

 

but shall not receive additional funding under section 32d for

 

those children.

 

     (7) The department shall review the program components under

 

section 32d and under this section at least biennially. The

 

department also shall convene a committee of internal and external

 

stakeholders at least once every 5 years to ensure that the funding

 

structure under this section reflects current system needs under

 

section 32d.

 

     (8) As used in this section, "school-day program", "GSRP/Head

 

Start blended program", and "part-day program" mean those terms as

 

defined in section 32d.

 

     Sec. 39a. (1) From the federal funds appropriated in section

 

11, there is allocated each fiscal year for 2016-2017 and for 2017-

 

2018 for 2018-2019 to districts, intermediate districts, and other

 

eligible entities all available federal funding, estimated at

 

$744,039,900.00 for 2016-2017 and $731,600,000.00 for 2017-2018

 

$730,600,000.00 for the federal programs under the no child left

 

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


succeeds act, Public Law 114-95. These funds are allocated as

 

follows:

 

     (a) An amount estimated at $1,200,000.00 each fiscal year for

 

2018-2019 to provide students with drug- and violence-prevention

 

programs and to implement strategies to improve school safety,

 

funded from DED-OESE, drug-free schools and communities funds.

 

     (b) An amount estimated at $111,111,900.00 for 2016-2017 and

 

$100,000,000.00 for 2017-2018 2018-2019 for the purpose of

 

preparing, training, and recruiting high-quality teachers and class

 

size reduction, funded from DED-OESE, improving teacher quality

 

funds.

 

     (c) An amount estimated at $12,200,000.00 for 2016-2017 and

 

$11,000,000.00 for 2017-2018 2018-2019 for programs to teach

 

English to limited English proficient (LEP) children, funded from

 

DED-OESE, language acquisition state grant funds.

 

     (d) An amount estimated at $250,000.00 for 2016-2017 only for

 

the Michigan charter school subgrant program, funded from DED-OESE,

 

charter school funds.

 

     (d) (e) An amount estimated at $3,000,000.00 for 2016-2017 and

 

$2,800,000.00 for 2017-2018 2018-2019 for rural and low income

 

schools, funded from DED-OESE, rural and low income school funds.

 

     (e) (f) An amount estimated at $535,000,000.00 each fiscal

 

year for 2018-2019 to provide supplemental programs to enable

 

educationally disadvantaged children to meet challenging academic

 

standards, funded from DED-OESE, title I, disadvantaged children

 

funds.

 

     (f) (g) An amount estimated at $8,878,000.00 for 2016-2017 and


$9,200,000.00 for 2017-2018 2018-2019 for the purpose of

 

identifying and serving migrant children, funded from DED-OESE,

 

title I, migrant education funds.

 

     (g) (h) An amount estimated at $39,000,000.00 each fiscal year

 

for 2018-2019 for the purpose of providing high-quality extended

 

learning opportunities, after school and during the summer, for

 

children in low-performing schools, funded from DED-OESE, twenty-

 

first century community learning center funds.

 

     (h) (i) An amount estimated at $18,000,000.00 each fiscal year

 

$12,000,000.00 for 2018-2019 to help support local school

 

improvement efforts, funded from DED-OESE, title I, local school

 

improvement grants.

 

     (i) (j) An amount estimated at $15,400,000.00 each fiscal year

 

for 2018-2019 to improve the academic achievement of students,

 

funded from DED-OESE, title IV, student support and academic

 

enrichment grants.

 

     (j) An amount estimated at $5,000,000.00 for 2018-2019 for the

 

remaining balance of the amount appropriated under the former

 

section 32r, for federal funding awarded to this state under

 

sections 14005, 14006, and 14013 of title XIV of the American

 

recovery and reinvestment act of 2009, Public Law 111-5, for the

 

race to the top early learning challenge grant.

 

     (2) From the federal funds appropriated in section 11, there

 

is allocated for 2016-2017 and for 2017-2018 2018-2019 to

 

districts, intermediate districts, and other eligible entities all

 

available federal funding, estimated at $30,800,000.00 for 2016-

 

2017 and $30,000,000.00 for 2017-2018 2018-2019 for the following


programs that are funded by federal grants:

 

     (a) An amount estimated at $200,000.00 for 2016-2017 and

 

$100,000.00 for 2017-2018 2018-2019 for acquired immunodeficiency

 

syndrome education grants, funded from HHS – Centers for Disease

 

Control and Prevention, AIDS funding.

 

     (b) An amount estimated at $2,600,000.00 for 2016-2017 and

 

$1,900,000.00 for 2017-2018 2018-2019 to provide services to

 

homeless children and youth, funded from DED-OVAE, homeless

 

children and youth funds.

 

     (c) An amount estimated at $4,000,000.00 each fiscal year for

 

2018-2019 to provide mental health, substance abuse, or violence

 

prevention services to students, funded from HHS-SAMHSA.

 

     (d) An amount estimated at $24,000,000.00 each fiscal year for

 

2018-2019 for providing career and technical education services to

 

pupils, funded from DED-OVAE, basic grants to states.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

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

 

department.

 

     (4) For the purposes of applying for federal grants

 

appropriated under this article, the department shall allow an

 

intermediate district to submit a consortium application on behalf

 

of 2 or more districts with the agreement of those districts as


appropriate according to federal rules and guidelines.

 

     (5) For the purposes of funding federal title I grants under

 

this article, in addition to any other federal grants for which a

 

strict discipline academy is eligible, the department shall

 

allocate to strict discipline academies out of title I, part A

 

funds equal to what a strict discipline academy would have received

 

if included and calculated under title I, part D, or what it would

 

receive under the formula allocation under title I, part A,

 

whichever is greater.

 

     (6) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (c) "DED-OVAE" means the DED Office of Vocational and Adult

 

Education.

 

     (d) "HHS" means the United States Department of Health and

 

Human Services.

 

     (e) "HHS-SAMHSA" means the HHS Substance Abuse and Mental

 

Health Services Administration.

 

     Sec. 41. (1) For a district or public school academy to be

 

eligible to receive funding under this section, the district or

 

public school academy must administer to English language learners

 

the English language proficiency assessment known as the "WIDA

 

ACCESS for English language learners" or the "WIDA Alternate

 

ACCESS". From the appropriation in section 11, there is allocated

 

an amount not to exceed $6,000,000.00 for 2017-2018 2018-2019 for

 

payments to eligible districts and eligible public school academies


for services for English language learners who have been

 

administered the WIDA ACCESS for English language learners.

 

     (2) Funding allocated under this section shall be distributed

 

to eligible districts and eligible public school academies based on

 

the number of full-time equivalent English language learners as

 

follows:

 

     (a) $620.00 per full-time equivalent English language learner

 

who has been assessed under the WIDA ACCESS for English language

 

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

 

Alternate ACCESS composite score between 1.0 and 1.9, or less, as

 

applicable to each assessment.

 

     (b) $410.00 per full-time equivalent English language learner

 

who has been assessed under the WIDA ACCESS for English language

 

learners or the WIDA Alternate ACCESS with a WIDA ACCESS or WIDA

 

Alternate ACCESS composite score between 2.0 and 2.9, or less, as

 

applicable to each assessment.

 

     (3) If funds allocated under this section are insufficient to

 

fully fund the payments as prescribed under subsection (2),

 

payments shall be prorated on an equal percentage basis, with the

 

same percentage proration applied to both funding categories.

 

     (4) Each district or public school academy receiving funds

 

under this section shall submit to the department by July 15 of

 

each fiscal year a report, not to exceed 10 pages, on the usage by

 

the district or public school academy of funds under this section,

 

in a form and manner determined by the department, which shall

 

include a brief description of each program conducted or services

 

performed by the district or public school academy using funds


under this section and the amount of funds under this section

 

allocated to each of those programs or services. If a district or

 

public school academy does not comply with this section, the

 

department shall withhold an amount equal to the August payment due

 

under this section until the district or public school academy

 

complies with this subsection. If the district or public school

 

academy does not comply with this section by the end of the state

 

fiscal year, the withheld funds shall be forfeited to the school

 

aid fund.

 

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

 

or public school academy shall allow access for the department or

 

the department's designee to audit all records related to the

 

program for which it receives those funds. The district or public

 

school academy shall reimburse this state for all disallowances

 

found in the audit.

 

     (6) Beginning July 1, 2020, and every 3 years thereafter, the

 

department shall review the per-pupil distribution under subsection

 

(2), to ensure that funding levels are appropriate and make

 

recommendations for adjustments to the members of the senate and

 

house subcommittees on K-12 school aid appropriations.

 

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

 

allocated an amount not to exceed $941,946,100.00 for 2016-2017 and

 

there is allocated an amount not to exceed $956,246,100.00

 

$959,446,100.00 for 2017-2018 and there is allocated an amount not

 

to exceed $979,346,100.00 for 2018-2019 from state sources and all

 

available federal funding under sections 611 to 619 of part B of

 

the individuals with disabilities education act, 20 USC 1411 to


1419, estimated at $370,000,000.00 each fiscal year for 2016-2017

 

and for 2017-2018 and for 2018-2019, plus any carryover federal

 

funds from previous year appropriations. In addition, from the

 

general fund appropriation in section 11, there is allocated to the

 

department an amount not to exceed $500,000.00 for each fiscal year

 

for 2017-2018 and for 2018-2019 for the purpose of subsection (16).

 

The allocations under this subsection are for the purpose of

 

reimbursing districts and intermediate districts for special

 

education programs, services, and special education personnel as

 

prescribed in article 3 of the revised school code, MCL 380.1701 to

 

380.1766; 380.1761; net tuition payments made by intermediate

 

districts to the Michigan Schools for the Deaf and Blind; and

 

special education programs and services for pupils who are eligible

 

for special education programs and services according to statute or

 

rule. For meeting the costs of special education programs and

 

services not reimbursed under this article, a district or

 

intermediate district may use money in general funds or special

 

education funds, not otherwise restricted, or contributions from

 

districts to intermediate districts, tuition payments, gifts and

 

contributions from individuals or other entities, or federal funds

 

that may be available for this purpose, as determined by the

 

intermediate district plan prepared pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. 380.1761.

 

Notwithstanding section 17b, payments of federal funds to

 

districts, intermediate districts, and other eligible entities

 

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

 

department.


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

 

allocated the amount necessary, and estimated at $260,700,000.00

 

for 2016-2017 and estimated at $264,200,000.00 $266,400,000.00 for

 

2017-2018 and estimated at $272,100,000.00 for 2018-2019, for

 

payments toward reimbursing districts and intermediate districts

 

for 28.6138% of total approved costs of special education,

 

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

 

approved costs of special education transportation. Allocations

 

under this subsection shall be made as follows:

 

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

 

subsection toward fulfilling the specified percentages shall be

 

calculated by multiplying the district's special education pupil

 

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

 

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

 

of residence plus the amount of the district's per-pupil allocation

 

under section 20m, not to exceed the basic foundation allowance

 

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

 

education pupil in membership in a district that is a public school

 

academy, times an amount equal to the amount per membership pupil

 

calculated under section 20(6). For an intermediate district, the

 

amount allocated under this subdivision toward fulfilling the

 

specified percentages shall be an amount per special education

 

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

 

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

 

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

 

of residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, and that district's per-


pupil allocation under section 20m.

 

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

 

intermediate districts for which the payments calculated under

 

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

 

paid the amount necessary to achieve the specified percentages for

 

the district or intermediate district.

 

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

 

allocated each fiscal year for 2016-2017 and for 2017-2018 an

 

amount not to exceed $1,000,000.00 and there is allocated an amount

 

not to exceed $1,100,000.00 for 2018-2019 to make payments to

 

districts and intermediate districts under this subsection. If the

 

amount allocated to a district or intermediate district for a

 

fiscal year under subsection (2)(b) is less than the sum of the

 

amounts allocated to the district or intermediate district for

 

1996-97 under sections 52 and 58, there is allocated to the

 

district or intermediate district for the fiscal year an amount

 

equal to that difference, adjusted by applying the same proration

 

factor that was used in the distribution of funds under section 52

 

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

 

necessary costs of special education used in calculations for the

 

fiscal year. This adjustment is to reflect reductions in special

 

education program operations or services between 1996-97 and

 

subsequent fiscal years. Adjustments for reductions in special

 

education program operations or services shall be made in a manner

 

determined by the department and shall include adjustments for

 

program or service shifts.

 

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


allocated for a fiscal year to a district or intermediate district

 

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

 

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

 

be paid to the district or intermediate district during the fiscal

 

year beginning on the October 1 following the determination and

 

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

 

the department determines that the sum of the amounts allocated for

 

a fiscal year to a district or intermediate district under

 

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

 

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

 

department shall deduct the amount of the excess from the

 

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

 

for the fiscal year beginning on the October 1 following the

 

determination and payments under subsection (3) shall be adjusted

 

as necessary. However, if the amount allocated under subsection

 

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

 

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

 

deduction under this subsection.

 

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

 

basis. Federal funds shall be allocated under applicable federal

 

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

 

be allocated by the department each fiscal year for 2016-2017 and

 

for 2017-2018 and for 2018-2019 to districts, intermediate

 

districts, or other eligible entities on a competitive grant basis

 

for programs, equipment, and services that the department

 

determines to be designed to benefit or improve special education

 

on a statewide scale.


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

 

allocated an amount not to exceed $2,200,000.00 each fiscal year

 

for 2016-2017 and for 2017-2018 and for 2018-2019 to reimburse 100%

 

of the net increase in necessary costs incurred by a district or

 

intermediate district in implementing the revisions in the

 

administrative rules for special education that became effective on

 

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

 

necessary costs" means the necessary additional costs incurred

 

solely because of new or revised requirements in the administrative

 

rules minus cost savings permitted in implementing the revised

 

rules. Net increase in necessary costs shall be determined in a

 

manner specified by the department.

 

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

 

apply:

 

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

 

determined in a manner specified by the department and may include

 

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

 

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

 

include salary and other compensation for all approved special

 

education personnel for the program, including payments for social

 

security and Medicare and public school employee retirement system

 

contributions. The total approved costs do not include salaries or

 

other compensation paid to administrative personnel who are not

 

special education personnel as defined in section 6 of the revised

 

school code, MCL 380.6. Costs reimbursed by federal funds, other

 

than those federal funds included in the allocation made under this

 

article, are not included. Special education approved personnel not


utilized full time in the evaluation of students or in the delivery

 

of special education programs, ancillary, and other related

 

services shall be reimbursed under this section only for that

 

portion of time actually spent providing these programs and

 

services, with the exception of special education programs and

 

services provided to youth placed in child caring institutions or

 

juvenile detention programs approved by the department to provide

 

an on-grounds education program.

 

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

 

intermediate district that employed special education support

 

services staff to provide special education support services in

 

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

 

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

 

another district or intermediate district shall report the cost of

 

those support services for special education reimbursement purposes

 

under this article. This subdivision does not prohibit the transfer

 

of special education classroom teachers and special education

 

classroom aides if the pupils counted in membership associated with

 

those special education classroom teachers and special education

 

classroom aides are transferred and counted in membership in the

 

other district or intermediate district in conjunction with the

 

transfer of those teachers and aides.

 

     (c) If the department determines before bookclosing for a

 

fiscal year that the amounts allocated for that fiscal year under

 

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

 

will exceed expenditures for that fiscal year under subsections

 

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


district or intermediate district whose reimbursement for that

 

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

 

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

 

reimbursement for that district or intermediate district and

 

reimbursement for that district or intermediate district shall be

 

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

 

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

 

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

 

fund the calculation of reimbursement to those districts and

 

intermediate districts under this subdivision, then the

 

calculations and resulting reimbursement under this subdivision

 

shall be prorated on an equal percentage basis. Beginning in 2015-

 

2016, the amount of reimbursement under this subdivision for a

 

fiscal year shall not exceed $2,000,000.00 for any district or

 

intermediate district.

 

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

 

defined by R 340.1701c of the Michigan Administrative Code, shall

 

not be provided when those services are covered by and available

 

through private group health insurance carriers or federal

 

reimbursed program sources unless the department and district or

 

intermediate district agree otherwise and that agreement is

 

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

 

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

 

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

 

pupil. A district or intermediate district shall be responsible for

 

payment of a deductible amount and for an advance payment required

 

until the time a claim is paid.


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

 

intermediate district purchases a special education pupil

 

transportation service from a constituent district that was

 

previously purchased from a private entity; if the purchase from

 

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

 

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

 

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

 

the constituent district receives from payments under sections 22b

 

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

 

department shall direct the intermediate district to continue to

 

report the cost associated with the specific identified special

 

education pupil transportation service and shall adjust the costs

 

reported by the constituent district to remove the cost associated

 

with that specific service.

 

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

 

program conducted or administered by an intermediate district or a

 

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

 

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

 

but shall be counted in membership in the intermediate district of

 

residence.

 

     (9) Special education personnel transferred from 1 district to

 

another to implement the revised school code shall be entitled to

 

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

 

otherwise be entitled had that person been employed by the

 

receiving district originally.

 

     (10) If a district or intermediate district uses money

 

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


purposes for which the money is allocated, the department may

 

require the district or intermediate district to refund the amount

 

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

 

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

 

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

 

allocated the amount necessary, estimated at $3,500,000.00 for

 

2016-2017, and estimated at $3,600,000.00 $3,300,000.00 for 2017-

 

2018, and estimated at $3,400,000.00 for 2018-2019, to pay the

 

foundation allowances for pupils described in this subsection. The

 

allocation to a district under this subsection shall be calculated

 

by multiplying the number of pupils described in this subsection

 

who are counted in membership in the district times the sum of the

 

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

 

residence plus the amount of the district's per-pupil allocation

 

under section 20m, not to exceed the basic foundation allowance

 

under section 20 for the current fiscal year, or, for a pupil

 

described in this subsection who is counted in membership in a

 

district that is a public school academy, times an amount equal to

 

the amount per membership pupil under section 20(6) or, for a pupil

 

described in this subsection who is counted in membership in the

 

education achievement system, times an amount equal to the amount

 

per membership pupil under section 20(7). The allocation to an

 

intermediate district under this subsection shall be calculated in

 

the same manner as for a district, using the foundation allowance

 

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

 

exceed the basic foundation allowance under section 20 for the

 

current fiscal year, and that district's per-pupil allocation under


section 20m. This subsection applies to all of the following

 

pupils:

 

     (a) Pupils described in section 53a.

 

     (b) Pupils counted in membership in an intermediate district

 

who are not special education pupils and are served by the

 

intermediate district in a juvenile detention or child caring

 

facility.

 

     (c) Pupils with an emotional impairment counted in membership

 

by an intermediate district and provided educational services by

 

the department of health and human services.

 

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

 

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

 

the amount necessary and available may be used to supplement the

 

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

 

order to fully fund those allocations. After payments under

 

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

 

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

 

the following order:

 

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

 

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

 

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

 

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

 

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

 

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

 

shall be allocations to intermediate districts only and shall not

 

be allocations to districts, but instead shall be calculations used

 

only to determine the state payments under section 22b.


     (14) If a public school academy that is not a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551,

 

enrolls under this section a pupil who resides outside of the

 

intermediate district in which the public school academy is located

 

and who is eligible for special education programs and services

 

according to statute or rule, or who is a child with disabilities,

 

as defined under the individuals with disabilities education act,

 

Public Law 108-446, the intermediate district in which the public

 

school academy is located and the public school academy shall enter

 

into a written agreement with the intermediate district in which

 

the pupil resides for the purpose of providing the pupil with a

 

free appropriate public education, and the written agreement shall

 

include at least an agreement on the responsibility for the payment

 

of the added costs of special education programs and services for

 

the pupil. If the public school academy that enrolls the pupil does

 

not enter into an agreement under this subsection, the public

 

school academy shall not charge the pupil's resident intermediate

 

district or the intermediate district in which the public school

 

academy is located the added costs of special education programs

 

and services for the pupil, and the public school academy is not

 

eligible for any payouts based on the funding formula outlined in

 

the resident or nonresident intermediate district's plan. If a

 

pupil is not enrolled in a public school academy under this

 

subsection, the provision of special education programs and

 

services and the payment of the added costs of special education

 

programs and services for a pupil described in this subsection are

 

the responsibility of the district and intermediate district in


which the pupil resides.

 

     (15) For the purpose of receiving its federal allocation under

 

part B of the individuals with disabilities education act, Public

 

Law 108-446, a public school academy that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, shall directly receive the federal allocation under part

 

B of the individuals with disabilities education act, Public Law

 

108-446, from the intermediate district in which the cyber school

 

is located, as the subrecipient. If the intermediate district does

 

not distribute the funds described in this subsection to the cyber

 

school by the part B application due date of July 1, the department

 

may distribute the funds described in this subsection directly to

 

the cyber school according to the formula prescribed in 34 CFR

 

300.705 and 34 CFR 300.816.

 

     (16) For a public school academy that is a cyber school, as

 

defined in section 551 of the revised school code, MCL 380.551, and

 

is in compliance with section 553a of the revised school code, MCL

 

380.553a, that enrolls a pupil under this section, the intermediate

 

district in which the cyber school is located shall ensure that the

 

cyber school complies with sections 1701a, 1703, 1704, 1751, 1752,

 

1756, and 1757 of the revised school code, MCL 380.1701a, 380.1703,

 

380.1704, 380.1751, 380.1752, 380.1756, and 380.1757; applicable

 

rules; and the individuals with disabilities education act, Public

 

Law 108-446. From the general fund appropriation under subsection

 

(1), the department shall provide appropriate administrative

 

funding to the intermediate district in which that cyber school is


located for the purpose of ensuring that compliance.

 

     (17) For the purposes of this section, the department or the

 

center shall only require a district or intermediate district to

 

report information that is not already available from the financial

 

information database maintained by the center.

 

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

 

known as Durant v State of Michigan, Durant v State of Michigan,

 

456 Mich 175 (1997), from the allocation under section 51a(1),

 

there is allocated each fiscal year for 2016-2017 and for 2017-2018

 

and for 2018-2019 the amount necessary, estimated at

 

$624,600,000.00 for 2016-2017 and $635,300,000.00 $636,600,000.00

 

for 2017-2018 and $650,600,000.00 for 2018-2019, for payments to

 

reimburse districts for 28.6138% of total approved costs of special

 

education excluding costs reimbursed under section 53a, and

 

70.4165% of total approved costs of special education

 

transportation. Funds allocated under this section that are not

 

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

 

determined by the department, may be used to supplement the

 

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

 

calculated allocations for the same fiscal year.

 

     Sec. 51d. (1) From the federal funds appropriated in section

 

11, there is allocated each fiscal year for 2016-2017 and for 2017-

 

2018, for 2018-2019 all available federal funding, estimated at

 

$61,000,000.00, each fiscal year, for special education programs

 

and services that are funded by federal grants. All federal funds

 

allocated under this section shall be distributed in accordance

 

with federal law. Notwithstanding section 17b, payments of federal


funds to districts, intermediate districts, and other eligible

 

entities under this section shall be paid on a schedule determined

 

by the department.

 

     (2) From the federal funds allocated under subsection (1), the

 

following amounts are allocated each fiscal year for 2016-2017 and

 

for 2017-2018:for 2018-2019:

 

     (a) An amount estimated at $14,000,000.00 each fiscal year for

 

handicapped infants and toddlers, funded from DED-OSERS,

 

handicapped infants and toddlers funds.

 

     (b) An amount estimated at $12,000,000.00 each fiscal year for

 

preschool grants (Public Law 94-142), funded from DED-OSERS,

 

handicapped preschool incentive funds.

 

     (c) An amount estimated at $35,000,000.00 each fiscal year for

 

special education programs funded by DED-OSERS, handicapped

 

program, individuals with disabilities act funds.

 

     (3) As used in this section, "DED-OSERS" means the United

 

States Department of Education Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 53a. (1) For districts, reimbursement for pupils

 

described in subsection (2) shall be 100% of the total approved

 

costs of operating special education programs and services approved

 

by the department and included in the intermediate district plan

 

adopted pursuant to article 3 of the revised school code, MCL

 

380.1701 to 380.1766, 380.1761, minus the district's foundation

 

allowance calculated under section 20 and minus the district's per-

 

pupil allocation under section 20m. For intermediate districts,

 

reimbursement for pupils described in subsection (2) shall be


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

 

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

 

residence, not to exceed the basic foundation allowance under

 

section 20 for the current fiscal year, and that district's per-

 

pupil allocation under section 20m.

 

     (2) Reimbursement under subsection (1) is for the following

 

special education pupils:

 

     (a) Pupils assigned to a district or intermediate district

 

through the community placement program of the courts or a state

 

agency, if the pupil was a resident of another intermediate

 

district at the time the pupil came under the jurisdiction of the

 

court or a state agency.

 

     (b) Pupils who are residents of institutions operated by the

 

department of health and human services.

 

     (c) Pupils who are former residents of department of community

 

health institutions for the developmentally disabled who are placed

 

in community settings other than the pupil's home.

 

     (d) Pupils enrolled in a department-approved on-grounds

 

educational program longer than 180 days, but not longer than 233

 

days, at a residential child care institution, if the child care

 

institution offered in 1991-92 an on-grounds educational program

 

longer than 180 days but not longer than 233 days.

 

     (e) Pupils placed in a district by a parent for the purpose of

 

seeking a suitable home, if the parent does not reside in the same

 

intermediate district as the district in which the pupil is placed.

 

     (3) Only those costs that are clearly and directly

 

attributable to educational programs for pupils described in


subsection (2), and that would not have been incurred if the pupils

 

were not being educated in a district or intermediate district, are

 

reimbursable under this section.

 

     (4) The costs of transportation shall be funded under this

 

section and shall not be reimbursed under section 58.

 

     (5) Not more than $10,500,000.00 of the allocation for 2017-

 

2018 2018-2019 in section 51a(1) shall be allocated under this

 

section.

 

     Sec. 54. Each intermediate district shall receive an amount

 

per-pupil for each pupil in attendance at the Michigan schools for

 

the deaf and blind. The amount shall be proportionate to the total

 

instructional cost at each school. Not more than $1,688,000.00 of

 

the allocation for 2017-2018 2018-2019 in section 51a(1) shall be

 

allocated under this section.

 

     Sec. 54b. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $1,600,000.00 for

 

2017-2018 2018-2019 to continue the implementation of the

 

recommendations of the special education reform task force

 

published in January 2016.

 

     (2) Except as provided in subsection (3), the The department

 

shall use funds allocated under this section for the purpose of

 

piloting statewide implementation of the Michigan Integrated

 

Behavior and Learning Support Initiative (MiBLSI), a nationally

 

recognized program that includes positive behavioral intervention

 

and supports and provides a statewide structure to support local

 

initiatives for an integrated behavior and reading program. With

 

the assistance of the intermediate districts involved in MiBLSI,


the department shall identify a number of intermediate districts to

 

participate in the pilot that is sufficient to ensure that MiBLSI

 

can be implemented statewide with fidelity and sustainability. In

 

addition, the department shall identify an intermediate district to

 

act as a fiscal agent for these funds.

 

     (3) In addition to the purpose under subsection (2), the

 

department shall use funds allocated under this section for the

 

purpose of providing training to intermediate districts and

 

districts related to the safe implementation of emergency

 

restraints and seclusion. The department shall develop and

 

implement a training program that is based on the state board's

 

adopted standards and on any other legislation enacted by the

 

legislature regarding the emergency use of seclusion and restraint.

 

     Sec. 54c. (1) From the general fund appropriation in section

 

11, there is allocated an amount not to exceed $500,000.00 for

 

2018-2019 to continue the implementation of the recommendations of

 

the special education reform task force published in January 2016,

 

to increase access to services and resources for pupils in special

 

education and their parents or guardians, and to strengthen

 

mediation services available to pupils in special education and

 

their parents or guardians.

 

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

 

allocated an amount not to exceed $205,000.00 for the purpose of

 

enhancing the capacity of Michigan's parent training information

 

center to increase direct advocacy efforts, work involving

 

transition issues, and awareness of the organization.

 

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


allocated an amount not to exceed $295,000.00 for the purpose of

 

improving mediation services offered through the Michigan special

 

education mediation program by increasing awareness of mediation,

 

reframing the purpose of mediation, strengthening mediator

 

knowledge about special education, and making mediation more

 

accessible.

 

     Sec. 54d. (1) From the appropriations in section 11, there is

 

allocated an amount not to exceed $5,000,000.00 for 2018-2019 to

 

intermediate districts for the purpose of providing state early on

 

services pilot programs for children from birth to 3 years of age

 

with a developmental delay or a disability, or both, and their

 

families, as described in the early on Michigan state plan, as

 

approved by the department.

 

     (2) To be eligible to receive grant funding under this

 

section, each intermediate district shall apply in a form and

 

manner determined by the department.

 

     (3) The grant funding allocated under this section shall be

 

used to increase early on services and resources available to

 

children that demonstrate developmental delays to help prepare them

 

for success as they enter school. State early on services include

 

evaluating and providing early intervention services for eligible

 

infants and toddlers and their families to address developmental

 

delays, including those affecting physical, cognitive,

 

communication, adaptive, social, or emotional development. Grant

 

funds must not be used to supplant existing services that are

 

currently being provided.

 

     (4) The funds allocated under subsection (1) shall be


distributed to intermediate districts according to the department's

 

early on funding formula utilized to distribute the federal award

 

to Michigan under part C of the individuals with disabilities

 

education act. Funds received under this section must not supplant

 

existing funds or resources allocated for early on early

 

intervention services. An intermediate district receiving funds

 

under this section shall maximize the capture of Medicaid funds to

 

support early on early intervention services to the extent

 

possible.

 

     (5) Each intermediate district that receives funds under this

 

section shall report data and other information to the department

 

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

 

allow for monitoring and evaluation of the pilot projects and to

 

ensure that the children described in subsection (1) received

 

appropriate levels and types of services delivered by qualified

 

personnel, based on the individual needs of the children and their

 

families.

 

     Sec. 55. (1) From the money appropriated in section 11, there

 

is allocated an amount not to exceed $150,000.00 for 2017-2018 to

 

Michigan State University, Department of Epidemiology, for a study

 

of $250,000.00 for 2018-2019 to the Conductive Learning Center

 

located at Aquinas College. This funding shall must be used to

 

develop and implement an evaluation of the effectiveness of

 

conductive education for children with cerebral palsy. The

 

evaluation shall be multidimensional and shall include a control

 

group of children with cerebral palsy not enrolled in conductive

 

education. It should include an assessment of the motor system


itself as well as the impact of conductive education on each of the

 

following:

 

     (a) The acquisition of skills permitting complex motor

 

functions.

 

     (b) The performance of tasks essential to daily living.

 

     (c) The attitudes and feelings of both children and parents.

 

     (d) The long-term need for special education for children with

 

cerebral palsy.

 

     (2) This funding is for the third of 3 years of funding for

 

this purpose.support the operational costs of the conductive

 

education model taught at the Conductive Learning Center to

 

maximize the independence and mobility of children and adults with

 

neuromotor disabilities. The conductive education model funded

 

under this section must be based on the concept of neuroplasticity

 

and the ability of people to learn and improve when they are

 

motivated, regardless of the severity of their disability.

 

     (2) Notwithstanding section 17b, the department shall

 

distribute the funding allocated under this section to the

 

Conductive Learning Center not later than December 1, 2018.

 

     Sec. 56. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district.

 

     (b) "Millage levied" means the millage levied for special

 

education pursuant to part 30 of the revised school code, MCL

 

380.1711 to 380.1743, 380.1741, including a levy for debt service


obligations.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district, except that if a

 

district has elected not to come under part 30 of the revised

 

school code, MCL 380.1711 to 380.1743, 380.1741, membership and

 

taxable value of the district shall not be included in the

 

membership and taxable value of the intermediate district.

 

     (2) From the allocation under section 51a(1), there is

 

allocated an amount not to exceed $37,758,100.00 each fiscal year

 

for 2016-2017 and for 2017-2018 and an amount not to exceed

 

$42,258,100.00 for 2018-2019 to reimburse intermediate districts

 

levying millages for special education pursuant to part 30 of the

 

revised school code, MCL 380.1711 to 380.1743. 380.1741. The

 

purpose, use, and expenditure of the reimbursement shall be limited

 

as if the funds were generated by these millages and governed by

 

the intermediate district plan adopted pursuant to article 3 of the

 

revised school code, MCL 380.1701 to 380.1766. 380.1761. As a

 

condition of receiving funds under this section, an intermediate

 

district distributing any portion of special education millage

 

funds to its constituent districts shall submit for departmental

 

approval and implement a distribution plan.

 

     (3) Reimbursement for those millages levied in 2015-2016 shall

 

be made in 2016-2017 at an amount per 2015-2016 membership pupil

 

computed by subtracting from $180,900.00 the 2015-2016 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2015-2016 millage levied.

 

     (3) (4) Reimbursement for those millages levied in 2016-2017


shall be made in 2017-2018 at an amount per 2016-2017 membership

 

pupil computed by subtracting from $183,200.00 $183,900.00 the

 

2016-2017 taxable value behind each membership pupil and

 

multiplying the resulting difference by the 2016-2017 millage

 

levied, and then subtracting from that amount the 2016-2017 local

 

community stabilization share revenue for special education

 

purposes behind each membership pupil for reimbursement of personal

 

property exemption loss under the local community stabilization

 

authority act, 2014 PA 86, MCL 123.1341 to 123.1362.

 

     (4) Except as otherwise provided in this subsection,

 

reimbursement for those millages levied in 2017-2018 shall be made

 

in 2018-2019 at an amount per 2017-2018 membership pupil computed

 

by subtracting from $196,000.00 the 2017-2018 taxable value behind

 

each membership pupil and multiplying the resulting difference by

 

the 2017-2018 millage levied, and then subtracting from that amount

 

the 2017-2018 local community stabilization share revenue for

 

special education purposes behind each membership pupil for

 

reimbursement of personal property exemption loss under the local

 

community stabilization authority act, 2014 PA 86, MCL 123.1341 to

 

123.1362. Reimbursement in 2018-2019 for an intermediate district

 

whose 2017-2018 allocation was affected by the operation of

 

subsection (5) shall be an amount equal to 102.5% of the 2017-2018

 

allocation to that intermediate district.

 

     (5) The amount paid to a single intermediate district under

 

this section shall not exceed 62.9% of the total amount allocated

 

under subsection (2).

 

     (6) The amount paid to a single intermediate district under


this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

     Sec. 61a. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $36,611,300.00 for 2017-2018

 

2018-2019 to reimburse on an added cost basis districts, except for

 

a district that served as the fiscal agent for a vocational

 

education consortium in the 1993-94 school year and that has a

 

foundation allowance as calculated under section 20 greater than

 

the minimum foundation allowance under that section, and secondary

 

area vocational-technical education centers for secondary-level

 

career and technical education programs according to rules approved

 

by the superintendent. Applications for participation in the

 

programs shall be submitted in the form prescribed by the

 

department. The department shall determine the added cost for each

 

career and technical education program area. The allocation of

 

added cost funds shall be prioritized based on the capital and

 

program expenditures needed to operate the career and technical

 

education programs provided; the number of pupils enrolled; the

 

advancement of pupils through the instructional program; the

 

existence of an articulation agreement with at least 1

 

postsecondary institution that provides pupils with opportunities

 

to earn postsecondary credit during the pupil's participation in

 

the career and technical education program and transfers those

 

credits to the postsecondary institution upon completion of the

 

career and technical education program; and the program rank in

 

student placement, job openings, and wages, and shall not exceed


75% of the added cost of any program. Notwithstanding any rule or

 

department determination to the contrary, when determining a

 

district's allocation or the formula for making allocations under

 

this section, the department shall include the participation of

 

pupils in grade 9 in all of those determinations and in all

 

portions of the formula. With the approval of the department, the

 

board of a district maintaining a secondary career and technical

 

education program may offer the program for the period from the

 

close of the school year until September 1. The program shall use

 

existing facilities and shall be operated as prescribed by rules

 

promulgated by the superintendent.

 

     (2) Except for a district that served as the fiscal agent for

 

a vocational education consortium in the 1993-94 school year,

 

districts and intermediate districts shall be reimbursed for local

 

career and technical education administration, shared time career

 

and technical education administration, and career education

 

planning district career and technical education administration.

 

The definition of what constitutes administration and reimbursement

 

shall be pursuant to guidelines adopted by the superintendent. Not

 

more than $800,000.00 of the allocation in subsection (1) shall be

 

distributed under this subsection.

 

     (3) A career and technical education program funded under this

 

section may provide an opportunity for participants who are

 

eligible to be funded under section 107 to enroll in the career and

 

technical education program funded under this section if the

 

participation does not occur during regular school hours.

 

     (4) In addition to the money allocated under subsections (1),


(5), and (6), from the general fund money appropriated in section

 

11, there is allocated for 2017-2018 2018-2019 an amount not to

 

exceed $79,000.00 $150,000.00 to an eligible Michigan-approved

 

501(c)(3) organization for the purposes of teaching or training

 

restaurant management and culinary arts for career and professional

 

development. The department shall oversee funds distributed to an

 

eligible grantee under this section. As used in this subsection,

 

"eligible Michigan-approved 501(c)(3) organization" means an

 

organization that is exempt from taxation under section 501(c)(3)

 

of the internal revenue code of 1986, 26 USC 501, that provides the

 

ProStart curriculum and training to state-approved career and

 

technical education programs with classification of instructional

 

programs (CIP) codes in the 12.05xx category, and that administers

 

national certification for the purpose of restaurant management and

 

culinary arts for career and professional development.

 

     (5) In addition to the funds allocated under subsections (1),

 

(4), and (6), from the funds appropriated in section 11, there is

 

allocated for 2017-2018 an amount not to exceed $1,000,000.00 for

 

competitive grants to intermediate districts to hire career and

 

technical education counselors. All of the following apply to this

 

funding:

 

     (a) An intermediate district seeking a grant under this

 

subsection shall apply to the department in a form and manner

 

specified by the department.

 

     (b) The department shall award grants under this subsection on

 

a competitive basis to no more than 3 intermediate districts but

 

shall give priority to the intermediate district that has the


greatest number of pupils enrolled in its constituent districts and

 

shall ensure that grants are equitably distributed to the various

 

geographic areas of this state and to urban and rural areas.

 

     (c) To be eligible for funding under this subsection, an

 

intermediate district shall do all of the following:

 

     (i) Catalog all available K-12 and other workforce development

 

programs and services, including job search, job training, pre-

 

employment certifications, career awareness programs, career and

 

technical education programs, and other related programs and

 

services offered by districts or intermediate districts,

 

postsecondary institutions, and other private or public service

 

organizations.

 

     (ii) Develop an outreach program that educates students about

 

career and technical education options and connects students to the

 

services cataloged under subparagraph (i).

 

     (iii) Track student placement and report on student placement

 

to the house and senate appropriations subcommittees on school aid

 

no later than June 30, 2018 in the form and manner prescribed by

 

the department.

 

     (6) In addition to the funds allocated under subsections (1),

 

(4), and (5), there is allocated an amount not to exceed

 

$160,000.00 for 2017-2018 to eligible districts under this

 

subsection for the purpose of career and technical education

 

counselors. To be eligible to receive funding under this

 

subsection, an eligible district must be a constituent district of

 

an intermediate district that is located in prosperity region 6 and

 

borders prosperity regions 5, 7, and 9, and must have at least


1,600 pupils in membership in 2017-2018. A grant to an eligible

 

district under this subsection shall be $80,000.00.

 

     Sec. 61b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $8,000,000.00 each fiscal year

 

for 2016-2017 and 2017-2018 for 2018-2019 for CTE early/middle

 

college and CTE dual enrollment programs authorized under this

 

section and for planning grants for the development or expansion of

 

CTE early/middle college programs. The purpose of these programs is

 

to increase the number of Michigan residents with high-quality

 

degrees or credentials, and to increase the number of students who

 

are college and career ready upon high school graduation.

 

     (2) From the funds allocated under subsection (1), an amount

 

as determined under this subsection shall be allocated to each

 

intermediate district serving as a fiscal agent for state-approved

 

CTE early/middle college and CTE dual enrollment programs in each

 

of the prosperity regions and subregions identified by the

 

department. An intermediate district shall not use more than 5% of

 

the funds allocated under this subsection for administrative costs

 

for serving as the fiscal agent.

 

     (3) To be an eligible fiscal agent, an intermediate district

 

must agree to do all of the following in a form and manner

 

determined by the department:

 

     (a) Distribute funds to eligible CTE early/middle college and

 

CTE dual enrollment programs in a prosperity region or subregion as

 

described in this section.

 

     (b) Collaborate with the talent district career council career

 

and educational advisory council that is located in the prosperity


region or subregion to develop a regional strategic plan under

 

subsection (4) that aligns CTE programs and services into an

 

efficient and effective delivery system for high school students.

 

     (c) Implement a regional process to rank career clusters in

 

the prosperity region or subregion as described under subsection

 

(4). Regional processes shall be approved by the department before

 

the ranking of career clusters.

 

     (d) Report CTE early/middle college and CTE dual enrollment

 

program and student data and information as prescribed by the

 

department and the center.

 

     (4) A regional strategic plan must be approved by the talent

 

district career and educational advisory council before submission

 

to the department. A regional strategic plan shall include, but not

 

be limited to, the following:

 

     (a) An identification of regional employer need based on a

 

ranking of all career clusters in the prosperity region or

 

subregion ranked by 10-year job openings projections and median

 

wage for each standard occupational code in each career cluster as

 

obtained from the United States Bureau of Labor Statistics.

 

Standard occupational codes within high-ranking clusters also may

 

be further ranked by median wage. The rankings shall be reviewed by

 

the talent district career and educational advisory council located

 

in the prosperity region or subregion and modified if necessary to

 

accurately reflect employer demand for talent in the prosperity

 

region or subregion. A talent district career and educational

 

advisory council shall document that it has conducted this review

 

and certify that it is accurate. These career cluster rankings


shall be determined and updated once every 4 years.

 

     (b) An identification of educational entities in the

 

prosperity region or subregion that will provide eligible CTE

 

early/middle college and CTE dual enrollment programs including

 

districts, intermediate districts, postsecondary institutions, and

 

noncredit occupational training programs leading to an industry-

 

recognized credential.

 

     (c) A strategy to inform parents and students of CTE

 

early/middle college and CTE dual enrollment programs in the

 

prosperity region or subregion.

 

     (d) Any other requirements as defined by the department.

 

     (5) An eligible CTE program is a program that meets all of the

 

following:

 

     (a) Has been identified in the highest 5 career cluster

 

rankings in any of the 10 regional strategic plans jointly approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development and the department.

 

     (b) Has a coherent sequence of courses that will allow a

 

student to earn a high school diploma and achieve at least 1 of the

 

following in a specific career cluster:

 

     (i) An associate degree.

 

     (ii) An industry-recognized technical certification approved

 

by the Michigan talent investment agency in the department of

 

talent and economic development.

 

     (iii) Up to 60 transferable college credits.

 

     (iv) Participation in a registered apprenticeship.

 

     (c) Is aligned with the Michigan merit curriculum.


     (d) Has an articulation agreement with at least 1

 

postsecondary institution that provides students with opportunities

 

to receive postsecondary credits during the student's participation

 

in the CTE early/middle college or CTE dual enrollment program and

 

transfers those credits to the postsecondary institution upon

 

completion of the CTE early/middle college or CTE dual enrollment

 

program.

 

     (e) Provides instruction that is supervised, directed, or

 

coordinated by an appropriately certificated CTE teacher or, for

 

concurrent enrollment courses, a postsecondary faculty member.

 

     (f) Provides for highly integrated student support services

 

that include at least the following:

 

     (i) Teachers as academic advisors.

 

     (ii) Supervised course selection.

 

     (iii) Monitoring of student progress and completion.

 

     (iv) Career planning services provided by a local one-stop

 

service center as described in the Michigan works one-stop service

 

center system act, 2006 PA 491, MCL 408.111 to 408.135, or by a

 

high school counselor or advisor.

 

     (g) Has courses that are taught on a college campus, are

 

college courses offered at the high school and taught by college

 

faculty, or are courses taught in combination with online

 

instruction.

 

     (6) Funds to eligible CTE early/middle college and CTE dual

 

enrollment programs shall be distributed as follows:

 

     (a) The department shall determine statewide average CTE costs

 

per pupil for each CIP code program by calculating statewide


average costs for each CIP code program for the 3 most recent

 

fiscal years.

 

     (b) Distribution to each eligible CTE early/middle college or

 

CTE dual enrollment program shall be the product of 50% of CTE

 

costs per pupil times the current year pupil enrollment of each

 

eligible CTE early/middle college or CTE dual enrollment program.

 

     (7) In order to receive funds under this section, a CTE

 

early/middle college or CTE dual enrollment program shall furnish

 

to the intermediate district that is the fiscal agent identified in

 

subsection (1), (2), in a form and manner determined by the

 

department, all information needed to administer this program and

 

meet federal reporting requirements; shall allow the department or

 

the department's designee to review all records related to the

 

program for which it receives funds; and shall reimburse the state

 

for all disallowances found in the review, as determined by the

 

department.

 

     (8) There is allocated from the funds under subsection (1) an

 

amount not to exceed $500,000.00 for 2017-2018 2018-2019 for grants

 

to intermediate districts or consortia of intermediate districts

 

for the purpose of planning for new or expanded early middle

 

college programs. Applications for grants shall be submitted in a

 

form and manner determined by the department. The amount of a grant

 

under this subsection shall not exceed $50,000.00. To be eligible

 

for a grant under this subsection, an intermediate district or

 

consortia of intermediate districts must provide matching funds

 

equal to the grant received under this subsection. Notwithstanding

 

section 17b, payments under this subsection may be made as


determined by the department.

 

     (9) Funds distributed under this section may be used to fund

 

program expenditures that would otherwise be paid from foundation

 

allowances. A program receiving funding under section 61a may

 

receive funding under this section for allowable costs that exceed

 

the reimbursement the program received under section 61a. The

 

combined payments received by a program under section 61a and this

 

section shall not exceed the total allowable costs of the program.

 

A program provider shall not use more than 5% of the funds

 

allocated under this section to the program for administrative

 

costs.

 

     (10) If the allocation under subsection (1) is insufficient to

 

fully fund payments as otherwise calculated under this section, the

 

department shall prorate payments under this section on an equal

 

percentage basis.

 

     (11) If pupils enrolled in a career cluster in an eligible CTE

 

early/middle college or CTE dual enrollment program qualify to be

 

reimbursed under this section, those pupils continue to qualify for

 

reimbursement until graduation, even if the career cluster is no

 

longer identified as being in the highest 5 career cluster

 

rankings.

 

     (12) As used in this section:

 

     (a) "Allowable costs" means those costs directly attributable

 

to the program as jointly determined by the Michigan talent

 

investment agency and the department.

 

     (b) "Career and educational advisory council" means an

 

advisory council to the local workforce development boards located


in a prosperity region consisting of educational, employer, labor,

 

and parent representatives.

 

     (c) (b) "CIP" means classification of instructional programs.

 

     (d) (c) "CTE" means career and technical education programs.

 

     (e) (d) "CTE dual enrollment program" means a 4-year high

 

school program of postsecondary courses offered by eligible

 

postsecondary educational institutions that leads to an industry-

 

recognized certification or degree.

 

     (f) (e) "Early/middle college program" means a 5-year high

 

school program.

 

     (g) (f) "Eligible postsecondary educational institution" means

 

that term as defined in section 3 of the career and technical

 

preparation act, 2000 PA 258, MCL 388.1903.

 

     (g) "Talent district career council" means an advisory council

 

to the local workforce development boards located in a prosperity

 

region consisting of educational, employer, labor, and parent

 

representatives.

 

     Sec. 61c. (1) From the general fund appropriation in section

 

11, there is allocated for 2017-2018 2018-2019 an amount not to

 

exceed $7,000,000.00 $5,000,000.00 to eligible career education

 

planning districts for the CTE skilled trades initiative described

 

in subsections (2) to (5). To be eligible to receive funding under

 

this section, a CEPD must be located in an intermediate district

 

that did not levy a vocational education millage in 2018.

 

     (2) To be eligible to receive funding under subsection (1),

 

each eligible CEPD shall apply in a form and manner determined by

 

the department. Funding to each eligible CEPD shall be equal to the


quotient of the allocation under subsection (1) and the sum of the

 

number of career education planning districts applying for funding

 

under subsection (1) that are located in an intermediate district

 

that did not levy a vocational education millage in 2018.

 

     (3) The At least 50% of the funding allocated to each eligible

 

CEPD shall be used to update equipment in current CTE programs that

 

have been identified in the highest 5 career cluster rankings in

 

any of the 10 regional strategic plans jointly approved by the

 

Michigan talent investment agency in the department of talent and

 

economic development and the department, for training on new

 

equipment, for professional development relating to computer

 

science or coding, or for new and emerging certified CTE programs

 

to allow CEPD administrators to provide programming in communities

 

that will enhance economic development. The funding for equipment

 

should be used to support and enhance community areas that have

 

sustained job growth, and act as a commitment to build a more

 

qualified and skilled workforce. In addition, each CEPD is

 

encouraged to explore the option of leasing equipment from local

 

private industry to encourage the use of the most advanced

 

equipment.

 

     (4) The allocation of funds at the local level shall be

 

determined by CEPD administrators using data from the state,

 

region, and local sources to make well-informed decisions on

 

program equipment improvements. Grants awarded by CEPD

 

administrators for capital infrastructure shall be used to ensure

 

that CTE programs can deliver educational programs in high-wage,

 

high-skill, and high-demand occupations. Each CEPD shall continue


to ensure that program advisory boards make recommendations on

 

needed improvements for equipment that support job growth and job

 

skill development and retention for both the present and the

 

future.

 

     (5) Not later than September 15 of each fiscal year, each CEPD

 

receiving funding under subsection (1) shall annually report to the

 

department, the senate and house appropriations subcommittees on

 

state school aid, and the senate and house fiscal agencies and

 

legislature on equipment purchased under subsection (1). In

 

addition, the report shall identify growth data on program

 

involvement, retention, and development of student skills.

 

     (6) In addition to the funds allocated under subsection (1),

 

from the general fund appropriation in section 11, there is

 

allocated for 2017-2018 an amount not to exceed $500,000.00 to

 

districts for a competitive grant to mechatronics programs that

 

operated in 2016-2017 for updating mechatronics program equipment.

 

     (7) In addition to the funds allocated under subsections (1)

 

and (6), from the general fund appropriation in section 11, there

 

is allocated for 2017-2018 an amount not to exceed $5,000,000.00

 

for grants to districts and intermediate districts or consortia of

 

districts and intermediate districts for the CTE equipment and

 

innovation competitive grant program described in subsections (8)

 

to (10).

 

     (8) To be eligible to receive a competitive grant under

 

subsection (7), an applicant shall apply in a form and manner

 

determined by the department. The amount of a grant awarded from

 

the allocation under subsection (7) shall be at least $100,000.00


but shall not exceed $1,000,000.00 and shall be used for the

 

purchase or lease of equipment from private industry partners and

 

for related capacity building activities. A grant application for a

 

grant awarded from the allocation under subsection (7) shall

 

include at least all of the following information:

 

     (a) A description of how the proposed capital infrastructure

 

initiative will provide increased career opportunities for students

 

and adult learners in high-wage, high-skill, and high-demand

 

occupations.

 

     (b) Demonstrated evidence of employer demand for the

 

initiative and related CTE training, including documentation of

 

industry involvement in the initiative that will allow for work-

 

based learning opportunities, apprenticeships, teacher externships,

 

or a combination of these.

 

     (c) A budget for the initiative, including demonstrated

 

commitment of local or regional partners to sustain the initiative

 

beyond the initial grant funding.

 

     (d) A description of how the initiative aligns with other CTE

 

and community college programs and how the equipment will be

 

utilized by initiative partners.

 

     (e) Other information as requested by the department and the

 

department of talent and economic development.

 

     (9) The department shall evaluate grant applications under

 

subsection (8) in collaboration with the department of talent and

 

economic development. A member of the governor's talent investment

 

board may serve in an advisory capacity in the evaluation process

 

as determined by the department of talent and economic development.


     (10) Not later than December 15 of each fiscal year, each

 

grant recipient receiving funding under subsection (7) shall

 

annually report to the department, the department of talent and

 

economic development, the house and senate appropriations

 

subcommittees on state school aid, the house and senate fiscal

 

agencies, and the state budget director on equipment purchased

 

under subsection (7) in the immediately preceding school year. The

 

report shall identify growth data on program involvement,

 

retention, and development of student and adult learner skills.

 

     (6) (11) As used in this section:

 

     (a) "CEPD" means a career education planning district

 

described in this section.

 

     (b) "CTE" means career and technical education.

 

     Sec. 62. (1) For the purposes of this section:

 

     (a) "Membership" means for a particular fiscal year the total

 

membership for the immediately preceding fiscal year of the

 

intermediate district and the districts constituent to the

 

intermediate district or the total membership for the immediately

 

preceding fiscal year of the area vocational-technical program.

 

     (b) "Millage levied" means the millage levied for area

 

vocational-technical education pursuant to sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690, including a levy

 

for debt service obligations incurred as the result of borrowing

 

for capital outlay projects and in meeting capital projects fund

 

requirements of area vocational-technical education.

 

     (c) "Taxable value" means the total taxable value of the

 

districts constituent to an intermediate district or area


vocational-technical education program, except that if a district

 

has elected not to come under sections 681 to 690 of the revised

 

school code, MCL 380.681 to 380.690, the membership and taxable

 

value of that district shall not be included in the membership and

 

taxable value of the intermediate district. However, the membership

 

and taxable value of a district that has elected not to come under

 

sections 681 to 690 of the revised school code, MCL 380.681 to

 

380.690, shall be included in the membership and taxable value of

 

the intermediate district if the district meets both of the

 

following:

 

     (i) The district operates the area vocational-technical

 

education program pursuant to a contract with the intermediate

 

district.

 

     (ii) The district contributes an annual amount to the

 

operation of the program that is commensurate with the revenue that

 

would have been raised for operation of the program if millage were

 

levied in the district for the program under sections 681 to 690 of

 

the revised school code, MCL 380.681 to 380.690.

 

     (2) From the appropriation in section 11, there is allocated

 

an amount not to exceed $9,190,000.00 each fiscal year for 2016-

 

2017 and for 2017-2018 and for 2018-2019 to reimburse intermediate

 

districts and area vocational-technical education programs

 

established under section 690(3) of the revised school code, MCL

 

380.690, levying millages for area vocational-technical education

 

pursuant to sections 681 to 690 of the revised school code, MCL

 

380.681 to 380.690. The purpose, use, and expenditure of the

 

reimbursement shall be limited as if the funds were generated by


those millages.

 

     (3) Reimbursement for the millages levied in 2015-2016 shall

 

be made in 2016-2017 at an amount per 2015-2016 membership pupil

 

computed by subtracting from $198,100.00 the 2015-2016 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2015-2016 millage levied.

 

     (3) (4) Reimbursement for those millages levied in 2016-2017

 

shall be made in 2017-2018 at an amount per 2016-2017 membership

 

pupil computed by subtracting from $199,000.00 $200,400.00 the

 

2016-2017 taxable value behind each membership pupil and

 

multiplying the resulting difference by the 2016-2017 millage

 

levied, and then subtracting from that amount the 2016-2017 local

 

community stabilization share revenue for area vocational technical

 

education behind each membership pupil for reimbursement of

 

personal property exemption loss under the local community

 

stabilization authority act, 2014 PA 86, MCL 123.1341 to 123.1362.

 

     (4) Reimbursement for those millages levied in 2017-2018 shall

 

be made in 2018-2019 at an amount per 2017-2018 membership pupil

 

computed by subtracting from $205,600.00 the 2017-2018 taxable

 

value behind each membership pupil and multiplying the resulting

 

difference by the 2017-2018 millage levied, and then subtracting

 

from that amount the 2017-2018 local community stabilization share

 

revenue for area vocational technical education behind each

 

membership pupil for reimbursement of personal property exemption

 

loss under the local community stabilization authority act, 2014 PA

 

86, MCL 123.1341 to 123.1362.

 

     (5) The amount paid to a single intermediate district under


this section shall not exceed 38.4% of the total amount allocated

 

under subsection (2).

 

     (6) The amount paid to a single intermediate district under

 

this section shall not be less than 75% of the amount allocated to

 

the intermediate district under this section for the immediately

 

preceding fiscal year.

 

     Sec. 64b. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $1,750,000.00 for 2017-2018 2018-

 

2019 for supplemental payments to districts that support the

 

attendance of district pupils in grades 9 to 12 under the

 

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

 

388.524, or under the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, consistent with section 21b, or that

 

support the attendance of district pupils in a concurrent

 

enrollment program if the district meets the requirements under

 

subsection (3). Programs funded under this section are intended to

 

increase the number of pupils who are college- and career-ready

 

upon high school graduation.

 

     (2) To be eligible for payments under this section for

 

supporting the attendance of district pupils under the

 

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

 

388.524, or under the career and technical preparation act, 2000 PA

 

258, MCL 388.1901 to 388.1913, a district shall do all of the

 

following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for


participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution before the enrollment of district pupils.

 

     (c) Agree to pay all eligible charges pursuant to section 21b.

 

     (d) Award high school credit for the postsecondary course if

 

the pupil successfully completes the course.

 

     (3) To be eligible for payments under this section for pupils

 

enrolled in a concurrent enrollment program, a district shall do

 

all of the following:

 

     (a) Provide information to all high school pupils on

 

postsecondary enrollment options, including enrollment eligibility,

 

the institutions and types of courses that are eligible for

 

participation, the decision-making process for granting academic

 

credit, and an explanation of eligible charges that will be paid by

 

the district.

 

     (b) Enter into a written agreement with a postsecondary

 

institution establishing the concurrent enrollment program before

 

the enrollment of district pupils in a postsecondary course through

 

the postsecondary institution.

 

     (c) Ensure that the course is taught by either a high school

 

teacher or postsecondary faculty pursuant to standards established

 

by the postsecondary institution with which the district has

 

entered into a written agreement to operate the concurrent

 

enrollment program.

 

     (d) Ensure that the written agreement provides that the


postsecondary institution agrees not to charge the pupil for any

 

cost of the program.

 

     (e) Ensure that the course is taught in the local district or

 

intermediate district.

 

     (f) Ensure that the pupil is awarded both high school and

 

college credit at a community college or state public university in

 

this state upon successful completion of the course as outlined in

 

the agreement with the postsecondary institution.

 

     (4) Funds shall be awarded to eligible districts under this

 

section in the following manner:

 

     (a) A payment of $10.00 per credit, for up to 3 credits, for a

 

credit-bearing course in which a pupil enrolls during the current

 

school year, as described under either subsection (2) or (3).

 

     (b) An additional payment of $30.00 per-pupil per course

 

identified in subdivision (a), if the pupil successfully completes,

 

and is awarded both high school and postsecondary credit for, the

 

course during the current school year.

 

     (5) A district requesting payment under this section shall

 

submit an application to the department in the form and manner

 

prescribed by the department. Notwithstanding section 17b, payments

 

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

 

department.

 

     Sec. 65. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed $340,000.00

 

for 2017-2018 $500,000.00 for 2018-2019 for a pre-college

 

engineering K-12 educational program that is focused on the

 

development of a diverse future Michigan workforce, that serves


multiple communities within southeast Michigan, that enrolls pupils

 

from multiple districts, and that received funds appropriated for

 

this purpose in the appropriations act that provided the Michigan

 

strategic fund budget for 2014-2015.

 

     (2) To be eligible for funding under this section, a program

 

must have the ability to expose pupils to, and motivate and prepare

 

pupils for, science, technology, engineering, and mathematics

 

careers and postsecondary education with special attention given to

 

groups of pupils who are at-risk and underrepresented in technical

 

professions and careers.

 

     Sec. 67. (1) From the general fund amount appropriated in

 

section 11, there is allocated an amount not to exceed

 

$3,000,000.00 for 2017-2018 2018-2019 for college access programs.

 

The programs funded under this section are intended to inform

 

students of college and career options and to provide resources

 

intended to increase the number of pupils who are adequately

 

prepared with the information needed to make informed decisions on

 

college and career. The funds appropriated under this section are

 

intended to be used to increase the number of Michigan residents

 

with high-quality degrees or credentials. Funds appropriated under

 

this section shall not be used to supplant funding for counselors

 

already funded by districts.

 

     (2) The talent investment agency of the department of talent

 

and economic development shall administer funds allocated under

 

this section in collaboration with the Michigan college access

 

network. These funds may be used for any of the following purposes:

 

     (a) Michigan college access network operations, programming,


and services to local college access networks.

 

     (b) Local college access networks, which are community-based

 

college access/success partnerships committed to increasing the

 

college participation and completion rates within geographically

 

defined communities through a coordinated strategy.

 

     (c) The Michigan college advising program, a program intended

 

to place trained, recently graduated college advisors in high

 

schools that serve significant numbers of low-income and first-

 

generation college-going pupils. State funds used for this purpose

 

may not exceed 33% of the total funds available under this

 

subsection.

 

     (d) Subgrants of up to $5,000.00 to districts with

 

comprehensive high schools that establish a college access team and

 

implement specific strategies to create a college-going culture in

 

a high school in a form and manner approved by the Michigan college

 

access network and the Michigan talent investment agency.

 

     (e) The Michigan college access portal, an online one-stop

 

portal to help pupils and families plan and apply for college.

 

     (f) Public awareness and outreach campaigns to encourage low-

 

income and first-generation college-going pupils to take necessary

 

steps toward college and to assist pupils and families in

 

completing a timely and accurate free application for federal

 

student aid.

 

     (g) Subgrants to postsecondary institutions to recruit, hire,

 

and train college student mentors and college advisors to assist

 

high school pupils in navigating the postsecondary planning and

 

enrollment process.


     (3) For the purposes of this section, "college" means any

 

postsecondary educational opportunity that leads to a career,

 

including, but not limited to, a postsecondary degree, industry-

 

recognized technical certification, or registered apprenticeship.

 

     Sec. 74. (1) From the amount appropriated in section 11, there

 

is allocated an amount not to exceed $3,730,300.00 for 2017-2018

 

$3,754,900.00 for 2018-2019 for the purposes of this section.

 

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

 

for each fiscal year the amount necessary for payments to state

 

supported colleges or universities and intermediate districts

 

providing school bus driver safety instruction pursuant to section

 

51 of the pupil transportation act, 1990 PA 187, MCL 257.1851. The

 

payments shall be in an amount determined by the department not to

 

exceed the actual cost of instruction and driver compensation for

 

each public or nonpublic school bus driver attending a course of

 

instruction. For the purpose of computing compensation, the hourly

 

rate allowed each school bus driver shall not exceed the hourly

 

rate received for driving a school bus. Reimbursement compensating

 

the driver during the course of instruction shall be made by the

 

department to the college or university or intermediate district

 

providing the course of instruction.

 

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

 

for 2017-2018 2018-2019 the amount necessary to pay the reasonable

 

costs of nonspecial education auxiliary services transportation

 

provided pursuant to section 1323 of the revised school code, MCL

 

380.1323. Districts funded under this subsection shall not receive

 

funding under any other section of this article for nonspecial


education auxiliary services transportation.

 

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

 

allocated an amount not to exceed $1,705,300.00 for 2017-2018

 

$1,729,900.00 for 2018-2019 for reimbursement to districts and

 

intermediate districts for costs associated with the inspection of

 

school buses and pupil transportation vehicles by the department of

 

state police as required under section 715a of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.715a, and section 39 of the pupil

 

transportation act, 1990 PA 187, MCL 257.1839. The department of

 

state police shall prepare a statement of costs attributable to

 

each district for which bus inspections are provided and submit it

 

to the department and to an intermediate district serving as

 

fiduciary in a time and manner determined jointly by the department

 

and the department of state police. Upon review and approval of the

 

statement of cost, the department shall forward to the designated

 

intermediate district serving as fiduciary the amount of the

 

reimbursement on behalf of each district and intermediate district

 

for costs detailed on the statement within 45 days after receipt of

 

the statement. The designated intermediate district shall make

 

payment in the amount specified on the statement to the department

 

of state police within 45 days after receipt of the statement. The

 

total reimbursement of costs under this subsection shall not exceed

 

the amount allocated under this subsection. Notwithstanding section

 

17b, payments to eligible entities under this subsection shall be

 

paid on a schedule prescribed by the department.

 

     Sec. 81. (1) From the appropriation in section 11, there is

 

allocated for 2017-2018 2018-2019 to the intermediate districts the


sum necessary, but not to exceed $67,108,000.00 $67,780,000.00 to

 

provide state aid to intermediate districts under this section.

 

     (2) The amount allocated under this section to each

 

intermediate district is an amount equal to 100% 101% of the amount

 

allocated to the intermediate district under this section for 2016-

 

2017. 2017-2018. Funding provided under this section shall be used

 

to comply with requirements of this article and the revised school

 

code that are applicable to intermediate districts, and for which

 

funding is not provided elsewhere in this article, and to provide

 

technical assistance to districts as authorized by the intermediate

 

school board.

 

     (3) Intermediate districts receiving funds under this section,

 

shall collaborate with the department to develop expanded

 

professional development opportunities for teachers to update and

 

expand their knowledge and skills needed to support the Michigan

 

merit curriculum.

 

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

 

to an intermediate district, formed by the consolidation or

 

annexation of 2 or more intermediate districts or the attachment of

 

a total intermediate district to another intermediate school

 

district or the annexation of all of the constituent K-12 districts

 

of a previously existing intermediate school district which has

 

disorganized, an additional allotment of $3,500.00 each fiscal year

 

for each intermediate district included in the new intermediate

 

district for 3 years following consolidation, annexation, or

 

attachment.

 

     (5) In order to receive funding under this section, an


intermediate district shall do all of the following:

 

     (a) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

pupil accounting and auditing procedures, rules, and regulations.

 

     (b) Demonstrate to the satisfaction of the department that the

 

intermediate district employs at least 1 person who is trained in

 

rules, regulations, and district reporting procedures for the

 

individual-level student data that serves as the basis for the

 

calculation of the district and high school graduation and dropout

 

rates.

 

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

 

code, MCL 380.1278a and 380.1278b.

 

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

 

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

 

specified by the center or the department, as applicable.

 

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

 

380.1230g.

 

     (f) Comply with section 761 of the revised school code, MCL

 

380.761.

 

     Sec. 94. (1) From the general fund appropriation in section

 

11, there is allocated to the department for 2017-2018 an amount

 

not to exceed $750,000.00 and there is allocated to the department

 

for 2018-2019 an amount not to exceed $1,500,000.00 for efforts to

 

increase the number of pupils who participate and succeed in

 

advanced placement and international baccalaureate programs, and,

 

beginning in 2018-2019, to support the college-level examination

 

program (CLEP).


     (2) From the funds allocated under this section, the

 

department shall award funds to cover all or part of the costs of

 

advanced placement test fees or international baccalaureate test

 

fees and international baccalaureate registration fees for low-

 

income pupils who take an advanced placement or an international

 

baccalaureate test, and, beginning in 2018-2019, CLEP fees for low-

 

income pupils who take a CLEP test. Payments shall not exceed

 

$20.00 per test completed or $150.00 per international

 

baccalaureate registration fees per pupil registered.

 

     (3) The department shall only award funds under this section

 

if the department determines that all of the following criteria are

 

met:

 

     (a) Each pupil for whom payment is made meets eligibility

 

requirements of the federal advanced placement test fee program

 

under section 1701 of the no child left behind act of 2001, Public

 

Law 107-110, or under a corresponding provision of the every

 

student succeeds act, Public Law 114-95.

 

     (b) The tests are administered by the college board, the

 

international baccalaureate organization, or another test provider

 

approved by the department.

 

     (c) The pupil for whom payment is made pays at least $5.00

 

toward the cost of each test for which payment is made.

 

     (4) The department shall establish procedures for awarding

 

funds under this section.

 

     (5) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the department.

 

     Sec. 94a. (1) There is created within the state budget office


in the department of technology, management, and budget the center

 

for educational performance and information. The center shall do

 

all of the following:

 

     (a) Coordinate the collection of all data required by state

 

and federal law from districts, intermediate districts, and

 

postsecondary institutions.

 

     (b) Create, maintain, and enhance this state's P-20

 

longitudinal data system and ensure that it meets the requirements

 

of subsection (4).

 

     (c) Collect data in the most efficient manner possible in

 

order to reduce the administrative burden on reporting entities,

 

including, but not limited to, electronic transcript services.

 

     (d) Create, maintain, and enhance this state's web-based

 

educational portal to provide information to school leaders,

 

teachers, researchers, and the public in compliance with all

 

federal and state privacy laws. Data shall include, but are not

 

limited to, all of the following:

 

     (i) Data sets that link teachers to student information,

 

allowing districts to assess individual teacher impact on student

 

performance and consider student growth factors in teacher and

 

principal evaluation systems.

 

     (ii) Data access or, if practical, data sets, provided for

 

regional data hubs that, in combination with local data, can

 

improve teaching and learning in the classroom.

 

     (iii) Research-ready data sets for researchers to perform

 

research that advances this state's educational performance.

 

     (e) Provide data in a useful manner to allow state and local


policymakers to make informed policy decisions.

 

     (f) Provide public reports to the citizens of this state to

 

allow them to assess allocation of resources and the return on

 

their investment in the education system of this state.

 

     (g) Other functions as assigned by the state budget director.

 

     (2) Each state department, officer, or agency that collects

 

information from districts, intermediate districts, or

 

postsecondary institutions as required under state or federal law

 

shall make arrangements with the center to ensure that the state

 

department, officer, or agency is in compliance with subsection

 

(1). This subsection does not apply to information collected by the

 

department of treasury under the uniform budgeting and accounting

 

act, 1968 PA 2, MCL 141.421 to 141.440a; the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821; the school bond

 

qualification, approval, and loan act, 2005 PA 92, MCL 388.1921 to

 

388.1939; or section 1351a of the revised school code, MCL

 

380.1351a.

 

     (3) The center may enter into any interlocal agreements

 

necessary to fulfill its functions.

 

     (4) The center shall ensure that the P-20 longitudinal data

 

system required under subsection (1)(b) meets all of the following:

 

     (a) Includes data at the individual student level from

 

preschool through postsecondary education and into the workforce.

 

     (b) Supports interoperability by using standard data

 

structures, data formats, and data definitions to ensure linkage

 

and connectivity in a manner that facilitates the exchange of data

 

among agencies and institutions within the state and between


states.

 

     (c) Enables the matching of individual teacher and student

 

records so that an individual student may be matched with those

 

teachers providing instruction to that student.

 

     (d) Enables the matching of individual teachers with

 

information about their certification and the institutions that

 

prepared and recommended those teachers for state certification.

 

     (e) Enables data to be easily generated for continuous

 

improvement and decision-making, including timely reporting to

 

parents, teachers, and school leaders on student achievement.

 

     (f) Ensures the reasonable quality, validity, and reliability

 

of data contained in the system.

 

     (g) Provides this state with the ability to meet federal and

 

state reporting requirements.

 

     (h) For data elements related to preschool through grade 12

 

and postsecondary, meets all of the following:

 

     (i) Contains a unique statewide student identifier that does

 

not permit a student to be individually identified by users of the

 

system, except as allowed by federal and state law.

 

     (ii) Contains student-level enrollment, demographic, and

 

program participation information.

 

     (iii) Contains student-level information about the points at

 

which students exit, transfer in, transfer out, drop out, or

 

complete education programs.

 

     (iv) Has the capacity to communicate with higher education

 

data systems.

 

     (i) For data elements related to preschool through grade 12


only, meets all of the following:

 

     (i) Contains yearly test records of individual students for

 

assessments approved by DED-OESE for accountability purposes under

 

section 1111(b) of the elementary and secondary education act of

 

1965, 20 USC 6311, including information on individual students not

 

tested, by grade and subject.

 

     (ii) Contains student-level transcript information, including

 

information on courses completed and grades earned.

 

     (iii) Contains student-level college readiness test scores.

 

     (j) For data elements related to postsecondary education only:

 

     (i) Contains data that provide information regarding the

 

extent to which individual students transition successfully from

 

secondary school to postsecondary education, including, but not

 

limited to, all of the following:

 

     (A) Enrollment in remedial coursework.

 

     (B) Completion of 1 year's worth of college credit applicable

 

to a degree within 2 years of enrollment.

 

     (ii) Contains data that provide other information determined

 

necessary to address alignment and adequate preparation for success

 

in postsecondary education.

 

     (5) From the general fund appropriation in section 11, there

 

is allocated an amount not to exceed $10,173,200.00 for 2016-2017

 

and an amount not to exceed $16,216,000.00 for 2017-2018 2018-2019

 

to the department of technology, management, and budget to support

 

the operations of the center. In addition, from the federal funds

 

appropriated in section 11 there is allocated for each fiscal year

 

for 2016-2017 and for 2017-2018 2018-2019 the amount necessary,


estimated at $193,500.00, to support the operations of the center

 

and to establish a P-20 longitudinal data system necessary for

 

state and federal reporting purposes. The center shall cooperate

 

with the department to ensure that this state is in compliance with

 

federal law and is maximizing opportunities for increased federal

 

funding to improve education in this state.

 

     (6) From the funds allocated in subsection (5), the center may

 

use an amount determined by the center for competitive grants for

 

2017-2018 2018-2019 to support collaborative efforts on the P-20

 

longitudinal data system. All of the following apply to grants

 

awarded under this subsection:

 

     (a) The center shall award competitive grants to eligible

 

intermediate districts or a consortium of intermediate districts

 

based on criteria established by the center.

 

     (b) Activities funded under the grant shall support the P-20

 

longitudinal data system portal and may include portal hosting,

 

hardware and software acquisition, maintenance, enhancements, user

 

support and related materials, and professional learning tools and

 

activities aimed at improving the utility of the P-20 longitudinal

 

data system.

 

     (c) An applicant that received a grant under this subsection

 

for the immediately preceding fiscal year shall receive priority

 

for funding under this section. However, after 3 fiscal years of

 

continuous funding, an applicant is required to compete openly with

 

new applicants.

 

     (7) Funds allocated under this section that are not expended

 

in the fiscal year in which they were allocated may be carried


forward to a subsequent fiscal year and are appropriated for the

 

purposes for which the funds were originally allocated.

 

     (8) The center may bill departments as necessary in order to

 

fulfill reporting requirements of state and federal law. The center

 

may also enter into agreements to supply custom data, analysis, and

 

reporting to other principal executive departments, state agencies,

 

local units of government, and other individuals and organizations.

 

The center may receive and expend funds in addition to those

 

authorized in subsection (5) to cover the costs associated with

 

salaries, benefits, supplies, materials, and equipment necessary to

 

provide such data, analysis, and reporting services.

 

     (9) As used in this section:

 

     (a) "DED-OESE" means the United States Department of Education

 

Office of Elementary and Secondary Education.

 

     (b) "State education agency" means the department.

 

     Sec. 95b. (1) From the general fund appropriation under

 

section 11, there is allocated to the department an amount not to

 

exceed $2,500,000.00 for 2017-2018 2018-2019 for the department to

 

adopt a model value-added growth and projection analytics system

 

and to incorporate that model into its reporting requirements under

 

the every student succeeds act, Public Law 114-95. The adopted

 

model shall do at least all of the following:

 

     (a) Utilize existing assessments and any future assessments

 

that are suitable for measuring student growth.

 

     (b) Report student growth measures at the district, school,

 

teacher, and subgroup levels.

 

     (c) Recognize the growth of tested students, including those


who may have missing assessment data.

 

     (d) Include all available prior standardized assessment data

 

that meet inclusion criteria across grades, subjects, and state and

 

local assessments.

 

     (e) Allow student growth results to be disaggregated.

 

     (f) Provide individual student projections showing the

 

probability of a student reaching specific performance levels on

 

future assessments.

 

     (g) Demonstrate any prior success with this state's

 

assessments through the Michigan council of educator effectiveness

 

teacher evaluation pilot.

 

     (h) Demonstrate prior statewide implementation in at least 2

 

other states for at least 10 years.

 

     (i) Have a native roster verification system built into the

 

value-added reporting platform that has been implemented statewide

 

in at least 2 other states.

 

     (j) Have a "Help/Contact Us" ticketing system built into the

 

value-added reporting platform.

 

     (2) The department shall provide internet-based electronic

 

student growth and projection reporting based on the model adopted

 

under subsection (1) to educators at the school, district, and

 

state levels. The model shall include role-based permissions that

 

allow educators to access information about the performance of the

 

students within their immediate responsibility in accordance with

 

applicable privacy laws.

 

     (3) The model adopted under subsection (1) must not be a

 

mandatory part of teacher evaluation or educator pay-for-


performance systems.

 

     Sec. 95c. (1) The department shall create the Michigan teacher

 

council within the department for the following purposes:

 

     (a) Provide feedback to the superintendent of public

 

instruction, the state board, and the legislature on initiatives

 

that it considers critical to the development of attracting,

 

preparing, and retaining teachers.

 

     (b) Provide guidance on best practices for developing the

 

profession of teaching, including, but not limited to, effective

 

preparation and compensation, and for creating the best teacher

 

infrastructure to serve this state.

 

     (c) Provide advice to the governor and the legislature on

 

subjects regarding public education, including, but not limited to,

 

building a model for teacher compensation, rewarding teachers for

 

exemplary service, making the teaching profession an attractive

 

option for prospective educators, and instituting practices that

 

help retain quality teachers in the classroom.

 

     (2) The Michigan teacher council shall consist of the

 

following members:

 

     (a) Two members who are participating in a higher education

 

teacher preparation program, appointed by the governor.

 

     (b) Four members who are public school teachers in this state

 

appointed as follows:

 

     (i) One member appointed by the majority leader of the senate.

 

     (ii) One member appointed by the speaker of the house of

 

representatives.

 

     (iii) One member appointed by the minority leader of the


senate.

 

     (iv) One member appointed by the minority leader of the house

 

of representatives.

 

     (c) One member appointed by the superintendent of public

 

instruction nominated by the Michigan Education Association.

 

     (d) One member appointed by the superintendent of public

 

instruction nominated by the American Federation of Teachers.

 

     (e) Three members appointed by the state board as follows:

 

     (i) One member who is a representative of a school management

 

organization.

 

     (ii) One member who is a representative of a nonprofit

 

organization that engages in teacher and education research.

 

     (iii) One member who is a superintendent of a school district.

 

     (3) Members shall be appointed to the council within 90 days

 

after the effective date of the amendatory act that added this

 

section and shall serve for 4 years or until a successor is

 

appointed. Vacancies shall be filled in the same manner as the

 

original appointment.

 

     (4) At the first meeting, the council shall elect a

 

chairperson. The council shall meet at least quarterly and more

 

frequently if called for by the chairperson or a majority of the

 

members. A majority of the members is required for a quorum. All

 

meetings shall be held in compliance with the open meetings act,

 

1976 PA 267, MCL 15.261 to 15.275. All writings prepared, owned,

 

used, and in the possession of the council are subject to the

 

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

Members shall not be compensated for their service, but may be


reimbursed for their actual and necessary expenses incurred in the

 

performance of their duties on the council.

 

     Sec. 98. (1) From the general fund money appropriated in

 

section 11, there is allocated an amount not to exceed

 

$7,387,500.00 for 2017-2018 2018-2019 for the purposes described in

 

this section. The Michigan Virtual University shall provide a

 

report to the legislature not later than November 1 , 2017 of each

 

year that includes its mission, its plans, and proposed benchmarks

 

it must meet, which shall include a plan to achieve a 50% increase

 

in documented improvement in each requirement of the Michigan

 

Virtual Learning Research Institute and Michigan Virtual School,

 

and all other the organizational priorities identified in this

 

section, in order to receive full funding for 2018-2019. 2019-2020.

 

Not later than March 1 , 2018, of each year, the Michigan Virtual

 

University shall provide an update to the house and senate

 

appropriations subcommittees on school aid to show the progress

 

being made to meet the benchmarks identified.

 

     (2) The Michigan Virtual University shall operate the Michigan

 

Virtual Learning Research Institute. The Michigan Virtual Learning

 

Research Institute shall do all of the following:

 

     (a) Support and accelerate innovation in education through the

 

following activities:

 

     (i) Test, evaluate, and recommend as appropriate new

 

technology-based instructional tools and resources.

 

     (ii) Research, design, and recommend virtual education

 

delivery models for use by pupils and teachers that include age-

 

appropriate multimedia instructional content.


     (iii) Research, develop, and recommend annually to the

 

department criteria by which cyber schools and virtual course

 

providers should be monitored and evaluated to ensure a quality

 

education for their pupils.

 

     (iv) Based on pupil completion and performance data reported

 

to the department or the center for educational performance and

 

information from cyber schools and other virtual course providers

 

operating in this state, analyze the effectiveness of virtual

 

learning delivery models in preparing pupils to be college- and

 

career-ready and publish a report that highlights enrollment

 

totals, completion rates, and the overall impact on pupils. The

 

report shall be submitted to the house and senate appropriations

 

subcommittees on state school aid, the state budget director, the

 

house and senate fiscal agencies, the department, districts, and

 

intermediate districts not later than March 31 , 2018.of each year.

 

     (v) Provide an extensive professional development program to

 

at least 30,000 educational personnel, including teachers, school

 

administrators, and school board members, that focuses on the

 

effective integration of virtual learning into curricula and

 

instruction. The Michigan Virtual Learning Research Institute is

 

encouraged to work with the MiSTEM advisory council created under

 

section 99s to coordinate professional development of teachers in

 

applicable fields. In addition, the Michigan Virtual Learning

 

Research Institute and external stakeholders are encouraged to

 

coordinate with the department for professional development in this

 

state. Not later than December 1 , 2018, of each year, the Michigan

 

Virtual Learning Research Institute shall submit a report to the


house and senate appropriations subcommittees on state school aid,

 

the state budget director, the house and senate fiscal agencies,

 

and the department on the number and percentage of teachers, school

 

administrators, and school board members who have received

 

professional development services from the Michigan Virtual

 

University. The report shall also identify barriers and other

 

opportunities to encourage the adoption of virtual learning in the

 

public education system.

 

     (vi) Identify and share best practices for planning,

 

implementing, and evaluating virtual and blended education delivery

 

models with intermediate districts, districts, and public school

 

academies to accelerate the adoption of innovative education

 

delivery models statewide.

 

     (b) Provide leadership for this state's system of virtual

 

learning education by doing the following activities:

 

     (i) Develop and report policy recommendations to the governor

 

and the legislature that accelerate the expansion of effective

 

virtual learning in this state's schools.

 

     (ii) Provide a clearinghouse for research reports, academic

 

studies, evaluations, and other information related to virtual

 

learning.

 

     (iii) Promote and distribute the most current instructional

 

design standards and guidelines for virtual teaching.

 

     (iv) In collaboration with the department and interested

 

colleges and universities in this state, support implementation and

 

improvements related to effective virtual learning instruction.

 

     (v) Pursue public/private partnerships that include districts


to study and implement competency-based technology-rich virtual

 

learning models.

 

     (vi) Create a statewide network of school-based mentors

 

serving as liaisons between pupils, virtual instructors, parents,

 

and school staff, as provided by the department or the center, and

 

provide mentors with research-based training and technical

 

assistance designed to help more pupils be successful virtual

 

learners.

 

     (vii) Convene focus groups and conduct annual surveys of

 

teachers, administrators, pupils, parents, and others to identify

 

barriers and opportunities related to virtual learning.

 

     (viii) Produce an annual consumer awareness report for schools

 

and parents about effective virtual education providers and

 

education delivery models, performance data, cost structures, and

 

research trends.

 

     (ix) Research and establish Provide an internet-based platform

 

that educators can use to create student-centric learning tools and

 

resources for sharing in the state's open educational resource

 

repository and facilitate a user network that assists educators in

 

using the content creation platform and state repository for open

 

educational resources. As part of this initiative, the Michigan

 

Virtual University shall work collaboratively with districts and

 

intermediate districts to establish a plan to make available

 

virtual resources that align to Michigan's K-12 curriculum

 

standards for use by students, educators, and parents.

 

     (x) Create and maintain a public statewide catalog of virtual

 

learning courses being offered by all public schools and community


colleges in this state. The Michigan Virtual Learning Research

 

Institute shall identify and develop a list of nationally

 

recognized best practices for virtual learning and use this list to

 

support reviews of virtual course vendors, courses, and

 

instructional practices. The Michigan Virtual Learning Research

 

Institute shall also provide a mechanism for intermediate districts

 

to use the identified best practices to review content offered by

 

constituent districts. The Michigan Virtual Learning Research

 

Institute shall review the virtual course offerings of the Michigan

 

Virtual University, and make the results from these reviews

 

available to the public as part of the statewide catalog. The

 

Michigan Virtual Learning Research Institute shall ensure that the

 

statewide catalog is made available to the public on the Michigan

 

Virtual University website and shall allow the ability to link it

 

to each district's website as provided for in section 21f. The

 

statewide catalog shall also contain all of the following:

 

     (A) The number of enrollments in each virtual course in the

 

immediately preceding school year.

 

     (B) The number of enrollments that earned 60% or more of the

 

total course points for each virtual course in the immediately

 

preceding school year.

 

     (C) The completion pass rate for each virtual course.

 

     (xi) Develop prototype and pilot Support registration, payment

 

services, and transcript functionality to for the statewide catalog

 

and train key stakeholders on how to use new features.

 

     (xii) Collaborate with key stakeholders to examine district

 

level accountability and teacher effectiveness issues related to


virtual learning under section 21f and make findings and

 

recommendations publicly available.

 

     (xiii) Provide a report on the activities of the Michigan

 

Virtual Learning Research Institute.

 

     (3) To further enhance its expertise and leadership in virtual

 

learning, the Michigan Virtual University shall continue to operate

 

the Michigan Virtual School as a statewide laboratory and quality

 

model of instruction by implementing virtual and blended learning

 

solutions for Michigan schools in accordance with the following

 

parameters:

 

     (a) The Michigan Virtual School must maintain its

 

accreditation status from recognized national and international

 

accrediting entities.

 

     (b) The Michigan Virtual University shall use no more than

 

$1,000,000.00 of the amount allocated under this section to

 

subsidize the cost paid by districts for virtual courses.

 

     (c) In providing educators responsible for the teaching of

 

virtual courses as provided for in this section, the Michigan

 

Virtual School shall follow the requirements to request and assess,

 

and the department of state police shall provide, a criminal

 

history check and criminal records check under sections 1230 and

 

1230a of the revised school code, MCL 380.1230 and 380.1230a, in

 

the same manner as if the Michigan Virtual School were a school

 

district under those sections.

 

     (4) From the funds allocated under subsection (1), the

 

Michigan Virtual University shall allocate up to $500,000.00 to

 

support the expansion of new online and blended educator


professional development programs.

 

     (5) If the course offerings are included in the statewide

 

catalog of virtual courses under subsection (2)(b)(x), the Michigan

 

Virtual School operated by the Michigan Virtual University may

 

offer virtual course offerings, including, but not limited to, all

 

of the following:

 

     (a) Information technology courses.

 

     (b) College level equivalent courses, as defined in section

 

1471 of the revised school code, MCL 380.1471.

 

     (c) Courses and dual enrollment opportunities.

 

     (d) Programs and services for at-risk pupils.

 

     (e) High school equivalency test preparation courses for

 

adjudicated youth.

 

     (f) Special interest courses.

 

     (g) Professional development programs for teachers, school

 

administrators, other school employees, and school board members.

 

     (6) If a home-schooled or nonpublic school student is a

 

resident of a district that subscribes to services provided by the

 

Michigan Virtual School, the student may use the services provided

 

by the Michigan Virtual School to the district without charge to

 

the student beyond what is charged to a district pupil using the

 

same services.

 

     (7) Not later than December 1 of each fiscal year, the

 

Michigan Virtual University shall provide a report to the house and

 

senate appropriations subcommittees on state school aid, the state

 

budget director, the house and senate fiscal agencies, and the

 

department that includes at least all of the following information


related to the Michigan Virtual School for the preceding state

 

fiscal year:

 

     (a) A list of the districts served by the Michigan Virtual

 

School.

 

     (b) A list of virtual course titles available to districts.

 

     (c) The total number of virtual course enrollments and

 

information on registrations and completions by course.

 

     (d) The overall course completion rate percentage.

 

     (8) In addition to the information listed in subsection (7),

 

the report under subsection (7) shall also include a plan to serve

 

at least 600 schools with courses from the Michigan Virtual School

 

or with content available through the internet-based platform

 

identified in subsection (2)(b)(ix).

 

     (9) The governor may appoint an advisory group for the

 

Michigan Virtual Learning Research Institute established under

 

subsection (2). The members of the advisory group shall serve at

 

the pleasure of the governor and shall serve without compensation.

 

The purpose of the advisory group is to make recommendations to the

 

governor, the legislature, and the president and board of the

 

Michigan Virtual University that will accelerate innovation in this

 

state's education system in a manner that will prepare elementary

 

and secondary students to be career and college ready and that will

 

promote the goal of increasing the percentage of citizens of this

 

state with high-quality degrees and credentials to at least 60% by

 

2025.

 

     (10) Not later than November 1 , 2017, of each year, the

 

Michigan Virtual University shall submit to the house and senate


appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a detailed

 

budget for the 2017-2018 that fiscal year that includes a breakdown

 

on its projected costs to deliver virtual educational services to

 

districts and a summary of the anticipated fees to be paid by

 

districts for those services. Not later than March 1 each year, the

 

Michigan Virtual University shall submit to the house and senate

 

appropriations subcommittees on state school aid, the state budget

 

director, and the house and senate fiscal agencies a breakdown on

 

its actual costs to deliver virtual educational services to

 

districts and a summary of the actual fees paid by districts for

 

those services based on audited financial statements for the

 

immediately preceding fiscal year.

 

     (11) As used in this section:

 

     (a) "Blended learning" means a hybrid instructional delivery

 

model where pupils are provided content, instruction, and

 

assessment, in part at a supervised educational facility away from

 

home where the pupil and a teacher with a valid Michigan teaching

 

certificate are in the same physical location and in part through

 

internet-connected learning environments with some degree of pupil

 

control over time, location, and pace of instruction.

 

     (b) "Cyber school" means a full-time instructional program of

 

virtual courses for pupils that may or may not require attendance

 

at a physical school location.

 

     (c) "Virtual course" means a course of study that is capable

 

of generating a credit or a grade and that is provided in an

 

interactive learning environment in which the majority of the


curriculum is delivered using the internet and in which pupils are

 

separated from their instructor or teacher of record by time or

 

location, or both.

 

     Sec. 99h. (1) From the state school aid fund appropriation in

 

section 11, there is allocated an amount not to exceed

 

$2,500,000.00 for 2017-2018 2018-2019 for competitive grants to

 

districts and intermediate districts, and from the general fund

 

appropriation in section 11, there is allocated an amount not to

 

exceed $300,000.00 for 2017-2018 2018-2019 for competitive grants

 

to nonpublic schools , that provide pupils in grades K to 12 with

 

expanded opportunities to improve mathematics, science, and

 

technology skills by participating in events hosted by a science

 

and technology development program known as FIRST (for inspiration

 

and recognition of science and technology) Robotics, including JR

 

FIRST Lego League, FIRST Lego League, FIRST tech challenge, and

 

FIRST Robotics competition, or events hosted by the Robotics

 

Education and Competition (REC) Foundation. Programs funded under

 

this section are intended to increase the number of pupils

 

demonstrating proficiency in science and mathematics on the state

 

assessments and to increase the number of pupils who are college-

 

and career-ready upon high school graduation. Notwithstanding

 

section 17b, grant payments to districts, and nonpublic schools,

 

and intermediate districts under this section shall be paid on a

 

schedule determined by the department. The department shall set

 

maximum grant awards for each different level of competition in a

 

manner that both maximizes the number of teams that will be able to

 

receive funds and expands the geographical distribution of teams.


     (2) A district, or nonpublic school, or intermediate district

 

applying for a grant under this section shall submit an application

 

in a form and manner determined by the department. To be eligible

 

for a grant, a district, or nonpublic school, or intermediate

 

district shall demonstrate in its application that the district, or

 

nonpublic school, or intermediate district has established a

 

partnership for the purposes of the FIRST Robotics robotics program

 

with at least 1 sponsor, business entity, higher education

 

institution, or technical school, shall submit a spending plan, and

 

shall pay at least 25% of the cost of the FIRST Robotics robotics

 

program.

 

     (3) The department shall distribute the grant funding under

 

this section for the following purposes:

 

     (a) Grants to districts, or nonpublic schools, or intermediate

 

districts to pay for stipends not to exceed $1,500.00 for 1 coach

 

per team.

 

     (b) Grants to districts, or nonpublic schools, or intermediate

 

districts for event registrations, materials, travel costs, and

 

other expenses associated with the preparation for and attendance

 

at FIRST Robotics robotics events and competitions. Each grant

 

recipient shall provide a local match from other private or local

 

funds for the funds received under this subdivision equal to at

 

least 50% of the costs of participating in an event.

 

     (c) Grants to districts, or nonpublic schools, or intermediate

 

districts for awards to teams that advance to the state and world

 

championship competitions. The department shall determine an equal

 

amount per team for those teams that advance to the state


championship and a second equal award amount to those teams that

 

advance to the world championship.

 

     (4) A nonpublic school that receives a grant under this

 

section may use the funds for either FIRST Robotics robotics or

 

Science Olympiad programs.

 

     (5) To be eligible to receive funds under this section, a

 

nonpublic school must be a nonpublic school registered with the

 

department and must meet all applicable state reporting

 

requirements for nonpublic schools.

 

     Sec. 99r. (1) From the general fund appropriation under

 

section 11, there is allocated for 2016-2017 an amount not to

 

exceed $75,000.00, and there is allocated for 2017-2018 2018-2019

 

an amount not to exceed $250,000.00, $400,000.00 to the department

 

of technology, management, and budget to support the creation

 

functions of the executive director and executive assistant for the

 

MiSTEM network.

 

     (2) From the general fund allocation under this section, there

 

is allocated for 2016-2017 an amount not to exceed $75,000.00 to

 

the department of technology, management, and budget to support the

 

functions of a transitional executive director and executive

 

assistant for the MiSTEM network. The department of technology,

 

management, and budget shall work with the Michigan Mathematics and

 

Science Centers Network and the MiSTEM council to hire the

 

transitional executive director and executive assistant. The

 

transitional executive director and executive assistant shall work

 

with the president and executive director of the Michigan

 

Mathematics and Science Centers Network and the chairperson and


vice-chairperson of the MiSTEM council. The transitional executive

 

director and executive assistant shall do all of the following:

 

     (a) Develop a plan for the creation of MiSTEM network regions

 

that does all of the following:

 

     (i) Creates a structured relationship between the MiSTEM

 

council, MiSTEM network executive director and executive assistant,

 

and MiSTEM network region staff that ensures services to all

 

regions and local communities in each region.

 

     (ii) Empowers the MiSTEM network regions in a manner that

 

creates a robust statewide STEM culture, empowers STEM teachers,

 

integrates business and education into the MiSTEM network, and

 

ensures high-quality and equitable distribution of STEM experiences

 

for pupils.

 

     (iii) Identifies region boundaries throughout the state and

 

identifies fiscal agents within those regions.

 

     (iv) Identifies MiSTEM state and regional goals and objectives

 

and processes by which goals and objectives shall be measured.

 

     (v) Includes processes by which the MiSTEM network regions

 

apply for MiSTEM grants, provide feedback on grant-funded

 

programming, share best practices, and create regional master

 

plans.

 

     (vi) Creates a marketing campaign, including, at least, an

 

online presence which includes dashboards of outcomes for the

 

MiSTEM network.

 

     (b) Form a committee for the purpose of identifying each

 

MiSTEM network region and selecting a fiscal agent and determining

 

staffing for that region. Fiscal agents shall be an intermediate


district within the region, a university within the region, or

 

another organization that served as fiscal agent within the

 

Michigan Mathematics and Science Centers Network. Agencies

 

interested in serving as the region's fiscal agent shall be

 

included on this committee. The committee shall also include

 

representatives of the general education leadership network and the

 

governor's talent investment board, in addition to the math and

 

science centers and MiSTEM council. The committee shall identify

 

necessary staffing levels and locations of staff and determine

 

processes by which the entire region will receive and share

 

services. All fiscal agents for the Michigan Mathematics and

 

Science Centers Network are required to maintain current levels of

 

effort for the MiSTEM network as for the Michigan Mathematics and

 

Science Centers Network.

 

     (c) Establish a system to distribute and monitor MiSTEM grants

 

during the creation of the MiSTEM network. The monitoring of the

 

grants shall include conducting reviews of recipients and the

 

experiences and feedback of pupils.

 

     (d) Report to the governor and the legislature on the

 

development of the MiSTEM network.

 

     (e) Submit the plan developed under subdivision (a) to the

 

governor and the legislature on or before December 1, 2017.

 

     (2) (3) From the general fund allocation under this section,

 

there is allocated for 2017-2018 an amount not to exceed

 

$250,000.00 to support a permanent executive director and an

 

executive assistant for the MiSTEM network. After the creation of

 

the MiSTEM network region, the transitional executive director


funded under subsection (2) may be appointed as the permanent

 

executive director, or a new permanent executive director may be

 

hired. The permanent executive director and executive assistant for

 

the MiSTEM network shall do all of the following:

 

     (a) Serve as a liaison among and between the department, the

 

department of technology, management, and budget, the MiSTEM

 

advisory council, the Michigan mathematics and science centers

 

network, the governor's talent investment board, the general

 

education leadership network, and the regional MiSTEM centers

 

regions in a manner that creates a robust statewide STEM culture,

 

that empowers STEM teachers, that integrates business and education

 

into the STEM network, and that ensures high-quality STEM

 

experiences for pupils.

 

     (b) Coordinate the implementation of a marketing campaign,

 

including, but not limited to, a website that includes dashboards

 

of outcomes, to build STEM awareness and communicate STEM needs and

 

opportunities to pupils, parents, educators, and the business

 

community.

 

     (c) Award Work with the department and the MiSTEM advisory

 

council to coordinate, award, and monitor MiSTEM state and federal

 

grants to the MiSTEM network regions and conduct reviews of grant

 

recipients, including, but not limited to, pupil experience and

 

feedback.

 

     (d) Report to the governor, the legislature, the department,

 

and the MiSTEM advisory council annually on the activities and

 

performance of the MiSTEM network regions.

 

     (e) Coordinate recurring discussions and work with regional


staff to ensure that a network or loop of feedback and best

 

practices are shared, including funding, programming, professional

 

learning opportunities, discussion of MiSTEM strategic vision, and

 

regional objectives.

 

     (f) Coordinate major grant application efforts with the MiSTEM

 

advisory council to assist regional staff with grant applications

 

on a local level. The MiSTEM advisory council shall leverage

 

private and nonprofit relationships to coordinate and align private

 

funds in addition to funds appropriated under this section.

 

     (g) Train state and regional staff in the STEMworks rating

 

system, in collaboration with the MiSTEM advisory council and the

 

department.

 

     (h) Hire all MiSTEM network staff no later than July 1, 2018.

 

     (h) Collaborate with the MiSTEM network to hire MiSTEM network

 

region staff.

 

     Sec. 99s. (1) From the funds appropriated under section 11,

 

there is allocated for 2017-2018 2018-2019 an amount not to exceed

 

$6,234,300.00 $7,434,300.00 from the state school aid fund

 

appropriation and an amount not to exceed $1,600,000.00 $250,000.00

 

from the general fund appropriation for Michigan science,

 

technology, engineering, and mathematics (MiSTEM) programs. In

 

addition, from the federal funds appropriated in section 11, there

 

is allocated for 2017-2018 2018-2019 an amount estimated at

 

$4,700,000.00 $3,500,000.00 from DED-OESE, title II, mathematics

 

and science partnership grants. Programs funded under this section

 

are intended to increase the number of pupils demonstrating

 

proficiency in science and mathematics on the state assessments and


to increase the number of pupils who are college- and career-ready

 

upon high school graduation. Notwithstanding section 17b, payments

 

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

 

department.

 

     (2) From the general fund allocation in subsection (1), there

 

is allocated an amount not to exceed $50,000.00 $100,000.00 to the

 

department for administrative, training, and travel costs related

 

to the MiSTEM advisory council. All of the following apply to the

 

MiSTEM advisory council funded under this subsection:

 

     (a) The MiSTEM advisory council is created. The MiSTEM

 

advisory council shall provide to the governor, legislature,

 

department of talent and economic development, and department

 

recommendations designed to improve and promote innovation in STEM

 

education and to prepare students for careers in science,

 

technology, engineering, and mathematics.

 

     (b) The MiSTEM advisory council created under subdivision (a)

 

shall consist of the following members:

 

     (i) The governor shall appoint 11 voting members who are

 

representative of business sectors that are important to Michigan's

 

economy and rely on a STEM-educated workforce, nonprofit

 

organizations and associations that promote STEM education, K-12

 

and postsecondary education entities involved in STEM-related

 

career education, or other sectors as considered appropriate by the

 

governor. Each of these members shall serve at the pleasure of the

 

governor and for a term determined by the governor.

 

     (ii) The senate majority leader shall appoint 2 members of the

 

senate to serve as nonvoting, ex-officio members of the MiSTEM


advisory council, including 1 majority party member and 1 minority

 

party member.

 

     (iii) The speaker of the house of representatives shall

 

appoint 2 members of the house of representatives to serve as

 

nonvoting, ex-officio members of the MiSTEM advisory council,

 

including 1 majority party member and 1 minority party member.

 

     (c) Each member of the MiSTEM advisory council shall serve

 

without compensation.

 

     (d) The MiSTEM advisory council annually shall review and make

 

recommendations to the governor, the legislature, and the

 

department concerning changes to the statewide strategy adopted by

 

the council for delivering STEM education-related opportunities to

 

pupils. The MiSTEM advisory council shall use funds received under

 

this subsection to ensure that its members or their designees are

 

trained in the Change the Equation STEMworks rating system program

 

for the purpose of rating STEM programs.

 

     (e) The MiSTEM advisory council shall make specific funding

 

recommendations for the funds allocated under subsection (3) by

 

December 15 of each fiscal year. The amount of each grant

 

recommended shall not exceed $100,000.00. Each specific funding

 

recommendation shall be for a program approved by the MiSTEM

 

advisory council. To be eligible for MiSTEM advisory council

 

approval, a program must satisfy all of the following:

 

     (i) Align with this state's academic standards.

 

     (ii) Have STEMworks certification.

 

     (iii) Provide project-based experiential learning, student

 

programming, or educator professional learning experiences.


     (iv) Focus predominantly on classroom-based STEM experiences

 

or professional learning experiences.

 

     (f) The MiSTEM advisory council shall approve programs that

 

represent all network regions and include a diverse array of

 

options for students and educators and at least 1 program in each

 

of the following areas:

 

     (i) Robotics.

 

     (ii) Computer science or coding.

 

     (iii) Engineering or bioscience.

 

     (g) The MiSTEM advisory council is encouraged to work with the

 

MiSTEM Network regions network to develop locally and regionally

 

developed programs and professional development experiences for the

 

programs on the list of approved programs.

 

     (h) If the MiSTEM advisory council is unable to make specific

 

funding recommendations by December 15 of a fiscal year, the

 

department of technology, management, and budget shall award and

 

the department shall distribute the funds allocated under

 

subsection (3) on a competitive grant basis that at least follows

 

the statewide STEM strategy plan and rating system recommended by

 

the MiSTEM advisory council. Each grant shall not exceed

 

$100,000.00 and must provide STEM education-related opportunities

 

for pupils.

 

     (i) The MiSTEM advisory council shall work with the executive

 

director of the MiSTEM network funded under section 99r to

 

implement the statewide STEM strategy adopted by the MiSTEM

 

advisory council.

 

     (3) From the state school aid fund money allocated under


subsection (1), there is allocated for 2017-2018 2018-2019 an

 

amount not to exceed $2,850,000.00 for the purpose of funding

 

programs under this section for 2017-2018, 2018-2019, as

 

recommended by the MiSTEM advisory council.

 

     (4) From the state school aid fund allocation under subsection

 

(1), there is allocated for 2017-2018 an amount not to exceed

 

$3,299,300.00 to support the activities and programs of mathematics

 

and science centers. In addition, from the federal funds allocated

 

under subsection (1), there is allocated for 2017-2018 an amount

 

estimated at $4,700,000.00 from DED-OESE, title II, mathematics and

 

science partnership grants, for the purposes of this subsection.

 

All of the following apply to the programs and funding under this

 

subsection:

 

     (a) Within a service area designated locally, approved by the

 

department, and consistent with the comprehensive master plan for

 

mathematics and science centers developed by the department and

 

approved by the state board, an established mathematics and science

 

center shall provide 2 or more of the following 6 basic services,

 

as described in the master plan, to constituent districts and

 

communities: leadership, pupil services, curriculum support,

 

community involvement, professional development, and resource

 

clearinghouse services.

 

     (b) The department shall not award a state grant under this

 

subsection to more than 1 mathematics and science center located in

 

a designated region as prescribed in the 2007 master plan unless

 

each of the grants serves a distinct target population or provides

 

a service that does not duplicate another program in the designated


region.

 

     (c) As part of the technical assistance process, the

 

department shall provide minimum standard guidelines that may be

 

used by the mathematics and science center for providing fair

 

access for qualified pupils and professional staff as prescribed in

 

this subsection.

 

     (d) Allocations under this subsection to support the

 

activities and programs of mathematics and science centers shall be

 

continuing support grants to all 33 established mathematics and

 

science centers. For 2017-2018, each established mathematics and

 

science center shall receive state funding in an amount equal to

 

100% of the amount it was allocated under former section 99 for

 

2014-2015. If a center declines state funding or a center closes,

 

the remaining money available under this subsection shall be

 

distributed to the remaining centers, as determined by the

 

department.

 

     (e) From the funds allocated under this subsection, the

 

department shall distribute for 2017-2018 an amount not to exceed

 

$750,000.00 in a form and manner determined by the department to

 

those centers able to provide curriculum and professional

 

development support to assist districts in implementing the

 

Michigan merit curriculum components for mathematics and science.

 

Funding under this subdivision is in addition to funding allocated

 

under subdivision (d).

 

     (f) It is the intent of the legislature that the funding

 

allocated under this subsection represents the final year of

 

funding for mathematics and science centers and that mathematics


and science centers shall not be funded in 2018-2019.

 

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

 

allocated an amount not to exceed $85,000.00 to the Michigan

 

Mathematics and Science Centers Network to reimburse intermediate

 

school districts for transition costs incurred as the centers

 

transition to MiSTEM network regions.

 

     (4) (6) From the general school aid fund allocation under

 

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

 

$1,400,000.00 to $3,834,300.00 for 2018-2019 to support the

 

activities and programs of the MiSTEM network regions. For 2017-

 

2018, each established MiSTEM network region shall receive funding

 

under this subsection in an amount equal to 50% of the state

 

funding amount allocated for 2017-2018 to the mathematics and

 

science centers located within that region to allow the MiSTEM

 

network region to begin operating by April 1, 2018. For former

 

mathematics and science centers with territory in more than 1

 

MiSTEM network region, the amount allocated shall be divided

 

proportionally.In addition, from the federal funds allocated under

 

subsection (1), there is allocated for 2018-2019 an amount

 

estimated at $3,500,000.00 from DED-OESE, title II, mathematics and

 

science partnership grants, for the purposes of this subsection.

 

Beginning in 2018-2019, the fiscal agent for each MiSTEM network

 

region shall receive $200,000.00 for the base operations of each

 

region. The remaining funds will be distributed to each fiscal

 

agent in an equal amount per pupil, based on the number of K to 12

 

pupils enrolled in districts within each region in the prior fiscal

 

year.


     (5) (7) A MiSTEM network region shall do all of the following:

 

     (a) Collaborate with the talent district career and

 

educational advisory council that is located in the prosperity

 

MiSTEM region to develop a regional strategic plan for STEM

 

education that creates a robust regional STEM culture, that

 

empowers STEM teachers, that integrates business and education into

 

the STEM network, and that ensures high-quality STEM experiences

 

for pupils. At a minimum, a regional STEM strategic plan should do

 

all of the following:

 

     (i) Identify regional employer need for STEM.

 

     (ii) Identify processes for regional employers and educators

 

to create guided pathways for STEM careers that include internships

 

or externships, apprenticeships, and other experiential engagements

 

for pupils.

 

     (iii) Identify educator professional development

 

opportunities, including internships or externships and

 

apprenticeships, that integrate this state's science content

 

standards into high-quality STEM experiences that engage pupils.

 

     (b) Facilitate regional STEM events such as educator and

 

employer networking and STEM career fairs to raise STEM awareness.

 

     (c) Contribute to the MiSTEM website and engage in other

 

MiSTEM network functions to further the mission of STEM in this

 

state in coordination with the MiSTEM advisory council and its

 

executive director.

 

     (d) Facilitate application and implementation of state and

 

federal funds under this subsection and any other grants or funds

 

for the MiSTEM network region.


     (e) Work with districts to provide STEM programming and

 

professional development.

 

     (f) Coordinate recurring discussions and work with the talent

 

district career and educational advisory council to ensure that

 

feedback and best practices are being shared, including funding,

 

program, professional learning opportunities, and regional

 

strategic plans.

 

     (6) From the school aid funds allocated under subsection (1),

 

the department shall distribute for 2018-2019 an amount not to

 

exceed $750,000.00, in a form and manner determined by the

 

department, to those network regions able to provide curriculum and

 

professional development support to assist districts in

 

implementing the Michigan merit curriculum components for

 

mathematics and science.

 

     (7) (8) In order to receive state or federal funds under

 

subsection (4) or (6), a grant recipient 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 grant

 

recipient shall reimburse the state for all disallowances found in

 

the audit.

 

     (8) (9) In order to receive state funds under subsection (4)

 

or (6), a grant recipient shall provide at least a 10% local match

 

from local public or private resources for the funds received under

 

this subsection.

 

     (9) (10) Not later than July 1, 2019 and July 1 of each year

 

thereafter, a MiSTEM network region that receives funds under

 

subsection (6) (4) shall report to the executive director of the


MiSTEM network in a form and manner prescribed by the executive

 

director on performance measures developed by the MiSTEM network

 

regions and approved by the executive director. The performance

 

measures shall be designed to ensure that the activities of the

 

MiSTEM network are improving student academic outcomes.

 

     (10) (11) Not more than 5% of a MiSTEM network region grant

 

under subsection (4) or (6) may be retained by a fiscal agent for

 

serving as the fiscal agent of a MiSTEM network region.

 

     (11) (12) As used in this section:

 

     (a) "Career and educational advisory council" means an

 

advisory council to the local workforce development boards located

 

in a prosperity region consisting of educational, employer, labor,

 

and parent representatives.

 

     (b) (a) "DED" means the United States Department of Education.

 

     (c) (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (d) (c) "STEM" means science, technology, engineering, and

 

mathematics delivered in an integrated fashion using cross-

 

disciplinary learning experiences that can include language arts,

 

performing and fine arts, and career and technical education.

 

     (d) "Talent district career council" means an advisory council

 

to the local workforce development boards located in a prosperity

 

region consisting of educational, employer, labor, and parent

 

representatives.

 

     (12) (13) From the general fund allocation under subsection

 

(1), there is allocated an amount not to exceed $150,000.00 for

 

2017-2018 2018-2019 for a grant to the Van Andel Education


Institute for the purposes of advancing and promoting science

 

education and increasing the number of students who choose to

 

pursue careers in science or science-related fields. Funds

 

allocated under this subsection shall be used to provide

 

professional development for science teachers in using student-

 

driven, inquiry-based instruction.

 

     (14) Not later than January 1, 2019, the executive director of

 

the MiSTEM centers network shall report to the house and senate

 

appropriations subcommittees on school aid and the house and senate

 

fiscal agencies on the number of male and female MiSTEM center

 

program participants and the steps, if any, that the MiSTEM centers

 

are taking to reduce any disparity between the number of male and

 

female participants.

 

     Sec. 99t. (1) From the general fund appropriation under

 

section 11, there is allocated an amount not to exceed

 

$1,100,000.00 for 2017-2018 $1,500,000.00 for 2018-2019 to purchase

 

statewide access to an online algebra tool that meets all of the

 

following:

 

     (a) Provides students statewide with complete access to videos

 

aligned with state standards including study guides and workbooks

 

that are aligned with the videos.

 

     (b) Provides students statewide with access to a personalized

 

online algebra learning tool including adaptive diagnostics.

 

     (c) Provides students statewide with dynamic algebra practice

 

assessments that emulate the state assessment with immediate

 

feedback and help solving problems.

 

     (d) Provides students statewide with online access to algebra


help 24 hours a day and 7 days a week from study experts, teachers,

 

and peers on a moderated social networking platform.

 

     (e) Provides an online algebra professional development

 

network for teachers.

 

     (f) Is already provided under a statewide contract in at least

 

1 other state that has a population of at least 18,000,000 but not

 

more than 19,000,000 according to the most recent decennial census

 

and is offered in that state in partnership with a public

 

university.

 

     (2) The department shall purchase the online algebra tool that

 

was chosen under this section in 2016-2017.

 

     (3) A grantee receiving funding under this section shall

 

comply with the requirements of section 19b.

 

     Sec. 99u. (1) From the general fund appropriation under

 

section 11, there is allocated for 2017-2018 2018-2019 an amount

 

not to exceed $1,000,000.00 to purchase statewide access to an

 

online mathematics tool that meets all of the following:

 

     (a) Provides students statewide with complete access to

 

mathematics support aligned with state standards through a program

 

that has all of the following elements:

 

     (i) Student motivation.

 

     (ii) Valid and reliable assessments.

 

     (iii) Personalized learning pathways.

 

     (iv) Highly qualified, live teachers available all day and all

 

year.

 

     (v) Twenty-four-hour reporting.

 

     (vi) Content built for rigorous mathematics.


     (b) Has a record of improving student mathematics scores in at

 

least 5 other states.

 

     (2) A grantee that receives funding under this section shall

 

comply with the requirements of section 19b.

 

     (3) In addition to the funds allocated under subsection (1),

 

from the general fund appropriation in section 11, there is

 

allocated for 2018-2019 an amount not to exceed $100.00 for a

 

software-based solution designed to teach Spanish language literacy

 

to students in pre-kindergarten through first grade. A program

 

funded under this subsection shall be a grant to a provider that

 

promotes bilingualism and biliteracy, and is based on research that

 

shows how students who become proficient readers in their first

 

language have an easier time making the transition to reading

 

proficiency in a second language. A provider of programming under

 

subsection (1) is an eligible provider of programming under this

 

subsection.

 

     Sec. 99v. From the general fund appropriation in section 11,

 

there is allocated an amount not to exceed $25,000.00 for 2018-2019

 

for a grant to a provider that develops and scales effective

 

innovations to support educators, administrators, and policymakers

 

in creating seamless transitions throughout the K-14 system for all

 

students, especially the underserved. A grantee must have expertise

 

in K-12 services, online course programs, digital platform

 

services, leadership networks, and higher education, and work to

 

develop a mathematics pathways alignment. A grantee that receives a

 

grant under this section shall facilitate a 2-day math workshop

 

with high school and college faculty focused on sharing information


about high-impact practices, defining the problem or problems, and

 

using data and planning strategies to address those problems. In

 

addition, the grantee shall use funds to conduct 3 virtual check-

 

ins during which the working groups will report on progress and

 

identify challenges and questions, with the grantee providing

 

guidance and resources as appropriate. Funds allocated under this

 

section are grant funds and must be distributed by the department.

 

     Sec. 102d. (1) From the funds appropriated in section 11,

 

there is allocated an amount not to exceed $1,500,000.00 for 2017-

 

2018 2018-2019 for reimbursements to districts, intermediate

 

districts, and authorizing bodies of public school academies for

 

the licensing of school data analytical tools as described under

 

this section. The reimbursement is for districts, intermediate

 

districts, and authorizing bodies of public school academies that

 

choose to use a school data analytical tool to assist the district,

 

intermediate district, or authorizing body of a public school

 

academy and that enter into a licensing agreement for a school data

 

analytical tool with 1 of the vendors approved by the department of

 

technology, management, and budget under subsection (2). Funds

 

allocated under this section are intended to provide districts,

 

intermediate districts, and authorizing bodies of public school

 

academies with financial forecasting and transparency reporting

 

tools to help improve the financial health of districts and to

 

improve communication with the public, resulting in increased fund

 

balances for districts and intermediate districts.

 

     (2) Not later than October 15, 2017, the department of

 

technology, management, and budget shall review vendors for school


data analytical tools and provide districts, intermediate

 

districts, and authorizing bodies of public school academies with a

 

list of up to 2 approved vendors that districts, intermediate

 

districts, and authorizing bodies of public school academies may

 

use to be eligible for a reimbursement paid under this section. In

 

addition, a A vendor approved under this section for 2016-2017

 

2017-2018 is considered to be approved for use by a district,

 

intermediate district, or authorizing body of a public school

 

academy and for reimbursement for 2017-2018. An approved school

 

data analytical tool supplied by the vendor must meet at least all

 

of the following:2018-2019.

 

     (a) Analyzes financial data.

 

     (b) Analyzes academic data.

 

     (c) Provides early warning indicators of financial stress.

 

     (d) Has the capability to provide peer district comparisons of

 

both financial and academic data.

 

     (e) Has the capability to provide financial projections for at

 

least 3 subsequent fiscal years.

 

     (3) Funds allocated under this section shall be paid to

 

districts, intermediate districts, and authorizing bodies of public

 

school academies as a reimbursement for already having a licensing

 

agreement or for entering into a licensing agreement not later than

 

December 1, 2017 2018 with a vendor approved under subsection (2)

 

to implement a school data analytical tool. Reimbursement will be

 

prorated for the portion of the state fiscal year not covered by

 

the licensing agreement. However, a licensing agreement that takes

 

effect after October 1, 2017 2018 and before December 1, 2017 2018


will not be prorated if the term of the agreement is at least 1

 

year. Reimbursement under this section shall be made as follows:

 

     (a) All districts, intermediate districts, and authorizing

 

bodies of public school academies seeking reimbursement shall

 

submit requests not later than December 1, 2017 2018 indicating the

 

cost paid for the financial data analytical tool.

 

     (b) The department shall determine the sum of the funding

 

requests under subdivision (a) and, if there are sufficient funds,

 

shall pay 1/2 of the costs submitted under subdivision (a). If

 

there are insufficient funds to pay 1/2 of the costs submitted

 

under (a), then reimbursement shall be made on an equal percentage

 

basis.

 

     (c) Funds remaining after the calculation and payment under

 

subdivision (b) shall be distributed on an equal per-pupil basis,

 

with an intermediate district's pupils considered to be the sum of

 

the pupil memberships of the constituent districts for which the

 

intermediate district is purchasing the financial data analytical

 

tool, and with an authorizing body's pupils considered to be the

 

sum of the pupil memberships of the public school academies

 

authorized by the authorizing body for which the authorizing body

 

is purchasing the financial data analytical tool.

 

     (d) The reimbursement to a district, intermediate district, or

 

authorizing body of a public school academy shall not be greater

 

than the amount paid for a data analytics application.

 

     (e) A district, intermediate district, or authorizing body of

 

a public school academy shall not be reimbursed for the purchase of

 

more than 1 software application.


     (4) If an intermediate district purchases both a school data

 

analytical tool specifically for intermediate district finances and

 

a school data analytical tool for those constituent districts that

 

opt in, the intermediate district shall be reimbursed for both

 

purchases under this section.

 

     (5) If an intermediate district makes available to 1 or more

 

of its constituent districts a school data analytical tool funded

 

under this section, that constituent district shall not be

 

reimbursed under this section for the purchase of that school data

 

analytical tool if the constituent district has opted in for that

 

tool.

 

     (6) If an authorizing body of a public school academy makes

 

available to 1 or more public school academies a school data

 

analytical tool funded under this section, the public school

 

academy shall not be reimbursed under this section for the purchase

 

of a school data analytical tool if the public school academy opted

 

in for that tool.

 

     (7) Notwithstanding section 17b, payments under this section

 

shall be made on a schedule determined by the department.

 

     Sec. 104. (1) In order to receive state aid under this

 

article, a district shall comply with sections 1249, 1278a, 1278b,

 

1279, 1279g, and 1280b of the revised school code, MCL 380.1249,

 

380.1278a, 380.1278b, 380.1279, 380.1279g, and 380.1280b, and 1970

 

PA 38, MCL 388.1081 to 388.1086. Subject to subsection (2), from

 

the state school aid fund money appropriated in section 11, there

 

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

 

$34,709,400.00 $38,009,400.00 for payments on behalf of districts


for costs associated with complying with those provisions of law.

 

In addition, from the federal funds appropriated in section 11,

 

there is allocated for 2017-2018 2018-2019 an amount estimated at

 

$6,250,000.00, funded from DED-OESE, title VI, state assessment

 

funds, and from DED-OSERS, section 504 of part B of the individuals

 

with disabilities education act, Public Law 94-142, plus any

 

carryover federal funds from previous year appropriations, for the

 

purposes of complying with the federal no child left behind act of

 

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

 

Law 114-95.

 

     (2) The results of each test administered as part of the

 

Michigan student test of educational progress (M-STEP), including

 

tests administered to high school students, shall include an item

 

analysis that lists all items that are counted for individual pupil

 

scores and the percentage of pupils choosing each possible

 

response. The department shall work with the center to identify the

 

number of students enrolled at the time assessments are given by

 

each district. In calculating the percentage of pupils assessed for

 

a district's scorecard, the department shall use only the number of

 

pupils enrolled in the district at the time the district

 

administers the assessments and shall exclude pupils who enroll in

 

the district after the district administers the assessments.

 

     (3) All federal funds allocated under this section shall be

 

distributed in accordance with federal law and with flexibility

 

provisions outlined in Public Law 107-116, and in the education

 

flexibility partnership act of 1999, Public Law 106-25.

 

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


allocated an amount not to exceed $1,000,000.00 for 2017-2018

 

$2,000,000.00 for 2018-2019 to an intermediate district described

 

in this subsection to implement a Michigan kindergarten entry

 

observation tool in 2017–2018. 2018-2019. The funding under this

 

subsection is allocated to an intermediate district in prosperity

 

region 9 with at least 3,000 kindergarten pupils enrolled in its

 

constituent districts to continue participation in the Maryland-

 

Ohio pilot and cover the costs of implementing the pilot

 

observation tool, including a contract with a university for

 

implementation of the pilot observation tool also referred to as

 

the kindergarten readiness assessment. The intermediate district

 

shall continue implementation of the 2016-2017 pilot study with

 

existing participating intermediate districts during the 2017-2018

 

school year. The Michigan kindergarten entry observation (MKEO) and

 

the kindergarten entry observation readiness assessment shall be

 

conducted in all kindergarten classrooms in districts located in

 

prosperity regions 4, 5, and 9 2, 3, 4, 5, 6, 7, 8, and 9 beginning

 

in August 2018. 2019. A constituent district of an intermediate

 

district located within these prosperity region 4, 5, or 9 regions

 

shall administer the Maryland-Ohio tool within each kindergarten

 

classroom to either the full census of kindergarten pupils or a

 

representative sample of not less than 35% of the enrolled

 

kindergarten pupils in each classroom. The intermediate district

 

receiving the funding allocated under this subsection shall work

 

with other intermediate districts to implement the Michigan

 

kindergarten entry observation, engage with the office of great

 

start and the department, and provide a report to the legislature


on the demonstrated readiness of kindergarten pupils within the

 

participating intermediate districts. That intermediate district

 

may share this funding with the other affected intermediate

 

districts and districts. Allowable costs under this subsection

 

include those incurred in July, August, and September 2017 as well

 

as those incurred in 2017-2018. As used in this subsection,

 

"kindergarten" may include a classroom for young 5-year-olds,

 

commonly referred to as "young 5s" or "developmental kindergarten".

 

The department shall approve the language and literacy domain

 

within the Maryland-Ohio tool, also referred to as the

 

"Kindergarten Readiness Assessment", for use by districts as an

 

initial assessment that may be delivered to all kindergarten

 

students to assist with identifying any possible area of concern

 

for a student in English language arts.

 

     (5) The department shall continue to make the kindergarten

 

entry assessment developed by the department and field tested in

 

2015-2016 available to districts in 2017-2018.

 

     (5) (6) The department may recommend, but may not require,

 

districts to allow pupils to use an external keyboard with tablet

 

devices for online M-STEP testing, including, but not limited to,

 

open-ended test items such as constructed response or equation

 

builder items.

 

     (6) (7) Notwithstanding section 17b, payments on behalf of

 

districts, intermediate districts, and other eligible entities

 

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

 

department.

 

     (7) (8) From the allocation in subsection (1), there is


allocated an amount not to exceed $3,200,000.00 $500,000.00 for the

 

development or selection of an online reporting tool to provide

 

student-level assessment data in a secure environment to educators,

 

parents, and pupils immediately after assessments are scored. The

 

department and the center shall ensure that any data collected by

 

the online reporting tool do not provide individually identifiable

 

student data to the federal government.

 

     (8) (9) As used in this section:

 

     (a) "DED" means the United States Department of Education.

 

     (b) "DED-OESE" means the DED Office of Elementary and

 

Secondary Education.

 

     (c) "DED-OSERS" means the DED Office of Special Education and

 

Rehabilitative Services.

 

     Sec. 104c. (1) In order to receive state aid under this

 

article, a district shall administer the state assessments

 

described in this section.

 

     (2) For the purposes of this section, the department shall

 

develop for use in the spring of 2015-2016 and administer the

 

Michigan student test of educational progress (M-STEP) assessments

 

in English language arts and mathematics. These assessments shall

 

be aligned to state standards.

 

     (3) For the purposes of this section, the department shall

 

implement a summative assessment system that is proven to be valid

 

and reliable for administration to pupils as provided under this

 

subsection. The summative assessment system shall meet all of the

 

following requirements:

 

     (a) The summative assessment system shall measure student


proficiency on the current state standards, shall measure student

 

growth for consecutive grade levels in which students are assessed

 

in the same subject area in both grade levels, and shall be capable

 

of measuring individual student performance.

 

     (b) The summative assessments for English language arts and

 

mathematics shall be administered to all public school pupils in

 

grades 3 to 11, including those pupils as required by the federal

 

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

 

and by title I of the federal every student succeeds act (ESSA),

 

Public Law 114-95.

 

     (c) The summative assessments for science shall be

 

administered to all public school pupils in at least grades 4 and

 

7, 5 and 8, including those pupils as required by the federal

 

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

 

and by title I of the federal every student succeeds act (ESSA),

 

Public Law 114-95.

 

     (d) The summative assessments for social studies shall be

 

administered to all public school pupils in at least grades 5 and

 

8, including those pupils as required by the federal individuals

 

with disabilities education act, Public Law 108-446, and by title I

 

of the federal every student succeeds act (ESSA), Public Law 114-

 

95.

 

     (e) The content of the summative assessments shall be aligned

 

to state standards.

 

     (f) The pool of questions for the summative assessments shall

 

be subject to a transparent review process for quality, bias, and

 

sensitive issues involving educator review and comment. The


department shall post samples from tests or retired tests featuring

 

questions from this pool for review by the public.

 

     (g) The summative assessment system shall ensure that

 

students, parents, and teachers are provided with reports that

 

convey individual student proficiency and growth on the assessment

 

and that convey individual student domain-level performance in each

 

subject area, including representative questions, and individual

 

student performance in meeting state standards.

 

     (h) The summative assessment system shall be capable of

 

providing, and the department shall ensure that students, parents,

 

teachers, administrators, and community members are provided with,

 

reports that convey aggregate student proficiency and growth data

 

by teacher, grade, school, and district.

 

     (i) The summative assessment system shall ensure the

 

capability of reporting the available data to support educator

 

evaluations.

 

     (j) The summative assessment system shall ensure that the

 

reports provided to districts containing individual student data

 

are available within 60 days after completion of the assessments.

 

     (k) The summative assessment system shall ensure that access

 

to individually identifiable student data meets all of the

 

following:

 

     (i) Is in compliance with 20 USC 1232g, commonly referred to

 

as the family educational rights and privacy act of 1974.

 

     (ii) Except as may be provided for in an agreement with a

 

vendor to provide assessment services, as necessary to support

 

educator evaluations pursuant to subdivision (i), or for research


or program evaluation purposes, is available only to the student;

 

to the student's parent or legal guardian; and to a school

 

administrator or teacher, to the extent that he or she has a

 

legitimate educational interest.

 

     (l) The summative assessment system shall ensure that the

 

assessments are pilot tested before statewide implementation.

 

     (m) The summative assessment system shall ensure that

 

assessments are designed so that the maximum total combined length

 

of time that schools are required to set aside for a pupil to

 

answer all test questions on all assessments that are part of the

 

system for the pupil's grade level does not exceed that maximum

 

total combined length of time for the previous statewide assessment

 

system or 9 hours, whichever is less. This subdivision does not

 

limit the amount of time a district may allow a pupil to complete a

 

test.

 

     (n) The total cost of executing the summative assessment

 

system statewide each year, including, but not limited to, the cost

 

of contracts for administration, scoring, and reporting, shall not

 

exceed an amount equal to 2 times the cost of executing the

 

previous statewide assessment after adjustment for inflation.

 

     (o) Beginning with the 2017-2018 school year, the summative

 

assessment system shall not require more than 3 hours in duration,

 

on average, for an individual pupil to complete the combined

 

administration of the math and English language arts portions of

 

the assessment for any 1 grade level.

 

     (4) In an effort to develop a cohesive state assessment

 

system, the department shall implement a request for information


process for a common formative assessment system that is fully

 

aligned to this state's content standards for English language arts

 

and mathematics. The department may use information compiled from a

 

request for proposal in 2016-2017 to satisfy this request.

 

     (4) (5) Beginning in the 2015-2016 school year, the The

 

department shall field test administer benchmark assessments in the

 

fall and spring of each school year to measure English language

 

arts and mathematics in each of grades K to 2. for full

 

implementation when the assessments have been successfully field

 

tested. This full Full implementation shall occur not later than

 

the 2018-2019 school year. These assessments are necessary to

 

determine a pupil's proficiency level before grade 3.

 

     (5) (6) Not later than November 1, 2017, the The department

 

shall issue a request for information for not less than 3 provide a

 

list of 3 benchmark assessments solutions that each meet all of the

 

following:

 

     (a) Assesses Assess all of grades 3 through 7 8 in math and

 

English language arts.

 

     (b) Is Are aligned with this state's content standards such

 

that items were written for this state's content standards.

 

     (c) Is Are computer adaptive above and below grade level.

 

     (d) Produces Produce a pupil's results in not more than 48

 

hours from the time the benchmark assessment is administered.

 

     (e) Is Are self-scoring.

 

     (f) Aligns Align to this state's content standards.

 

     (g) Measures Measure the academic growth of pupils and

 

provides provide an estimate for adequate yearly growth.


     (h) Demonstrates Demonstrate validity and reliability as

 

appropriate for a computer adaptive assessment.

 

     (i) Is Are provided by a vendor that is willing to negotiate a

 

discounted state rate for pricing.

 

     (7) Not later than March 1, 2018 and in consultation with

 

experts in the field of education and educational assessment

 

measurement, the department shall approve at least 3 benchmark

 

assessments that were included in a response to the request for

 

information under subsection (6) and meet the requirements

 

described in subsection (6).

 

     (8) The department shall use the responses to the request for

 

information to create a benchmark assessment budget request for the

 

2018-2019 fiscal year.

 

     (6) Districts shall select a benchmark assessment described in

 

subsection (5) and shall commit to using the same benchmark

 

assessment for no less than 3 years without switching to another

 

benchmark assessment. The department shall use funds allocated

 

under section 104 to pay on behalf of districts the costs of a

 

benchmark assessment selected under this subsection. Payments to

 

vendors under this subsection shall be based on the number of

 

pupils assessed by each vendor's benchmark assessment.

 

     (7) (9) This section does not prohibit districts from adopting

 

interim assessments.

 

     (8) (10) As used in this section, "English language arts"

 

means that term as defined in section 104b.

 

     Sec. 107. (1) From the appropriation in section 11, there is

 

allocated an amount not to exceed $27,000,000.00 for 2017-2018


$30,000,000.00 for 2018-2019 for adult education programs

 

authorized under this section. Except as otherwise provided under

 

subsections (14) , (15), and (19), and (15), funds allocated under

 

this section are restricted for adult education programs as

 

authorized under this section only. A recipient of funds under this

 

section shall not use those funds for any other purpose.

 

     (2) To be eligible for funding under this section, an eligible

 

adult education provider shall employ certificated teachers and

 

qualified administrative staff and shall offer continuing education

 

opportunities for teachers to allow them to maintain certification.

 

     (3) To be eligible to be a participant funded under this

 

section, an individual shall be enrolled in an adult basic

 

education program, an adult secondary education program, an adult

 

English as a second language program, a high school equivalency

 

test preparation program, or a high school completion program, that

 

meets the requirements of this section, and for which instruction

 

is provided, and the individual shall meet either of the following:

 

     (a) Has attained 20 years of age.

 

     (b) Has attained 18 years of age and the individual's

 

graduating class has graduated.be at least 18 years of age and the

 

individual's graduating class shall have graduated.

 

     (4) By April 1 of each fiscal year, the intermediate districts

 

within a prosperity region or subregion shall determine which

 

intermediate district will serve as the prosperity region's or

 

subregion's fiscal agent for the next fiscal year and shall notify

 

the department in a form and manner determined by the department.

 

The department shall approve or disapprove of the prosperity


region's or subregion's selected fiscal agent. From the funds

 

allocated under subsection (1), an amount as determined under this

 

subsection shall be allocated to each intermediate district serving

 

as a fiscal agent for adult education programs in each of the

 

prosperity regions or subregions identified by the department. An

 

intermediate district shall not use more than 5% of the funds

 

allocated under this subsection for administration costs for

 

serving as the fiscal agent. Beginning in 2014-2015, 67% of the

 

allocation provided to each intermediate district serving as a

 

fiscal agent shall be based on the proportion of total funding

 

formerly received by the adult education providers in that

 

prosperity region or subregion in 2013-2014, and 33% shall be

 

allocated based on the factors in subdivisions (a), (b), and (c).

 

For 2018-2019, 33% of the allocation provided to each intermediate

 

district serving as a fiscal agent shall be based upon the

 

proportion of total funding formerly received by the adult

 

education providers in that prosperity region in 2013-2014 and 67%

 

of the allocation shall be based upon the factors in subdivisions

 

(a), (b), and (c). However, if the allocation to an intermediate

 

district as calculated under the preceding sentence is less than

 

the amount received by the intermediate district under this

 

subsection for 2017-2018, the intermediate district shall instead

 

receive in 2018-2019 an amount equal to what the intermediate

 

district received in 2017-2018. Beginning in 2019-2020, 100% of the

 

allocation provided to each intermediate district serving as a

 

fiscal agent shall be based on the factors in subdivisions (a),

 

(b), and (c). equal to what the intermediate district received in


2018-2019. The funding factors for this section are as follows:

 

     (a) Sixty percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals between the ages of 18 and 24 that are not high school

 

graduates that resides in each of the prosperity regions or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey Community Survey (ACS) from the

 

United States Census Bureau.

 

     (b) Thirty-five percent of this portion of the funding shall

 

be distributed based upon the proportion of the state population of

 

individuals age 25 or older who are not high school graduates that

 

resides in each of the prosperity regions or subregions, as

 

reported by the most recent 5-year estimates from the American

 

community survey Community Survey (ACS) from the United States

 

Census Bureau.

 

     (c) Five percent of this portion of the funding shall be

 

distributed based upon the proportion of the state population of

 

individuals age 18 or older who lack basic English language

 

proficiency that resides in each of the prosperity regions or

 

subregions, as reported by the most recent 5-year estimates from

 

the American community survey Community Survey (ACS) from the

 

United States Census Bureau.

 

     (5) To be an eligible fiscal agent, an intermediate district

 

must agree to do the following in a form and manner determined by

 

the department:

 

     (a) Distribute funds to adult education programs in a

 

prosperity region or subregion as described in this section.


     (b) Collaborate with the talent district career and

 

educational advisory council, which is an advisory council of the

 

workforce development boards located in the prosperity region or

 

subregion, or its successor, to develop a regional strategy that

 

aligns adult education programs and services into an efficient and

 

effective delivery system for adult education learners, with

 

special consideration for providing contextualized learning and

 

career pathways and addressing barriers to education and

 

employment.

 

     (c) Collaborate with the talent district career and

 

educational advisory council, which is an advisory council of the

 

workforce development boards located in the prosperity region or

 

subregion, or its successor, to create a local process and criteria

 

that will identify eligible adult education providers to receive

 

funds allocated under this section based on location, demand for

 

services, past performance, quality indicators as identified by the

 

department, and cost to provide instructional services. The fiscal

 

agent shall determine all local processes, criteria, and provider

 

determinations. However, the local processes, criteria, and

 

provider services must be approved by the department before funds

 

may be distributed to the fiscal agent.

 

     (d) Provide oversight to its adult education providers

 

throughout the program year to ensure compliance with the

 

requirements of this section.

 

     (e) Report adult education program and participant data and

 

information as prescribed by the department.

 

     (6) An adult basic education program, an adult secondary


education program, or an adult English as a second language program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults who are determined by a

 

department-approved assessment, in a form and manner prescribed by

 

the department, to be below twelfth grade level in reading or

 

mathematics, or both, or to lack basic English proficiency.

 

     (b) The program tests individuals for eligibility under

 

subdivision (a) before enrollment and upon completion of the

 

program in compliance with the state-approved assessment policy.

 

     (c) A participant in an adult basic education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed at or above the ninth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having completed at least 450 hours of

 

instruction.

 

     (d) A participant in an adult secondary education program is

 

eligible for reimbursement until 1 of the following occurs:

 

     (i) The participant's reading and mathematics proficiency are

 

assessed above the twelfth grade level.

 

     (ii) The participant fails to show progress on 2 successive

 

assessments after having at least 450 hours of instruction.

 

     (e) A funding recipient enrolling a participant in an English

 

as a second language program is eligible for funding according to

 

subsection (9) until the participant meets 1 of the following:

 

     (i) The participant is assessed as having attained basic


English proficiency as determined by a department-approved

 

assessment.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments after having completed at least 450

 

hours of instruction. The department shall provide information to a

 

funding recipient regarding appropriate assessment instruments for

 

this program.

 

     (7) A high school equivalency test preparation program

 

operated on a year-round or school year basis may be funded under

 

this section, subject to all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma or a high school equivalency certificate.

 

     (b) The program shall administer a pre-test approved by the

 

department before enrolling an individual to determine the

 

individual's literacy levels, shall administer a high school

 

equivalency practice test to determine the individual's potential

 

for success on the high school equivalency test, and shall

 

administer a post-test upon completion of the program in compliance

 

with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (9) for a participant, and a participant may be enrolled

 

in the program until 1 of the following occurs:

 

     (i) The participant achieves a high school equivalency

 

certificate.

 

     (ii) The participant fails to show progress on 2 successive

 

department-approved assessments used to determine readiness to take

 

a high school equivalency test after having completed at least 450


hours of instruction.

 

     (8) A high school completion program operated on a year-round

 

or school year basis may be funded under this section, subject to

 

all of the following:

 

     (a) The program enrolls adults who do not have a high school

 

diploma.

 

     (b) The program tests participants described in subdivision

 

(a) before enrollment and upon completion of the program in

 

compliance with the state-approved assessment policy.

 

     (c) A funding recipient shall receive funding according to

 

subsection (9) for a participant in a course offered under this

 

subsection until 1 of the following occurs:

 

     (i) The participant passes the course and earns a high school

 

diploma.

 

     (ii) The participant fails to earn credit in 2 successive

 

semesters or terms in which the participant is enrolled after

 

having completed at least 900 hours of instruction.

 

     (9) A funding recipient shall receive payments under this

 

section in accordance with all of the following:

 

     (a) Statewide allocation criteria, including 3-year average

 

enrollments, census data, and local needs.

 

     (b) Participant completion of the adult basic education

 

objectives by achieving an educational gain as determined by the

 

national reporting system levels; for achieving basic English

 

proficiency, as determined by the department; for achieving a high

 

school equivalency certificate or passage of 1 or more individual

 

high school equivalency tests; for attainment of a high school


diploma or passage of a course required for a participant to attain

 

a high school diploma; for enrollment in a postsecondary

 

institution, or for entry into or retention of employment, as

 

applicable.

 

     (c) Participant completion of core indicators as identified in

 

the innovation and opportunity act.

 

     (d) Allowable expenditures.

 

     (10) A person who is not eligible to be a participant funded

 

under this section may receive adult education services upon the

 

payment of tuition. In addition, a person who is not eligible to be

 

served in a program under this section due to the program

 

limitations specified in subsection (6), (7), or (8) may continue

 

to receive adult education services in that program upon the

 

payment of tuition. The tuition level shall be determined by the

 

local or intermediate district conducting the program.

 

     (11) An individual who is an inmate in a state correctional

 

facility shall not be counted as a participant under this section.

 

     (12) A funding recipient shall not commingle money received

 

under this section or from another source for adult education

 

purposes with any other funds and shall establish a separate ledger

 

account for funds received under this section. This subsection does

 

not prohibit a district from using general funds of the district to

 

support an adult education or community education program.

 

     (13) A funding recipient receiving funds under this section

 

may establish a sliding scale of tuition rates based upon a

 

participant's family income. A funding recipient may charge a

 

participant tuition to receive adult education services under this


section from that sliding scale of tuition rates on a uniform

 

basis. The amount of tuition charged per participant shall not

 

exceed the actual operating cost per participant minus any funds

 

received under this section per participant. A funding recipient

 

may not charge a participant tuition under this section if the

 

participant's income is at or below 200% of the federal poverty

 

guidelines published by the United States Department of Health and

 

Human Services.

 

     (14) In order to receive funds under this section, a funding

 

recipient shall furnish to the department, in a form and manner

 

determined by the department, all information needed to administer

 

this program and meet federal reporting requirements; shall allow

 

the department or the department's designee to review all records

 

related to the program for which it receives funds; and shall

 

reimburse the state for all disallowances found in the review, as

 

determined by the department. In addition, a funding recipient

 

shall agree to pay to a career and technical education program

 

under section 61a the amount of funding received under this section

 

in the proportion of career and technical education coursework used

 

to satisfy adult basic education programming, as billed to the

 

funding recipient by programs operating under section 61a. In

 

addition to the funding allocated under subsection (1), there is

 

allocated an amount not to exceed $500,000.00 to reimburse funding

 

recipients for administrative expenses associated with commingling

 

programming under this section and section 61a. Payments made to

 

each funding recipient shall be in the same proportion as funding

 

calculated and allocated under subsection (4).


     (15) From the amount appropriated in subsection (1), an amount

 

not to exceed $500,000.00 shall be allocated for 2017-2018 to not

 

more than 1 pilot program that is located in a prosperity region

 

with 2 or more subregions and that connects adult education

 

participants directly with employers by linking adult education,

 

career and technical skills, and workforce development. To be

 

eligible for funding under this subsection, a pilot program shall

 

provide a collaboration linking adult education programs within the

 

county, the area career/technical center, and local employers, and

 

shall meet the additional criteria in subsections (16) and (17).

 

Funding under this subsection for 2017-2018 is for the third of 3

 

years of funding.

 

     (16) A pilot program funded under subsection (15) shall

 

require adult education staff to work with Michigan works! agency

 

to identify a cohort of participants who are most prepared to

 

successfully enter the workforce. Participants identified under

 

this subsection shall be dually enrolled in adult education

 

programming and at least 1 technical course at the area

 

career/technical center.

 

     (17) A pilot program funded under subsection (15) shall have

 

on staff an adult education navigator who will serve as a

 

caseworker for each participant identified under subsection (16).

 

The navigator shall work with adult education staff and potential

 

employers to design an educational program best suited to the

 

personal and employment needs of the participant, and shall work

 

with human service agencies or other entities to address any

 

barrier in the way of participant access.


     (18) Not later than December 1, 2018, the pilot program funded

 

under subsection (15) shall provide to the senate and house

 

appropriations subcommittees on school aid, to the senate and house

 

fiscal agencies, and to the state budget director a report

 

detailing number of participants, graduation rates, and a measure

 

of transitioning to employment.

 

     (15) (19) From the amount appropriated in subsection (1), an

 

amount not to exceed $2,000,000.00 $4,000,000.00 shall be allocated

 

for 2017-2018 2018-2019 for grants to not more than 5 pilot

 

intermediate districts acting as fiscal agents for programs that

 

are additional to the pilot program funded under subsection (15) to

 

that connect adult education participants with employers as

 

provided under this subsection. The grant to each eligible pilot

 

program shall be up to $400,000.00. $350,000.00. To be eligible for

 

funding under this subsection, a program must provide a

 

collaboration linking adult education programs within the county,

 

the area career and technical center, and local employers. To

 

receive funding under this subsection, an eligible pilot program

 

shall satisfy all of the following:

 

     (a) Meets 1 of the following:

 

     (i) Is located in prosperity region 1c.

 

     (ii) Is located in prosperity region 2 and borders prosperity

 

region 4.

 

     (iii) Is located in prosperity region 4a and borders

 

prosperity region 5.

 

     (iv) Is located in prosperity region 5 and borders Lake Huron.

 

     (v) Is located in prosperity region 9 and borders a


neighboring state.

 

     (b) Begins operations at the start of the 2017-2018 school

 

year.

 

     (c) Replicates the pilot program funded under subsection (15).

 

     (d) Meets the requirements under subsections (15), (16), and

 

(17) for a pilot program funded under subsection (15).

 

     (a) Shall connect adult education participants directly with

 

employers by linking adult education, career and technical skills,

 

and workforce development.

 

     (b) Shall require adult education staff to work with Michigan

 

Works! agency to identify a cohort of participants who are most

 

prepared to successfully enter the workforce. Participants

 

identified under this subsection shall be dually enrolled in adult

 

education programming and at least 1 technical course at the area

 

career and technical center.

 

     (c) Shall have an individual staffed as an adult education

 

navigator who will serve as a caseworker for each participant

 

identified under subdivision (b). The navigator shall work with

 

adult education staff and potential employers to design an

 

educational program best suited to the personal and employment

 

needs of the participant and shall work with human service agencies

 

or other entities to address any barrier in the way of participant

 

access.

 

     (16) A program that was a pilot program in 2017-2018 and that

 

was funded under this section in 2017-2018 shall be funded in 2018-

 

2019 unless the program ceases operation. The intermediate district

 

in which that pilot program was funded shall be the fiscal agent


for that program and shall apply for that program's funding under

 

subsection (15).

 

     (17) Each program funded under subsection (15) will receive

 

funding for 3 years. After 3 years of operations and funding, a

 

program must reapply for funding.

 

     (18) (20) Not later than December 1, 2018, 2019, a pilot

 

program funded under subsection (19) (15) shall provide a report to

 

the senate and house appropriations subcommittees on school aid, to

 

the senate and house fiscal agencies, and to the state budget

 

director identifying the number of participants, graduation rates,

 

and a measure of transition to employment.

 

     (19) (21) The department shall approve at least 3 high school

 

equivalency tests and determine whether a high school equivalency

 

certificate meets the requisite standards for high school

 

equivalency in this state.

 

     (20) (22) As used in this section:

 

     (a) "Career and educational advisory council" means an

 

advisory council to the local workforce development boards located

 

in a prosperity region consisting of educational, employer, labor,

 

and parent representatives.

 

     (b) (a) "Career pathway" means a combination of rigorous and

 

high-quality education, training, and other services that comply

 

with all of the following:

 

     (i) Aligns with the skill needs of industries in the economy

 

of this state or in the regional economy involved.

 

     (ii) Prepares an individual to be successful in any of a full

 

range of secondary or postsecondary education options, including


apprenticeships registered under the act of August 16, 1937

 

(commonly known as the "national apprenticeship act"), 29 USC 50 et

 

seq.

 

     (iii) Includes counseling to support an individual in

 

achieving the individual's education and career goals.

 

     (iv) Includes, as appropriate, education offered concurrently

 

with and in the same context as workforce preparation activities

 

and training for a specific occupation or occupational cluster.

 

     (v) Organizes education, training, and other services to meet

 

the particular needs of an individual in a manner that accelerates

 

the educational and career advancement of the individual to the

 

extent practicable.

 

     (vi) Enables an individual to attain a secondary school

 

diploma or its recognized equivalent, and at least 1 recognized

 

postsecondary credential.

 

     (vii) Helps an individual enter or advance within a specific

 

occupation or occupational cluster.

 

     (c) (b) "Department" means the department of talent and

 

economic development.

 

     (d) (c) "Eligible adult education provider" means a district,

 

intermediate district, a consortium of districts, a consortium of

 

intermediate districts, or a consortium of districts and

 

intermediate districts that is identified as part of the local

 

process described in subsection (5)(c) and approved by the

 

department.

 

     Sec. 147. (1) The allocation for 2017-2018 2018-2019 for the

 

public school employees' retirement system pursuant to the public


school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1437, shall be made using the individual projected benefit

 

entry age normal cost method of valuation and risk assumptions

 

adopted by the public school employees retirement board and the

 

department of technology, management, and budget.

 

     (2) The annual level percentage of payroll contribution rates

 

for the 2017-2018 2018-2019 fiscal year, as determined by the

 

retirement system, are estimated as follows:

 

     (a) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who are enrolled in

 

the health premium subsidy, the annual level percentage of payroll

 

contribution rate is estimated at 36.88%, 38.39%, with 25.56%

 

26.18% paid directly by the employer.

 

     (b) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who are enrolled

 

in the health premium subsidy, the annual level percentage of

 

payroll contribution rate is estimated at 35.60%, 36.60%, with

 

24.28% 24.39% paid directly by the employer.

 

     (c) For public school employees who first worked for a public

 

school reporting unit on or after July 1, 2010 and who participate

 

in the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 35.35%, 36.24%, with

 

24.03% paid directly by the employer.

 

     (d) For public school employees who first worked for a public

 

school reporting unit on or after September 4, 2012, who elect

 

defined contribution, and who participate in the personal

 

healthcare fund, the annual level percentage of payroll


contribution rate is estimated at 32.28%, 33.17%, with 20.96% paid

 

directly by the employer.

 

     (e) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who are enrolled in the health premium subsidy,

 

the annual level percentage of payroll contribution rate is

 

estimated at 32.53%, 33.53%, with 21.21% 21.32% paid directly by

 

the employer.

 

     (f) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010, who elect defined

 

contribution, and who participate in the personal healthcare fund,

 

the annual level percentage of payroll contribution rate is

 

estimated at 32.28%, 33.17%, with 20.96% paid directly by the

 

employer.

 

     (g) For public school employees who first worked for a public

 

school reporting unit before July 1, 2010 and who participate in

 

the personal healthcare fund, the annual level percentage of

 

payroll contribution rate is estimated at 36.63%, 38.03%, with

 

25.31% 25.82% paid directly by the employer.

 

     (h) For public school employees who first worked for a public

 

school reporting unit after January 31, 2018 and who elect to

 

become members of the MPSERS plan, the annual level percentage of

 

payroll contribution rate is estimated at 39.37%, with 27.16% paid

 

directly by the employer.

 

     (3) In addition to the employer payments described in

 

subsection (2), the employer shall pay the applicable contributions

 

to the Tier 2 plan, as determined by the public school employees


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

 

     (4) The contribution rates in subsection (2) reflect an

 

amortization period of 21 20 years for 2017-2018. 2018-2019. The

 

public school employees' retirement system board shall notify each

 

district and intermediate district by February 28 of each fiscal

 

year of the estimated contribution rate for the next fiscal year.

 

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

 

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

 

$100,000,000.00 for payments to participating districts, and there

 

is allocated for 2018-2019 an amount not to exceed $5,000,000.00 to

 

participating intermediate districts. A participating district or

 

participating intermediate district that receives money under this

 

subsection shall use that money solely for the purpose of

 

offsetting a portion of the retirement contributions owed by the

 

district or intermediate district for the fiscal year in which it

 

is received. The amount allocated to each participating district

 

under this subsection shall be based on each participating

 

district's percentage of the total statewide payroll for all

 

participating districts for the immediately preceding fiscal year.

 

The amount allocated to each participating intermediate district

 

under this subsection shall be based on each participating

 

intermediate district's percentage of the total statewide payroll

 

for all participating intermediate districts for the immediately

 

preceding fiscal year. As used in this subsection, "participating

 

district" or "participating intermediate district" means a district

 

or intermediate district that is a reporting unit of the Michigan

 

public school employees' retirement system under the public school


employees retirement act of 1979, 1980 PA 300, MCL 38.1301 to

 

38.1437, and that reports employees to the Michigan public school

 

employees' retirement system for the applicable fiscal year.

 

     (2) In addition to the allocation under subsection (1), from

 

the state school aid fund money appropriated under section 11,

 

there is allocated an amount not to exceed $48,940,000.00 for 2017-

 

2018 $88,091,000.00 for 2018-2019 for payments to participating

 

districts and intermediate districts and from the general fund

 

money appropriated under section 11, there is allocated an amount

 

not to exceed $29,000.00 for 2017-2018 $48,000.00 for 2018-2019 for

 

payments to participating district libraries. The amount allocated

 

to each participating entity under this subsection shall be based

 

on each participating entity's percentage of the total statewide

 

payroll for that type of participating entity for the immediately

 

preceding fiscal year. A participating entity that receives money

 

under this subsection shall use that money solely for the purpose

 

of offsetting a portion of the normal cost contribution rate. As

 

used in this subsection:

 

     (a) "District library" means a district library established

 

under the district library establishment act, 1989 PA 24, MCL

 

397.171 to 397.196.

 

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

 

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

 

Michigan public school employees' retirement system under the

 

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

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable


fiscal year.

 

     Sec. 147b. (1) The MPSERS retirement obligation reform reserve

 

fund is created as a separate account within the state school aid

 

fund.

 

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

 

any source for deposit into the MPSERS retirement obligation reform

 

reserve fund. The state treasurer shall direct the investment of

 

the MPSERS retirement obligation reform reserve fund. The state

 

treasurer shall credit to the MPSERS retirement obligation reform

 

reserve fund interest and earnings from the MPSERS retirement

 

obligation reform reserve fund.

 

     (3) Money available in the MPSERS retirement obligation reform

 

reserve fund shall not be expended without a specific

 

appropriation.

 

     (4) Money in the MPSERS retirement obligation reform reserve

 

fund at the close of the fiscal year shall remain in the MPSERS

 

retirement obligation reform reserve fund and shall not lapse to

 

the state school aid fund or to the general fund. The department of

 

treasury shall be the administrator of the MPSERS retirement

 

obligation reform reserve fund for auditing purposes.

 

     (5) If the contributions described in section 43e of the

 

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

 

38.1343e, as that section was added by 2010 PA 75, are determined

 

by a final order of a court of competent jurisdiction for which all

 

rights of appeal have been exhausted to be constitutional and if

 

the order for preliminary injunction in case no. 10-45-MM issued on

 

July 13, 2010 is lifted, the money placed in a separate interest


bearing account as a result of implementing the preliminary

 

injunction shall be deposited into the MPSERS retirement obligation

 

reform reserve fund created in this section to be used solely for

 

health care unfunded accrued liabilities.

 

     (6) For the fiscal year ending September 30, 2018,

 

$55,000,000.00 from the state school aid fund shall be deposited

 

into the MPSERS retirement obligation reform reserve fund to be

 

used for the purposes under section 147e.

 

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

 

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

 

$960,130,000.00 $1,032,000,000.00 from the state school aid fund

 

for payments to districts and intermediate districts that are

 

participating entities of the Michigan public school employees'

 

retirement system. In addition, from the general fund money

 

appropriated in section 11, there is allocated for 2017-2018 2018-

 

2019 an amount not to exceed $654,000.00 $700,000.00 for payments

 

to district libraries that are participating entities of the

 

Michigan public school employees' retirement system. All of the

 

following apply to funding under this subsection:

 

     (a) For 2017-2018, 2018-2019, the amounts allocated under this

 

subsection are estimated to provide an average MPSERS rate cap per

 

pupil amount of $640.00 $690.00 and are estimated to provide a rate

 

cap per pupil for districts ranging between $4.00 and

 

$3,020.00.$3,000.00.

 

     (b) Payments made under this subsection shall be equal to the

 

difference between the unfunded actuarial accrued liability

 

contribution rate as calculated pursuant to section 41 of the


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

 

38.1341, as calculated without taking into account the maximum

 

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

 

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

 

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

 

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

 

38.1341.

 

     (c) The amount allocated to each participating entity under

 

this subsection shall be based on each participating entity's

 

proportion of the total covered payroll for the immediately

 

preceding fiscal year for the same type of participating entities.

 

A participating entity that receives funds under this subsection

 

shall use the funds solely for the purpose of retirement

 

contributions as specified in subdivision (d).

 

     (d) Each participating entity receiving funds under this

 

subsection shall forward an amount equal to the amount allocated

 

under subdivision (c) to the retirement system in a form, manner,

 

and time frame determined by the retirement system.

 

     (e) Funds allocated under this subsection should be considered

 

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

 

1 fiscal year to the next.

 

     (f) Not later than December 20, 2017, 2018, the department

 

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

 

per pupil for each district.

 

     (g) It is the intent of the legislature that any funds

 

allocated under this subsection are first applied to pension

 

contributions, and if any funds remain after that payment, those


remaining funds shall be applied to other postemployment benefit

 

contributions.

 

     (h) As used in this subsection:

 

     (i) "District library" means a district library established

 

under the district library establishment act, 1989 PA 24, MCL

 

397.171 to 397.196.

 

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

 

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

 

the district's pupils in membership.

 

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

 

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

 

Michigan public school employees' retirement system under the

 

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

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

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

 

retirement system under the public school employees retirement act

 

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

 

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

 

employees' retirement system under the public school employees

 

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

 

     (2) In addition to the funds allocated under subsection (1),

 

from the appropriation in section 11, there is allocated for 2017-

 

2018 only an amount not to exceed $200,000,000.00 for payments to

 

participating entities. Notwithstanding section 17b, payments to

 

eligible participating entities under this subsection shall be paid


in 1 installment no later than October 20, 2017. Payments under

 

this subsection shall be made as follows:

 

     (a) The amount allocated to each participating entity under

 

this subsection shall be based on each participating entity's

 

proportion of the total covered payroll for the fiscal year ending

 

September 30, 2016. A participating entity that receives funds

 

under this subsection shall use the funds solely for purposes of

 

this subsection.

 

     (b) Each participating entity receiving funds under this

 

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

 

allocated under this subsection and the amount allocated under

 

subsection (1) to the retirement system in a form, manner, and time

 

frame prescribed by the retirement system.

 

     (c) Payments under this subsection shall be used by the

 

retirement system specifically for the payment or prepayment of the

 

final years or partial years of any additional costs to the

 

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

 

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

 

without regard to the amortization of those costs under section

 

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

 

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

 

office of retirement services.

 

     (d) As used in this subsection:

 

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

 

district, community college, or district library that is a

 

reporting unit of the Michigan public school employees' retirement

 

system under the public school employees retirement act of 1979,


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

 

the Michigan public school employees' retirement system for the

 

applicable fiscal year.

 

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

 

employees' retirement system under the public school employees

 

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

 

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

 

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

 

$23,100,000.00 $31,900,000.00 from the MPSERS retirement obligation

 

reform reserve fund and $5,700,000.00 from the state school aid

 

fund for payments to participating entities.

 

     (2) The payment to each participating entity under this

 

section shall be the sum of the amounts under this subsection as

 

follows:

 

     (a) An amount equal to the contributions made by a

 

participating entity for the additional contribution made to a

 

qualified participant's Tier 2 account in an amount equal to the

 

contribution made by the qualified participant not to exceed 3% of

 

the qualified participant's compensation as provided for under

 

section 131(6) of the public school employees retirement act of

 

1979, 1980 PA 300, MCL 38.1431. , if that act is amended by either

 

Senate Bill No. 401 or House Bill No. 4647 of the 99th Legislature.

 

     (b) Beginning October 1, 2017, an amount equal to the

 

contributions made by a participating entity for a qualified

 

participant who is only a Tier 2 qualified participant under

 

section 81d of the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1381d, not to exceed 4%, and, beginning


February 1, 2018, not to exceed 1%, of the qualified participant's

 

compensation. , if that act is amended by either Senate Bill No.

 

401 or House Bill No. 4647 of the 99th Legislature.

 

     (c) An amount equal to the increase in employer normal cost

 

contributions under section 41b(2) of the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1341b, for a member

 

that was hired after February 1, 2018 and chose to participate in

 

Tier 1, compared to the employer normal cost contribution for a

 

member under section 41b(1) of the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1341b. , if section 41b

 

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

 

MCL 38.1341b, is amended by either Senate Bill No. 401 or House

 

Bill No. 4647 of the 99th Legislature.

 

     (3) As used in this section:

 

     (a) "Member" means that term as defined under the public

 

school employees retirement act of 1979, 1980 PA 300, MCL 38.1301

 

to 38.1437.

 

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

 

district, or community college that is a reporting unit of the

 

Michigan public school employees' retirement system under the

 

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

 

38.1301 to 38.1437, and that reports employees to the Michigan

 

public school employees' retirement system for the applicable

 

fiscal year.

 

     (c) "Qualified participant" means that term as defined under

 

section 124 of the public school employees retirement act of 1979,

 

1980 PA 300, MCL 38.1424.


     Sec. 152a. (1) As required by the court in the consolidated

 

cases known as Adair v State of Michigan, Adair v State of

 

Michigan, 486 Mich 468 (2010), from the state school aid fund money

 

appropriated in section 11 there is allocated for 2017-2018 2018-

 

2019 an amount not to exceed $38,000,500.00 to be used solely for

 

the purpose of paying necessary costs related to the state-mandated

 

collection, maintenance, and reporting of data to this state.

 

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

 

shall make payments to districts and intermediate districts in an

 

equal amount per-pupil based on the total number of pupils in

 

membership in each district and intermediate district. The

 

department shall not make any adjustment to these payments after

 

the final installment payment under section 17b is made.

 

     Sec. 152b. (1) From the general fund money appropriated under

 

section 11, there is allocated an amount not to exceed

 

$2,500,000.00 for each fiscal year for 2016-2017 and for 2017-2018

 

$100.00 for 2018-2019 to reimburse actual costs incurred by

 

nonpublic schools in complying with a health, safety, or welfare

 

requirement mandated by a law or administrative rule of this state.

 

     (2) By January 1 of each applicable fiscal year, the

 

department shall publish a form for reporting actual costs incurred

 

by a nonpublic school in complying with a health, safety, or

 

welfare requirement mandated under state law containing each

 

health, safety, or welfare requirement mandated by a law or

 

administrative rule of this state applicable to a nonpublic school

 

and with a reference to each relevant provision of law or

 

administrative rule for the requirement. The form shall be posted


on the department's website in electronic form.

 

     (3) By June 30 of each applicable fiscal year, a nonpublic

 

school seeking reimbursement for actual costs incurred in complying

 

with a health, safety, or welfare requirement under a law or

 

administrative rule of this state during each applicable school

 

year shall submit a completed form described in subsection (2) to

 

the department. This section does not require a nonpublic school to

 

submit a form described in subsection (2). A nonpublic school is

 

not eligible for reimbursement under this section if the nonpublic

 

school does not submit the form described in subsection (2) in a

 

timely manner.

 

     (4) By August 15 of each applicable fiscal year, the

 

department shall distribute funds to each nonpublic school that

 

submits a completed form described under subsection (2) in a timely

 

manner. The superintendent shall determine the amount of funds to

 

be paid to each nonpublic school in an amount that does not exceed

 

the nonpublic school's actual costs in complying with a health,

 

safety, or welfare requirement under a law or administrative rule

 

of this state. The superintendent shall calculate a nonpublic

 

school's actual cost in accordance with this section.

 

     (5) If the funds allocated under this section are insufficient

 

to fully fund payments as otherwise calculated under this section,

 

the department shall distribute funds under this section on a

 

prorated or other equitable basis as determined by the

 

superintendent.

 

     (6) The department may review the records of a nonpublic

 

school submitting a form described in subsection (2) only for the


limited purpose of verifying the nonpublic school's compliance with

 

this section. If a nonpublic school does not allow the department

 

to review records under this subsection, the nonpublic school is

 

not eligible for reimbursement under this section.

 

     (7) The funds appropriated under this section are for purposes

 

related to education, are considered to be incidental to the

 

operation of a nonpublic school, are noninstructional in character,

 

and are intended for the public purpose of ensuring the health,

 

safety, and welfare of the children in nonpublic schools and to

 

reimburse nonpublic schools for costs described in this section.

 

     (8) Funds allocated under this section are not intended to aid

 

or maintain any nonpublic school, support the attendance of any

 

student at a nonpublic school, employ any person at a nonpublic

 

school, support the attendance of any student at any location where

 

instruction is offered to a nonpublic school student, or support

 

the employment of any person at any location where instruction is

 

offered to a nonpublic school student.

 

     (9) For purposes of this section, "actual cost" means the

 

hourly wage for the employee or employees performing a task or

 

tasks required to comply with a health, safety, or welfare

 

requirement under a law or administrative rule of this state

 

identified by the department under subsection (2) and is to be

 

calculated in accordance with the form published by the department

 

under subsection (2), which shall include a detailed itemization of

 

costs. The nonpublic school shall not charge more than the hourly

 

wage of its lowest-paid employee capable of performing a specific

 

task regardless of whether that individual is available and


regardless of who actually performs a specific task. Labor costs

 

under this subsection shall be estimated and charged in increments

 

of 15 minutes or more, with all partial time increments rounded

 

down. When calculating costs under subsection (4), fee components

 

shall be itemized in a manner that expresses both the hourly wage

 

and the number of hours charged. The nonpublic school may not

 

charge any applicable labor charge amount to cover or partially

 

cover the cost of health or fringe benefits. A nonpublic school

 

shall not charge any overtime wages in the calculation of labor

 

costs.

 

     (10) For the purposes of this section, the actual cost

 

incurred by a nonpublic school for taking daily student attendance

 

shall be considered an actual cost in complying with a health,

 

safety, or welfare requirement under a law or administrative rule

 

of this state. Training fees, inspection fees, and criminal

 

background check fees are considered actual costs in complying with

 

a health, safety, or welfare requirement under a law or

 

administrative rule of this state.

 

     (11) The funds allocated under this section for 2016-2017

 

2018-2019 are a work project appropriation, and any unexpended

 

funds for 2016-2017 2018-2019 are carried forward into 2017-2018.

 

2019-2020. The purpose of the work project is to continue to

 

reimburse nonpublic schools for actual costs incurred in complying

 

with a health, safety, or welfare requirement mandated by a law or

 

administrative rule of this state. The estimated completion date of

 

the work project is September 30, 2019.2020.

 

     Sec. 163. (1) Except as provided in the revised school code,


the board of a district or intermediate district shall not permit

 

any of the following:

 

     (a) A noncertificated educator An individual who does not hold

 

a valid certificate or who is not working under a valid substitute

 

permit, authorization, or approval issued under rules promulgated

 

by the department to teach in an elementary or secondary school. or

 

in an adult basic education or high school completion program.

 

     (b) A noncertificated educator An individual who does not

 

satisfy the requirements of section 1233 of the revised school

 

code, MCL 380.1233, and rules promulgated by the department to

 

provide counseling school counselor services to pupils in an

 

elementary or secondary school. or in an adult basic education or

 

high school completion program.

 

     (c) A noncertificated educator to administer An individual who

 

does not satisfy the requirements of section 1246 of the revised

 

school code, MCL 380.1246, or who is not working under a valid

 

substitute permit issued under rules promulgated by the department,

 

to be employed as a superintendent, principal, or assistant

 

principal, or as an individual whose primary responsibility is to

 

administer instructional programs in an elementary or secondary

 

school, or in an adult basic education or high school completion

 

program, unless that educator is fulfilling applicable continuing

 

education requirements.a district or intermediate district.

 

     (2) Except as provided in the revised school code, a district

 

or intermediate district employing educators not legally

 

certificated or licensed individuals in violation of this section

 

shall have deducted the sum equal to the amount paid the educators


individuals for the period of noncertificated, unlicensed, or

 

illegal employment. Each intermediate superintendent shall notify

 

the department of the name of the noncertificated or unlicensed

 

educator, individual employed in violation of this section, and the

 

district employing that individual and the amount of salary the

 

noncertificated or unlicensed educator individual was paid within a

 

constituent district.

 

     (3) If a school official is notified by the department that he

 

or she is employing a nonapproved, noncertificated, or unlicensed

 

educator an individual in violation of this section and knowingly

 

continues to employ that educator, individual, the school official

 

is guilty of a misdemeanor , punishable by a fine of $1,500.00 for

 

each incidence. This penalty is in addition to all other financial

 

penalties otherwise specified in this article.

 

     Sec. 166b. (1) This act does not prohibit a parent or legal

 

guardian of a minor who is enrolled in any of grades kindergarten 1

 

to 12 in a nonpublic school or who is being home-schooled from also

 

enrolling the minor in a district, public school academy, or

 

intermediate district in any curricular offering that is provided

 

by the district, public school academy, or intermediate district at

 

a public school site and is available to pupils in the minor's

 

grade level or age group, subject to compliance with the same

 

requirements that apply to a full-time pupil's participation in the

 

offering. However, state school aid shall be provided under this

 

act for a minor enrolled as described in this subsection only for a

 

curricular offerings that are offering that is restricted to

 

nonessential elective courses and is available to full-time pupils


in the minor's grade level or age group. For the purposes of this

 

subsection, a curricular offering includes optional experiences

 

associated with the curricular offering.

 

     (2) This act does not prohibit a parent or legal guardian of a

 

minor who is enrolled in any of grades kindergarten 1 to 12 in a

 

nonpublic school or who resides within the a district and is being

 

home-schooled from also enrolling the minor in the district in a

 

any nonessential elective curricular offering being provided by the

 

district at the a nonpublic school site . However, state or that is

 

provided by the district, a public school academy, or an

 

intermediate district at a public school site, and that is

 

available to pupils in the minor's grade level or age group,

 

subject to compliance with the same requirements that apply to a

 

full-time pupil's participation in the offering. For the purposes

 

of this subsection, a curricular offering includes optional

 

experiences associated with the curricular offering. State school

 

aid shall be provided under this act for a minor enrolled as

 

described in this subsection only if all of the following apply:

 

     (a) Either of the following:

 

     (i) The nonpublic school site is located, or the nonpublic

 

students are educated, within the geographic boundaries of the

 

district.

 

     (ii) If the nonpublic school has submitted a written request

 

to the district in which the nonpublic school is located for the

 

district to provide certain instruction under this subsection for a

 

school year and the district does not agree to provide some or all

 

of that instruction by May 1 immediately preceding that school year


or, if the request is submitted after March 1 immediately preceding

 

that school year, within 60 days after the nonpublic school submits

 

the request, the instruction is instead provided by an eligible

 

other district. This subparagraph does not require a nonpublic

 

school to submit more than 1 request to the district in which the

 

nonpublic school is located for that district to provide

 

instruction under this subsection, and does not require a nonpublic

 

school to submit an additional request to the district in which the

 

nonpublic school is located for that district to provide additional

 

instruction under this subsection beyond the instruction requested

 

in the original request, before having the instruction provided by

 

an eligible other district. A public school academy that is located

 

in the district in which the nonpublic school is located or in an

 

eligible other district also may provide instruction under this

 

subparagraph under the same conditions as an eligible other

 

district. As used in this subparagraph, "eligible other district"

 

means a district that is located in the same intermediate district

 

as the district in which the nonpublic school is located or is

 

located in an intermediate district that is contiguous to that

 

intermediate district.

 

     (b) The nonpublic school is registered with the department as

 

a nonpublic school and meets all state reporting requirements for

 

nonpublic schools.

 

     (c) The instruction is provided directly by a certified

 

teacher at of the district, or public school academy, or at an

 

intermediate district.

 

     (d) The curricular offering is also available to full-time


pupils in the minor's grade level or age group in the district or

 

public school academy at a public school site.

 

     (e) The curricular offering is restricted to nonessential

 

elective courses for pupils in grades kindergarten 1 to 12.

 

     (f) If a course has an associated optional experience, the

 

optional experience must also be available to full-time pupils in

 

the minor's grade level or age group.

 

     (3) A nonessential course in grades 1 to 8 is a course other

 

than a mathematics, science, social studies, and English language

 

arts course required by the district for grade progression.

 

Nonessential courses in grades 9 to 12 are those other than algebra

 

1, algebra 2, English 9-12, geometry, biology, chemistry, physics,

 

economics, geography, American history, world history, the

 

Constitution, government, and civics, or courses that may fulfill

 

the same credit requirement as these courses. Nonessential elective

 

courses include courses offered by the local district for high

 

school credit that are also capable of generating postsecondary

 

credit, including, at least, advanced placement and international

 

baccalaureate courses. College level courses taken by high school

 

students for college credit are nonessential courses. Remedial

 

courses for any grade in the above-listed essential courses are

 

considered essential. Kindergarten is considered nonessential.

 

     (4) Subject to section 6(4)(ii), a minor enrolled as described

 

in this section is a part-time pupil for purposes of state school

 

aid under this act.

 

     (5) A district that receives a written request to provide

 

instruction under subsection (2) shall reply to the request in


writing by May 1 immediately preceding the applicable school year

 

or, if the request is made after March 1 immediately preceding that

 

school year, within 60 days after the nonpublic school submits the

 

request. The written reply shall specify whether the district

 

agrees to provide or does not agree to provide the instruction for

 

each portion of instruction included in the request.

 

     Sec. 169a. (1) A board member, official, or employee of a

 

district or intermediate district shall not interfere with the

 

right or ability of provide any information received from the

 

Michigan schools for the deaf and blind to provide information

 

about the its residential program among to parents and guardians of

 

pupils or who are deaf, deaf-blind, or hard of hearing and to any

 

residents of the district or intermediate district who request the

 

information.

 

     (2) Upon determining that a pupil is deaf or hard of hearing,

 

a district or intermediate district shall provide to the pupil's

 

parent or legal guardian information, provided by the Michigan

 

coalition for deaf and hard of hearing persons, on educational

 

placement options for deaf and hard of hearing children.

 

     (3) Upon determining that a pupil is blind, a district or

 

intermediate district shall provide to the pupil's parent or legal

 

guardian information, provided by the Michigan federation for the

 

blind, on educational placement options for blind children.

 

     (4) A district or intermediate district that violates this

 

section shall forfeit an amount equal to 5% of the funds due to the

 

district or intermediate district under this article.

 

     Enacting section 1. In accordance with section 30 of article


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

 

state sources on state school aid under article I of the state

 

school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1772, as

 

amended by 2017 PA 143 and this amendatory act for fiscal year

 

2017-2018 is estimated at $12,846,177,300.00 and state

 

appropriations for school aid to be paid to local units of

 

government for fiscal year 2017-2018 are estimated at

 

$12,659,469,800.00. In accordance with section 30 of article IX of

 

the state constitution of 1963, total state spending on school aid

 

under article I of the state school aid act of 1979, 1979 PA 94,

 

MCL 388.1601 to 388.1772, as amended by this amendatory act from

 

state sources for fiscal year 2018-2019 is estimated at

 

$13,008,106,800.00 and state appropriations for school aid to be

 

paid to local units of government for fiscal year 2018-2019 are

 

estimated at $12,819,958,800.00.

 

     Enacting section 2. Sections 21j, 22g, 31b, 35, 104d, and 104e

 

of the state school aid act of 1979, 1979 PA 94, MCL 388.1621j,

 

388.1622g, 388.1631b, 388.1635, 388.1704d, and 388.1704e, are

 

repealed effective October 1, 2018.

 

     Enacting section 3. (1) Except as otherwise provided in

 

subsection (2), this amendatory act takes effect October 1, 2018.

 

     (2) Sections 11, 11m, 22a, 22b, 24, 25f, 26a, 26c, 31d, 32d,

 

51a, 51c, 56, 62, and 94 of the state school aid act of 1979, 1979

 

PA 94, MCL 388.1611, 388.1611m, 388.1622a, 388.1622b, 388.1624,

 

388.1625f, 388.1626a, 388.1626c, 388.1631d, 388.1632d, 388.1651a,

 

388.1651c, 388.1656, 388.1662, and 388.1694, as amended by this

 

amendatory act, take effect upon enactment of this amendatory act.

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